08-30-1999 CC MIN - SPECIAL
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SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, AUGUST 30, 1999
Members Present:
Mayor Klinzing, Councilmembers Dietz, Thompson, Farber,
- and Motin
Members Absent:
None
Staff Present:
Pat Klaers, City Administrator; Lori Johnson, Finance
Director; Tom Zerwas, Police Chief; Jeff Beahen, Asst. Police
Chief; Michele McPherson, Director of Planning; Sandra
Peine, City Clerk; Michele Bergh, Community Recreation
Programmer; Phil Hals, Street/Park Superintendent
1. Call Meetina To Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order at 6:00 p.m. by Mayor Klinzing.
2. Consider 8/30/99 Aaenda
The following items were added to the agenda:
3.1.
Other Business
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3.1.a. Sewer Department/Gary Leirmoe/Acting Superintendent
3.1.b. Ice Arena Bids
3.1.c. Discussion Items
COUNCILMEMBER THOMPSON MOVED TO APPROVE THE 8/30/99 CITY COUNCIL
AGENDA AS AMENDED. COUNCILMEMBER FARBER SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
3. Discuss 2000 General Fund Budaet
The City Administrator explained that the budgets in the packet reflect the
changes requested by the City Council on 7/26/99. The changes include 5
percent growth in to the net tax capacity, keeping the tax rate level and having
growth related revenues reflect 90 percent of the 1998 actual amounts. He
stated that these and other minor changes result in a revenue projection of
$5,701, 100.
The City Administrator reviewed the expenditure programs in each individual
budget. After reviewing the budgets, the Administrator noted that with total
expenditures at $5,940,400 there is a budget gap of $239,300 in the general fund
budget plus a gap of $64,500 in the ice arena budget between available
revenues and requested expenditures.
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The council recessed at 7:50 and reconvened at 8:03.
Mayor Klinzing questioned the history of carry-overs, and indicated that a carry-
over should be part of the revenues for the budget. She questioned how carry-
overs are tracked and indicated that she would like to see an estimated 1999
Special City Council Minutes
August 30, 1999
Page 2
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carry-over figure before making her decision as to how the budget will be
balanced. The council discussed the concern of using carry-overs to increase the
fund balance in order to keep the A3 bond rating. The City Administrator noted
that the audit shows the history of additions to the fund balance. Mayor Klinzing
also requested to see revenues corresponding to each department.
The City Council discussed pOSSible ways of decreasing the budget gap. The
following issues were discussed as possibilities for decreasing the budget gap:
CSO and COPS FAST Officer
It was the consensus of the City Council to cut the CSO position and related
grant revenue from the budget. Council member Thompson stated that he
would be in favor of keeping the COPS FAST officer in the budget provided that
the officer is used as a patrol officer. It was the consensus of the council to leave
the COPS FAST officer in the budget.
Buildina Maintenance Position
It was the consensus of the council to reduce the proposed 2000 Government
Buildings Maintenance Worker position to half time status.
Fire Inspector
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Discussion was held by the council regarding the possibility of hiring an Assistant
Fire Chief in lieu of a Fire Inspector. It was indicated that an Assistant Fire Chief,
whose main duties would include fire inspection, would be a better investment
for the City. Following council discussion, it was the consensus to keep the funds
for an additional employee in the fire department budget with the decision to
be made in 2000 whether the employee would be a Fire Inspector or Assistant
Chief.
The Emporium
Mayor Klinzing indicated that it is hard to justify the amount of money being
spent on the Emporium based on the number of youth that use the facility. She
indicated that she did not want The Emporium to deter the City from being able
to support the Boys and Girls Club. It was the consensus of the council to make
no changes at The Emporium at this time, and to reevaluate once the Boys and
Girls Club has opened.
Travelina/Conferences and Schools
Mayor Klinzing suggested that the City Administrator review the budgeted
amounts for this category and consider cutting some if necessary.
Street Maintenance I Position
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It was the consensus of the council to reduce the proposed Street Maintenance I
position to 6% months with the employee to work the other 5% months at the ice
arena.
The council agreed to cut $6,500 from the Community Recreation budget to
add $10,000 in interest revenues, and to add $7,500 in grant revenues (per the
Chief of Police update on Safe/Sober program). The City Administrator further
noted a possible $10,000 error in the parks budget.
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August 30, 1999
Page 3
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The City Administrator stated that these changes equal about $80,000 and
stated that there is still an approximate $160,000 shortfall.
Councilmember Dietz questioned what the tax increase would be on residential
property if there were an increase in the tax revenue by 3-5 percent.
Councilmember Dietz also stated that he is not in favor of figuring carry-overs into
the budget process. Councilmember Thompson noted that Elk River is a growing
community and the growth reflects the need for an increase in seNices.
The council directed staff to provide figures showing the effect on residential
property taxes for an increase in tax revenue in the general fund of $150,000. The
council also directed staff to continue reviewing the budget to see if there are
any other items that could be reduced or cut. It was the consensus of the
council to hold a special meeting to continue the budget process.
COUNCILMEMBER FARBER MOVED TO AMEND THE AGENDA FOR THE SPECIAL
COUNCIL MEETING CALLED FOR SEPTEMBER 7,1999, AT 5:00 P.M. TO ADD REVIEW
GENERAL FUND BUDGET TO THE AGENDA. COUNCILMEMBER THOMPSON
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
3.1. Other Business
3.1.a. Sewer Department Superintendent Position
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COUNCILMEMBER THOMPSON MOVED TO AUTHORIZE A 10 PERCENT WAGE
INCREASE FOR GARY LEIRMOE TO TAKE ON THE RESPONSIBILITIES OF THE
SEWER SUPERINTENDENT, WITH THE INCREASE IN WAGES TO BE PAID UNTIL THE
POSITION IS FILLED. COUNCILMEMBER FARBER SECONDED THE MOTION.
THE MOTION CARRIED 5-0.
3.1.b. Ice Arena Bids
COUNCILMEMBER MOTIN MOVED TO ACCEPT THE BID TO REPLACE THE
BLEACHERS IN THE BARN BY EARL F. ANDERSON TO INCLUDE PURCHASE AND
INSTALLATION OF BLEACHERS AT A COST OF $34,305 AND TO INCLUDE THE
REPLACEMENT OF 28 PIECES OF PLEXIGLAS AT APPROXIMATELY $2,600.
COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED
5-0.
3.1.c. Discussion Items
Mayor Klinzing requested the Police Chief to look into the possibility of
drafting an ordinance to prevent sailboats from mooring on lakes in the
city.
4. Adiournment
There being no further business, Mayor Klinzing adjourned the special meeting of
the Elk River City Council at 10:20 p.m.
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Sandra Peine
City Clerk