Loading...
HomeMy WebLinkAboutCity Council Minutes 08-20-1997 SpecialMinutes Special Council Meeting August 20, 1997 A special meeting of the Plymouth City Council was called to order by Mayor Tierney at 5:13 p.m. in the Public Safety Training Room 3400 Plymouth Blvd., on August 20, 1997. COUNCIL PRESENT: Mayor Tierney; Councilmembers Spigner, Black, and Wold. Councilmember Bildsoe arrived at 5:20 p.m. Councilmember Johnson arrived at 5:30 p.m. Councilmember Preus arrived at 5:40 p.m. ABSENT: None. CITY STAFF PRESENT: City Manager Johnson, Assistant Manager Lueckert, Community Development Director Hurlburt, Public Works Director Moore, Park Director Blank, Finance Director Hahn, Finance Office Supervisor Leitner, Public Safety Director Gerdes, and City Clerk Ahrens. Mayor Tierney announced that the purpose of the meeting is to discuss the 1998 proposed budget and tax levy. Council Training and Conferences Mayor Tierney reviewed the survey information on City Council training, conferences, and travel and said that Plymouth is under -funded in this area compared to other communities. She said the current budget of $2,500 does not allow Councilmembers the option of attending state and national conferences. She proposed an amount of $7,000 for 1998 which could include funds for a visioning process. Councilmember Wold asked if staff had determined when the Council training and conference line items total had been increased from $2,000 to $2,500 in the 1997 budget. Finance Director Hahn responded that the initial proposed 1997 budget documents indicated an amount of $2,500. Councilmember Bildsoe arrived at 5:20 p.m. Councilmember Spigner expressed interest in attending an upcoming seminar on Community Policing; however, she noted that the Council's training funds for 1997 are depleted. Public Safety Director Gerdes said that he has funding available for this conference through the police budget. Finance Director Hahn said that if the Council is interested in increasing the 1997 Council training and conferences budget, an amount could be transferred from contingency. Special Council Meeting August 20, 1997 Page 2 Manager Johnson suggested that if the Council is interested in increasing the amount of the 1998 Council training and conferences budget, up to $4,000 could be reallocated from the ice arena maintenance or the contingency fund. He explained that the ice arena has been established as a separate fund so the ice arena operations can easily be tracked. Councilmember Johnson arrived at 5:30 p.m. Motion was made by Mayor Tierney, seconded by Councilmember Spigner, to increase the amount for Council training and conferences to a total of $7,000 in the 1998 draft budget. Councilmember Wold noted that during the 1997 budget preparation process, the Council established a requirement that Council members proposing budget changes had to make the proposal in writing and had to recommend a funding reallocation to support the change. Assistant Manager Lueckert and Finance Director Hahn recalled that the requirement established by the Council was specifically for preparation of the 1997 budget. Councilmember Black suggested that the Council focus this meeting on the maximum tax levy to be established because budget reallocation issues can be discussed later in the year prior to the final budget adoption in December. Councilmember Preus arrived at 5:40 p.m. Councilmember Wold said that he opposes the motion because members of the Council are professionals and receive the majority of needed training through their employment. Motion was made by Mayor Tierney, seconded by Councilmember Wold, to table the issue of Council training and conferences to an October budget study session. Motion carried, seven ayes. Council Salaries and Benefits The Council reviewed a staff memo which indicated that the Council can adopt an ordinance changing their salaries and benefits at any time; however, changes in salaries cannot become effective until after the next council election. Changes in benefits can become effective at any time. Mayor Tierney said that she would like the Council to discuss this issue at the time of the City Manager evaluation. Motion was made by Councilmember Preus, seconded by Councilmember Black, to table the issue of Council salaries and benefits. Motion carried, seven ayes. Special Council Meeting August 20, 1997 Page 3 Ice Center Budget City Manager Johnson explained that an amount of $4,610.75 is estimated for ice arena outdoor maintenance including snow plowing and mowing. The budgets have been amended to reallocate this amount so that the ice center fund accurately reflects all costs associated with the ice arena. Councilmember Preus explained that the Council had previously directed that the income generated from the ice arena should be sufficient to cover all ice arena expenses. He believes this should include exterior maintenance costs. Capital Financing Manager Johnson said that three options have been identified for generating additional funds for the Community Improvement Fund: 1) Decrease the amount of levy dollars from other tax levies such as General Fund, Water Resources, Capital Improvement, Infrastructure or Recreation and create a levy for Community Improvement Fund; 2) Transfer funds in from General Fund surplus; and 3) Sell additional improvement bonds and transfer in fund balances at the end of the bond term. Option three is not as good as it used to be because the spread on interest rates isn't as advantageous as it was in the 1980's. Manager Johnson also reviewed potential uses for the general fund surplus. He said that one additional item could be added to the list -- a possible Rottlund tax increment financing project and loss of HACA aid. He would not favor creating future HACA losses, but the City may be able to designate a certain amount of this year's general fund surplus so that future budgets would not be impacted by a HACA loss that could result from this potential TIF project. The Council indicated that there are several issues that need discussion with area legislators - certain TIF projects resulting in HACA losses, impact of new tax law and tax rate compression on lower valued properties and conflict with the goal of retaining affordable housing, the issue that undedicated City reserves is viewed as a city not needing money rather than as good fiscal planning; and the format of the Truth in Taxation notice. Councilmember Preus asked if there is any way the Council can protect certain funds from excessive expenditures by future Councils. Finance Director Hahn said that the City Council can spend any funds in the City with the exception of expenditures of over $3 million from the Community Improvement Fund, which is regulated by the City Charter. Councilmember Black requested that when the list of uses for the general fund surplus is presented to the Council, each item has a brief description and associated cost. Motion was made by Councilmember Wold, seconded by Councilmember Black, to table the potential uses of the 1997 surplus until the appropriate time. Special Council Meeting August 20, 1997 Page 4 Councilmember Wold clarified that the "appropriate time" could be March 1998 or sooner depending on the need for the item. Motion carried, seven ayes. Human Service Funding Discussion was held on the process for recommending funding to various human service agencies. The Council directed that the 1998 process include an interview/presentation by each agency with the City Council. Street Reconstruction Policy Councilmember Spigner requested that the Council consider amending the Street Reconstruction Policy so that older, lower -valued properties do not have to pay excessive assessments for curb and gutter and for storm sewer. She said these improvements are needed but the associated assessments are a significant burden on homeowners in her ward and changes must be made to be fiscally responsible to these property owners. Councilmember Johnson indicated that the Street Reconstruction Policy is currently under review by Council Subcommittee. She said that the preliminary tax levy is the maximum allowed by state law so that any change made to the policy would not impact the establishment of the preliminary tax levy. Councilmember Bildsoe said that residents are receiving the benefit of the City's budget by being the least taxed city of over 10,000 population in the state. The Council is fiscally responsible to every citizen. Finance Director Hahn explained that the data processing function was reallocated to various budgets for 1998. This resulted in various percentage decreases and increases. Manager Johnson added that some budgets experienced a much greater percentage increase than others; however, the impact of the data processing allocation was not an issue when considering other budget requests within a department. The Council reviewed the Truth in Taxation notice format. Surface Water Management Plan Public Works Director Moore said that the Surface Water Management Plan would be coming to the Council for consideration in late 1997. The Plan will contain many project recommendations but no funding is identified for those projects. Recommendations on how to avoid a Tax Rate Increase Manager Johnson reviewed the recommendations on how the 1998 budget could be amended to not require a tax rate increase: 1) Eliminate recommended "increased services" Special Council Meeting August 20, 1997 Page 5 expenditures ($237,078); 2) Increase revenue by adopting a surface water utility fee; and 3) Eliminate most of the capital levy. Councilmember Wold said that these options are unacceptable. Although three years ago he pledged not to raise taxes during his term in office, the legislature has "changed the rules." If the legislature had not enacted tax law changes, Plymouth taxes would again be reduced for 1998. He does not believe that approximately $250,000 can be responsibly deducted from the proposed budget. He does not oppose a future surface water utility fee in theory, but believes that revenues should be used to support programs related to surface water issues when the Surface Water Management Plan is completed. Mayor Tierney and Councilmember Johnson concurred with these comments. Councilmember Johnson noted that if compression of tax rates had not been done by the legislature, the local levy would not be increased under the proposed budget. Councilmember Black also agreed and said that she supports the staff recommendation. Her only concern with the proposed budget is there may not be enough future capital funds for the significant projects the Council has identified. If the Council is serious about these projects, an effort will need to be made to increase the long-range capital funds. Councilmember Preus said that he does not support any of the three alternatives at this time. The Council will set a maximum levy in September, and adjustments to the budget can be considered as more information becomes available. He requested specific information on the impact of levy limits. Manager Johnson explained that as a result of legislative action, maximum levy limits are in place for 1998 and 1999. The limits are then scheduled to be removed. In the 1999 budget, the City will get the benefit of growth in the tax base, which is not possible in the 1998 budget. Motion was made by Councilmember Bildsoe, seconded by Mayor Tierney, to move forward with the tax levy as recommended by staff. The Council canceled the budget study session scheduled for August 27. Motion carried, seven ayes. The meeting was adjourned at 6:48 p.m. Laurie Ahrens City Clerk