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.
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August 20, 1997
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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.
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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.
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August 20, 1997
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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"
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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