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HomeMy WebLinkAboutCity Council Minutes 08-23-2004 SpecialAdopted Minutes Special Council Meeting August 23, 2004 Mayor Johnson called a Special Meeting of the Plymouth City Council to order at 7:05 p.m. in the lower level of City Hall, 3400 Plymouth Boulevard, on August 23, 2004. COUNCIL PRESENT: Mayor Johnson, Councilmembers Black, Hewitt, Slavik, and Neset. Councilmember Bildsoe arrived at 7:22 p.m. ABSENT: Councilmember Stein. STAFF PRESENT: City Manager Ahrens, Finance Director Hahn, Community Development Director Hurlburt, Public Works Director Faulkner, Police Chief Goldstein, Fire Chief Kline, Financial Analyst Kohn, Finance Office Supervisor Leitner, Deputy Fire Chief Harr, Public Services Manager Qvale, and Deputy City Clerk Hof roan. Proposed 2005 Budget and Tax Levies City Manager Ahrens highlighted her budget message to the Council. She noted that past levy limits did not allow for taking into consideration either population or inflation increases. She said the 2005 General Fund expenditures would increase by 4.69%, which is considerably below population and inflation increase rates. She stated that an increase in the City property tax levy is proposed in order to maintain service levels to the extent possible. The State placed no levy limits on 2005 levies. Due to the City's growth, no tax increase would be needed to fund the proposed continued service levels in the General Fund. The increase is due to other factors. She stated that the projected increase in taxes for an average valued home ($323,900) is 9.56% or 69.70. The projected decrease for a business property valued at $1 million is -2.87%, or - 82.24. She noted that some homes would continue to be impacted by the phase—out of the limited market value. She said most Plymouth properties would be taxed at full market value by 2006. Finance Director Hahn presented the tax capacity of the city. He reviewed tax levies and tax rate changes between the 2004 Budget and the 2005 Budget. City Manager Ahrens noted that Police Department staffing, the public safety building and parking garage, debt service, and new operating costs associated with the building represent nearly half of the proposed 2005 tax increase. She added that another important element in the 2005 Budget would be street reconstruction. She said the budget proposes moving the street reconstruction levy back into the regular levy, rather Adopted Council Minutes Special Meeting of August 23, 2004 Page 2 of 4 than bonding. She added that water main break repair costs would also be move back into the General Fund. Street Reconstruction/Maintenance Finance Director Hahn reviewed revenue and spending projections for the Street Reconstruction and Maintenance Programs. He stated that the Engineering Department recommends nearly twice the number of repair and maintenance projects currently undertaken. He said a 2005 bond sale could address a large number of projects to catch up. Councilmember Black said she opposed using bonds on an annual basis to pay for street reconstruction. She said bonding concerns her because of the term shortness and additional costs. Councilmember Bildsoe said he did not oppose borrowing at the current 3% rate for street projects. He believed that the problem is whether it comes up front in levies from taxpayers or us paid over a longer period of time through bonding. Councilmember Slavik said she, too, had concerns about bonding for street projects, but agreed that street conditions are bad across the city. She asked if assessments could be raised. Finance Director Hahn responded that staff has consulted with the City Attorney on that issue and some increase in assessments could be considered. He noted that staff does recommend placing $1.2 million back into the levy to address annual street projects. Councilmember Black noted that Rochester has a citizens' task force to study road funding, and suggested such a group in Plymouth could add some information to the discussion. Finance Director Hahn noted that a September 28 Study Session will address street reconstruction. Mayor Johnson asked staff to find out how the City of St. Paul is addressing street maintenance and repair projects through fees. Water Resources Fund Financial Analyst Kohn summarized proposed changes in the Water Resources Budget. He said that three interns would be hired on a temporary basis to inventory ponds, which would reduce overtime for regular staff. He added that flood—related items have been better taken into consideration in this budget, and noted that this budget reflects recommendations of the Surface Water Task Force, and the Medicine Lake Water Quality Subcommittee. City Manager Ahrens stated that staff plans to review and develop a policy over the next year relating to pond maintenance. Public Works Director Dan Faulkner noted that the Ives/Jonquil drainage project would also be addressed in the 2005 Capital Improvements Program. Councilmember Bildsoe said that work done a year ago is already eroding. He added that homeowners got bids to extend their back yards through placement of a retaining wall. Adopted Council Minutes Special Meeting of August 23, 2004 Page 3 of 4 Public Works Director Faulkner agreed that placement of a retaining wall would be a good fix, but the City needs to make an agreement with residents that this would be the final resolution with them. He said the City could pay for some of the work, but neighbors should pay for raising the retaining wall higher than City specifications if that is desired. He stated the project cost is estimated at $8,000. Councilmember Hewitt said she would like the City to pay for only the erosion repair, not the retaining wall. She said the City has already spent money on this project, and that the retaining wall would be an added improvement to the property. Mayor Johnson supported the project including the construction of the retaining wall. Councilmember Black supported erosion repair but not placement of the retaining wall in a private yard. She agreed the City could split costs with the residents by paying for repairs to a certain dollar level, and let residents pay for any additional costs in construction of the wall. Councilmember Slavik agreed with Councilmember Black. Councilmember Neset suggested payment to cover the erosion control and half the cost of the retaining wall construction. Councilmember Bildsoe supported payment of the entire project including the retaining wall construction. Mayor Johnson polled the Council and found an even split on funding. All Councilmembers agreed that the erosion control should be funded by the City, but were split on the issue of paying for the retaining wall. Councilmembers agreed to authorize an amount not to exceed $11,080 for the project, including payment for up to half the costs of building the retaining wall. Financial Analyst Kohn stated that there is money in the proposed 2005 budget for this project. Councilmembers reviewed the Water Resources Fund. Financial Analyst Kohn stated that the 2005 Budget would emphasize inventories of water bodies and drainage areas. He said that with a proposed increase in the Surface Water Fee, the budget could meet recommendations of the Surface Water Task Force and the Medicine Lake Subcommittee of the Environmental Quality Committee. He said that future mandates from other government agencies might require additional projects. Councilmember Black stated that the Bassett Creek Watershed Management Commission provided a recommendation to the Hennepin County Board to place an ad valorum tax on residents in the watershed to cover all projects in their 10—year plan. She said they are funding more projects that Plymouth has designated in its plan. Financial Analyst Kohn observed that Bassett Creek area residents in Plymouth would be paying twice, through the ad valorum fee to the County in addition to the Plymouth Surface Water Fee. He added that the Shingle Creek Watershed Management Commission is also considering an ad Adopted Council Minutes Special Meeting of August 23, 2004 Page 4 of 4 valorum tax. He said future projects in the Bassett Creek Watershed could have a variety of funding options. Mayor Johnson asked whether the City could adopt a policy such as the watershed management commissions and use City—charged ad valorum taxes to pay for projects not affected by the Watershed Management Commission Plan. Financial Analyst Kohn responded that the City could have four separate rates for each watershed in the City. He recommended delaying any decision until the Council reviews recommendations from the Medicine Lake Subcommittee. Council directed staff to prepare a report for the September 28 Regular Council Meeting Quarterly Update with City Manner The City Council conducted an update with the City Manager. Adjournment Mayor Johnson declared the meeting adjourned at 1 Kurt Hollmh#/IPI, Deputy City Clerk