12-03-2012 CCM MEETING OF THE ELK RIVER CITY COUNCIL
• HELD AT THE ELK RIVER CITY HALL
MONDAY, DECEMBER 3, 2012
Members Present: Mayor Dietz,Councilmembers Zerwas,Gumphrey,Westgaard,and Motin
Members Absent: None
Staff Present: City Administrator Calvin Portner,Finance Director Tim Simon,
Accountant Lori Stich,and Recording Secretary Jennifer Johnson
1. Call Meeting To Order
Pursuant to due call and notice thereof,the meeting of the Elk River City Council was called
to order at 6:30 p.m.by Mayor Dietz.
2. Pledge of Allegiance
The Pledge of Allegiance was recited.
3. Consider Council Agenda
Mr.Portner requested that item 4.6 be removed from the consent agenda and handled
separately after 4.
• MOVED BY COUNCILMEMBER WESTGAARD AND SECONDED BY
COUNCILMEMBER GUMPHREY TO APPROVE THE AGENDA AS
AMENDED.MOTION CARRIED 5-0.
4. Consent Agenda
MOVED BY COUNCILMEMBER WESTGAARD AND SECONDED BY
COUNCILMEMBER GUMPHREY TO APPROVE THE FOLLOWING
CONSENT AGENDA:
4.1 MINUTES
• NOVEMBER 13,2012,CLOSED.
• NOVEMBER 13,2012, CLOSED.
• NOVEMBER 13,2012, CANVASSING.
• NOVEMBER 13,2012,WORKSESSION.
4.2 CHECK REGISTER.
4.3 2013 CITY COUNCIL MEETING SCHEDULE.
4.4 CONDITIONAL USE PERMIT: REQUEST WITHDRAWN BY
ALLIANCE MACHINE/BRYAN PROVO FOR OUTDOOR STORAGE
IN THE BUSINESS PARK ZONING DISTRICT, CASE NO. CU 12-17.
4.5 ANNUAL LICENSE RENEWALS VALID JANUARY 1,2013,TO
DECEMBER 31,2013,AS OUTLINED IN THE STAFF REPORT.
MOTION CARRIED 5-0.
11111
City Council Minutes Page 2
December 3,2012
4.6 Resolution Approving The Downtown Task Force Mississippi Connections Plan
Mr.Portner presented the staff report. •
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY
COUNCILMEMBER GUMPHREY TO APPROVE RESOLUTION#12-66
APPROVING THE DOWNTOWN TASK FORCE FOR THE MISSISSIPPI
CONNECTIONS PLAN.MOTION CARRIED 4-1 WITH COUNCILMEMBER
MOTIN OPPOSING.
5. Open Forum
Jim Tralle, 10825—208th Avenue—Mr.Tralle thanked Councilmembers Gumphrey and
Zerwas for their years of service on the City Council. He felt Councilmember Zerwas'
replacement should be a person with experience working on municipal boards or
commissions. He stated he was pleased with the city-wide Powered by Nature branding
efforts made by the city. Mr.Tralle also noted his frustration with Charter Communications
regarding internet service he received at his residence. He requested the city discuss with
Charter its future expansion plans in the Elk River service area and find out how Charter can
provide faster internet speed to more areas of Elk River.
Mayor Dietz stated he would like to add this to a future worksession.
6. Awards/Recognitions
There were no awards or recognitions.
110
7.1 2013 Budget Hearing and Tax Levy
Mr. Simon presented the staff report and outlined the 2013 proposed budget with a Power
Point presentation. He explained that the purpose of this evening's public hearing was to
discuss the 2012 city budget and general tax information and that it is not a time to discuss
individual property values.He stated that if individuals have questions or concerns regarding
their property values,they should attend the Board of Review meeting in the spring or
contact the Sherburne County Assessor's Office.
Mr. Simon briefly outlined the process of this evening's budget presentation and comment
period. He stated the Council approved the maximum tax levy of$10,275,815 in September,
which is the maximum tax levy the City can adopt.Mr. Simon reviewed the tax levy by use
and compared the levy with previous years.He also reviewed property tax changes and
explained that a number of factors play a role in determining the property tax amount.
Mr. Simon reviewed general fund revenues and expenditures.
Mr. Simon reviewed the special revenue funds and enterprise funds. He stated that the
enterprise funds are self-supportive and not supported by tax dollars.Mr. Simon provided
the public with a link to the Minnesota Department of Revenue website for residents to
determine if they qualify for a property tax refund. He stated this link is also on the City's
website.He concluded that the council may adopt the 2013 tax levy and budget following
public input and comments.
•
City Council Minutes Page 3
December 3,2012
Mayor Dietz opened the public comment portion of the meeting.There being no one to
• speak,he closed the public comment portion of the meeting.
Councilmember Motin asked questions regarding the amount included in the fund balance
reserves and he would like to have around$200,000 allocated.
Councilmember Westgaard felt the balance should be around$250,000. He stated the
Council did not agree upon a specific dollar amount at previous meetings,but the consensus
of the Council was to use a conscious effort to reduce the amount in fund balance over time.
Councilmember Gumphrey felt it better to be more cautious and wasn't comfortable with
allowing a balance over$200,000.
Councilmember Zerwas asked if the city was able to lock in on a gas price for 2013.
Mr. Simon stated they hadn't locked in on a price but felt comfortable the price per gallon
would be around$3.25 with gas taxes included.
Councilmember Zerwas agreed with Councilmember Gumphrey's comments,and felt
increasing the fund balance reserve to approximately$200,000 for the next few years would
allow for some recovery in the net tax capacity,with the hope of new construction
increasing.This adjustment will also take into consideration the TIF district coming off-line
next year.He felt this would be as smooth a transition as possible without sharp drops and
increases.He stated they were levying less money than last year and significantly less than
back in 2008 but still allowing for filling vacant positions and reinstating the employee cost
of living increases. He commended staff for their work on the budget.
• Mayor Dietz expressed his concerns with approving a budget that puts a burden on
commercial and industrial properties because their property values remained constant and
didn't drop like residential properties. He stated he doesn't like to see property taxes increase
if the value of a home,business,or industry doesn't increase.He stated if the County is
projecting a 2%increase in property values by 2014 and generating more revenue,the levy
shouldn't need to be raised.He thanked the Council and staff for working hard on the
budget but felt more should have been cut to ensure the city's tax rate didn't increase.
Councilmember Zerwas disagreed with Mayor Dietz's way of viewing the budget. He stated
if property values increase 2%by 2014,and therefore generating more revenue, that means
taxpayers are paying more money for property taxes. Councilmember Zerwas felt the budget
and levy should be set based upon what it takes to operate the city,not for the amount of
property values. He felt it's a backwards way of budgeting for the city.
Mr.Portner stated if the budget is approved with an increase in the fund balance to
$200,000,it would decrease the final levy by$100,050.
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY
COUNCILMEMBER GUMPHREY TO APPROVE THE 2013 BUDGET AS
PRESENTED IN THE STAFF REPORT BUT INCREASING THE FUND
BALANCE AMOUNT TO$200,000,THEREBY DECREASING THE FINAL
LEVY BY$100,050 TO$10,175,765.MOTION CARRIED 4-1 WITH MAYOR
DIETZ OPPOSING.
•
City Council Minutes Page 4
December 3,2012
8.1 Resolution Accepting Councilmember Resignation and Declaring a Vacancy •
Mr.Portner presented the staff report. He noted the resolution in the staff report had an
incorrect date of January 7,2013,and if the Council chose to approve the resolution
accepting Councilmember Zerwas'resignation that the resolution be amended to reflect an
effective date of January 8,2013. He asked the Council to also determine how to fill the
Council vacancy.
Councilmember Motin thought City Attorney Peter Beck had advised the Council they
couldn't take any action on filling the vacant seat until after the seat was vacated.
Mr. Portner stated the Council wouldn't be able to fill the vacant seat until after January 8,
but the Council could discuss this evening how the appointment process could work,if they
wanted to hold a special election or appoint someone to the open seat. No formal action
could be taken until the vacancy's effective date.
Councilmember Zerwas stated the appointment process should begin soon so his seat
doesn't remain vacant for an extended period of time.If the Council chose to hold a special
election,someone would still have to be appointed to his seat in the interim until the special
election is held.
MOVED BY COUNCILMEMBER WESTGAARD AND SECONDED BY
COUNCILMEMBER MOTIN TO APPROVE RESOLUTION#12-68
ACCEPTING COUNCILMEMBER ZERWAS'RESIGNATION AS ELK RIVER
CITY COUNCILMEMBER EFFECTIVE JANUARY 8,2013,AND DECLARE A
VACANCY ON THE CITY COUNCIL. MOTION CARRIED 5-0.
Mayor Dietz was not in favor of a special election due to the cost and time,and he felt the
methodology that Mr. Portner presented would be effective: the Council would interview all
applicants and narrow them down to two;a postcard would then be mailed to all registered
voters in Ward 1 to establish a date for a candidate forum,allowing residents to interview the
candidates and express their thoughts to the Council;Council would then discuss their
choices in a replacement.He emphasized he wasn't taking away residents'right to vote but
felt this would be the most effective process given the circumstances and also set a
precedence for future vacancies.
Councilmember Motin stated he had concerns with how this process should be handled in
order to remain cost-effective but still allow voters of Ward 1 the opportunity to be involved
in choosing Councilmember Zerwas'replacement.He stated appointing someone would be
more cost-effective,and trusted Mayor Dietz's discretion to appoint the best candidate if the
Council couldn't come to an unanimous decision.He stated favorable candidates would be
those active in the community and having experience serving on a board or commission.
Councilmember Westgaard expressed feelings similar to Councilmember Motin,and felt
based on results of his inquiries from the residents in Ward 1,that an appointment would be
the best decision based on cost and time constraints.
Mayor Dietz asked since the majority of the Council indicated preference in using an
appointment process,how would they go about advertising this vacancy.
•
City Council Minutes Page 5
December 3,2012
Mr.Portner stated they would advertise in a way similar to filling a vacancy on a board or
III commission,advertising on the city website as well as using social media outlets.He would
put together a proposed outline,have Counselor Beck review it,and present it for discussion
at the Council at the December 10 worksession.
Mayor Dietz felt the application process should be extended due to the holidays. Council
concurred.
Mr.Portner stated depending the number of candidates,Council could narrow down their
choices to a number they were comfortable with.
8.2 Discuss Work Session Agendas
Mr.Portner presented the staff report. He requested the following topics be added for
discussion at the December 10,2012,worksession: refund of the General Obligation bonds,
series 2007B (YMCA project);review of private utility connections and financing;discussion
on quiet zones;update on the Fire Service Task Force Plan.
9. Announcements
There were no announcements.
10. Adjournment
There being no further business,Mayor Dietz adjourned the meeting of the Elk River City
Council at 7:48 p.m.
• Minutes Prepared by Jennifer Johnson
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Cn J. 'Dietz, T
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Tina Allard,City Clerk
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