The URL can be used to link to this page

Home My WebLink About08-05-81 Council Special Minutesz~aIi~TU~PN~S OF 2H~: SPECSAL NiEE`1.'IN(~ C:l`I'Y COUNCIL lil'I'TLE CANADA9 MINNESO^1A August 59 1y81 F'ursuant to due call aaad notice thereo.f a special meeting of the Council of the City of liitt:le Canaaa, Minrzesota was held on the 5th day o~' August, 19E31 in the Couzicil Chambers of the City Center located at 515 Little Caz~ada Hoad in said City, 'Ptxe rlayor, Mr, Naymond Elarxson, chaired and called the meeting to order at 7c30 P.iK. ~~iBF'RS PRESEII^1 a l~iayor Ntr, Its.ymond Hanson Councilman [~ix°, yIichael Fahey Counci7an~n Nir. llennis I~'oxsbexg L'ouncilwoniari ~Irs, Mugs Nardini Councilwoman Mrs, Beverly Scalze AliSO YR~;SEN`l'o City C.Lerx P'Ir. Joseph Chlebeck lleputy Clerk Nirs. Annette I+reeman City Attorney Mr, Clayton k'arks Consul.ting Engineer NIr, Dona:Ld Carle,y (arrived 9000 P.f~i.) Auditor ~4r. Ftobert Voto of DeLaHunt ~oto & Co, Recording Secretary Mrs. Kathleen G1.anzer City Audit i~ir. Robert Voto of DeLaHunt Voto & Co.' the Gity~s auditor, submitted to the Council the City of liittle Ganadaos Annual Financial Report azad Kanagement t~eport azzd Hocorrunendations. NIr, Voto informed the Council that these reports ~re dated December 319 1980, but were recerztly updated through June 30, 1981. i~ir, Voto informed the Council that the City of Little Canada is in sound financial condition to date, i~ir. V'oto commented that due to changes by the State Legislature there wil'1 not be the increases in State aid to cities that thexe has been in the past. There has also been a decrease in the amount o£ property ta:ces paid by l.oca,l property owners due to ancreases in the State~s Homestead Credit, N1r, Voto a.nformed the Council that the State has made a change in the ~i~ning of local goverxament aid payments to i~Iinnesota cities, Such payments will be msde in the last si.x rnonths of each year rather than quarterly as has been the case in the past. Therefore9 the City wi].:1. be receivixig :its first State aid pa.yment after July 1.5 of each year> Tkze reason for this change is due to the cash flow problem of the State, The State is, in e£fect, passing a.ts cash £:l.ow problem on to t.he City. Voto also in£ormed Council members that the City will have ~ shortage based on proJQ~ted :1982 revenues, It is DeLaHunt Voto & Co,os recommendation that to offset this shortage the City reserve from ~25,OU0 to $50,OU0 ea.ch year, Page ..l«. MINU`~'ES City Couxacil August 5y 1g81 Nir. Voto also commented that the Gity of Little Caaaada does not benefa.t f'roan the fisca7. disp$rities po.Licy, P~irs. Sealze ~sked the reason the Cityos mi11 ra'te was so high in comparison with other cities, NIr, Voto replied that the fiscal disparities polacy and general obligation debt were reasons lor the City~s ha.gh mill rate, However' a.n cpmparing mi11 rates between ci.ties, sa:l.es ratio rnust a],so be taken into consideration. Little Canada has the l.owest sa].es ratioy and thus the City+s t~x base is low and mi].l rate is high. l~ira Voto a.nformed Council that the 5tate has been talka.ng about putt9.ng an a~ aap on a:11 taac levies, 7'kias would be disastrous for the City as bond oblzgations must be met, This Yaas been defeated9 howover' Voto fQlt it would probably be considered agaan in the :~uture, iKrs. Sca].ze pointed out that the Cityos Park Fund has been set aside ~'ox land acquisition purposes, Scal.ze stated that it was her undex0 standa.ng that anoney would not be taken £rom this fund for park irnprcvements. i~Tonies %or such improvements were to come out o£ the General F'und, i~lr, Vobo stated that tha.s woul.d be corrected. lhis means that tho report has overstated the Genexal Fund and understated the Par~s Fund, The City Attorney pointed out that money collected by the City in ~arks charges is lami.ted by State law for use izz land acquisition, The Cityos orda,nance was amended to include this provision. rLr. Voto commented that the special assessment furzd has a$37~a'000 shortage. `the shortage is mainly due to the 196G and 1967 sewer improvements and the 1971 amprovernent. Nir. Voto suggested that the City take a look at present assessment def'errmenta, Voto felt that tYze shortage in the special assessmexit fund wa.l1 be resolved caithin a£ive year perzod. Voto also commented that the debt serva.ce study fox the City wi11 be do~xe at a later date, I't was discussed by the Counci~. that the City should be chargir~ interest on deferred assessmexits> I~lr, Pahey stated that when the Cityos deferrments are reviewed9 the Counei]. should consider charging interest on the assessments that vri11 remain de.ferred. ~'he Caty Clerk pointed out that a.nterest is b~'ing charged oxi senaor citizezx def'errments. The City Attorxaey stated that Sta~te .~aw roquires that these cases be treated uni2'ormily, p~, the time that th~ City dei'erred assessments, tkae subject o~' interest was not considered. `1'his is now a new issue and could be brought up in the future, aYlr. Voto informed the Couracil that the t;ity is trying to irnprove ats i.nvestment po].ici.es, Therei'ore, Voto 9.s recommendixzg that the Cous~ci~. appxove several banks and savings and loan institutions as City deposstoriesm Page -2» ~i~u~~s city counoil August 5, 1981 By doing this, when the City has some money to invest, it can ca11 the various institutions and get quotes on interest rates and the City can then invest its money witn the institution giving the rnost favorable quote to 'nhe City. 'Phe City Clerk subrnitted a list of banks and savings and loans for approval as City depositories> The i~ayor pointed out thati tkze Little Canada kirst State ttank was already approved as the uity~s depository and did not need approval again, i°ir. Hanson introduced the following resolution and moved its adoptioxas RN;SOLUTIOiV N0, ~t-S-39~ - Nnc4ING 'i'HE FOLLOWSNG AS CITY DEYOSI'1'UR1ESe NOHTH S'1'AR STATE BANK9 NiAPLEW00ll uTATE BANii9 ROSEVILLE ST.ATE BANd9 VEu~T BRIGHTOiV S`L'ATk; EANK AiVD `i'AL FINST F~Dk;RAi, SAVINGS ANll LOAN ASSOCTATTON 2'he foregoing resolution was duly sscaz~ded by anrs. Scalze. Ayes (5) lianson9 Sca].ze9 Narriini~ Forsberg~ Fahey. Nayes (0). Resolution declared adopted, rnis resolution appeai•s in I?esolution 13ook No, /9 rages 26t~ a~U 265. Tne ua.ty Clerk stated tha:t t~,ere were a f'eca more instizutions he wou].d like a~yroved as Cz'ty deposiwriea, and he wo~il.d sub,~~ic a list to 'l:he Counc:il a't a later date, The City Clerk also subanitted 't,o the Council an exhapit showing the C'~ty~s aaily investment balance. This wi11 p,ive ~ne Gity a better idea of its cash ~'low situ~tion. I~ir, Voto also recoruneradc;d that the City monitor its utili~y rates and utility costs annually, ~'oto also :rF:corm~zen.<:]<>d severa.l :i.r.t;erfund audit adjustments be made, These are cpontained in Exhibzt ~ o:f isk~e tinizu~l. :~~'i.izar:ci~~7. iZeport FAIdCj LO~tF.2.1. i'p1Z9C~Jj,IE/q ro: ~ t'al~ey introduced the follo~ving resolu'tion and moved its ado~ tione I~.ESOLUTSOM NU< 81~8-392 - AU"'itORIZING `PHli SNTE2tFUND AUDTT A J 1:N NT ONTA NED J:I4 L':XHIBIT 6 OF i'HE AIdNUAL F'INANCIAL REYpRT SUBI~iST`PED BY 7eLAIIUNT VOTO & C0, 9 LTll, DATEU DF.CEMBER 319 1980 IN THE TOTI~L AMOUNT OF $129595.l~7 The Poregoing xesolution was duly secorided by Mr, kiansora, Ayes (5) F'ahey' ilanson9 Forsberg' Scalze' i~ardini. N~yes (0), Reso:Luta.on declared a.dopted, `L'Yais resolution appears a.n l~.esolution k3oolc tio. 7' Page 265, Page p3- vii14UTES C:ity Couxxcil August 5s -~9~3~. a~tayor Hansoza poanted out that it should be r~oted that the Auda.tor a.s recorrunexiding that the improvement bonds of 197~ account be closed and the funds trans£exred at year end, Arzrxette Freeman, llepu.ty C1erk, requested that the Council charage the Cityts payment procedures so that vendoxs are ~aid at the end o£ the month and full-time employees axe paid twrice a month. iKrs. Freeman stated that this wi1:1 help the Cityas of£ice staff in. processiaag raonthly ~>ayment vouchers. i~Irs, Nardini introduced the followixig .resolutio.n and moved its adoptiona N7i;SOLUTION I40, 81~.Fiw393 - CIIANGING 'SHIs GITYo S YAYiJiL;N'P PfZOCEDURL+'S 50 THA7' AI,L VENDERS ARL YAIA AT TI~E EVD OF iHE MON`1~II 41~TI3 THE F;XCE~'PION OF F'ULL-TII~; EMPT,OYEES WHO WILL BE 1~AID TWICE A MONTI~I `i'he Soregoing xesolution was duly seconded by NLrs. Scalze, Ayes (5) N~:rdixii, Scalze, Hansora, Forsberg, F'ahey, Nayes (0), Resolution declared adopted, 7'his resolution appears ixi Resolution Book Noa 79 Page 2b6, Tha City Clerk asked Mr. Voto i~' the City will be needing a Revenue Sharing Audit dorze soon, i~Lr, Voto stated that he will check on this, 'Phe f'ollowing is a summary of recommendations that were contained in the Cityos Management Report and Hecotmnendatione; asEvaluate the City~s exista.ng £inancial po7.icies and procedures in relation i:o the new financial environment and the changes made by the 19n1 Aiinnesota i.egis~.ature, ~EDevelop and implement an improved investment program to mir~imize uninvested cash balances, ;eContinue to m~nitor tax collections arzd delinquency rates, ~~Conti.nue to expaaxd and irnprove accounting controls over the special assessrraents receivable and conti.nue to monitor current collections and deli.nquency rates. 3~Effect 196L cash transfers to record the December 31, 1980 interfusad rec ea.vables/pa,vables. ~.°Continue action to increase the fund balance of the General Fund unti~, an opta.rnwu level is achieved, ~~Continue to monitor the various and several rules and rogul,ations of the P'edera:L 0~'fice of Revenue Sharzng and approve the perfoxmatace of a ~~special compliance audit~~ for 1980g 1981 or 19f72m ~:Effect the Snancing of the new City Garage, ;EContinue to monitor the financ9.a]. projecti.ans o~ the various Specia7. Assessment T Aebt Service Accourzts as detailed previously ixa this Fteport m Page -itw rhlrroTEs City Council August 5s 1981 ~.°Continue to monitor the operations of the City~s Glater and Sewer Utilities to assure adequate levels q£ operatixag net income. Hammond 'Phe City Engineer submitted to the Coun~il for their approval. a Land letter that he was sending regarding the Hammond land filling. Filling `Phe letter states that the City agrees to excavate the easements and qlean the ditch and ponding area arzd into the lake, 'i'he Harrunond+s have hauled in approximately 900 yards of fi7.1. Therefore9 the Watexshed District wants 900 yards of fi11 removed from th~ property. The City will be removing the above mentioned material from the ditch and ponding areas9 and the kIammondos will have s.~ remove tkae balance of the 900 yards. Park The Attorxiey reported that the situation with Park Street has been Street resolved. NLr. Villeawc~ras concerned about the slope that would be caused on his property after Yar:s Street was put through. ~n woricing with the City engineers9 this matter has beexi resolved and the slope change~3, There are also several trees that will not have to be removed from the Valleaux property. i~ir. Yarks also reported that he will be meetinp, with I~Ir. Ed Anderson on Friday to discuss the easement that wi11 be needed £rom him for Park Street. Mr. F'ahey asked if this easement will come back to the Council for appxoval. Mr. Parks replied that it would, Mr. Forsberg stated that he was not prepared to pay property owners for easements whexi they were in favor of the improvement. Mr. Parks stated that of the 21 easements that wi11 be needed for Park Street only 5 are ~~xmanent easements. I~ir. FaYzey stated that there may not be a problem in this regard. Mr. F'orsberg then commented that the amourat of the easement would also be a £actor. Mr. F'ahey stated that Mr, Villeaux has requested that the City send a letter requesting stop lights on Demont and Ftice Street, The City C].erk reported that Mr. Villeaux is planning to block off a section of Park Street on the south side of Demont. This is a private section of road and Villeawc is concerned that when Park Street goes through north of Demont, Park Street would be used as a through street. Trailer Home The City C1erk reported that the owners of the trailer home on L'aBore On La}3ore Rd, goad are trying to aell it. In the meantime~ someone is living in it so that it will not be vandalized. Pa~~ -5- Mz~u~~s City Council August 59 1981 Nrsa Nardini commented that the trailer horne did not have to remain where it is in order to be soldm Nir, T-Ianson stated that this item should be put on the agenda at a regular Council meeting and the owrzers informed of this. AdJpu~'nzng 3fir> IIanson introduced the £ollowing resolution and moved its adoption: RESOT~UTION N0. 81-8a391t - ADJOUHNING The foregoing resolution was duly secorzded by Mr. Fahey. Ayes (~j') Hanson9 F'ahey, Forsberg~ Nardini, Scalze, Nayes (0). Hesolutioxi declared adopted, 'Phis resolution appeara iza Resolution f3ook No.79 Page 267, There being no further business,, the meeting was adjouz^ned at 9:~a5 Y.Me Respectfu7.ly submitted~ ~ j ~i _ ~ , 1/ r ~~ /t':~ ~~~l(~o~~• k~/~~1-~c.-1 c~.. Kathleen Glanzer - ~1 Heaording Secretary, - Yage ..6-