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08-30-1999 CC MIN - SPECIAL e 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 e 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. e 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 e 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 e 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 e 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. Special City Council Minutes August 30, 1999 Page 3 e 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 e 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. e ~tAJ2~~~ Sandra Peine City Clerk