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.
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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.
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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
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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
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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
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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.
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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.
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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