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HomeMy WebLinkAboutCity Council Minutes 08-24-1999 SpecialAdopted Minutes Special Council Meeting August 24, 1999 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 Blvd., on August 24, 1999. COUNCIL PRESENT: Mayor Tierney, Councilmembers Brown, Black, Harstad, Johnson, Bildsoe, and Slavik. ABSENT: None. STAFF PRESENT: City Manager Johnson, Assistant Manager Ahrens, Public Safety Director Gerdes, Finance Director Hahn, Parks and Recreation Director Blank, Community Development Director Hurlburt, Public Works Director Moore, Finance Officer Supervisor Leitner, Financial Analyst Kohn, and City Clerk Paulson. Proposed 2000 Budget & Tag Levy Manager Johnson stated the Council would be conducting Budget Work Sessions tonight and September 1, 1999. Staff's goal is to respond to any questions the Council may have this evening before the September V meeting. Manager Johnson stated City taxes on the average valued home (valued at $206,300 after 4% appreciation) would increase by $9.76 (2.09%) while the taxes on an average business property 1,060,000 after 6% appreciation) will increase by $121.14 (3.39%). The City's overall tax rate is proposed to be 16.42 compared to 16.43 in 1999. This total rate is comprised of a tax capacity rate of 15.47, plus market value tax rates of .00450% for the Open Space Bond issue: and 00889% for the Activity Center and Field House debt service. He stated the Council would be conducting a public hearing on September 7`' for the tax rate increase, as defined by the Legislature, in addition to the Council approving the 2000 proposed budget and proposed tax levies and scheduling the truth and taxation hearing. Manager Johnson stated ideas for the 2000 budget began with input from employees through the annual budget survey. As in 1999, employees identified many ideas that were forwarded to department managers. They analyzed the requests as the department budgets were developed and new initiatives were formed. Manager Johnson informed the Council of Legislature's amendments to the classification rates charged to various types of property that continues the 1999 trend of compressing the class rates. For taxes payable in 2000, the City's market value is projected to increase by 9%, with 3.4% attributable to new construction and 5.6% to appreciation. The residential segment market value will increase by 7.3% and the commercial segment by 13.20%. However, because of property tax reform, the City's tax capacity will grow by only 7% in 2000. Adopted City Council Minutes August 24, 1999 Page 2 Councilor Brown asked how the fiscal disparity contribution is calculated. Manager Johnson explained the commercial tax base is pooled and spread over the metropolitan area. Finance Director Hahn stated the City lost $8 million last year as the City contributed over $12 million and only received $4 million back. Manager Johnson discussed with the Council the estimated tax burden on $1,000,000 businesses, and he stated with the 1999 class rates the total City tax was $3,571.47 while the proposed 2000 rate is $3,692.61. Manager Johnson explained cities and counties over 2,500 population are subject to levy limits. In general, a tax levy can only increase by the implicit price deflator (1.0 15), by the percentage of household growth, as determined by Metropolitan Council (1.023), and by an adjustment for the market value of new commercial and industrial construction (1.014). The levy limit calculation for the City allows a tax levy of $12,667,960 for 2000. The proposed tax levy is 12,594,304 which is $73,656 below the maximum levy amount. The City's overall tax levy will increase by 7.1% in 2000 that is within the levy limit. This compares to an increase of 9.7% in 1999 and 5.9% in 1998. Manager Johnson stated the City recently adopted a Surface Water Management Plan, and the plan requires significant capital expenditures to improve the water quality of the City's lakes and streams. The 2000 budget includes additional funding for implementation of the plan that includes: 1) An increase of $40,000 for stream erosion correction, and 2) The Capital Improvement Plan earmarks the capital improvement levy for major water quality improvement projects at Parker's Lake and Medicine Lake for the next several years. In addition, the amount of $15,000 for increased plantings has been added to the budget for a total reforestation budget of 65,000. Councilmember Harstad asked if the Bassett Creek Watershed could be asked to contribute. Manager Johnson replied that staff has planned to make that request. Manager Johnson discussed with the Council the proposed budget initiatives that would enhance the ability of public safety to respond to emergencies: 1. The project to install Opticon controllers at various signalized intersections in the City is continued with $30,000 to add two signals in 2000. This would complete the Opticon installation at County Road 9 intersections. 2. In order to both recruit and retain firefighters, the 2000 budget includes a pay increase of $.25 per hour for all firefighters. 3. The 2000 budget includes $850,000 for the purchase of a 90 -foot ladder pumper to replace an existing ladder pumper and enhance the City's fire protection services. 4. The 2000 budget includes funding for adding seven firefighters along with the associated equipment and training. Adopted City Council Minutes August 24, 1999 Page 3 Councilmember Harstad asked how long it would be before there could be Opticon at every intersection. Public Works Director Moore responded that due to intersections that MN/DOT and/or the County are responsible for, only six remain that could be altered. Councilmember Harstad stated that this is the most cost effective means to respond to police and fire calls, and he would encourage the City to install the equipment at remaining intersections. Public Safety Director Gerdes stated for the next Budget Work Session he and Public Works Director Moore would compile a list of intersections that could be converted. Manager Johnson informed the Council that two new positions are proposed in the 2000 budget to address traffic safety issues. A new police officer at an approximate annual cost of $47,436 would be added to expand the Traffic Enforcement Unit to three members. The second new position would be a traffic engineer at an approximate annual cost of $55,972. The traffic engineer would work with the public on traffic safety concerns, conduct traffic studies, supervise traffic improvement projects, proactively review accident data, and review plans to identify traffic impacts of proposed City projects and private developments. Manager Johnson reported the City is scheduled to complete the update of the Comprehensive Plan by the end of 1999, and implementation of the plan will then begin. The plan identifies areas of potential redevelopment. The orderly development of northwest Plymouth, and City Center planning and development/Plymouth Boulevard streetscape will also take significant staff time to implement. The positions of planning assistant at an annual cost of $48,684 and HRA specialist at an annual cost of $44,868 are proposed in the 2000 budget to work on these issues and to handle support tasks so that other staff have additional time to devote to these activities. Manager Johnson stated regarding the Y2K computer issues, the 1999 budget established a 50,000 reserve fund (1998 general fund surplus, water fund, sewer fund, and utility trunk fixed) for addressing any potential Y2K problems. Approximately $20,000 has been expended to reserve standby generators and correct Y2K problems. The balance of this fund is available to correct any unforeseen problems in 2000. Manager Johnson noted that it is proposed to fund an additional police liaison officer with the Wayzata School District. The liaison officer will work on class assignments, follow-up on investigations involving youth and devote more time to juvenile -based crime. Two-thirds of the cost of this position would be paid by the school district with the net cost to the City of $16,090. The Council briefly discussed with Manager Johnson the estimated tax levy rate and the allocation of HACA. Councilmember Harstad suggested that in the future the Council receive a single financial statement for the Activity Center and Field House. Manager Johnson stated staff could accommodate that request, but for a period of time revenues and expenditures should be tracked separately. The Field House is established as an enterprise fund. Manager Johnson stated the proposed 2000 budget proposes total general fund expenditures of 17,289,824 which is an increase of 5.9% over the 1999 budget. Total spending of all operating Adopted City Council Minutes August 24, 1999 Page 4 funds is proposed to be $41,007,019. This is less than a 5% increase from the 1999 budget with 1% of the increase attributable to the Activity Center and Field House. Discussion was held by Councilmember Harstad, Manager Johnson, and Finance Director Hahn relative to the equipment replacement fund and how the funds are managed relating to insurance, maintenance, depreciation of vehicles, and equipment purchases. Manager Johnson reported on the five new full-time positions being proposed (police liaison officer, traffic enforcement officer, traffic engineer, HRA specialist, planning assistant) in addition to a new secretary position to serve the Activity Center and Field House. He noted that the additional meter reader position that was authorized in the 1999 budget would be eliminated as this position wasn't filled. Currently the City contracts for meter reading services to respond to the demand. Because of the unknown outcomes of tiered water rates and possible billing cycle. changes, the duties of this position could be best achieved by continuing with contractual reading so that personnel adjustments could be easily made. Finance Director Hahn informed the Council that NSP has suggested the idea of installing equipment so their staff could the City's meters at the same time. He stated he would be meeting with NSP officials in two weeks to discuss this possibility. Manager Johnson mentioned other personnel -related recommendations which included the compensation increase for firefighters ($7,080), funding for seven additional firefighters 35,000), police lieutenant reclassification ($10,000), recreation temporary salaries ($5,000), custodial services for the Activity Center and Field House ($29,844), increased hours for ice arena maintenance ($10,958), and several clerical reclassifications ($5,152). Councilmember Harstad ledthe Council in a discussion regarding the additional $.25 more per hour for the firefighters. He requested the Council consider a greater raise, around $.50 per hour. Mayor Tierney and Councilmember Johnson stated the Council debated this issue in length last year, and it was decided after doing a comparison with other cities, to implement annual. increases. In addition, the City needs to be careful in the amount of increase as it relates to the other City bargaining units. Public Safety Director Gerdes stated he would provide the report from last year to the Council. Finance Director Hahn commented that the Council recently raised the firefighter pension from $4,000 to $5,500. Mayor Tierney noted that the City's infrastructure levy that supports the City's street reconstruction program would only be increasing by 3% in 2000. She questioned if more funds should be allocated to this account since the City is behind 10-20 years in this area. Manager Johnson stated he is not sure at this point, but he acknowledged this fund should probably be increased and reviewed next year. Manager Johnson discussed with the Council the recommended capital equipment purchases for 2000. He stated the Engineering Department is requesting the purchase of a liquid bituminous distributor tack truck in the amount of $68,000. He stated the City's engineering guidelines call Adopted City Council Minutes August 24, 1999 Page 5 for a tack coat to be used between layers of asphalt applied to City streets. The cost of this truck would be allocated over three years with funding from the central equipment fund at a budgeted amount of $25,500 in 2000. Councilmember Brown asked why the City couldn't contract for this service. Public Works Director Moore replied the City works on very small sections of roadway at a time so it would be difficult to contract with a contractor when the work would be very sporadic. Manager Johnson stated as part of the capital equipment purchases, staff is proposing to purchase a 400 kw generator at an approximate cost of $88,000. While the City has several generators, there is only one electrical generator large enough to operate the City's wells and lift stations. The cost of the new generator would be evenly split between the water and sewer funds. With the occasional electrical outages the City has experienced, the acquisition of an additional generator is further justified to ensure uninterrupted well and lift station operations. Manager Johnson stated another component of the capital equipment purchases is the purchase of a sewer televising camera at an approximate cost of $28,000 which would be charged to the sewer fund. This camera would be used to televise and record the condition of City sewers. Councilmember Harstad questioned whether the City has considered purchasing a camera with radar equipment which would take a picture of the driver and record the license of the vehicle. This information could be used for neighborhood meetings. Public Safety Director Gerdes replied that it is not currently legal in Minnesota to utilize that equipment for enforcement. However, staff continues to review the possibility. Mayor Tierney stated the portable speed trailer that the Police Department utilizes has received very good response from the citizens. The Council discussed outdoor warning sirens in case of bad weather. Public Safety Director Gerdes stated the sirens are not designed to warn citizens in their homes but for people who are outside and at the parks. Individuals can purchase weather alert radios for their homes which would be activated when the National Weather Service issues the watches and warnings. He further stated that the City has replaced two outdoor sirens and has added a new one in the last three years. Finance Director Hahn commented the sirens can't be set too loud as they can cause hearing damage to adjacent residents. Director Gerdes stated he would provide a copy of a previous report that was given to the Council for the next budget work session. The question was raised by the Council as to why the City purchases fire trucks and police cars when they could be leased. Public Works Director Moore stated there is no advantage as these are specialized vehicles, and if leased, the City would be paying interest on the leases. A considerable amount of discussion was held relative to funding of the various social service and arts funding requests. Councilmember Bildsoe asked how the organizations that receive funding are selected. Manager Johnson replied it depends on the number of people they serve and what they do. Councilmember Bildsoe commented he feels Music in Plymouth and Plymouth Rockers should be funded 100% of their request. He stated these organizations bring a Adopted City Council Minutes August 24, 1999 Page 6 sense of the community to the City. Councilmember Slavik commented that it has been discussed to downsize Music in Plymouth because of the lack of corporate sponsors. Mayor Tierney stated she feels the Civic League has the opportunity to solicit participation on a broader basis. She is concerned about being too generous with the City's contribution, as she would like to see the business community make a contribution back to the community through the civic activities. Councilmember Brown stated if the organization is doing public good for the community, the City needs to seriously consider their funding request. Councilmember Johnson then discussed the funding requests of PRISM and Interfaith Outreach. She stated the PRISM area serves the eastern part of Plymouth while the Interfaith Outreach serves the western part of Plymouth, and the funds the City would be contributing to these similar organizations differ. Therefore, she is concerned that the City could be giving the impression that it's favoring one organization over the other. Manager Johnson responded that he believes the area that Interfaith Outreach serves is double the area that the PRISM area covers. He stated staff would research this and provide a report back to the Council. Manager Johnson stated additional information will be provided for a study session in October or November. Manager Johnson noted staff is proposing to increase the prime ice rental fee from $130 per hour to $140 per hour. The budget proposes increasing an ice center maintenance position from 24 to 32 hours per week at an increased cost of $10,958. An increase in retained earnings that will be reserved for future building renovation and equipment replacement is also projected. Manager Johnson stated in conclusion, staff believes that the 2000 budget makes progress on the City's key issues and goals. Additional funding is proposed for traffic safety, water quality projects, planning and redevelopment activities, Activity Center and Field House operations, Fire Department equipment and response, school safety, and Y2K preparedness. However, the impact on residents and businesses will be about equal to the current inflation rate with a tax impact on the average homeowner of under $10 per year. The Council conducted a five-minute recess. Following the recess, the Council reconvened, and began to discuss different portions of the proposed budget. Councilmember Black and Mayor Tierney discussed the Council beautification efforts for the City, maintenance costs, and a list of projects being undertaken by the City. Mayor Tierney stated she would like to see an official committee formed to promote and assist in beautification efforts for the City. Manager Johnson stated the City's forester, Paul Buck, has been designing new projects to enhance the beautification efforts. Councilmember Harstad requested the Council receive a report on the Plymouth Boulevard streetscape project, specifically what is in the current budget and the Capital Improvement Plan. Adopted City Council Minutes August 24, 1999 Page 7 The Council then reviewed the budget in detail by department and received clarification from Manager Johnson and Finance Director Hahn on any items they questioned. Councilmember Harstad stated it would be helpful for him to receive the budget and estimated expenses by general ledger account rather than by fund. Finance Director Hahn stated he would provide this type of report to the Council for their next budget work session. Councilor Black questioned how much has been expended in 1999 for Council conferences and seminars. Finance Director Hahn stated he is unsure at this point, however, he will provide a report to the Council for the next budget work session. The Council discussed the communication's budget and more specifically the part-time and overtime expenses. Assistant City Manager Ahrens stated that part-time expense is for the video producers and photographers while the overtime expenditure is for the Communication Supervisor and one other staff member. Councilmember Brown asked about the City's process for handling requests from potential new businesses. Community Development Director Hurlburt responded that some of the expenditures are included in her budget; however, at the current time there is no procedure or specific brochure/packet for handling such requests. She stated she is hopeful that with the addition of a new planning assistant, that individual could oversee this area. Regarding the Parks and Recreation Budget, Parks Director Blank and Manager Johnson discussed with the Council the struggle in attracting and retaining lifeguards. It was noted that the lifeguards receive 20-30 hours of training, but their pay is less than other businesses. Director Blank stated that he authorized the City's recreation staff to offer aggressive rates in 1999 in order to retain lifeguards. However, this effort had little or no impact, but staff will continue to investigate options to hire and retain lifeguards. A small amount of discussion was held relative to unguarded beaches. Director Blank stated that lifeguards have to be 18 in order to supervise the beach areas. Councilmember Harstad asked why there isn't a line item for the traffic lights in the budget. Manager Johnson responded this is an operational budget only. Those costs would be included in the Capital Improvement Program. It was noted that the beach concession sales were down from the previous year. Finance Director Hahn stated he would provide a response to that inquiry for the next budget work session. A brief discussion was held on the water rates, and Manager Johnson stated a report would be provided to the Council at a later date. Regarding the sewer fund, Finance Director Hahn informed the Council with the Metro Sewer Board's charges decreasing by 4%, a sewer increase wouldn't be necessary. Adopted City Council Minutes August 24, 1999 Page 8 Relative to the solid waste fund, Councilmember Black requested a cost of living expense be added to this fund in the future. Councilmember Harstad requested that for the central equipment fund, the Council receive a fleet analysis report for the next work session. Manager Johnson noted that in the employee benefits fund, health insurance rates are going to be increasing. Councilmember Johnson noted that the League of Minnesota Cities health insurance rates would be increasing 40%. Manager Johnson stated the reserve savings from this year could be used to cover some of the costs for next year. Mayor Tierney asked what staff is anticipating for the general fund surplus. Finance Director Hahn stated approximately $300,000-$400,000 which is considerably less than the previous year. In conclusion, Manager Johnson stated staff would prepare the reports that were requested this evening for the next Budget Work Session that is scheduled for September 1, 1999 in the Public Safety Training Room. The meeting was adjourned at 10:20 p.m. Sandra R. Paulson, City Clerk