12-01-2014 CCMCitI+ of
Lk •'"* -�� Meeting of the Elk River City Cotunci9
River Meld at the Elk River C ty Hail
Monday, December 1, 2014
Members Present: Mayor Dietz, Councilmembers Wilson, Burandt, Westgaard, and
Motin
Members Absent: None
Staff Present: City Administrator Calvin Portner, Finance Director Tim Simon,
Parks and Recreation Director Michael Hecker, and Administrative
Assistant /Recording Secretary Jennifer Johnson
d . Ca11 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. P edge of Allegiance
The Pledge of Allegiance was recited.
3. Consider 12/0 i /2014 Agenda
Moved by Councilmember Westgaard and seconded by Councilmember
Wilson to approve the December 1, 2014, agenda.
Motion carried 5 -0.
4. Consider Consent Agenda
Moved by Councilmember Wilson and seconded by Councilmember Motin to
approve the following consent agenda:
4.1 Minutes
October 20, 2014, Regular
October 20, 2014, Closed
■ November 3, 2014, Regular
■ November 7, 2014, Canvassing Board
■ November 17, 2014, Regular
4.2 Check register as outlined in the staff report.
4.3 Boy Scout Lease as outlined in the staff report.
4.4 Human Resources Technician Position Description as outlined in the
staff report.
4.5 Houlton Property Farm Lease Agreement as outlined in the staff
report.
4.6 Resolution 14 -74 Amending Lease Agreement 14 -07 with Tri-
County Action Program Inc. (Tri -CAP) as outlined in the staff report.
City Council Minutes Page 2
December 1, 2014
4.7 Hire Brandon Wisner for the Stormwater Coordinator at step A of pay
grade 7 as outlined in the staff report.
4.8 Massage Establishment and Therapist License for Jodi Pikula, Pikula
Therapeutic Massage, valid until December 31, 2015, as outlined in the
staff report.
Motion carried 5 -0.
S. Open Forum
No one appeared for Open Forum.
d. i iaccept Certificate of Achh eveB'4' ent for E;tc elience in Mnznclal
Reporting
Mr. Simon presented the staff report.
Moved by Councilmember Wilson and seconded by Councilmember Burandt
to accept the Certificate of Achievement for Excellence in Financial
Reporting from the Government Finance Officers Association for the 2013
fiscal year.
Motion carried 5 -0.
7.1 2015 Budget and Tax Levy
Mr. Simon presented the staff report and outlined the 2015 proposed budget with a
PowerPoint presentation. He explained that the purpose of this evening's public
hearing was to discuss the 2015 city budget and general tax information and that it is
not a time to discuss individual property values. He stated 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, explaining the city's vision and the goals supporting the vision. He
stated the Council approved the maximum tax levy of $10,056,118 in September,
which is the maximum tax levy the city can adopt. The Council has directed staff to
draft a final tax levy resolution in the amount of $10,017,357. 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. Simonn reviewed the General Fund revenues and expenditures.
Mr. Simon reviewed the special revenue funds and enterprise funds. He stated the
enterprise funds are self - supportive, not supported by tax dollars. Mr. Simon
provided the public with information provided on the Minnesota Department of
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December 1, 2014
Page 3
Revenue's website for residents to determine if they qualify for any state tax relief
program funds. He concluded that the council may adopt the 2015 tax levy and
budget following public input and comments.
Mayor Dietz opened the public hearing.
Bob Hillman, 10712 - 184th Ave NW, stated he felt the city is on the wrong track
and disagreed with how the council made decisions regarding the budget process. He
stated he moved to Elk River 10 years ago from Lakeville and compared his property
value with that of home values in Lakeville. He stated he felt taxes were too high for
what the city had to offer its residents.
Mark Grimmer, 20446 Victoria Lane NW, stated he purchased the former Adams
Interior commercial building located at 720 e Street in June 2014 and he saw a
46.5% increase in his building's property value. He stated the property value went
from $109,000 in 2013 to $161,500 in 2014. He stated he contacted the county
assessor that day and was waiting to hear back from them.
Mr. Simon stated Mr. Grimmer should speak to Dan Weber, County Assessor and
would assist Mr. Grimmer with getting his questions answered by the county.
Mayor Dietz closed the public hearing.
Councilmember Westgaard stated he felt Mr. Simon explained very well the past five
months of Council discussions regarding the 2015 budget. He stated to those
property owners who spoke during the public comment that property valuation lies
outside of council control. He explained how property owners can attend the Board
of Appeals meeting to discuss property value discrepancies. Councilmember
Westgaard also stated the council made a conscious effort to increase the budget
with thoughtful additions such as the drug task force addition.
Councilmember Motin reiterated how property owners can verify their property
values by talking to the county.
Mr. Hillman stated council misunderstood his comments.
Councilmember Motin asked what should be removed from the budget in order to
decrease the levy and stated Mr. Hillman was comparing two different counties
which may contain more commercial /industrial tax -based properties, and which can
potentially lower property owner's tax rates.
Mr. Hillman asked why the city hasn't grown its commercial and industrial tax base
during the past 10 years and stated he felt the city overspent funds for what we have
to show for it.
Councilmember Wilson stated he would support the budget and felt the two
personnel expense positions were good additions.
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City Council Minutes
December 1, 2014
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Councilmember Burandt stated the city continues to increase the commercial and
industrial tax base felt the city has made cautious, thoughtful choices during budgets.
Mayor Dietz stated he would love to cut taxes but can't do so without in turn cutting
services and stated he hasn't heard from residents to cut programs and lower services
and therefore feels the residents want the city to continue maintaining this level of
service. He stated the council has very limited control on property values and felt the
council does its best to attract commercial and industrial business to help lower the
tax base and still protect the city's interests. He felt the two personnel position
additions were important, necessary additions to aid in the increased demands of the
responsibilities of those departments. He commented on the numerous discussions
made regarding the storm water fee mandated by the state and how best to address
this. He stated he supports the budget and levy resolution presented.
Moved by Councihnernber Westgaard and seconded by Councihnernber
Motin to adopt Resolution 14 -75 approving the proposed Property Tax Levy
for collection in 2015 as outlined in the staff report.
Motion carried 5 -0.
Moved by Councihnernber Wilson and seconded by Councihnernber
Westgaard to approve the 2015 General, Special Revenue, and Enterprise
Fund budgets as outlined in the staff report.
Motion carried 5 -0.
8.0 Farks and Recreation Master Han
Mr. Hecker presented the staff report. He introduced Lil Leatham, representing
HKGi, who outlined the master plan in a PowerPoint Presentation.
Mayor Dietz stated because this document had recently been revealed to both the
Council and the Parks and Recreation Commission, there would be continued review
and discussion regarding this major document. He expressed the importance of
public restrooms and asked that they be added at the Youth Athletic Complex
(YAC) and Lake Orono. He stated he felt funding sources for restrooms shouldn't
be paid for out of the Park Improvement Fund, which would cripple the fund.
Mr. Hecker stated a ballpark price for restrooxns at these locations would cost
approximately $200,000 depending on many factors.
Ms. Leatham stated public restrooms are a common request.
Mayor Dietz discussed Lion John Weicht Park and its soil conditions and whether
this location would support a future arena complex.
Councilmember Westgaard stated there is a lot to be considered with the entire plan
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December 1, 2014
Page 5
and many ideas would be flushed out as the plan moves forward. He discussed areas
like the Houlton property, Bailey Point, and a new arena complex and how funding
of such a complex could be acquired.
Councilmember Motin stated he supports the additions of public restrooms if
funding is available. He discussed the arena complex location and expressed his
thoughts on the location of YAC being located in a future industrial area as slated by
the Comprehensive: Plan. He stated there wasn't much discussion regarding
Pinewood Golf Course and expressed his support in continuing to include the
property in future discussions.
Councilmember Wilson commended the commission for the work done on the plan
and stated there were great ideas presented. He encouraged them to address trail
connectivity, which was an area of interest indicated by the survey.
Councihnember Burandt expressed her support for trail connectivity and agreed with
Councilmember Motin's comments regarding Pinewood. She stated she is looking
forward to all the opportunities this plan has to offer.
8.2 Discuss Work Session Items
Mr. Portner presented the staff report. No additions were made.
9. Council Liaison Updates
The Council provided updates of the work of the various boards /commissions.
Mayor Dietz announced that Police Chief Brad Rolfe submitted his intent to retire at
the end of 2014.
10. Adjournment
There being no further business, Mayor Dietz adjourned the meeting of the Elk
River City Council at 8:05 p.m.
Minutes prepared by Jennifer Johnson.
),hn J. ietz, Mayor
Tina Allard, City Clerk
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