09-06-2000 CC MIN - SPECIALSPECIAL MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, SEPTEMBER 6, 2000
Members Present:
Members Absent:
Staff Present:
Mayor Klinzing, Councilmembers Diet-z, Farber, Motin,
and Thompson
None
Pat Klaers, City Administrator; Sandra Peine, City Clerk; Lori
Johnson, Finance Director; Tom Zerwas, Police Chief; Phil
Hals, Street Superintendent; Bruce West, Fire Chief; and
Jeff Beahen, Assistant Police Chief
Call Meetin.q To Order
Pursuant to due call and notice thereof, the special meeting of the Elk River City
Council was called to order at 6:00 p.m. by Mayor Klinzing.
Bud.qet Worksession
City Administrator Pat Klaers stated that staff has proposed some budget
adjustments in order to close the August 7 budget gap of $468,900.
The City Administrator reviewed the proposed changes in revenues, which
resulted in a $66,300 increase. He further explained that the elimination of
equipment certificate levy would add $75,000 of tax revenue to the General
Fund, making a total increase in the General Fund revenues of $141,300.
The City Administrator then reviewed the proposed changes in expenditures,
which resulted in a $27,000 net reduction in General Fund expenditures.
The City Administrator reviewed the proposed changes in personal services that
resulted in another $20,800 decrease in expenditures.
The City Administrator reviewed the proposed changes in the Capital Outlay and
Transfers Out budget, which resulted in a net reduction of $42,650 from the
General Fund expenditures.
Pat Klaers explained that these adjustments raise the general fund revenues by
$141,300 and cut expenses by $90,450, resulting in a budget adjustment of
$231,750. He explained that this reduces the August 7 budget gap of $468,900 to
$237,150.
Council discussion was held regarding the cost of $275,000 for the replacement of
the 1972 Ford pumper truck for the Elk River Fire Department. Finance Director Lori
Johnson explained that this purchase is listed as an equipment certificate, but the
plan is to annually cancel the levy and fund the truck with reserves over a 5-year
period. The Council questioned the immediate need for the pumper. The Fire
City Council Minutes Page 2
September 6, 2000
Chief explained that the truck was in need of repair, however the repair was not
as expensive as anticipated. He explained that the trucks are on a 25-year
replacement plan.
Councilmember Dietz suggested paying the entire cost of the pumper with
equipment reserve funds in order to save interest. Discussion was held regarding
the possibility of finding a demonstrator unit that may cost less money.
It was the consensus of the Council to authorize the Fire Chief to go out for bids
for a pumper and that the specifications should include both a demonstrator and
a new truck. It was also the consensus of the Council to keep the pumper in the
budget as an equipment certificates item, but to make no decision on the
purchase until the Council can review the bids.
The City Administrator explained that the Net Tax Capacity (NTC) increased by
10.46%. This increase results in an additional $218,100 being available for General
Fund activities without a city tax rate increase as compared to the August 7
budget draft and discussions. If all of these funds were added to the General
Fund, this would reduce the budget gap from $237,150 to $19,050.
Councilmember Dietz asked about the funding level in the recreation budget for
the ice arena shortage. He further suggested modestly increasing the tax rate by
1% so that more money can be earmarked for the street replacement program.
Mayor Klinzing indicated that she would prefer to see a 5-year proposal to be
able to plan for this and other long-range programs.
Council discussion was held regarding the request to purchase a 4x4 utility
vehicle for the police department. The Police Chief proposed that the police
department include $12,000 from drug forfeiture funds to help fund and equip the
vehicle. Discussion was held regarding the need for the vehicle. The chief of
police explained how the vehicle would be used.
Councilmember Motin questioned the need to grant all of the budget requests.
He stated that before the NTC information was received, it was perceived that
cuts would have to be made in order to balance the budget. Discussion took
place regarding the emergency preparedness siren program. Councilmember
Farber stated that he did not think the department requests were unreasonable.
He further stated that it would be best to purchase what can be afforded at this
time instead of waiting until next year when funds may not be available.
Discussion was held regarding the proposed employee appreciation program.
The City Administrator explained that a committee has put together three options
for a program and he is suggesting the middle option. The option includes a
program consisting of dinner for the employee and guest, with the guest paying
$10.00, and combining the dinner with the employee appreciation awards. The
suggested timing was for sometime in winter, but after the holidays.
It was the consensus of the Council to implement the Employee Appreciation
Award Program recommended by the City Administrator but to eliminate the
$10.00 fee for the guest and to include the Fire Department and Police Reserves.
City Council Minutes
September 6, 2000
Page 3
Discussion was held regarding the remodeling of the Mezzanine located in the
Fire Department into an office at a proposed cost of $20,000. The Fire Chief
explained the proposal and need for the office.
It was the consensus of the Council to authorize the Fire Chief to proceed with the
remodeling of the office in the Fire Department,
It was the consensus of the Council to leave the 4x4 utility pofice vehicle in the
budget as requested with the Police Department paying $12,200 from drug
forfeiture funds to help finance and equip the vehicle.
The City Administrator explained that there is now an estimated $7,050 budget
gap.
The City Administrator suggested that the Council move one of the street
department pick-up trucks from the 2001 budget and purchase this vehicle in
2000. The extra savings could then be included in the council contingency
budget to help fund the employee appreciation program.
The Police Chief suggested using drug and DUI forfeiture funds to purchase the
two squad video cameras in the capital outlay budget.
It was the consensus of the Council to use drug and DUI forfeiture funds in the
amount of $7,200 to purchase the two squad video cameras in the capital outlay
budget.
Councilmember Dielz suggested a 1% increase in the tax rate with the money
designated for the street replacement plan. The Council consented; however,
Mayor Klinzing indicated she was not in favor of an increase.
Councilmember Motin suggesting a slight increase in the Council salary. He noted
that there has been no increase for six years. He suggested a cost of living
increase. Councilmember Farber concurred with the cost of living increase.
Mayor Klinzing indicated that she is not in favor of an increase. Councilmember
Thompson and Councilmember Dietz concurred with the Mayor. Mayor Klinzing
suggested a per diem payment for attending meetings other than council
meetings.
No action was taken due to the majority of the Council not being in favor of an
increase in pay,
3. Adjournment
There being no further business, Mayor Klinzing adjourned the meeting of the Elk
River City Council at 9:00 p.m.
Sandra Peine
City Clerk