Loading...
HomeMy WebLinkAboutCity Council Minutes 08-07-1997 SpecialMinutes Special Council Meeting August 7, 1997 A special meeting of the Plymouth City Council was called to order by Mayor Tierney at 7:05 p.m. in the Public Safety Training Room, 3400 Plymouth Blvd., on August 14, 1996. COUNCIL PRESENT: Mayor Tierney; Councilmembers Johnson, Preus, Spigner, Black, and Bildsoe. ABSENT: Councilmember Wold. STAFF PRESENT; City Manager Johnson, Assistant City Manager Lueckert, Community Development Director Hurlburt, Public Works Director Moore, Finance Director Hahn, Public Safety Director Gerdes, Park and Recreation Director Blank, Finance Office Supervisor Leitner, and Deputy City Clerk Hoffman. Mayor Tierney announced that the purpose of the meeting is to review the 1998 proposed budget. I. Sewer Fund City Manager Johnson told the Council that staff prepared an in-depth study of the City's sewer fund, and called on Finance Director Hahn to provide a history of the fund. Finance Director Hahn said that since 1992, a 32.4% increase had occurred in Metropolitan Council billing for services, while the City has increased rates only 10.9%. He said they began to see some losses occur starting in 1993, due in part to payments for bond calls. He said increased costs began to appear in 1995 due to the Sump Pump Program. He said he expects to see some increases in the cash balance due to billing for increased industrial commercial use and tapering sump pump costs. He said the City is losing money in the fund, and a loss in revenue there is also reflected in a loss of interest income. He recommended the Council discuss the situation further later in the year, when a clearer picture of the costs from the Sump Pump Program will be in. He said the goal should be to balance and return the fund to a positive direction. Councilmembers discussed with staff possible options to increase the sewer and water funds. Staff recommended bringing up the issue later in the year when figures are available from summer usage and costs before the Council considers rate increases or other options. Special Council Meeting August 7, 1997 Page 2 II. 1998 Budget Overview Manager Johnson said that the Council must adopt a proposed budget and a preliminary tax levy before September 15. After that, the tax levy can subsequently be reduced, but not increased. He requested that Councilmembers study the proposed budget and indicate any areas of concern. He and Finance Director Hahn presented the City of Plymouth tax rates from 1993 through 1997: 1993 18.04 1994 16.67 1995 15.84 1996 14.94 1997 14.53 1998 14.87 (proposed) Manager Johnson also presented the city taxes paid on an average value home from 1993 to 1997: 1993 432.24 1994 417.75 1995 417.23 1996 419.52 1997 430.15 1998 428.56 (proposed) Assistant Manager Lueckert said that the average value home in Plymouth is 190,300. Manager Johnson said that proposed taxes on the average house in Plymouth appear better than expected, slightly lower than in 1997 in spite of an average 3.4% increase in the value of a house. He emphasized that this tax amount represents only City taxes, and does not include school district or county taxes. Manager Johnson noted that Plymouth has the lowest tax rate of the 77 cities over 10,000 population in Minnesota. Manager Johnson reviewed the fiscal environment and the impact of levy limits. He stated that levy limits have restricted how much of an increase in home values can be used calculating tax rates. He said the City lost almost 10% of its tax base due to tax rate compression. III. General Discussion on 1998 Budget Councilmembers and staff discussed the recommendation for a continued 2.5% increase in the capital improvements levy. Staff reported that there are two major Special Council Meeting August 7, 1997 Page 3 City parks coming into the operating budget next year, and there may be the development of an activity center to consider. Staff reported that one way to avoid straining the capital improvements budget would be to post bonds for a portion of that project. Park Director Blank explained the setup and operating expenses of the ice arena and the grounds around the Life Time Fitness Center. Councilmembers asked that staff look at options for funding those operations. Park Director Blank said they will have a better idea on costs after the first winter of operation. Manager Johnson said one option might be to consider changing how ice arena operations and ground maintenance will appear in the budget. Staff outlined the proposal for hiring a fire department response training officer, and the concept of having a volunteer crew on duty during peak daytime hours to cut fire department response time, as well as to increase the professional skills level for firefighters. Staff explained that transit operating funds are now integrated into budget process, even though it is a reimbursement fund from the Metropolitan Council. Staff discussed personnel requests for the coming year, and noted that while the number of staff will increase by only 1.5%, the number of households in Plymouth show a 2.5% increase. Staff presented information on capital equipment requests. These include server and mini computer equipment, and laptop computers for inspectors. Capital equipment requests also include the purchase of a small dump truck with a plow, to have in reserve; and a 10 -foot mower. Councilmembers brought up the idea of raising revenue for operations as well as for the capital improvements program through other means such as user fees. Manager Johnson said one annual effort is a review of all licenses and fees. He cited the second of two increases in building and permitting fees that took place this year. Councilmembers directed staff to work toward a list of revenue options that could be discussed at a later date. Councilmembers discussed salary and step increases for City employees, and how those issues show up in the budget. Councilmembers discussed health and medical benefits for the Mayor and Council and directed staff to find out if changes in City policy regarding benefits could be made in an off -election year. Special Council Meeting August 7, 1997 Page 4 Councilmembers requested that staff notify them of the budget expenses in food for meetings. Councilmembers discussed the conference study and seminar budget for the Mayor and Councilmembers. In response to questions from Councilmember Bildsoe, Public Safety Director Gerdes explained the reallocation of salaries and wages in the Public Safety budget. He said funding was shifted reflect the programs people work in. He noted that the funding for the Cadet program is changing, and a separate line has been created to reflect that change. Snow and ice control budget increases were discussed. Public Works Director Moore explained that the budget is set figuring on an average winter, and that the City has not budgeted enough in recent years. He said there are also increased and expanded services, such as for asphalt and concrete patching. Public Works Director Moore addressed questions about street and traffic light budget increases. He said the City will be doubling the number of traffic lights it owns next year. In addition, the budget reflects increased lease and operational expenses for equipment and services from Northern States Power. Councilmembers asked what would happen if a budget surplus occurred. Manager Johnson said staff has identified a number of one-time items if there is a surplus. He said staff may bring recommendations for capital and equipment spending with those surplus revenues. Councilmembers discussed the options of turning budget surpluses to the Capital Improvements Program or the Community Improvement Program. Motion was made by Councilmember Preus, seconded by Councilmember Bildsoe, to adjourn the meeting at 10:00 p.m. Motion carried, seven ayes.