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HomeMy WebLinkAboutCity Council Minutes 08-22-1994 Special 2MINUTES COUNCIL STUDY SESSION AUGUST 22, 1994 A special study session meeting of the Plymouth City Council was called to order by Mayor Tierney at 8:00 p.m. in the Conference Room of the Public Safety Building, 3400 Plymouth Blvd., on August 22, 1994. PRESENT: Mayor Tierney; Councilmembers Anderson, Morrison, Lymangood, Helliwell, Granath, and Edson. ABSENT: None. STAFF PRESENT: City Manager Johnson, Assistant Manager Lueckert, Public Works Director Moore, Public Safety Director Gerdes, Park Director Blank, Finance Director Hahn, Community Development Director Hurlburt, Finance Office Supv. Leitner, and City Clerk Ahrens. DISCUSSION OF PROPOSED 1995 BUDGET Finance Director Hahn presented information on the history of tax abatements in Plymouth. He stated that by the end of 1994, staff expects to have all of the 1992 cases closed, with only a few cases remaining in 1993 and 1994. He presented various tax cancellation and abatement scenarios and stated that the tax abatements in Minnetonka are similar to Plymouth. Councihnember Lymangood stated this is a difficult issue to project because the City cannot control which cases will be heard by the Court, the number of cases, or the year the cases are closed. Other variables are the total market value of the property and the amount of value reduction. He believes that the budget provides reasonably adequate reserves given these variables. The Council requested that staff provide quarterly reports on the status of abatements in the Council Information Memorandum. Manager Johnson presented a chart showing the reconciliation of revenues for new expenditures in 1994. He stated that most of the new revenue can be explained with three items: 1) We are already raising $378,269 of the needed revenue for 1995 with existing sources of revenue; 2) An additional amount of 451,437 is generated by new growth in the community; and 3) $362,000 of the surpluses available from 1993 and 1994 are being used to reduce the tax levy for bonded indebtedness in 1995 and 1996. Most of the debt levy requirement expires in 1997, so the reduction in bond levy can be made permanent. Study Session Minutes August 22, 1994 Page 2 Councihnember Lymangood stated the Council had requested this information to ensure that the City was not raising the expenditure level to a larger extent that the revenue level and presenting a problem for future years. This information indicates that a problem will not result. Manager Johnson reviewed the origins and projected uses of the 1994 budget surplus, as well as cost reductions and productivity increases achieved by staff. He stated that an examination of proposed line item increases and historical expenditure patterns means that the 1995 continued service budget increased only 1.82 percent over the adopted 1994 budget. Councilmembers Anderson and Edson suggested that cost saving, service success, and productivity enhancement items be included in the budget hearing information. Councilmember Lymangood stated some type of employee recognition of cost saving ideas could also be included in the employee holiday luncheon. Manager Johnson presented an expenditure variance report that indicated all expenditure budgets which vary by 5 percent either positive or negative from the adopted 1994 budget. Most of the increases are attributable to new positions. However, step increases which are generally controlled by the City's contractual agreements with bargaining units impact nearly every budget. Mayor Tierney asked about health and dental insurance and training reductions in the City Council budget. Manager Johnson stated that not all Councilmembers and staff take full family coverage - it is about 70 percent. Staff proposes budgeting for 85 percent of the full cost for 1995, which can be further defined for future years. Assistant Manager Lueckert stated the City Council budget contains the exact amount based on 1994 figures. Manager Johnson stated that 1995 is the last year for larger step increases. There should be more stability in wages beginning in 1996. Manager Johnson discussed long range budget planning and possible threats and City responses. Possible items that would impact the City budget include a major loss of state aid funding (HACA), passage of "Orfield" legislation, a major change in the economy, and a return of statewide levy limits. He provided possible strategies to deal with each of these should they occur. Study Session Minutes August 22, 1994 Page 3 Councihnember Anderson asked about the likelihood of these things occurring. Manager Johnson responded that there could be some minor changes with respect to levy limits and loss of state aid. Councilmember Edson stated another impact on residents would be passage of legislation to shift the property tax burden from commercial/industrial property to residential property. While the total amount of tax dollars would not change, there would be an impact with taxes shifted to residential property. Manager Johnson discussed the operating impacts of possible new capital expenditures. He stated that the City designates $100,000 of MSA funding for trails each year, and about $100,000 of Park Dedication funds, for a total construction budget for sidewalks and trails of $200,000 per year. He also provided estimated operating costs for both large and small sites currently under consideration by the Open Space Committee. Park Director Blank stated there is $300,000 budgeted for trails in 1995, and some trails are paid by developers as Park Dedication. The City Council discussed the policies relating to trail construction and areas of the City in need of trails. Councihnember Lymangood asked if the current policy provides for a trail on all major arterials. Park Director Blank responded yes. All streets classified as collectors within the MUSA have designated trails. Manager Johnson stated the entire trail plan was last studied in 1992, and staff will review the plan again this winter. Councihnember Anderson stated that additional funds may need to be budgeted for trail construction in order to complete the trail system gaps. He noted that the 1992 study indicates that 11 miles of trail are needed to complete the existing system. He is very interested in completing the system for pedestrian safety. Manager Johnson stated that several miles of trail have been constructed since then. Study Session Minutes August 22, 1994 Page 4 Councilmember Helliwell stated that trails are badly needed in northwest Plymouth. Councilmember Anderson stated he would like to receive a financing/construction plan to fill all trail gaps within three years. Manager Johnson stated that it may be accomplished through the present level of funding for trails. The report could be presented as part of the Thoroughfare Guide Plan study, but the Council must decide within the next few weeks whether to increase the tax levy in order to increase trail funding for 1995. Councilmember Anderson stated he has no objection to the proposed funding for 1995, but would like a definitive plan and timeline for the future construction. Director Blank explained that 2.5 miles of trail will be completed in 1995 and 1996 on Zachary Lane in conjunction with the road construction. Mayor Tierney stated she would like the Council to have a study session on minor collectors. Manager Johnson stated there is an entire hierarchy of roads that make up the roadway system. It would be difficult to study minor collectors without looking at the entire system. Community Development Director Hurlburt stated that the Thoroughfare Guide Plan review is proposed to be done along with the northwest Plymouth study in 1995. She stated that some study needs to be completed on future land uses before transportation models can be done and roadway types/trails can be considered. Councilmember Anderson stated that he would like to consider the issue of filling the trail gaps and safety issues on streets that are minor/major collectors in the fourth quarter of 1994. Councilmember Granath agreed and stated that the Council needs to be aggressive on establishing a pedestrian network throughout the City. Councilmember Edson stated that the City Council is emphasizing the need for trails. The Council has indicated this emphasis before, but hasn't committed the resources to complete the work. Perhaps the Community Improvement Fund could be considered for funding of some of the needed trails. Study Session Minutes August 22, 1994 Page 5 Manager Johnson stated that the information provided on open space is speculative because a recommendation has not yet been received from the Open Space Committee. Finance Director Hahn presented information on fiscal disparities estimates. He explained that Plymouth's contribution to the fiscal disparities pool has decreased by 31 percent due to tax abatements and cancellations. The proposed levy rate of 15.84 is based on $8,459,244 going to the fiscal disparities pool in 1995. This amount is based on information received from Hennepin County. \ Plymouth previously contributed over $13 million of commercial/industrial value to the pool. He explained that the pool is distributed to communities lacking commercial/industrial property value. Manager Johnson stated that Councibnember Granath has requested that the Council consider compensation for Planning Commissioners. He presented background information and alternatives for compensation. He suggested that if the Council desires to pay Commissioners, it be done through a regular monthly amount, rather than a per meeting amount. Mayor Tierney stated she is not in favor of compensation for Planning Commissioners, but she would favor providing adequate funding for Commissioners to attend regional and state conferences. Director Hurlburt stated that type of training has been offered to Commissioners, but it is difficult for many to have the time to attend. Councihnember Helliwell stated that she believes if the Planning Commissioners are compensated, all other commission members should be paid for equity reasons. Director Hurlburt stated the Planning Commissioners briefly discussed this issue which was initiated by the Council. She stated they appreciate the thought but don't expect to get paid. They have indicated interest in other features such as audio/visual improvements to the chambers for conducting public meetings, food at meetings, and a joint meeting with the City Council. Manager Johnson presented the proposed plan for communicating the proposed 1995 Budget with the public. Councilmember Lymangood requested that the comparison information between cities relating to number of employees per capita be deleted from the planned communication because the types of services provided are not consistent between cities. He also suggested that a 10 minute video be produced on the Study Session Minutes August 22, 1994 Page 6 proposed budget, similar to the video done on the proposed City Center expansion. The video could be presented at the ward meetings in October and replayed at various times. Councihnember Edson suggested that the budget information be graphically presented wherever possible. Discussion was held on the proposed traffic enforcement unit. Public Safety Director Gerdes will provide additional background information on the need and proposed use of the traffic enforcement positions. He stated the unit will be used to increase the level of compliance in the community to accomplish accident reduction. The unit will also be available to respond to emergency calls, conduct specialized accident investigation, and enforce commercial vehicle traffic regulations. Director Gerdes stated the traffic enforcement unit was originally proposed for a three year duration, and then the program would be evaluated. He stated that the officers hired for the program could become part of the regular patrol force at the conclusion of the special program. He explained that there is the potential that the traffic enforcement unit revenues could offset its costs; however, it is not the goal or intent of the unit. Manager Johnson stated the traffic enforcement unit was proposed as a new idea to address traffic and safety concerns in residential neighborhoods. He explained that the Public Safety Education Specialist was hired three years ago and she has been involved in working with neighborhoods on this issue through education. More recently, the City has addressed the traffic issue in neighborhoods through design engineering of the streets including curves, speed humps, trails, and by approving stop sign installations. He believes that a broad approach to the problem has been tried, but an enforcement strategy may also help solve the problem. Councihnember Helliwell stated that residents are concerned about speeding and other safety problems in their neighborhoods. She believes the City should advertise that the traffic enforcement unit will be hired and that their purpose is to enforce the traffic laws because the Council is concerned about speeding and residents' safety. Councihnember Edson stated that the topics of trails and neighborhood speeding were the major issues discussed at National Night Out. He believes that enforcement methods should be tried, in addition to continuing the other efforts. Study Session Minutes August 22, 1994 Page 7 Manager Johnson stated the traffic enforcement unit has been proposed in a separate fund. However, he suggested putting all revenue and expenses in the General Fund along with other police activities. MOTION was made by Councihnember Anderson, seconded by Councilmember Granath, to direct staff to include the traffic enforcement unit revenues and expenditures in the police department General Fund budget. Motion carried, seven ayes. The meeting was adjourned at 9:45 p.m. City Clerk