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HomeMy WebLinkAbout12/09/1998 Council Minutes• • COUNCIL WORK SESSION DECEMBER 9,1998 CITY OF LINO LAKES MINUTES DATE December 9, 1998 TIME STARTED 5:30 P.M. TIME ENDED 10:05 P.M. MEMBERS PRESENT Bergeson, Dahl, Lyden, Neal, Sullivan MEMBERS ABSENT None Staff members present: Acting City Administrator/Police Chief, David Pecchia; City Engineer, John Powell, Planning Coordinator, Mary Kay Wyland; Community Development Coordinator, Mary Alice Divine; City Planner, Jeff Smyser; Administration Director, Dan Tesch; Public Services Director, Rick DeGardner; Community Development Director, Brian Wessel; Financial Analysis, Daryl Sulander; Environmental and Forestry Coordinator, Marty Asleson and Clerk -Treasurer, Marilyn Anderson. LIVABLE COMMUNITIES PROGRAM PARTICIPATION/GOALS, BRIAN WESSEL The Livable Communities Act was passed by the Minnesota Legislature in 1995 and Metropolitan (Met) Council is the agency administrating the Act. This will be the fourth year that Lino Lakes has made a commitment to the Act. Jeff summarized the proposal for participation in 1999. The City Council will be requested to adopt two (2) resolutions. The first is a resolution electing to continue participating in the Local Housing Incentives Account Program under the Metropolitan Livable Communities Act, Calendar Year 1999. The second resolution will establish Livable Community Goals. There are two (2) concerns. At this time the housing market is not lending itself to affordable or varied housing except town homes. The second is that the figures are based on 1990 census data. These two (2) problems make the goals unrealistic. Everything will change after the 2000 census is completed. To be eligible for any of the funds under the Act, a city agrees to work toward promoting a greater variety of housing. To provide some sort of indication of progress, the city sets long-range goals regarding housing affordbility, life cycle housing and development densities. The City received a grant of nearly $220,000 last year to conduct various studies involving The Village. Currently the City is in the midst of a planning effort to bring in the best people in the country to focus on mixed development for that portion of the City. With this effort, the City will get high quality development. Although, normally Met Council would fund "bricks and mortar", they see this as a demonstration project and once planning is complete, the City will be eligible for future funding. Page 1 COUNCIL WORK SESSION DECEMBER 9, 1998 It was noted that the purpose of building the civic buildings was to encourage development in the project. Mary Alice was asked what would happen if no other development takes place? She explained this will not happen, the interchange will develop. Planning before the development starts allows the City to control the quality of the development and how the area will develop. Brian explained that the McDonalds project will be considered by the Planning and Zoning Board in January. The extension of Apollo Drive into the shopping center property will take place as the McDonalds store is constructed. Jeff was asked if the City must set goals and demonstrate progress in attaining these goals if the City wants to be a part of Livable Communities? Jeff explained that goals are based on a group. Lino Lakes is part of the north sector group. Characteristics of this sector are the basis of the goals. Lino Lakes has to be part of this group in order to qualify for funding. The funding makes the difference in the quality of development that will occur in Lino Lakes. The funding received last year is now being used to conduct an environmental analysis, to fund the Calthorpe Group master plan and a housing analysis of the Town Center, and hopefully a commercial market analysis. Jeff was asked what are the goals for Lino Lakes? Is our participation in Livable Communities dependent upon reaching certain benchmarks? Why can't we tell them what is going to realistically happen? Is there some rule that says we have to follow the benchmarks? Brian referred to Resolution No. 98 - 175 and said the City has to accept goals. Jeff explained that although the adoption of the resolution will spell out some goals, by the time the program all comes together, the 2000 census will be completed and all goals will have to be re-evaluated. If the City adopts Resolution No. 98 - 175, the City does not have to meet those goals. Jeff was asked if the goals were for affordable housing only? Do they pertain to rental housing? He explained there are separate goals for affordable housing and rental housing. If we do not meet the goals, can we still participate in the Livable Communities Program? Jeff said there are separate goals for affordable housing and rental housing. We do not need to meet the goals to continue to participate and be eligible for future funding. Brian was asked if the goals in Resolution No. 98 - 175 are the same goals that were adopted last year. Brian said no, the rental goals were less and were not acceptable to Met Council. However, conceptually, these goals are consistent with what we want to do. If the City wants funding, the City must adopt these goals. Page 2 COUNCIL WORK SESSION DECEMBER 9,1998 It was noted that the City held this discussion a year ago and adopted some goals. The City received the funding and spent it. Why is the City being told to commit to a different number? Brian explained that this discussion will be an annual event. The goals are a projection. Jeff explained that the important thing is that the City is making progress and is insuring local ordinances do not obstruct these goals. Kim said she would like it be said the way it is. Brian explained that he could set a meeting with Met Council staff so that the City Council can meet with them and ask them directly what this all means. He noted that senior housing, affordable housing and starter housing are all planned for the Town Center. The goals outlined in Resolution No. 98 - 175 are City wide goals but this is where the City plans to build most of these types of housing. John asked Jeff how the City measures up to these goals presently. Jeff explained that in 1994, 1995, 68% of the owner occupied was affordable, 23% of the rental was affordable. Jeff was asked what is affordable housing and he explained a single family house valued at no more than $128,000 or a one bedroom rental unit at $607 per month. Affordable does not mean low income. It also does not mean Section 8 housing. Low income is not the issue, affordable does not mean low income. Chris said he could support tying these goals to the Town Center site. Brian said he could • take this proposal to the Met Council. Kim suggested that when we meet with the Met Council, the Council should talk about the following: 1. Good faith issue of 15% versus 25% rental 2. Town Center versus City wide goals 3. Realistic goals versus bench marks This matter will be discussed further at the December 16, 1998 work session. COMPREHENSIVE PLAN UPDATE, BRIAN WESSEL Brian explained that he has proceeded with the directive by Council to submit the draft Comprehensive Plan to Met Council. Alan Brixius is making the changes as directed by Council. A draft of the plan has been distributed as required by law to neighboring cities and agencies. He asked for a directive regarding the Lyden/Dahl Plan. Chris said that Met Council will know how three (3) Council Members feel and asked that Met Council be made aware of how the remaining two (2) Council Members feel. • Kim said the Comprehensive Plan was presented to Council and the Council voted to submit it to the Met Council. Anything not approved by the City Council should not be Page 3 COUNCIL WORK SESSION DECEMBER 9,1998 submitted. Chris felt that was an illegal vote and that a 4/5th vote is needed to send it to Met Council. Council was asked what they wanted to do about the Lyden/Dahl Plan. It was suggested that a motion could be made to direct that the Lyden/Dahl Plan be sent to Met Council with the proposed Task Force Comprehensive Plan. If the motion failed, people could still mail it to the Met Council. It could be sent independently. Kim said that she would have a problem if Chris sent this as a Council Member. A Council Members job is to reach a consensus. She had no problem with Chris sending the Lyden/Dahl Plan under his name. Chris explained had the Task Force Plan been approved by at 4/5th vote, he would have no problem sending the Plan forward. However, his was not the only dissenting vote. He asked that the Lyden/Dahl Plan be placed on the agenda. Staff was asked if all cities are on the same cycle in regard to submitting their Comprehensive Plans. It was explained that a number of communities have submitted their Plans early and some have received Met Council approval. Some cities have asked for an extension of time. Met Council coordinates all of the plans especially the transportation and utility plans. The Lyden/Dahl open space plan will be placed on the December 14, 1998 agenda. LAND SALES TO KATHY HANSMANN AND LAKELAND NATIONAL BANK, JOHN POWELL John showed the City Council a map of the two (2) parcels. The parcels were created when Apollo Drive was extended to Lake Drive through a residential lot. This matter was presented to Council at an earlier work session. The Council had directed John to negotiate the sale of the parcels to the adjoining landowners so that they could incorporate these parcels with their parcels. John made a proposal to the landowners to sell the land for $1.00 per square foot. The landowners said that they would buy the parcels from the City for a $1.00 each and would incorporate the parcels into their landscape plans. Both adjoining property owners asked why would the City want to maintain ownership of the parcels. This would keep them off the tax rolls and be a constant maintenance problem. Kim noted that she had talked to Kathy Hansmann who pledged to save some of the trees on the parcel adjoining her property. Brian noted that both Marty and Dennis Grebner are working with both adjacent property owners on a landscape plan. John Powell will prepare documents to convey the parcels to the adjacent property owners and retain an temporary easement until the Apollo Drive construction has been Page 4 • • • COUNCIL WORK SESSION DECEMBER 9,1998 completed through the area. John will include a maintenance requirement in the documents. SPEED LIMIT ON LAKE DRIVE, JOHN POWELL A letter was received from business owners on Lake Drive expressing concern about the speed limit on Lake Drive. John explained that 1999 utility construction along Lake Drive north of I -35W will slow traffic considerably on a temporary basis. However, since Lake Drive is an Anoka County highway, the letter will be referred to the Anoka County Highway Department as well as Commissioner Margaret Langfeld. John noted that in about the future, a traffic light will be installed at the intersection of Apollo Drive and Lake Drive and other locations along Lake Drive. This too will slow traffic. It was noted that speed studies will determine the actual speed of the traffic on a particular roadway. This could also lead to an increased speed limit in some areas. John will send a copy of his letter to the Anoka Highway Department and will copy each business owner who signed the letter. In addition, Kim will be meeting with Commission Langfeld this Thursday and will mention this concern to her. Andy asked that speed limit signs be posted along that section of Lake Drive. AMERICAN LEGION CLUB PROJECT UPDATE, BRIAN WESSEL Brian noted that he and Andy have been working with the Legion to find a "home". Andy explained they have two (2) plans, Plan A and Plan B. Plan A - The Legion is considering locating in the current Police Department building when the Police Department moves to their new space in The Village. Since this building is a pole structure, the Legion would be limited as to how much space they could add on to the building. The plan would be to add on to the back of the building and brick the front of the current building. In about two (2) or three (3) years, the Legion would remove the current building and build a new structure to match the portion that was added initially. Sewer and water utilities will be extended to the site in 1999. Plan B - The Legion would buy Straight Shooters on Lake Drive just north of Second Avenue and remodel that building to suit their needs. Plan A is a concern because it is located near a residential area. Plan B does not have immediate residential development. However, the Sharp Shooters building is not in the area where sewer and water utilities are expected to be constructed in the near future. Page 5 COUNCIL WORK SESSION DECEMBER 9,1998 Both properties would require a rezone and a conditional use permit. In addition, the issue of an on -sale liquor license would have to be resolved since the City has a moratorium on the issuance of on -sale licenses. Brian explained that the four (4) lots south of the current Police Department building have always been an economic development possibility. Currently the land is priced at $2.00 per square foot or approximately $350,000. There has been discussion regarding placing retail development on the lots. He has held discussions with Gary Uhde who feels the price was not affordable and the idea seemed to die. Brian met with Mr. Uhde again this week and talked about a temporary use in the Police Department building but the cost of the land is still an issue. The Council should determine what they feel should be done with this property. Some research has determined that if the Police Department building was again placed on the tax rolls, $5,000 of taxes per year would be realized. Chris suggested the Legion build in the Town Center. He felt it was important to remove as many non -conforming uses from the commercial areas as possible. Brian said the Town Center would be a good location, however, that would be two (2) or three (3) years in the future. The Legion needs to do something immediately. John felt that the Straight Shooters location would be the least intrusive and asked if utilities could be extended to the site. He also noted that there was at least another lot next to the building that could be used for parking. It was noted that sewer utilities are near. Chris expressed his support for the Straight Shooters site. Andy will have more information about this project on Monday. POLICY REVIEW PROCESS, KIM SULLIVAN At the last work session, an issue regarding performance of specific City employees was discussed with the employees. Several Council Members express concern regarding how the matter was handled. It is clear the Council needs a process to handle situations that are not resolved at the staff level. It was determined that if a matter is brought to a particular Council Members attention, the Council Member should direct the staff member to the appropriate director and if the matter is still not resolved, the City Administrator should be consulted. If the matter still remains unresolved, the matter should then be brought to a Council work session but not necessarily as a discipline issue. A concern was expressed regarding Council Members requesting specific information from staff or passing information on to staff. There seems to be a fine line of one Council Member taking action without the consent of the entire Council. The current agreement is Page 6 • COUNCIL WORK SESSION DECEMBER 9, 1998 • that there can be contact between Council Members and staff if information is needed but to direct an employee would be inappropriate. • John felt there are two (2) different situations that should be discussed. One situation is the on going general business of the City and what the Council role is on that. The second situation is slightly different because it would involve citizens complaints. What should Council Members do with ridiculous calls. It was decided that if a Council Member is contacted by a citizen, the matter will be directed to the appropriate department head or Director. If the citizen has done this and does not like the result, what does that citizen do next? The consensus was that all Council Members should be handling these situations in the same manner. It was suggested that the chain of command be followed and if the matter is not resolved by staff, the matter goes to the City Council for their consideration. It is most important that communication with staff be of the sort that is appropriate versus direction setting for staff. Steps should be designed to allow this to happen. This matter will be discussed with the new City Administrator. FRIDAY UPDATE TO WORK SESSION, KIM SULLIVAN Kim suggested that the City Administrator prepare a "tick" list of items that he/she and staff have dealt with during the week and send the list out to the City Council of Friday. There may be some weeks when there would not be a list to send. However, a "tick" list would keep the Council updated on the activities at city hall. Since each of the three (3) candidates have a different communications style, it was suggested that this be discussed with the new Administrator CITY HOLIDAY PARTY, DAVE PECCHIA Dave explained that a holiday party is being planned for January 16th. This is the City's opportunity to reward the employees for the extra time and effort needed to complete their jobs this year. Approximately $1,500 has been budgeted in the 1998 Operating Budget for employee recognition. This fund will be used to underwrite costs of the party. There was discussion regarding employees who do not attend the party. Kim noted that all employees are invited to the party and there will be no other official recognition or award. SURETY BOND UPDATE, DAVE PECCHIA The City was unable to determine if there was a reason to file a claim until the Hoff investigation was completed. Mr. Hoff has now advised the City that the investigation has been completed and the City is in the process of filing an insurance claim. Normally, there is a six (6) month period from the date of the incident for filing a claim. The insurance company was made aware of the unique circumstances surrounding this claim Page 7 COUNCIL WORK SESSION DECEMBER 9,1998 and have extended the filing date to May, 1999. Representatives of the insurance company will be coming to City Hall to obtain the necessary information for processing the claim. Staff and Council are asked to be available to them. DISCUSSION OF CHANGE IN STATUS, CITY CLERK, DAVE PECCHIA Dave proposed that the City Clerk, Marilyn Anderson telecommute from her home in 1999. She will be retiring at the end of 1999 and this will give her the opportunity to concentrate on critical responsibilities so that all unfinished minutes and other important duties will be up to date at the time of her retirement. A voice mail system would be established so that Marilyn can access telephone calls to her. It is proposed that the City Attorney draft a contract that will include duties to be performed, bench marks indicating performance, as well as an outline of salary and benefits. The City would provide a computer for her use. The purpose of the proposal is to allow for the transition of responsibilities. In addition, there is a critical need for office space. This proposal would help free some space for current staff. The duties and possibly the title of this position will be changed during the coming year. At this time, daily activities of the position will be spread out over current personnel. Jean Viger has been appointed Deputy Clerk and will probably assume some of the duties. John noted the need to establish some historical records for the City. He suggested that Marilyn would be a good person to organize this task. CITY ADMINISTRATOR SEARCH, DAVE PECCHIA Harry Bruhl, P.D.I. has indicated that reference checks on the three (3) candidates for City Administrator have been completed. Packets with additional information will be delivered to Council Members on Friday. Monday evening, Mr. Bruhl will meet with the Council at 5:00 p.m. and help with the selection of the City Administrator. The Council was asked to review the first and second interview results of the three (3) candidates. A brief psychological review and background check on each candidate will be presented by Mr. Bruhl on Monday. John asked that once the Council determines which candidate has the most support, the entire Council should unite and make a unanimous decision and request Mr. Bruhl to make an offer to that candidate. UPDATE ON STORMS GRANTS AND COPS GRANTS, DAVE PECCHIA Storm Grants -Earlier this fall, the City received $183,025.00 to cover some of the costs related to damages in two (2) major storms this past summer. Notification was received today, that within the next 60 days the City will receive another approximately $94,000 Page 8 • COUNCIL WORK SESSION DECEMBER 9,1998 for storm related expenses. Another $60,000 is expected in August, 1999. It appears that • the majority of the clean-up costs will be reimbursed through several programs. • • Dave will give an update on this matter at the December 21, 1998 Council meeting. COPS Grant - Application forms for another COPS grant have been received. Dave asked for Council approval to submit the grant application. Dave noted that although the standard provisions apply, that is, the Grant will pay 75% of the officer's wages for three (3) years and the City would pay the remaining 25%, the City may be eligible for 100% funding based on hardship. The hardship would be the residential tax burden. If the City is awarded the grant, he will make a presentation to the Council which would include how the City would proceed after the three (3) year funding period has ended. Kim noted that it will be very important for Council to know the long term impact if the grant is approved. Dave will be sending Senator Wellston a letter thanking him for his support of the City's applications. COUNTY WIDE RECORDS SYSTEM, DAVE PECCHIA Andy and Dave will be meeting with County officials tomorrow evening to discuss the agreement between the City and Anoka County to participate in this program. The cost to the City would be approximately $20,000.00. Anoka County will fund the entire program and then each member City will be asked to start paying their portion of the costs in the year 2000. Dave explained the advantages of a County wide system and noted that Anoka County wants every City to participate in the program. Dave will get additional details tomorrow evening. Financing the City's portion of costs will be dealt with in upcoming budgets. Kim asked Dave to put together a finance meeting similar to the meeting held last March 16, 1998. Chris asked that Dave be recognized in an appropriate way for his work as Interim City Administrator. Council Members and staff were asked to provide input as to what would be the appropriate recognition. Chris referred to the Rick Carlson's Shadow Ponds proposed plat and noted that in the presentation of the plat to the City Council, five (5) reasons were noted as to why the City Council should approve the plat. There were no reasons given as to why the City Council should not approve the plat. This proposed plat is not in the MUSA, is not properly zoned and the current Comprehensive Plan lists the area as Rural. He felt that staff should have also included the rationale why the proposed plat should not be approved. All of the facts should be highlighted in the staff report. Page 9 COUNCIL WORK SESSION DECEMBER 9,1998 Kim said that she does agree that the current Comprehensive Plan list this area as Rural, however, it is listed as residential expansion in the proposed Plan. 1999 GENERAL FUND BUDGET Dave provided a history of this budget prior to Daryl's employment with the City. Staff was requested to prepare a "bare bones" budget. Since the Truth in Taxation public hearing, staff has reviewed the budget and have recommended the following changes: 1. Eliminate the part-time police officer position. (The current part-time police officer has resigned and his replacement is not being proposed.) 2. Starting date for the Human Resources position will be delayed until July, 1999. 3. Full-time status for the part-time Police Department office records position will be delayed until July, 1999. 4. Full-time status for the part-time Parks and Recreation programming position will be delayed until July, 1999. 5. Police cars will be used more expediently. Daryl presented three (3) budget scenarios for the Council to consider. He also asked the Council to review current policy regarding personnel. He suggested that the rate of growth of the City is determined by the Comprehensive Plan. Daryl asked the Council to consider a plan that would anticipate personnel growth and have the personnel in place when needed and not overwhelm current employees. Dave explained that he is pleasantly surprised by Daryl's ability to put numbers together. Chris said that he had talked with Daryl and felt that it would be bad policy for Council to go over the budget item by item. A better policy would be for staff to give Council options. Dave explained the plan is to maintain 1998 services. Daryl presented several handouts. The first handout outlined cost savings due to the 1998 restructuring in the approximate amount of $67,400. Daryl also noted that there were no operating costs budgeted for the new civic complex. Allowing for the cost of heating, cooling and lighting for the civic complex, the anticipated savings from restructuring was reduced by approximately $30,000. The second handout involved reducing the proposed tax rate of 38.8% to 38.3%. This can be accomplished by recognizing the remaining balance of savings from restructuring, by reducing the number of Police Department vehicles and delaying additional personnel as outlined above. Page 10 • • • COUNCIL WORK SESSION DECEMBER 9,1998 The third handout outlines additional revenue. The current budget is anticipating a very conservative income from building permits. An additional $100,000 should be added to building permit fees. The additional revenue would reduce the tax rate to 37.15%. It was noted that building permit revenues have been based on 200 plus new homes each year. The new Comprehensive Plan will reduce the number of new home permits. Daryl said this has been considered, however there will be major new commercial building permits issued in 1999. The estimated permit revenues are partially based on commercial permits. The fourth handout outlined a tax rate of 36.0%. Staff took a better look at billable staff time. The plan is to make sure that all costs are recovered. An additional $203,000 was added to other revenue. Daryl explained that the plan was not to cut the "bare bones" budget but to generate new revenues. Kim thanked Daryl and reminded the Council that they should be aware that there will be new employees in 1999. Dave noted that the figures presented tonight, do not include any of the storm damage related reimbursements. Chris said that his budget recommendations did include some expenditure cuts and he does not see any in the handouts presented tonight. He said he hoped that the revenue calculations are on target. He noted that the City should be competitive in its fee structure. Brian explained that permit fees are regulated by the State. The Public Safety Director will be asking the Council to adopt the latest State Building Code. If adopted, permit fees will be increased. This keeps the City fee schedule competitive. It was noted that the Directors want to be realistic in their proposals because they have to make this budget work. Chris commented that the budget should be tied to the Comprehensive Plan. Kim explained that the current increase in the tax rate is due to the bond referendum for street improvements and the new civic center. Chris said that until things are linked, the City will not be able to significantly reduce its tax rate. Things will not change until at least 2004. Andy noted the prison and the regional park pay no taxes yet they require the use of our services. The City should be reimbursed for the costs of providing police and fire protection to the prison and regional park. Page 11 COUNCIL WORK SESSION DECEMBER 9,1998 Kim noted that the longer it takes to adopt a Comprehensive Plan, the longer it will take to get tax relief. The next handout is a comparison prepared by the Anoka County Assessors office of last years estimated market value to this years estimated market value. The market value and the overall growth in the tax base is split between appreciation of current properties and new construction. Council has been asking for this information every year for some time. Daryl was asked if the 1999 budget includes the additional TIF penalty and the bond costs. Daryl explained that this years TIF "fix" was for 1998 only. He will be meeting with Ehler's and will have more information shortly. He explained that anticipated receipts were reduced in the same amount as the estimated 1999 TIF penalty. It was noted that delaying the positions mentioned above balances the 1999 budget but the Council should deal with this in 2000. Daryl explained that is a good reason for cities to prepare multi-year budgets. Dave explained that historically, the City has realized a surplus in the operating budget each year. If this happens in 1998, the Council will be asked to designate the balance. Staff was asked if the City will have any legal issues or Charter issues in 1999. Dave explained that the Charter Commission will begin considering Charter language changes at their regular January 14, 1999 meeting. All Charter adjustments will be on the November, 1999 ballot. Staff was asked if the 1998 budget has been compared to the 1998 operating costs. Dave said yes and he has made sure that no department has gone over their budget. However, at this time he cannot predict the amount of surplus. Staff was asked if once the new civic complex is operational, will the senior group pay more of the expenses for the operation of this building because they will be using more of the building. It was explained that additional research is needed on this matter. There should also be the discussion of what services should or should not the City provide for its citizens. Daryl explained that the Council will be asked to adopt the 1999 Operating Budget, Water Fund Budget and the Sewer Fund Budget. They will also be asked to adopt the 1998 levy, collectable in 1999. John said that if there is actually additional revenues available and staff does not think that the City will not be hurt since most of the changes from 38.8% tax rate down to a 36% tax rate is revenue driven, he did not see why the budget and the levy could not be adopted on December 14th. He noted that if the Council had to make cuts there might be more of a problem. John felt that delaying new positions would not hurt the City. Page 12 • • • • • COUNCIL WORK SESSION DECEMBER 9,1998 Staff was asked if they were absolutely certain that building permits would look this good in 1999? Daryl said that between the additional building permit fees and recaptured costs, he was sure this is an attainable goal. It was noted that the City needs a six (6) month operating surplus. Staff was asked what would happen if the State decided to cut their aids to the City. Daryl explained that the City would have to use other revenue reserves. Staff was asked what their levy recommendation would be. Dave explained that a 37% rate would meet the current needs and then plan for the future and solidify the recovery process. However, he noted that staff is committed to making the 36% rate work. He felt if the Council went with the "middle of the road" approach, it demonstrates that the Council dealt with the issue. Staff was asked about the cost of moving into the new buildings. There is no budget for moving. Chris referred to the proposed tax levy and asked what happened to "sweat equity" or "sacrifice"? He suggested that the tax rate could be reduced to 34% if cuts were make in the Travel and Tuition line items and another $100,000 added to revenues. Dave explained that to get to 34%, staff would have to be cut. Caroline said that she was under the impression that the 38% had been cut to 36% after the August budget meeting at Wargo Nature Center. Kim explained that it was at 36% and then the City found out that how much tax compression was affecting the levy. Dave stated that between tax compression and the bonds, staff did what they could. He said that other than staff additions, there is nothing to cut without cutting services. Caroline suggested that if the City Council is going to begin to show that they are making cuts in the budget, a good move would be to show that everyone including Council is tightening their belts. She suggested that for the next year, Council members pay their travel and tuition expenses. John suggested cutting Council salaries. It lets residents know that Council is willing to do their part. However, he noted that Council should not loose sight of the fact that there has been cut-backs from what was originally requested. He also noted that the budget can be tied to inflation if all additional items were removed. The Council got to the 36% tax rate by conscientiously preparing this proposed budget. Caroline said that she is in favor of the 36% rate or lower if possible. John said that he favored the 36% rate, however, he had been considering the 37% rate. Andy said that he is looking at what services the Council wants to give the citizens and said he favored the 38% rate. Page 13 COUNCIL WORK SESSION DECEMBER 9,1998 Kim said that she was looking at the 37% rate. She expressed concern that next year the City may see a drop in housing permits. Kim said that she would go along with the 36% rate. The consensus was that the majority of the Council favored the 36% rate. SEWER AND WATER UTILITY 1999 OPERATING FUND, DARYL SULANDER Daryl explained the purpose of this fund. He noted that the fee structure for service has been set for 1999. Water revenues will be reduced and sewer revenues will be slightly higher. The fund is not self -balancing. The intent is to pay for services over the long -run. The fee structure will be reviewed in 1999. The large expenditure item in this budget is for a booster on the water line in the southern portion of the City that will allow the City to disconnect from the Shoreview water service. Dave noted that the Quad Press would like to do an article about the two (2) new employees, Daryl and Jeff. REGULAR AGENDA EDA Meeting - Brian explained that the EDA meeting will involve decertifying and reorganizing certain TIF Districts to address the need for a reduction in the TIF penalty for next year. Daryl noted that RFP's for the new City Auditor has been completed. He is contemplating asking for an extension of three (3) to six (6) months to complete the depositories appointments. Marilyn will check to see if a follow up letter has been sent to the residents who did not respond to the original letter regarding refund of SAC. Agenda No. 6D - Resolution No. 98 -172, Approve Payment No. 5 (final) and Change Order No. 1, The Village -Phase 1 - This change order involves several changes resulting in a net decrease in the final cost of the project. In addition, approval of the final payment will start the one year warranty period. Agenda No. 3 - Marty explained that over the past year, Brauer/Applied Ecological Services have been working on the Environmental Inventory and Management Plan. The inventory plan is nearly complete and data is being collated and digitized. Representatives of Brauer/Applied Ecological Services will beat the meeting Monday evening to update the Council on the outcome of the study to date. The presentation will take about 30 minutes. There being no further business, the meeting adjourned at 10:05 p.m. Page 14 • • • • COUNCIL WORK SESSION DECEMBER 9, 1998 These minutes were considered, corrected and approved at the January 11, 1999 regular Council meeting. Marilyn GAn Y. derson Clerk -Treasurer Page 15