HomeMy WebLinkAboutCity Council Minutes 08-21-2000 SpecialAdopted Minutes
Special City Council Meeting
August 21, 2000
A Special Meeting of the Plymouth City Council was called to order by Mayor Tierney at 7:00
p.m. in the Public Safety Training Room, 3400 Plymouth Boulevard, on August 21, 2000.
CITY COUNCIL PRESENT: Mayor Tierney, Councilmembers Johnson, Bildsoe, Slavik,
Brown, Black, and Harstad.
ABSENT: None.
STAFF PRESENT: City Manager Johnson, Assistant City Manager Ahrens, Public Works
Director Moore, Community Development Director Hurlburt, Park and Recreation Director
Blank, Public Safety Director Gerdes, Finance Director Hahn, Finance Manager Jacobson,
Financial Analyst Kohn, Finance Officer Supervisor Leitner, and City Clerk Paulson.
City Manager Johnson explained the purpose of this evening's meeting is to discuss the proposed
2001 budget and tax levy. He stated the 2001 budget is designed to strive towards the Council's
goals and priorities while limiting the tax impact on residents and businesses. He reported the
Council would be conducting another budget study session on August 31 and approving the
maximum tax levy at the September 5 Council meeting.
He stated the City's taxes on the average valued home (valued at $231,300 after 9%
appreciation) would increase by $12.60 (2.55%). The taxes on an average business property
1,050,000 after 5% appreciation) would decrease by $75.64 (-2.18%). He explained this
difference in appreciation rates between residential and business properties would result in a shift
toward residential properties being responsible for a bigger portion of the total tax base.
He stated the City's overall tax rate is proposed to be 15.25 compared to 16.43 in 2000.
Therefore, since the tax rate would not be increasing from 2000 to 2001, a simple majority vote
of the Council would be sufficient for adoption of the proposed tax levy.
He commented the City would be losing about 12.4% of taxes to fiscal disparity. The previous
year it was approximately 10%. He explained the increase in the City's share is due to the larger
ratio of commercial and business development than the remainder of the metropolitan area. He
stated there has been discussion by lobbying groups to "cap" the amount.
He discussed with the Council a few external cost factors that impact the 2001 budget. One
factor is the labor shortages in certain staff positions which has caused the City to agree to or
even initiate above average salary and wage increases for those positions. In addition, the
overall health insurance premium costs are currently increasing at a double-digit rate. Another
cost factor that affected the budget was that certain fuel, oil, and natural gas costs increased
sharply. Related costs, such as asphalt, were also impacted.
Adopted City Council Minutes
Special Meeting of August 21, 2000
Page 2 of 4
He reported on the major budget proposals that include fire service delivery, street reconstruction
funding, water quality programs and funding, and general fund surpluses/correction factor.
He explained regarding fire service delivery, the interdepartmental Fire Service Task Force has
recommended an increase of $160,000 in the budget to implement new fire initiatives to address
staffing issues. The major recommendation is to add a full-time captain position in the Fire
Division as well as a full-time fire prevention officer in the Community Development
Department. Both positions would be made consistently available to fill duty crew schedules
during weekdays, but would also serve to increase the City's efforts in such areas as training,
recruiting, fire prevention, and fire planning. He also explained some of the other
recommendations of the task force included amending policies and hiring practices for the duty
crew, streamlining the selection process, encouraging employees who are members of other fire
departments to respond to daytime fires, and increasing benefits for firefighters (tuition
reimbursement and child care). Staff stressed the importance of balancing the retention of
firefighters with recruiting efforts. In addition, the issues involving housing issues for both the
fire and police divisions would be studied within a year or two. A detailed report would be
forthcoming from the Fire Service Task Force which the Council may want to discuss at a future
study session.
He stated street reconstruction funding is a major budget proposal in that following a study of all
the City streets, staff is recommending to increase the levy for street reconstruction by $100,000
in 2001 and 6% each year thereafter for 10 years. He commented that an unusual number of the
City's streets were built in the 1980s and just before the City improved its construction
standards. The majority of those streets would need reconstruction during the next decade, and a
moderate increase in funding would assist in preventing large increases in taxes or assessments
in the future. He suggested that this could be one area slated for allocation of the general fund
surplus. Based on the Comprehensive Plan, staff has the knowledge of what roads need to be
reconstructed, and staff can plan accordingly.
Councilmember Black requested that the street fund and the street reconstruction policy be
discussed at a 2001 study session.
City Manager Johnson highlighted another major budget proposal which was for the water
quality programs and funding. He stated a surface water management plan would be enacted in
2001; however, it wouldn't be implemented until the second half of 2001. He explained the new
surface water utility fee is estimated to cost the average resident about $1.75 per month. The fee
would also apply to commercial, industrial, and other non-residential properties. The fee is
estimated to total approximately $500,000 in revenue in 2001 and $1,000,000 in 2002. He
briefly highlighted the City's Environmental Quality Commission's educational efforts that
Adopted City Council Minutes
Special Meeting of August 21, 2000
Page 3 of 4
would include brochures, billboards, videos, grants, recognition programs, and other similar
activities as well as an accompanying increase in staff's time.
He stated for several years, the City's general fund has completed each year with larger than
normal surpluses. He reported the two main reasons for these surpluses have been building
permit fees exceeding estimates and salary savings due to vacancies in various positions
throughout the City. He stated staff's strategies for addressing the surpluses next year and in the
future include providing a $200,000 expenditure correction in the general fund to specifically
account for salary savings due to budgeted positions becoming vacant at various times
throughout the year, increasing the estimated revenues for building permits by 22.6%, and
allowing hiring employees in advance of retirements in the police division.
He reported on other budget proposals that include web site redesign, e -government, funding for
other agencies, Council salaries, legal services, and risk management f ind/workers
compensation.
The Council held a discussion on the various social service agencies funding requests. The
Council would be discussing these funding requests more in detail after their official proposals
are presented to the City which would occur in the near future.
The Council then discussed the budget by department and had their questions answered by staff.
Councilmember Bildsoe voiced his concern on how the City assesses property and the frequency
of re -assessing properties, and he requested this be reviewed in the future. He stated this is
strictly a fairness issue.
Councilmember Harstad asked what the status is of purchasing and installing opticon equipment
on the traffic signals. City Manager Johnson stated the Council approved advanced funded from
general fund surplus for additional lights. Public Safety Director Gerdes added the City Center
core area has been completed, and he recommended phasing the remainder of the approximately
10 lights in the City.
Councilmember Harstad lead the Council in a discussion of the City's snow plowing policy, and
more specifically, the order of how the streets are plowed. Public Works Director Moore stated
it is staff's goal to have the streets cleared curb to curb by 6:00 a.m. after a measurable snowfall.
He also commented that the State is in the process of testing different materials that would be
more environmentally friendly than road salt. He stated that staff would distribute copies of the
snow removal policy to all Councilmembers.
Councilmember Johnson suggested staff utilize the Plymouth Creek Center for the annual job
fair rather than the Radisson Hotel.
Adopted City Council Minutes
Special Meeting of August 21, 2000
Page 4 of 4
There being no further discussion, Mayor Tierney adjourned the meeting at 9:55 p.m.
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Paul son, City Clerk