HomeMy WebLinkAboutMinutes - 2005/04/11PROCEEDINGS OF THE MOUNDS VIEW CITY COUNC L
• CITY OF MOUNDS VIEW ~- ~~~
RAMSEY COUNTY, MINNESOTA cy
Regular Meeting
April 11, 2005
Mounds View City Hall
2401 Highway 10, Mounds View, MN 55112
7:00 P.M.
1. MEETING IS CALLED TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL: Stigney, Gunn, Flaherty, and Thomas
NOT PRESENT: Mayor Marty.
4. APPROVAL OF AGENDA
A. Monday, April 11, 2005 City Council Agenda.
• MOTION/SECOND: Flaherty/Gunn. To Approve the Monday April 11, 2005 agenda as
presented.
Ayes --4 Nays - 0 Motion carried.
5. PUBLIC INPUT
Jerry Linke, 2319 Knoll Drive, stated he didn't get a chance to speak at the EDA meeting. He
stated that one thing that was talked about was the taxes and the money that will be raised, and
there is something like $150,000, of which the City only receives a portion of that. He stated that
he felt the public hearing was premature because all of the facts and numbers are not there to give
to anybody. He stated they know very little about the entire project and the impact within
Mounds View. He stated that they know that the cost of infrastructure is going to be $800,000,
of which they are going to pay half of it. He stated it has been a year since this was brought up,
and he is still looking for numbers. He stated he wants to know what the cost to the City has
been so far as far as staff time and attorneys fees and when and how they are going to recoup
that. He stated that right now he is looking at a net loss. He stated it's $400,000 out of TIF, and
what are they going to get back out of TIF. He stated that's a net loss, from the numbers he is
looking at. He stated that a 25 year TIF is ludicrous. He stated that the building is only good for
15 years before it needs to be remodeled, and that is why most of the TIF in the City right now is
only 15 years, because that's all they go.
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Mounds View City Council April 11, 2005
Regular Meeting Page 2
Acting Mayor Stigney stated that the reason the hearing was tonight was because residents have •
been asking the Council and the EDA to bring forth any information as soon as possible, and this
was what they had to present.
Tom Winiecki, 2700 block of Sherwood Road, brought a bucket of pavement from his road. He
asked for a truck load of cold mix to dump on the street and he would patch his own holes.
Acting Mayor Stigney stated they could address the patching issue fairly soon, but the
reconstruction issue may be quite a ways out.
Public Works Director Lee stated that they are in the patching phase right now, and they would
be getting to Sherwood. He stated they are putting cold mix on any of the major holes, and
they'll replace them with hot mix. He asked Mr. Winiecki to call him to talk about it.
Mr. Winiecki stated he would do it himself.
Acting Mayor Stigney stated that he was sure they could get his street patched.
Tim Wilson, 7200 Pleasant View Drive, stated that he would get the Council some numbers that
he had worked on. He stated that they could do four times the streets in a year, and they have to
be fiscally responsible. He stated the taxes are going out of sight, and the citizens of the City are
going to pay that whole $10 million sooner or later, and that is something they have to look at.
David Jahnke, 4228 Eastwood Road, asked when they would be able to discuss the numbers on •
the survey.
Acting Mayor Stigney stated that the survey is going to be discussed in the next agenda item.
Valerie Amundsen, 3048 Woodale Drive, stated she wanted to comment on the proposed road
construction in the Pleasant View and Woodale area. She stated that the packet that was mailed
to the citizens made it look like their cost was going to be $3009, except for Messiah, which she
didn't really understand since it's tax exempt, so that's an issue. She stated her concern was that
the other 75 percent would be borne by the City, and as she understood it, there isn't any state
funding for these roads, so that 75 percent gets added into their taxes. She stated that the true
cost is not $3,000, and most citizens are shocked when they learn about that. She stated that the
cost may actually be as high as $10,000 per resident. She stated that the true numbers need to be
presented to the citizens.
Acting Mayor Stigney stated that during work sessions there is a lot of discussion in that area,
and they will be discussing it further to see what the true costs are. He stated that he didn't think
that staff or the City have made any attempts to try to minimize what the actual cost is. He stated
that the cost would be 25 percent to the residents directly, and 75 percent to the City, which is far
better than 50/50, which is what they had before they changed the policy.
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Mounds View City Council April 11, 2005
Regular Meeting Page 3
• 6. SPECIAL ORDER OF BUISNESS
A. Results of the Community Survey (Presented by Decision Resources, Inc.)
Council Member Stigney stated that this was a phone survey that was handled by Decision
Resources, who contacted 400 residents on an equal basis within each precinct.
A representative from Decision Resources stated that the survey by telephone took place during
the first two and a half weeks of March, and the nonresponse rate was 4%2 percent, and there was
1/2 percent of people that terminated mid-survey. He stated the average time it took to complete
the survey was 19 '/z minutes. He went through the survey questions and responses on a Power
Point Presentation and had previously provided the Council with the written document.
7. JUST AND CORRECT CLAIMS..
Council Member Flaherty asked what a bed knife is as listed on page 4 for $121.
Mary Burg stated that a bed knife is the base of a blade for a reel mower, and they are replaced
all the time.
Acting Mayor Stigney asked what the battery on page 3, first item, was for.
• Council Member Thomas stated she assumed it was for the defibulators.
Ms. Burg stated that it was for the golf course defibulator. She stated they last about three years.
MOTION/SECOND. Gunn/Thomas. To approve the Just and Correct Claims as Presented.
Ayes-4 Nays-0 Motion carried.
8. CONSENT AGENDA
Council Member Flaherty asked to remove Item C.
A. Set a Public Hearing for Apri125, 2005 at 7:05 pm to Consider a Conditional
Use Permit for a Residential Kennel at 8370 Pleasant View Drive.
B. Set a Public Hearing for Apri125, 2005 at 7:10 pm to Consider a Conditional
Use Permit for an Oversized Garage at 7965 Fairchild Avenue.
C. Resolution 6494 Authorization to Purchase a Radar Speed Display Trailer
from Decatur Electronics for $7450 utilizing forfeiture funds.
D. Schedule an Executive Session immediately following this City Council
Meeting to discuss Labor Contract Issues.
E. Licenses for Approval.
• F. Resolution 6496 Designating the National Incident Management System
(NIMS) as the Basis for All Incident Management in Mounds View.
Mounds View City Council April 11, 2005
Regular Meeting Page 4
MOTION/SECOND. Thomas/Flaherty. To approve Items B, C, D, E, and F of the Consent •
Agenda as presented.
Ayes-4 Nays-0 Motion carried.
C. Resolution 6494 Authorization to Purchase a Radar Speed Display Trailer
from Decatur Electronics for $7450 utilizing forfeiture funds.
Council Member Flaherty asked how much is in the forfeiture fund right now.
Chief Sommer stated he wasn't sure of the exact balance.
Finance Director Hansen stated it was in excess of $20,000.
Council Member Flaherty stated he was a firm believer in you get what you pay for, and he asked
if they've checked into the quality of this.
Chief Sommer stated that Decatur is a manufacturer of police radar equipment, and they've been
around for many years. He stated that this particular model is of good quality, and this one has
the features that they are looking for. He stated in comparison to the other options, they were
more expensive, and Decatur is a solid company that has been around for many years, and the
quality will be adequate. •
Council Member Stigney asked if the other one was purchased used, and if so, when.
Chief Sommer stated he didn't have the exact date when it was purchased, but he knows almost
every time they use it, they have to bring it in for repairs. He stated there are mechanical
problems with the trailer, and it's hardly worthwhile to continue to use it.
Acting Mayor Stigney asked about the warranty.
Chief Sommer stated the warranty is for two years for parts and labor.
Acting Mayor Stigney asked if it was temperature sensitive.
Chief Sommer stated that he believed it worked in cold temperatures, but if it snows on it, that
can affect it a little bit.
MOTION/SECOND. Gunn/Flaherty. To approve Resolution 6494 Authorization to
Purchase a Radar Speed Display Trailer from Decatur Electronics for $7450 utilizing
forfeiture funds.
Ayes-4 Nays-0 Motion carried. •
Mounds View City Council April 11, 2005
Regular Meeting Page 5
•
9. COUNCIL BUSINESS.
A. Resolution 6495 Setting a Public Hearing for Monday, April 25, 2005 at 7:15
pm for the City Hall Rehabilitation Project.
Public Works Director Lee stated that this item is on Council business to make it known to the
public that the City is interested in learning more about this proposed project, and there will be a
Power Point presentation given on Apri125th
Acting Mayor Stigney asked if there were any questions for the Public Works Director. He asked
whether this item was premature because the Council hadn't established what they wanted to do.
Public Works Director Lee stated that the proposed project will be presented that evening. He
stated that if they preferred they could do a proposal, present the proposal, and then have a public
hearing afterward, but all in the same night.
Council Member Gunn stated she was going by the list they had received that was basically the
basic fixes that need to be done to the building.
Council Member Flaherty asked if those were the figures he was going to introduce.
Public Works Director Lee stated that was right, and it would be the same items introduced on
April 4th at the work session.
MOTION/SECOND. Gunn/Thomas. To waive the reading and approve Resolution 6495 Setting
a Public Hearing for Monday, Apri125, 2005 at '7:15 p.m. for the City Hall Rehabilitation
Project.
Ayes-4
Nays-0
Motion carried.
B. Review Appeal from Tim Nelson Representing Property Owner Christen
Properties, LLC, Regarding the Connection of 2310 County Road 10 to
Municipal Water and Sanitary Sewer Services (Ericson)
•
Director Ericson stated that Mr. Tim Nelson, representing the property owner, Christen
properties, has requested an appeal to waive the connection requirement for city water and sewer.
He stated this was an ordinance that the City adopted back in 1992 that had required property
owners to hook up prior to that. He stated the Council had been provided with the
correspondence between the property owner and the City. He stated the City has asked that the
property owner either connect or come up with a redevelopment plan. He stated that Mr. Nelson
did submit a redevelopment plan, but it was incomplete in that it did not have signatures or
consent of the property owners of all of the property owners involved in the redevelopment, and
he rejected the application, and that the City will work with the property owners . He stated they
need to have a connection to the city water and sewer or have the City Council approve of a
waiver, and that can either take the form of a one-year waiver with an escrow deposit or be a
Mounds View City Council April 11, 2005
Regular Meeting Page 6
permanent waiver. He stated that he had presented some options to the City Council in the •
materials. He stated Mr. Nelson was here this evening to speak to his request to waive the
requirement. He stated that maybe there should be a cash surety left with the City such that at the
end of the year if there still isn't a development application, the City could go ahead and make
the connections with the funds that have been deposited.
Mr. Tim Nelson requested that the Council waive the imminent requirement that they hook up
to community sewer and water because this is recognized as a redevelopment site. He stated
that the house is a rental house, and the same family has lived there for seven or eight years.
He stated that the Building Inspection Department had found things that needed to be addressed,
and they had addressed them all, but then the connection to the water and sewer came up. He
stated that you don't have to hook up to water and sewer if you have an imminent redevelopment
plan, but he recognizes that maybe there is some legitimacy to encourage or force redevelopment
of this property. He stated that requiring someone to connect to water and sewer isn't going
to make the property redevelop, and the property is going to redevelop when the market is right
for that. He stated he has received a lot of calls from real estate agents looking for a lot to build
a single family home on the property, and that isn't going to happen. He stated he couldn't tell
them exactly what was going to happen, except that some form of commercial redevelopment
will happen, and it will happen when the time is right. He stated he developed the Mounds View
business park and numerous other projects around town, and he would like nothing better than to
do another project. He is interested in working with City staff and elected officials to try and
foster something that would happen there. He stated this isn't a health and safety issue, and the
well and septic on the property have worked fine. He stated that they test the water quality •
periodically with the Ramsey County Health Department, and it has tested out fine, and he
intends to keep doing that. He stated that more than likely the City will have to run new water
and sewer lines in the bigger pipe size for a redevelopment project, and it seems prudent to
wait for that connection, especially since there is no real need for it other than a Code
enforcement issue. He again requested a waiver, and that he would prefer to do it without putting
cash up because redevelopment will happen when things are ripe.
Council Member Thomas asked Mr. Nelson how long it would take him to put a development
plan together should he get a call even tomorrow.
Mr. Nelson stated it would depend on the nature of the use. He stated the plan can be put
together fairly quickly, and implementing it with users who want to be there is what can take
time if there is more than a single user.
Council Member Thomas asked if the property owner has any idea what kind of uses they are
looking for.
Mr. Nelson stated it is wide open to what is appropriate in the marketplace. He stated they
have interacted with City Staff on what they see as a commercial site of some kind, and it could
be a mixed use project, possibly even with some kind of residential element. He stated their
thinking was that it's office or retail or a corporate facility type use. •
Mounds View City Council April 11, 2005
Regular Meeting Page 7
• Council Member Thomas stated she is familiar with what City Staff would like to see, and
she asked if the property owner had a desired use.
Mr. Nelson stated their preference would be to round out the rest of the business park with a
building on that corner that mirrors the Multitech Building or the Liberty Building across the
street. He stated they had received calls from other developers who are interested in the site for
a more typical suburban strip type development. He stated he could envision possibly a small
strip center with a bank or a restaurant. He stated that it is not a project that is going to take
three years to put together.
Council Member Thomas stated her assumption was that even if they were to do a general
office complex or retail strip with restaurant, they would be looking at about a year to put
together this development concept, so even if they are talking about a year waiver, this would
have to be a phone call he got this week.
Mr. Nelson stated that that was right. He stated that in one of the buildings in Mounds View
Business Park right across from Woodale was a building where Medtronic made a call, and they
had the building plans approved, and they started it in December, and they were in in 89 days.
He stated that was a long time ago, but that is the kind of thing that can happen, and it's not as
likely to happen with a mixed use retail.
Council Member Thomas stated that should that proposal come to the table, she seriously
• doubted that the sewer connection is going to be the first of their concerns. She asked what
their cutoff point was for saying that something is imminent.
Council Member Gunn asked about the other three properties. She stated she understood he
owned two of them, but in order to do this full development, they need to get the other three
property owners in the picture also.
Council Member Thomas stated she was not talking about those other three; she was just
talking about their properties. She stated if they start talking about the other three, that's
a much bigger issue. She stated she was talking about the properties they have control over
and what they are talking about doing and can they do anything within a year.
Council Member Gunn stated from what she was looking at, they don't have much that
they could do something with.
Mr. Nelson stated they could do something on one or both of their properties, but that it made
more planning sense to look at the whole six-acre package, including the three residences.
Council Member Thomas stated that she was not going to start planning a development for
someone else's home.
Council Member Gunn stated she wasn't either.
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Mounds View City Council April 11, 2005
Regular Meeting Page 8
Mr. Nelson stated that they've been approached multiple times, and there is going to come a •
time where they need to make decisions on what they are going to do with their property. He
stated it was his suggestion to grant a waiver for the coming year and ask them to come back
to report in a year on the status, and hopefully there will be something in front of them to look
at by way of a proposal, and they could take another look at it. He didn't feel anybody was
going to suffer if there wasn't a connection made for the next year.
Council Member Flaherty asked if he was the same Mr. Nelson that was in contact with James
HesBurg back in 1994 for this same subject.
Mr. Nelson stated it was brought up then, and there was a decision made on behalf of the City
not to require the connection at that point.
Council Member Flaherty asked if there was any background on what happened.
Director Ericson stated that a search had been made of the records, and there is nothing that
exists in writing.
Council Member Flaherty stated that the issue isn't going to go away, and it's been 11 years
since it was first brought up.
Council Member Gunn stated it was seven years ago.
Council Member Flahe stated that Mr. Nelson was involved for the ast 11, and it oes •
rty p g
back to 1986. He stated there is a lot of correspondence over the years saying they need
to hook up to sewer and water. He stated he's sure the water is clean and the wells are working
fine, but the City Code was specifically drawn up for the betterment of the City to make things
like this don't get out of hand. He stated he was curious what happened in the previous 11 years.
He asked if they thought the City was going to go away.
Mr. Nelson stated that the issue of 11 years going by without the issue being raised indicates
an agreement was reached in 1994 not to require it. If there had been a requirement it had to be
done within the next month or a year, that would have triggered some action from the City.
Council Member Thomas asked Mr. Ericson how many other properties had been required to
connect up to the sewer since this Code was in place in 1992.
Director Ericson stated there were 20 or 30 properties that had to be connected as a result of
the 1992 ordinance, and this is the one remaining property that does not have access to sewer and
water. He stated there are five other properties in the City where they don't have access to
sewer or water, and the Code does grant an exception for that.
MOTION/SECOND. Thomas/Gunn. To move on Option No. 3.
Council Member Thomas stated she believed they need to offer some time for this simply to •
Mounds View City Council April 11, 2005
Regular Meeting Page 9
• welcome development, and she would hate to rule out the phone call that could happen this
week. She stated at some point they will have to be held to the same standard as the rest of
the citizens, but that being said, she couldn't expect that of them tomorrow. She stated her
premise for bringing this up is if it isn't taken care of within a year, it should be acted upon
to the level required of other citizens.
Acting Mayor Stigney stated that the motion on the floor is to give aone-year surety for this
property and at that time require hookup to the utilities.
Council Member Gunn stated that actually they are just directing Staff to create a resolution
for this.
Acting Mayor Stigney stated he would offer the vote to approve drafting a resolution to support
one year.
Ayes-4 Nays-0 Motion carried.
C. Resolution 6492 Awarding a Land Appraisal Contract for the Spring Creek
Regional Water Quality Pond Project.
Public Works Director Lee stated the draft feasibility report is submitted to the City Council
at this time, and they are not seeking approval on it, and the report is incomplete at this point.
• He stated one of the main components missing is the cost estimates for land acquisition and
easement acquisition for this project. He stated that Staff is recommending going forward with
the finishing of the report by getting the figures and by having a land appraiser appraise those
two properties that are affected by this proposed project. He stated that Staff has received three
quotes from several appraisal companies, and a limited appraisal will work. He stated that if
this project should proceed, Staff is recommending that a full appraisal be done to guarantee that
the dollar values that are established are correct dollar values, and also the property owners have
voiced an opinion that a limited appraisal would not be acceptable to them, and that they would
want the City to seek an appraisal of the property. He stated that Staff is recommending that the
City Council proceed with this by authorizing to do a full appraisal at a cost not to exceed
$2,400. He stated that he would submit a revised Resolution for this if that's the direction the
Council wants to go.
Council Member Thomas stated she has concerns about going ahead with this at this time, and
.this is a proposal that is tied very closely with the street construction program, and that question
hasn't yet been settled. She stated she has grave concerns about spending any amount of money
on a project that may or may not go ahead based on another project. She stated that this pond
is not necessary should there be any dramatic change to that street reconstruction program. She
stated that regardless of where that is, that decision will be made in the next couple of months,
and then this decision could be brought forward. Her personal opinion was that this needs to
wait, and she understood what that does to the bid process and appraisal process. She stated
they had heard from one of the property owners at the Street Reconstruction meeting who would
• lose his entire back yard to this pond. She felt before they committed to even appraising
Mounds View City Council April 11, 2005
Regular Meeting Page 10
properties, they need to know what's happening with the street project, so she wasn't comfortable •
moving forward on this.
Acting Mayor Stigney stated that it could certainly be postponed.
Public Works Director Lee stated that he agreed it could be delayed. He stated it's a question of
whether they wanted the data at the May 9~' meeting when the street project is brought back to
the Council, and that's why staff was timing it this way.
Council Member Flaherty stated he agreed with Council Member Thomas, and that he thought
they were a step ahead of themselves. He stated the streets are a tremendous issue and hasn't
been resolved, and he couldn't see putting any money into it right now until they actually got
to that step and have an agreement that street reconstruction is going to go forward. He stated
he would like to table this at this time.
MOTION/SECOND. Thomas/Flaherty. To postpone this item until after a decision is made on
the street reconstruction project.
Council Member Gunn asked how long it would take to have the appraisals done.
Public Works Director Lee stated it would take three weeks.
Council Member Thomas stated she would like to be able to bring back this discussion if at some •
point they decide to postpone the street reconstruction. She stated she didn't want it based solely
on that decision and didn't want to limit them from being able to talk about this after that point.
Acting Mayor Stigney stated he would support the postponement as well.
Ayes-4 Nays-0 Motion carried.
D. Resolution 6493 Approving the Promotion of Officer Bob Nelson to the
Position of Sergeant.
Chief Sommer stated that the Mounds View Police Civil Service Commission maintains an
eligibility list for this position, and Officer Bob Nelson is the top candidate on that list. He stated
that he has been on the department for 20 years, has served as a patrol officer, a school resource
officer, and as an investigator, and he would recommend he be appointed to that position.
MOTION/SECOND. Gunn/Flaheriy. To approve Resolution 6493 Approving the Promotion of
Officer Bob Nelson to the Position of Sergeant.
Chief Sommer read the resolution aloud.
Council Member Flaherty asked if the funds from the Irondale Safety Officer Fund is for •
this position, and Chief Sommer stated that was correct.
Mounds View City Council April 11, 2005
Regular Meeting Page 11
Ayes-4
Nays-0
Motion carried.
E. Resolution 6490 Step/Longevity Increases for Officer Tim Wolf and Officer
Kirk Leitch.
City Clerk/Administrator Ulrich read the Resolution aloud.
MOTION/SECOND. Thomas/Flaherty. To approve Resolution 6490 Step/Longevity Increases
for Officer Tim Wolf and Officer Kirk Leitch.
Ayes-4 Nays-0 Motion carried.
F. Resolution 6498 Adopting City Vision and Mission Statement, Goals
Program, Values Statement and Rules of Conduct.
City Clerk/Administrator Ulrich suggested delaying action on this item until Mayor Marty could
be
in attendance.
Acting Mayor Stigney stated he also had wanted some input from the residents at the Town Hall
meeting before they do that, and they needed to look over the survey results at a work session
to see how that ties into their goals.
Council Member Thomas stated they could present this as their goals at the Town Hall meeting
on the 30~', and if they were to do it at a work session along with the survey, that would come
after. She stated there are a couple of options. They could present it at the Town Hall meeting
on a proposed list and see if there are any changes they could make to that, or they could go
ahead and adopt it at the next Council meeting. She stated it's a matter of what they want to do
because there isn't going to be another work session before the Town Hall meeting.
Acting Mayor Stigney stated they should provide the input to the residents at the Town Hall
meeting and subsequently have a work session to modify the goals somewhat depending on
City Clerk/Administrator Ulrich suggested presenting this as a draft and using the public input to
shape
them up, which would mean delaying it until after the input at the public meeting. He stated
one of the Council's goals was to listen to the citizens. He stated this is a good opportunity to
weave that into the mission and the goals as they go along and make those adjustments, in
accordance with the survey, and delay this until the May 9~' Council meeting.
MOTION/SECOND. Thomas/Gunn. To postpone action on this item until May 9~'.
• Ayes-4 Nays-0
survey results and any comments received.
Motion carved.
Mounds View City Council April 11, 2005
Regular Meeting Page 12
10. APPROVAL OF NIINUTES.
None.
11. REPORTS
A. Reports of Mayor and Council
Council Member Thomas announced that Colleen Wombach, the principal at Edgewood, was
named Principal of the Year, which is a significant accomplishment. She stated she does a
fabulous job over there, and it's well deserved.
City Clerk/Administrator Ulrich asked if they would like a resolution prepared.
Council Member Gunn and Council Member Thomas stated that would be great.
Acting Mayor Stigney stated it could be prepared by consensus of the Council.
B. Staff
Director Ericson gave an update on the naming of County Road 10.
Council Member Flahe stated he thou t the were brin in this u at the town meetin for •
rtY ~ Y g g p g
additional input from citizens.
Council Member Stigney stated that they should.
Director Ericson stated that last year there was an ordinance before the City Council to actually
name the roadway Mounds View Boulevard, and the Council had opted to table action on that,
directing the cities to get together for a name that meant sense for all three communities. He
stated that he would like to provide feedback to Blaine and Spring Lake Park as to what their
position was.
Council Member Stigney stated that they hadn't voted.
Council Member Thomas asked if they could get a copy of what those were.
Director Ericson stated that the names were Coon Rapids Boulevard, Northpark Boulevard,
Northview Boulevard, and Northtown Parkway.
Council Member Thomas suggested leaving it open.
Acting Mayor Stigney stated they would see what the residents want, and they will put it on the .
list.
Mounds View City Council April 11, 2005
Regular Meeting Page 13
•
1. Announce that the Mounds View Employee Appreciation Lunch will be
on Wednesday, June 8, 2005 from 11 a.m. to 1 p.m.
City Clerk/Administrator Ulrich announced the Mounds View Employee Appreciation Lunch
will be
on Wednesday, June 8th° from 11:00 a.m. to 1:00 p.m. He stated it was for the Council's
attendance if they are available.
2. Long Range Financial Plan
Finance Director Hansen stated he had not been able to attend the Apri14`" work session,. and he
would be answering some questions that came up. He stated that in the long-range plan dealing
with bond issuance, there was not a bond issue in the year 2009 related to this street project, and
the question was why. The tentative plan he used in terms of the street reconstruction had a high
percentage of municipal state aid for streets and roads being done that year, and so there was
only going to be about $200,000 worth of costs that would be bonded for that and would be
repaid at the property tax levy, and the financial advisor had advised him that is too small an
amount to be bonded for and the bond issuance costs would be too much, so the plan is simply to
hold that over to the year 2010 and then propose to issue a larger number of bonds in the year
2010. He stated the year 2009 was not missed, and it was just a small bond issue, so it was
• carried over and lumped into the next year.
Finance Director Hansen stated the other question that came up is a request for a projection of
property tax bills that would occur in the future with the bond issues going on for the street
program. He stated that due to the complexity of the property tax system in the state, that's
extremely difficult to do a projection on, especially going out into the future with the bond
issues. He stated he attempted to make a projection, with the caveat that it's not something you
can rely on. He explained how he got to the figure of $141 or 7 percent on the home tax bill, but
that if they do proceed on the street program, he was sure in nine years they would be looking at
a tax levy that would be different than this.
Brian Amundsen, 3048 Woodale Drive, thanked Mr. Hansen for attempting to make this
projection. He asked what the median home value was that he used.
Finance Director Hansen stated that the median home value for 2005 has an estimated market
value of $178,000, and a limited market value of $162,000, which is what the tax is based on.
Council Member Thomas cautioned that he was not able to build into this any county increases
for valuation changes to the market, which is the number one inflationary issue they've been
dealing with is the rising value in housing, and it's just not possible for him to figure that into
those charts, so that's just a number they can work with for the valuation that they have.
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Mounds View City Council April 11, 2005
Regular Meeting Page 14
Mr. Amundsen stated that his original question was to understand the dollar impact of ten years •
worth of bonding, which is the point at which they have all of the projects actually into service.
He stated that earlier when he had spoke to Mr. Hansen, they were talking about dollars and the
number of taxable properties, and he had just done a simple division. He stated he was confused
and would have to talk to Mr. Hansen because he had come up with between $32 and $60
additional per year, so there was a significant difference.
Council Member Thomas stated the thing that can't be reflected is whether or not there is going
to be a change in home valuations as far as the median, and obviously that will go up. She stated
that factor would also have to be included because it would change the percentages. She stated
it's an exercise in guessing.
Acting Mayor Stigney asked if there are a list of roads that they are going to actually do M.S.A.
roads in 2009 that he doesn't know about.
Finance Director Hansen stated that some time back he had received a projection from Public
Works Director Lee of what the roads for the next five years were going to be, and maybe he has
moved beyond that particular projection, but he had sued that back in February when he had done
a somewhat similar project like this.
Council Member Thomas asked if he remembered the five different areas they had discussed.
Finance Director Hansen stated that at that time there was one section that had more M.S.A. •
streets in it, and it may no longer be in the current plan.
City Clerk/Administrator Ulrich pointed out that that is a separate funding source, and more
importantly, the street construction standards are dictated because of that funding source, so they
do have to have curbs and they do have to be so wide, and it's easier to play out a schedule of
improvements.
B. Reports of City Attorney
None.
12. Nezt Council Work Session: Monday, May 2, 2005 at 7pm
Nezt Council Meeting: Monday, Apri125, 2005 at 7pm
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Mounds View City Council April 11, 2005
Regular Meeting Page 15
• Town Hall Meeting Apri130t~ at 9:00 a.m. at the Community Center
13. ADJOURNMENT
The meeting recessed to Executive Session for contract negotiations at 9:06 p.m.
Transcribed and recorded by:
Sheree Theobald
Timesaver Off Site Secretarial, Inc.
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