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12-08-1993 CC MIN - SPECIAL e e e SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL WEDNESDAY, DECEMBER 8, 1993 Members Present: Mayor Duitsman, Councilmembers Dietz and Holmgren Members Absent: Councilmembers Scheel and Farber Staff Present: Pat Klaers, City Administrator; Lori Johnson, Finance Director; Sandra Thackeray, City Clerk; Tom Zerwas, Police Chief 1. Call Meeting To Order Pursuant to due call and notice thereof, the special meeting of the Elk River City Council was called to order at 7:00 p.m. by Mayor Duitsman. 2. Consider 12/8/93 City Council Agenda Item 5.4., "Proposal for Sidewalk. Snow Removal" , was added to the agenda. COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE 12/8/93 CITY COUNCIL AGENDA AS AMENDED. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 3-0. 3. Truth in Taxation Budget Public Hearing City Administrator Pat Klaers explained that the purpose of the public hearing on the City budget is to receive citizen input and comments. The City Administrator reviewed the 1994 Elk River budget. The City Administrator stated that the General Fund budget is in the amount of $3,394,750, which reflects a 12.92% increase over the adopted 1993 General Fund Budget. The 1994 General Fund Budget has increased by $388,350. This reflects an approximate 8% levy increase in property taxes. The City Administrator reviewed the revenue sources for 1994. The total revenues combined produced revenues of $3,394,750. The City Administrator proceeded to review the proposed budget expenditures for 1994. Mayor and Council - The Mayor and Council budget is proposed in the amount of $62,850. This is a $5,300 or 9.21% increase compared to the 1993 budget. This budget is approximately 1.85% of the total General Fund expenditures. Administration and Finance - This budget is proposed in the amount of $395,100. This is a $69,650 or 21.4% increase compared to the adopted 1993 budget. This budget represents approximately 11.6% of the total General Fund expenditures. Elk River City Council Meeting December 8, 1993 Page 2 e Personal Services represents over 80% of the Administration/Finance budget. The increase in the Personal Services category includes the hiring of an Administrative Assistant at mid year, not allocating staff time to the Garbage Enterprise Fund, some classification changes for clerical staff, wage increases, insurance and pension expenses, and the addition of the receptionist's time being charged to this fund. Economic Development This budget is proposed in the amount of $38,900. This is a $14,950 or 27.8% decrease compared to the adopted 1993 budget. This budget represents approximately 1.15% of the total General Fund expenditures. This budget has decreased each of the last three years and will probably continue to do so in the future until all of the Economic Development General Fund expenses are in the EDA Special Levy budget. Elections This budget is proposed in the amount of $12,700. This is a $5,700 or 81.4% increase compared to the adopted 1993 budget. This budget represents approximately .4% of the total General Fund expenditures. Legal - This budget is proposed in the amount of $35,000. This is a $2,000 or 6% increase over the adopted 1993 budget. This budget represents approximately 1% of the total General Fund expenditures. This budget increase is due to additional time being required from the City Attorney on special City projects. e Engineering - This budget is proposed in the amount of $28,000, and is identical to the adopted 1993 budget. This budget represents less than 1% of the total General Fund expenditures. Building and Zoning This budget is proposed in the amount of $198,800. This is a $51,000 or 20.4% decrease compared to the adopted 1993 budget. This budget represents approximately 5.9% of the total General Fund expenditures. The decrease in this budget is due to the change that has taken place in the department with Planning personnel and functions being separated out into a new City department and budget. Planning This budget is proposed in the amount of $109,700. This is a $107,700 increase compared to the adopted 1993 budget. This budget represents approximately 3.2% of the total General Fund expenditures. In past years, this budget provided only expenses for planning consulting services. In 1994, the planning function was separated out from the Building and Zoning department and is now a separate budget. Planning Commission This budget is proposed in the amount of $4,950. This is a $1,100 or 28.6% increase compared to the adopted 1993 budget. This budget is less than 1/2% of the total General Fund expenditures. e Data processing - This budget is proposed in the This is a $5,550 or 32.6% increase compared budget. This budget represents less than 1% of the expenditures. The most significant change in amount of $22,550. to the adopted 1993 total General Fund this budget is the Elk River city council Meeting December 8, 1993 Page 3 -------------~------- . inclusion of $6,000 in the Capital outlay category equipment and software for the Building and Zoning departments and for a laser printer. for and computer Planning Government Buildings This budget is proposed $70,600. This is a $9,700 or 14% increase compared budget. This budget represents approximately 2.3% of Fund expenditures. The major increase in this cleaning contracts for the cleaning of the new Hall/Police facility. in the amount of to the adopted 1993 the total General budget is due to and larger City Police This budget is proposed in the amount of $1,260,200. This is a $158,400 or 14.38% increase compared to the adopted 1993 budget. This budget represents approximately 37.1% of the total General Fund expenditures. A majority of the increase in this budget is in Personal Services. The increase is a result of two additional police officers being hired, the Wage Incentive Program being initiated, a eso moving to full-time status, and cost of living and pay plan adjustments. Police Reserve This budget is proposed in the amount of $17,200. This is a $4,300 or 33% increase compared to the adopted 1993 budget. This budget represents less than 1% of the total General Fund expenditures. This budget is projected to increase due to more part-time pay for the police reserves and an increase in the uniform allowance for the reserve officers. e Fire - This budget is proposed in the amount of $230,050. This is a $45,200 or 24.45% increase compared to the adopted 1993 budget. This budget represents approximately 6.8% of the total General Fund expenditures. The Capital outlay category in this budget has increased significantly and includes a lease payment for the new equipment van, a rescue basket for the aerial platform truck, and the purchase of twelve self-contained breathing apparatuses. Emergency Preparedness - This budget is proposed in the amount of $10,750. This is a $3,550 or 25% decrease compared to the adopted 1993 budget. This budget represents less than 1% of the total General Fund expenditures. Streets This budget is proposed in the amount of $410,000. This is a $6,750 or 1.67% increase compared to the adopted 1993 budget. This budget represents approximately 12% of the total General Fund expenditures. A majority of this increase is in the Personal Services category with a new employee scheduled to be hired in October. Equipment Repair and Maintenance This budget is proposed in the amount of $61,950. This is a $2,000 or 3.4% increase compared to the adopted 1993 budget. This budget represents approximately 1.8% of the total General Fund expenditures. e Snow Removal - This budget is proposed in the This is a $1,100 or 1.4% increase compared to the This budget represents approximately 2.4% of the expenditures. amount of $80,800. adopted 1993 budget. total General Fund Elk River city Council Meeting December 8, 1993 Page 4 --------------------- e street Lighting - This budget is proposed in the amount is identical to the adopted 1993 budget. This budget less than 1% of the total General Fund expenditures. of $1,500 and represents far Shade Tree - This budget is proposed in the amount of $9,350. This is a $200 or 2.2% increase compared to the adopted 1993 budget. This budget represents less than 1% of the total General Fund expenditures. Parks - This budget is proposed in the amount of $91,900. This is a $17,250 or 23% increase compared to the adopted 1993 budget. This budget represents approximately 2.7% of the total General Fund expenditures. The major increase in this budget is in the Capital Outlay category and is due to the proposed purchase of a lightweight park tractor and flail mower for mowing of the grass along the roadside and medians. Recreation - This budget is proposed in the amount of $132,250. This is a $22,100 or 20% increase compared to the adopted 1993 budget. This budget represents approximately 3.9% of the total General Fund expenditures. A small part of this budget increase is in the Supplies and Charges category to more accurately reflect actual expenditures necessary on the softball complex and the new Oak Knoll fields complex. The major portion of the increase is due to the City's contribution to the 728 Area-wide Recreation Program which is offset by registration fees being received. e Senior citizen - This budget is proposed in This is a $1,850 or 6.2% increase compared This budget represents less than 1% of expenditures. the amount of $31,550. to the adopted 1993 budget. the total General Fund contingency This budget is proposed in the amount of $70,000. is an $8,000 or 10% decrease compared to the adopted 1993 budget. budget represents approximately 2% of the total General expenditures. This This Fund The City Administrator stated that the City is obligated by the Truth in Taxation law to discuss some personal and tax rate changes information at this public hearing. The City Administrator reviewed the Personal Service percentage of the budget. He indicated that the 1992 actual percentage was 70.08, the 1993 adopted percentage was 66.64, and the 1994 proposed percentage is 66.98. The City Administrator reviewed the General Fund expenditures for consultants as follows: 1992 actual - $61,746; 1993 adopted - $61,000; 1994 proposed - $63,000. The City Administrator stated that these fees were for engineering and legal consultants. The City Administrator then proposed part-time employees by classification. is as follows: to review A summary of the the full-time and General Fund e 1992 actual-40 full-time employees; 1993 adopted-45 full-time employees; 1994 proposed-47 full-time employees. Elk River city council Meeting December 8, 1993 Page 5 --------------------- e Part-time employees: 1992 actual-l05 part-time employees; 1993 adopted-65 part-time employees; 1994 proposed-96 part-time employees. Finance Director Lori Johnson reviewed the proposed urban and rural tax rates. She indicated that the proposed urban rate is 22.339% as opposed to 20.56% in 1993. She stated that the rural tax rate proposed for 1994 is 20.162% as opposed to 13.112% in 1993. Lori Johnson stated that these rates do not include the excess school levy. Finance Director Lori Johnson explained the reason for the large increase in the rural tax rate. She stated that the increase is due to a county error in parcel classification made in 1992, for taxes payable 1993, which was not allowed to be corrected at that time. The correction was made in the 1994 taxes, resulting in an increase of 54% in the urban taxing districts. Mayor Duitsman opened the public hearing. e Don Schumacher stated that the city budget is increasing by almost 13%. He indicated that this represents the growth in government spending which is faster than the growth and income in the community. He indicated it is the responsibility of the Council to set limits on the budget increase. He suggested a 5% increase in the budget and stated that growth in government spending must be curtailed. Don Schumacher stated that it is the city Council's responsibility to improve the tax base by encouraging industrial and commercial development in the city. Bob Turcotte, Albany Street, questioned whether the street lights. He stated he has three street neighborhood which are being paid for by the residents. referred Mr. Turcotte to the Utilities Commission. city pays for lights in his The Council In a response to Mr. Schumacher's comments on increased government spending, the city Administrator explained that there has been a need for additional employees for a long time, however, new employees could not be added in the Administration departments as there was no physical space available to house these employees. Additionally, some recent history in the City net levy changes indicates that last year the net levy increased 1.67% and the year before the net levy decreased 1.1%. Additionally, the city Administrator indicated that some of the increases in the budget are directly offset by reserve transfers or new revenues that are directly associated to the expenditures. This is done in order to show a more accurate reflection of total City expenditures and really should not be considered part of the "budget increase". If these expenditures were separated out, the budget would be increasing in the 7% to 8% range. e Councilmember Dietz stated he would like increase reduced to 5%. Councilmember increase in the Fire Department budget. to see the 8% tax levy Dietz commented on the large Elk River city council Meeting December 8, 1993 Page 6 --------------------- e Mayor Duitsman stated that he would not be supportive of hiring an Administrative Assistant in the 1994 budget. A citizen of Elk River stated his concerns about the increasing taxes on his residential and commercial property. Mayor Duitsman indicated that he supports an overall allocation of 3% increase in wages but does not support an across the board 3% increase. It was the consensus of the Council that wage increases be discussed at a later meeting. There being no further comments, Mayor Duitsman closed the public hearing. The City council discussed options available to reduce the tax rate increase to the 5% to 6% level. It was the consensus of the Council that the public hearing for December 15 be cancelled and that the City budget be voted on at the December 20 meeting. It was further the consensus of the Council that the City Administrator present budget information to the Council so that they could achieve the 6% tax rate increase level. 4.1. Consider 11/22/93 City Council Minutes e COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE 11/22/93 CITY COUNCIL MINUTES. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 3-0. 4.2. Consider 11/29/93 City Council Minutes COUNCILMEMBER DIETZ MOVED MINUTES. COUNCILMEMBER CARRIED 3-0. TO APPROVE THE HOLMGREN SECONDED 11/29/93 CITY THE MOTION. COUNCIL THE MOTION 5.1. Consider Request Regarding Employee Benefits The City Administrator indicated that Kathy Anderson, TAC Officer in the Police Department, has voiced a concern regarding employee health coverage. He stated that Kathy Anderson would like the City to offer the employees with single insurance coverage the difference between the family and single coverage for the health, dental, and life insurance. He stated that this difference is estimated to be $93.23 per month. The difference between single and family dental is about $32.00 per month. e Kathy Anderson addressed the Council regarding employee benefits. She stated that she was on a Committee in 1990, whose purpose was to equalize the benefits package between the family and single carriers. She stated the purpose of the Committee was to shorten the monetary gap between the single and family carriers. She stated that the Council took action in 1990 to offer dental insurance which did begin to shorten the gap. However, she stated that that gap is once again widening. Elk River city Council Meeting December 8, 1993 Page 7 It Kathy Anderson requested the Council to consider allowing the single insurance coverage employees to obtain family dental insurance and have the City pay for this benefit. She stated that the City is considering switching to Group Health Dental and will be saving money through this switch. She suggested that the money saved could be used to pay the dental premiums for single coverage employees. Mayor Duitsman stated that he is not aware of any other area that makes a differentiation of contribution between family and single coverage. Kathy Anderson stated that there are such things as cafeteria plans which allow employees to choose their benefits. Councilmember Dietz stated he felt the single coverage employees are receiving the same benefits as the family employees. Councilmember Dietz further stated that until the Police Union agrees to go to an 80/20 plan, there is not much the City can do to reduce the premiums for employees. It was the consensus of the Council to take no action on this item. 5.2. Review Arts Council Financial Statement and Consider Release of City Funds Lori Johnson, Finance Director, stated that the Elk River Area Arts Council is requesting release of the $5,000 which is included in the Mayor and Council budget as a contribution to the Arts Council. e COUNCILMEMBER HOLMGREN MOVED TO RELEASE THE $5,000 TO BE PAID TO THE ELK RIVER AREA ARTS COUNCIL. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 3-0. 5.3. Accept Resignation of Planning Commissioner Don spotts The City Administrator informed the Council that Don spotts has resigned from the Planning commission. / COUNCILMEMBER HOLMGREN MOVED TO ACCEPT THE SPOTTS. COUNCILMEMBER DIETZ SECONDED THE MOTION. 3-0. RESIGNATION FROM DON THE MOTION CARRIED 5.4. Proposal for Sidewalk Snow Removal The city Administrator stated that the City has advertised for an individual who would be responsible for removing snow from the sidewalks at City Hall, Jackson Square, and the EDA Main Street Redevelopment Site. He indicated that three quotes have been received with the lowest quote being $20 per hour. Discussion was held by the Council regarding the threshold that would be used for this person to decide whether or not to remove the snow from the City Hall site. The City Administrator stated that Phil Hals would provide this information to the Council at a future meeting. e COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE THE HIRING OF DON ELDRIDGE AT $20 PER HOUR FOR SNOW REMOVAL. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 3-0. e e e Elk River City Council Meeting December 8, 1993 Page 8 Councilmember Holmgren stated that the City will, at some time in the future, need to consider hiring a custodian on a part-time or full-time basis. 6. Check Register COUNCILMEMBER DIETZ MOVED TO APPROVE THE CHECK REGISTER. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 3-0. 7. Council Updates There were no Council updates. 8. Staff Updates/Other Business COUNCILMEMBER DIETZ MOVED. TO CANCEL THE DECEMBER 15 COUNCIL MEETING AND HOLD A PUBLIC HEARING ON DECEMBER 20 FOR THE 1994 CITY BUDGET. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 3-0. Flags The City Clerk indicated that several entries have been submitted for the flag contest. It was the consensus of the Council that the Council would judge the flags at the first meeting in January. MAYOR DUITSMAN MOVED TO CALL A SPECIAL CITY COUNCIL MEETING ON TUESDAY, JANUARY 18, 1994, AT 7:00 P.M., AT THE CITY HALL. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 3-0. Street Lighting The City Administrator stated that the Street Lighting Committee has met and made a recommendation regarding the proposal for additional street lights for 1994. The Council reviewed the proposal submitted by Police Chief Tom Zerwas. COUNCILMEMBER DIETZ MOVED TO APPROVE THE STREET LIGHTING PROPOSAL. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 3-0. The City Administrator indicated that the County approved a purchase agreement for the City to purchase 1.3 acres of land to be used as an extension of Orono Parkway. He indicated that the price for the transaction was $7,500 for the land plus special assessment costs which will all be covered by MSA funding. e e e Elk River city Council Meeting December 8, 1993 Page 9 The city Administrator distributed a handout regarding a request from the Downtown Committee to do some holiday decorating in the Jackson Square area. The City Administrator distributed a handout stating insurance company has refused the request from reimbursement due to flooding of his home. that Pat the city's DeMars for 9. Adjournment There being no further ADJOURN THE MEETING. MOTION CARRIED 3-0. business, COUNCILMEMBER HOLMGREN MOVED COUNCILMEMBER DIETZ SECONDED THE MOTION. TO THE The meeting of the Elk River City Council adjourned at 9:20 p.m. Respectfully submitted, s/:f~::~ ~) City Clerk