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HomeMy WebLinkAboutCC MINUTES 08142001 Meeting Sheet 1111111111111111I 106190 Box: 36 Folder: CC MINUTES AND AGENDAS 2001 Document: CC MINUTES 08142001 1 CITY OF ST. ANTHONY 2 CITY COUNCIL STUDY SESSION 3 August 14, 2001 4 I. CALL TO ORDER. 5 Mayor Cavanaugh called the meeting to order at 7:00 p.m. 6 II. PLEDGE OF ALLEGIANCE. 7 Mayor Cavanaugh invited the Council and the audience to join in the Pledge of 8 Allegiance. 9 III. ROLL CALL. 10 Councilmembers present: Mayor Cavanaugh; Councilmembers Sparks, Thuesen, I I Horst and Hodson. 12 Councilmembers absent: None. 13 Also present: City Manager Michael Momson. • 14 IV. COMMUNITY FORUM. 15 Verna Woodridge, Kensington Homes, indicated she heard a rumor that the police and 16 fire department were going to be gone shut down. She questioned if this was true. 17 Mayor Cavanaugh indicated this was only a rumor and noted the Council would be 18 addressing these issues within the budget discussion at this meeting. 19 20 V. ACTION ITEMS. 21 A. Consent Agenda 22 Motion by Sparks to approve the Consent Agenda as presented. Said Consent Agenda 23 consisted of: 24 1. Licenses and Permits. 25 2. Claims. 26 3. Resolution 01-072 relating to deferment of Special Assessments for 2001 street 27 projects. 28 Motion carried unanimously. 29 B. Resolution 01-071 is30 Mayor Cavanaugh indicated he was extremely proud to see this item before the Council 31 for their approval. Rosemary Franzese, Suburban Hennepin Parks Commissioner, stated 32 she has been working on this item for two years with the Salvation Army to acquire this City Council Study Session Minutes August 14, 2001 Page 2 1 property and was now seeking Council's consent. 2 Jeff Brauchle, Legal Counsel, stated there will be a closing on this site within 30 days. 3 He indicated environmental tests need to be completed before closing can occur. He 4 indicated this recreational site is an added bonus to the Suburban Hennepin Parks 5 District. He noted the added open space will be a treasure for all. 6 Councilmember Thuesen asked for a time line for this site to be at Met Council for 7 funding. Mr. Brauchle stated he is prepared to go forward with funding and will be 8 seeking reimbursement from Met Council. 9 Councilmember Hodson indicated he has heard numerous questions on when the site 10 would be open for visits. Mr. Brauchle stated the vision of the Park's District is to open 11 up this open space, but indicated this is uncertain as the master plan would need to be 12 completed before work could commence. He estimated nine months before the master 13 plan would be completed. 14 Councilmember Hodson questioned if Hennepin County has any other parks with joint 15 county residences, as this park will be, between Ramsey and Hennepin County. Mr. 16 Brauchle reviewed the numerous parks that are owned jointly between Hennepin County • 17 with Anoka, Carver, Ramsey, and Scott counties. 18 Councilmember Horst asked if there was any involvement with Ramsey County to date 19 and asked if the park would be on a no-fee basis. Ms. Franzese stated she has had no 20 dealings with Ramsey County to date. Mr. Brauchle indicated there would be no fees to 21 enter the park by bike or walking and noted the park would only be open from dawn until 22 dusk. He stated the only fee charged to park patrons would be a modest parking fee to 23 raise revenues to support park maintenance. 24 Mayor Cavanaugh noted he had no objection to the parking fee and stated he did not 25 want to get involved with setting fees with Ramsey County or Hennepin County. He 26 thanked the Salvation Army for their many years of being a good neighbor and stated he 27 was looking forward to many years of open space enjoyment at the new park. 28 Councilmember Thuesen thanked Douglas Bryant for his work on the acquisition of this 29 property. 30 Motion by Hodson to approve Resolution 01-071 granting the City of St. Anthony's 31 consent for the Suburban Hennepin County Regional Park District's acquisition of the 32 Salvation Army Camp Property as presented. 33 Motion carried unanimously 34 C. Consider Bid Award for Central Park Project 35 City Manager Mornson indicated Bob Kost and Carol Jindra were present to review this City Council Study Session Minutes • August 14, 2001 Page 3 1 item with the Council. Bob Kost, URS Corporation, indicated there was a bid opening 2 for Central Park on August 7, 2001 for a second time, after revisions were made to the 3 first bid. Mr. Kost noted the estimates were around $1,600,000 with Veit& Company 4 coming in as the low bidder. 5 Mr. Kost indicated along with the park redevelopment, the City Hall would be receiving 6 an irrigation system at a fee of$28,100. He noted it is the Park Commission's 7 recommendation to approve the bid to Veit& Company. 8 Councilmember Horst stated $1,000,000 was originally budgeted for the park 9 redevelopment and asked if the $625,000 tax abatement would still be available. He 10 indicated his understanding was that this would be approximately half of the original 11 estimate. City Manager Mornson noted this was news to him as the City has an 12 agreement with the school district for these funds. He indicated he was under the 13 impression the school district would be providing these funds and noted he would need to 14 check with the school district on this item in conjunction with Springsted. 15 Councilmember Horst asked how the abatement funds worked. Mayor Cavanaugh stated 16 the school is on the hook for these funds as it is not TIF funding. • 17 Councilmember Horst stated it was his understanding the $250,000 general fund reserves 18 were meant to be used as rainy day funds. He indicated additional funding from the 19 County was being lost and stated using these funds may not be the wisest decision at this 20 time. 21 Councilmember Sparks asked if there were contingent funds within the budget for rainy 22 day issues. Mayor Cavanaugh indicated the budget has approximately $900,000 in its 23 budget for overages within the budget. 24 Councilmember Horst indicated all available funds were being used from the water 25 filtration fund to fund the park and tha this was a high price for the City to pay. He 26 added that the City Manager identified these funds as spendable funds, which means it 27 can be removed from the fund without damaging the principal. City Manager Mornson 28 stated this was not a correct statement, as the original principle would not be touched and 29 that only interest would be taken from this fund to be used for the park improvements. 30 Councilmember Horst asked if there were other sources of money available for Central 31 Park. City Manager Mornson stated $1.2 million was put into the City Hall and $500,000 32 into the Silver Lake bridge project just recently, which makes additional funding sources 33 unavailable at this time. 34 Councilmember Horst stated, it was his opinion, if the Council moves forward with this 35 item the City would be spending down its reserves without any way of replenishing them. 36 City Manager Mornson indicated the City has taken on numerous projects in the past 37 several years and stated future projects will be able to be taken on as funding allows. He City Council Study Session Minutes • August 14, 2001 Page 4 1 explained the City could always assume debt if additional funding was needed. 2 Councilmember Horst noted he was not in favor of spending all of the City's reserve 3 funding on this one project as the City may need these funds in the near future. He 4 indicated the project should be pared down and still allow for a nice facility. 5 Councilmember Thuesen thanked Councilmember Horst for his comments, but stated 6 numerous compromises have been made on this site and stated he was pleased with the 7 results at this time. 8 Motion by Sparks to approve Resolution 01-071 awarding the bid for the redevelopment 9 of Central Park to Veit& Company in the amount of$1,689,862 as presented. 10 4-1 (Horst opposed) Motion carried 11 VI. REVIEW ITEMS 12 A. Review 2002 Budget and Tax Levy. 13 Mayor Cavanaugh introduced the 2002 Budget and Tax Levy. He handed out a copy of • 14 the new state legislature policies. Mayor Cavanaugh reviewed the items that would 15 affect the City and local school districts. He indicated he is not aware of the affects it 16 will have on the school district as each City is unique. 17 Mayor Cavanaugh explained the real significance for the City of St. Anthony will be in 18 property tax relief, for all homes valued over$76,000. He noted this would continue 19 through 2004, which would affect the budgeting of the Council over the next several 20 years. 21 Mayor Cavanaugh indicated the legislature would phase out valuation so that in six years 22 all property owners would be paying the fair market price of their home. He noted the 23 legislature is eliminating HACA Funding in the amount of$350,000 which is a major 24 state aid cut for the City. 25 Mayor Cavanaugh noted levy limits have been placed on City governments to control 26 how much each City can spend. He indicated with less revenues coming in, this would 27 be difficult for each municipality. Mayor Cavanaugh noted there would be no truth in 28 taxation meetings this year either because of the late legislative sessions. 29 Mayor Cavanaugh indicated TIF funding has been greatly decreased which creates great 30 problems for future redevelopment of Apache Plaza. He stated the Council now has 31 severe restrictions on expenditures with the $350,000 cut from City revenues, which was 32 roughly 10%of total revenues. Mayor Cavanaugh stated he feels this is going to be a 33 trend over the next several years. 34 Mayor Cavanaugh asked staff to review the budget and noted Council would not be City Council Study Session Minutes • August 14, 2001 Page 5 1 voting on this item until the next meeting. City Manager Mornson noted all department 2 heads were in attendance for questions. He explained there was still a large amount of 3 uncertainty within the budget, as revenue amounts are still coming in from the 4 Department of Revenue. 5 City Manager Mornson indicated the budget was incrementally increase for all services 6 offered in 2001 with no new services being proposed for 2002, as the property tax reform 7 would not allow for this. He noted staff recommends a budget in the amount of 8 $3,626,500 just $106,625 over the 2001 budget. 9 City Manager Mornson indicated no additional staff would be added at this time and he 10 reviewed all other items that would be eliminated or reduced over 2002. He noted he is 11 proposing a 3% increase in staff's income for 2002. 12 City Manager Mornson noted the City is limited to 10%of a tax levy per year at this 13 time. He stated that because HACA has been taken away from the cities a one time 14 increased tax levy is being allowed by the State. City Manager Mornson explained 15 property owners are to see a decrease in property taxes over 2002 but noted after 2002, 16 there is a greater level of uncertainty. • 17 Councilmember Sparks asked why there was such uncertainty in 2003. City Manager 18 Mornson noted it was his understanding that the State would not be paying local portions 19 of referendums so residents of the community would be responsible for 100%of 20 referendums. He indicated this would greatly affect local property taxes. 21 City Manager Mornson indicated he feels numerous cities are going to gain negative 22 press for the increase in the tax levy even though revenues have been decreased. He 23 reviewed the fire, police, utility, park and city hall budgets for 2002. City Manager 24 Mornson reviewed several options for the Council to use current cash available to pay for 25 capital projects in 2002. He indicated this decision does not have to made at this time, 26 but noted this money could be made available for future projects. 27 City Manager Mornson stated the future of the Stonehouse would need to be made. He 28 reviewed a letter from the Finance Director with regard to Truth in Taxation hearings. 29 City Manager Mornson stated it was the wishes of the Mayor to hold some form of a 30 public hearing for the public to review the budget and make comments. 31 City Manager Mornson noted August 28`h would be the next budget meeting. He then 32 reviewed the goals of the City staff for 2001 and noted they were on track. City Manager 33 Mornson reviewed the General Fund Budget amount for 2002 being $3,626,500 a 3.03% 34 increase over 2001, with the Tax Levy of$2,202,354, a 24.89% increase. 35 City Manager Mornson reviewed the decreases in intergovernmental revenues and noted 36 how expenditures were panning out for 2002. He stated roughly 61%of the General 37 Fund revenues were from the tax levy with police taking roughly 29.4%of the City Council Study Session Minutes • August 14, 2001 Page 6 1 expenditures. City Manager Mornson compared the revenues from 2001 with regard to 2 funds available for 2002. He indicated the expenditures between the two years were 3 relatively the same. City Manager Mornson broke down the levy limit calculations for 4 2002. He noted there was a$438,879 increase over last year. 5 Councilmember Hodson thanked staff for their work on this year's budget and noted the 6 difficulty staff had with meeting new State requirements. He cautioned the City from 7 cutting any current services as residents have come to expect a high level of service from 8 the police, fire, etc. 9 Councilmember Horst noted he was pleased with staffs ability to balance this budget 10 with all the changes mandated by the State. He indicated all services key to operate the 11 City were being maintained at the same level and explained he would be against limiting 12 any of these services. 13 Councilmember Sparks questioned if public works was adequately funded. She stated 14 the City's ability to manage the turf and holding ponds within the City could be a concern 15 with the proposed redevelopment of Central Park on a limited 2002 budget. 16 Councilmember Sparks reviewed several pictures of holding ponds throughout the City • 17 that are unsightly. She questioned if the 2002 budget addressed the increase in public 18 works services that would be needed for Central Park. City Manager Mornson stated an 19 irrigation system would be installed at Central Park to assist in the maintenance of the 20 green space. He noted the holding ponds are a work in progress and noted seven or eight 21 holding ponds have been addedg to the City within the last few years which has increased 22 the public works responsibilities. 23 Councilmember Sparks reviewed the items kept out of the budget for 2002 and asked 24 why $80,000 was cut from the public works department. City Manager Momson noted 25 each department was asked to make cuts and this was their determination. 26 Councilmember Hodson stated Central Park will be under construction next year which 27 will allow for the public works department to focus on blighted sites within the City 28 before taking on the maintenance of Central Park in early 2003. 29 Councilmember Thuesen stated all yards throughout the City are dry this year with weeds 30 flourishing. He indicated with an irrigation system at Central Park he feels blighted 31 parcels will be a non-issue. Councilmember Thuesen stated this may not be a funding 32 issue, but rather a method or policy on maintenance that the public works could review. 33 Mayor Cavanaugh noted he felt this budget should have been dead on arrival and noted 34 he does not take lightly to cutting reserve funding. He indicated the budget is not • 35 balanced at this time and is up roughly 7%, with the use of reserve funds to cover 36 increased expenditures. Mayor Cavanaugh stated he felt the increase in the budget 37 should be 0%. He stated the 25%tax levy increase does not meet his approval and noted City Council Study Session Minutes • August 14, 2001 Page 7 1 he would not be in favor of approving the budget as submitted. 2 Councilmember Thuesen stated the City would be playing the shell game with the State 3 as funding has been taken from the City and given to the State. He noted all programs 4 need to continue as is and noted the budget was only increasing 3%overall. 5 Mayor Cavanaugh stated the residents would be affected the most by this levy to 6 maintain the same level of services. He indicated the fire department budget has not been 7 fully addressed with this budget with new State requirements. He explained the model 8 has been broken because the typical sources of revenues have been altered and are now 9 expected to be collected from the residents. Mayor Cavanaugh indicated he felt there 10 should be no more than a 10% levy and noted he feels the Council may have to review 11 how they provide services. 12 Mayor Cavanaugh indicated the City would not thrive in the future with no surplus 13 funding left after the years' end. He explained the City would not be able to build 14 reserves if this is the case. Mayor Cavanaugh advised staff to revise this budget and 15 report back to the Council. 16 Councilmember Hodson noted he disagreed with the Mayor's comments and noted each • 17 City is having difficulty with the regulations this year and stated he does not want to see 18 services cut from the budget. He indicated he understood that services would not be 19 added, but stated in the future other funding sources could be sought to build reserves and 20 to increase services provided to the residents. 21 Mayor Cavanaugh questioned why the $112,000 in budget reserves was being used at an 22 administrative level. He indicated he felt the use of these funds was not allowable as 23 future needs may require these funds. City Manager Mornson stated this fund was 24 created from surpluses in administrative funding. He indicated these funds are being used 25 to assist in expenditures and noted the tax levy at 25%would be a one time high to help 26 the City adjust for the loss of HACA and LGA State Aid Funding. 27 Councilmember Thuesen stated he feels this budget was reasonable and stated he felt the 28 services provided would be similar to 2001 with only a minor incremental increase. 29 Mayor Cavanaugh stated he felt the increase was outrageous and he noted he would not 30 support it at this time. He explained he felt the Council could do better for the residents. 31 Mayor Cavanaugh noted the City has residents on fixed incomes that would not be able 32 to handle the sizeable increase. He indicated he felt the staffing of the City needs to be 33 addressed. 34 Councilmember Thuesen stated he feels staff is providing high quality services to the • 35 residents at this time and noted a cut in their fees would not increase their level of 36 service. He indicated he did not like the Mayor questioning staff's level of efficiency for 37 the funding they are provided. City Council Study Session Minutes • August 14, 2001 Page 8 1 Councilmember Sparks questioned if the $112,000 budget reserves could not be used for 2 2002. City Manager Mornson stated he feels it is in the best interest of the City's to use 3 these funds to prevent cuts in other areas such as personnel. He indicated if the Council 4 is against using these funds,they could advise staff to redraft the budget and report back. 5 Mayor Cavanaugh stated he would be in favor of not using the $112,000 along with 6 providing additional cuts in the budget to reduce the tax levy. 7 Councilmember Thuesen and Councilmember Hodson stated they would not be in favor 8 of this suggestion as they would like to see the same level of services maintained for the 9 residents. 10 Councilmember Sparks noted the residents would not be able to truly see the changes in 11 the budget until next year, which makes this budgeting cycle very difficult. She 12 indicated she would be willing to pass this budget as is to maintain the same level of 13 services, but noted she was leery of the residents' response. 14 Mayor Cavanaugh noted a change in residential tax rates from 30% to 38% should make 15 the residents stand up and take notice. He indicated he wants to see the budget revised • 16 but noted there was not support from the Council at this time. 17 VII. INFORMATION AND ANNOUNCEMENTS. 18 City Manager Mornson noted the Minneapolis Fire Department has submitted a proposal 19 to provide services to the City of St. Anthony as early as January 1, 2002. He noted the 20 fire union opposes this change, but asked that the Council allow the Minneapolis Fire 21 Department to present their proposal at the Council's next meeting. 22 City Manager Mornson recommended a firm provide the City with an independent 23 summary of the services that could be provided by the City of Minneapolis versus the 24 current services. He explained this would allow the Council to compare the two in an 25 unbiased manner. City Manager Momson indicated this item was not solicited but 26 brought to the City from the Minneapolis Fire Department. 27 Mayor Cavanaugh asked for the wishes of the Council. 28 Councilmember Horst noted he does not want to hear from the Minneapolis Fire 29 Department. He stated the residents are willing to pay extra for quality services and 30 indicated he would not be in favor of switching from the current arrangement. 31 Councilmember Sparks asked for the wishes of staff. City Manager Mornson stated this 32 item could be heard without an independent survey completed. Councilmember Hodson 33 and Councilmember Thuesen concurred with this suggestion. • 34 The Council agreed to hear the proposal knowing full well this was not the wishes of the 35 Council at this time. City Council Study Session Minutes • August 14, 2001 Page 9 1 Councilmember Thuesen asked that staff provide the Council with rough numbers on the 2 tax savings from the State next year with the proposed City increases. City Manager 3 Mornson noted he could provide the Council with some preliminary numbers. 4 City Manager Mornson indicated there would be a joint meeting with the Council and 5 School Board to discuss building needs on Monday, October 29, 2001 at 7:00 p.m. He 6 noted funding needs would also be discussed. 7 City Manager Mornson noted a community survey was discussed at a goals session 8 between staff. He indicated the last City survey was done in 1998 and noted there would 9 be funding available in the cable fund to cover the expense. He asked that the Council 10 review the previous survey and come up with questions that should be addressed. 11 The Council advised staff to move forward with the survey and place this item on the 12 next meetings agenda. 13 XIII. ADJOURNMENT. 14 Motion by Thuesen to adjourn the meeting at 9:28 p.m. • 15 Motion carried unanimously. 16 Respectfully submitted, 17 Heidi Guenther 18 TimeSaver Off Site Secretarial, Inc. R 19 �J 20 yor 21 ATTEST: 22 City Clerk