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10-09-1989 CC MIN MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER PUBLIC LIBRARY MONDAY. OCTOBER 9. 1989 e MEMBERS PRESENT: Mayor Tralle. Councilmembers Kropuenske. Holmgren and Dobel MEMBERS ABSENT: Councilmember Schuldt STAFF PRESENT: Pat Klaers. City Administrator; Lori Johnson. Finance Director; Tim Keane. City Attorney; Dick Fursman. Economic Development Coordinator 1. Pursuant to due call and notice thereof. the meeting of the Elk River City Council was called to order at 7:00 p.m. 2. Consider 10/9/89 City Council Agenda COUNCILMEMBER DOBEL MOVED TO APPROVE THE 10/9/89 CITY COUNCIL AGENDA. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. 3. Consider 10/2/89 City Council Minutes COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE 10/2/89 CITY COUNCIL MINUTES. COUNCILMEMBER KROPUENSKE SECONDED THE. MOTION. THE MOTION CARRIED 4-0. 4. Open Mike e Mr. George Raymond. representing the Greater Elk River Area Arts Council. addressed the Council. He indicated that progress has been made toward the Council becoming incorporated. He stated that a Board of Directors has been established and the first meeting has been held. Mr. Raymond distributed a letter from Cliff Lundberg which thanked the City Council for its support of the Arts Council. Included with the letter were the following documents: 1. Articles of Incorporation 2. Certificate of Incorporation 3. Bylaws 4. Application for Tax Exempt Status under IRS 5. Arts Partners of Minnesota Application Form Mayor Tralle thanked Mr. Raymond for submitting the documents to the City Council and indicated they would be kept on file. Mr. Roland Ring-Jarvi. teacher and coach in the Elk River School District approached the City Council. Mr. Ring-Jarvi thanked the Council for the City's involvement in cross country skiing. He stated that he has incorporated a club called Elk River Nordic Ski Club for the purpose of promoting cross country skiing and to develop trails in the City. Mr. Ring-Jarvi thanked the City for developing the trails in the Woodland Trails Park and also for purchasing the equipment to groom the trails. He requested assistance for providing insurance and stated that the club would like help in grooming the trails. Mr. Ring-Jarvi stated that assistance in the insurance program would be whether or not the City e could assist in insurance for trails on private land. City Council Minutes October 9, 1989 e Mayor Tralle requested that the City Administrator bring the insurance question to the City's insurance agent. The City Administrator indicated that the City's concern is expanding the skiing program on private property versus using City property. Mr. Jim Dahlquist of 10825 208th Avenue NW questioned the progress on Tyler Street. The City Administrator indicated that the project is ahead of schedule that, the curbs have been laid, and that the plan is to have one layer of blacktop this year and a second layer in the Spring. 5.1 Encroachment Easement by Pat Donahue Mayor Tralle indicated that Mr. Pat Donahue, owner of the Elk River Post Office building, is planning to sell the Post Office building and while having the building surveyed it was discovered that 2.64 inches of the building encroaches onto the right-of-way of Irving Street. Mayor Tralle stated that in order for Mr. Donahue to sell the building, he needs the encumbrance on the land cleared up. Mayor Tralle indicated that with an encroachment easement the building would be allowed to remain where it is located and would indemnify the City from any liability. COUNCILMEMBER KROPUENSKE MOVED TO APPROVE AN ENCROACHMENT EASEMENT FOR 2.64 INCHES AS REQUESTED BY PAT DONAHUE FOR THE ELK RIVER POST OFFICE BUILDING. COUNCILMEMBER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 4- O. e 6.1 Adopt TIF Plan //6 Dick Fursman, Economic Development Coordinator, indicated that the City is requesting adoption of the Tax Increment Financing Plan #6. He indicated that the plan should be adopted by the Economic Development Authority and therefore a special meeting should be called by the Executive Director. Mr. Fursman stated that the County and the School District have waived their rights for further comment, allowing the City to adopt the plan today which will save some administrative time and expense. 6.2 Consider 1989 Budget/ Public Hearing Mayor Tralle indicated that this was the first budget public hearing held by the Council and stated that the hearing was dictated by State law and that the notice in the paper advertising the public hearing was also dictated by State law. He indicated that the notice was very misleading in the fact that the 9% increase of funds stated in the notice would not be received from individual property owners but would be received from the property value increased within the City. e 2. e City Council Minutes October 9. 1989 Pat K1aers. City Administrator. indicated that the budget has been reviewed by the Council in July. He stated that the budget being presented tonight is a draft budget although many of the figures have been known and reviewed by the Council. He stated that there will be changes in the figures that are presented tonight because there is a budget gap. He indicated that the figures in the budget are based on the vetoed 1989 tax law. The City Administrator stated that the City is proposing revenues in the amount of $2.424.600. which represents a 13% increase over the 1989 budget. He further indicated that the City is proposing expenditures in the amount of $2.457.050. leaving a budget gap of $32.450. The City Adminstrator proceeded to review the budget. He reviewed the source of funds and also reveiwed each individual budget within the City. As he reviewed each budget he highlighted the total amount of expenditures for each budget. the percentage increase from 1989 to 1990 and the major causes for the increase in the budgets. The City Administrator then proceeded to review the special levy budgets consisting of Library. Dutch Elm. Infrastructure Replacement. City Special Assessments. Equipment Certificate Capital Outlay. Sanitary Landfill. The City Administrator explained that there presently is a $32.000 gap in the budget and that this gap mayor may not remain depending on the tax law changes. If there is a budget gap. the City can look at adding money to the budget from reserves. He indicated that the proposed city budget is to increase by 13%. which was less than the increases from the past few years. e Lori Johnson. Finance Director. explained that the notice whihc was published in the paper regarding the budget hearing was dictated by State law and was very misleading. She indicated that the City reviewed the budget based on the 1989 tax law and that the public hearing notice was based on the 1988 tax law. She indicated that the increase to the tax payers. should the proposed budget be adopted. will be very minimal because of the growth in the City. Lori Johnson reviewed the tax proportions which are distributed to the County. the School District. the City. and the special levies. She indicated that the City of Elk River collects about a $133 per capita and that this is one of the lowest in the County as far as the tax capacity rate. She indicated that in the overall picture of the tax payers dollars. 24% of the money goes to the City and the remaining goes to the County and the School District. e Mayor Tra11e indicated that the budget reviewed tonight is a draft budget. He indicated that the Council has been discussing this budget since July and that they will not know the final numbers for the tax levy until October 23. He noted that the purpose for the public hearing was to receive input from the public regarding the City's budget process and in the way the dollars are spent and distributed. Mayor Tra11e opened the public hearing. 3. e e e City Council Minutes October 9. 1989 " Cliff Lundberg indicated that if cuts have to be made in the budget. it seems that it would be most appropriate to make the cuts in the largest portion of the budget which is the Police Department. He indicated that the Police Department had a very large budget and was not sure whether this was warranted. Jim Dalquist of 10825 208th Avenue. indicated that he was in favor of trimming the 9% deficit. He stated that his personal taxes have increased about 25% over the last year and feels that any further tax increase put on by the City would be a further burden to the tax payers. Mayor Tralle stated that as the will be stretched to the maximum. keep the budget as low as possible the residents of Elk River. City becomes larger. the City systems He stated that the City is trying to and still give the services needed to Mr. Carl Miller of 708 Auburn Place. stated that the City has a $32.000 deficit and the School District has a $600.000 to $700.000 deficit. He indicated that his taxes have increased due to the School District referendum which was recently passed. He futher stated that he is a Senior Citizen living on a fixed income and he does not get a raise every year and that the tax increases are hurting him. He indicated that he would like to see something done which would give the Senior Citizens a break in their rising tax costs. He further stated that he does not feel he receives any services for his tax dollars. Mr. Don Hovre of 10933 200th Circle. stated he had a concern regarding the taxes being increased. He stated that he does not like to see the taxes continue to rise. He questioned what he would be receiving for his tax dollars. He questioned whether the City would be implementing a recycling program for the residents. Mr. Hovre questioned why the park budget has increased so dramatically and. further. why the roads within the City are not being taken care of on a regular basis. Councilmember Kropuenske commented on the limited amount of staff in the Street Department and Park Department. He stated that the Street Department and Park Department are one department and that with the small number of employees in that department. he is very impressed with the amount of work accomplished. Mayor Tralle stated that the City is proposing a five year sealcoating program which would help maintain the roads within the City. Mr. Greg Johnson of 11880 Highland commented on the City's high taxes. He indicated that the City of Elk River is one of the five highest taxed cities within the State of Minnesota. He indicated that he has information backing this comment up from the Metropolitan Council. the Minnesota League of Taxes and the Minnesota Department of Education. He stated that the average tax for an $80.000 home is $747 throughout the metropolitan area and indicated that his home. which is valued at a little over $80.000 was taxed at $2.280.00 minus the $700 homestead. He further stated that the average home in Elk River pays $1.210 in property taxes. Mr. Johnson indicated that for the amount of taxes he pays. he receives no city sewer. water. storm sewer. sidewalks. street lights. etc. and that this is the main reason he is voting against the increase in the taxes. 4. City Council Minutes October 9. 1989 e There being no further comment. Mayor Tralle closed the public hearing. Mayor Tralle indicated that comments will be taken into consideration as the budget process is completed. He stated that the final decision will be made after October 23. 6.3. Discussion regarding Community Survey Questions The City Administrator indicated that at Tuesday nights Park and Rrecreation meeting. a list of questions will be gathered to submit to Decision Resources for the preparation of a City survey. He indicated that he has requested comments from the Counci1members regarding the types of questions they would like to see included in the survey. He indicated that after listening to the Councilmembers at various meetings. he has determined that some of the major interests of the Council relate to the Community Center and recycling. The City Administrator suggested other concerns regarding the need for a City newsletter and the possible need for a seven member City Council. He further indicated that he has contacted the Newspaper Editor. Don Heinzman. the School District and Elk River Utilities regarding any input they may have on this survey. He stated he would draft some questions which would include the Council's concerns and submit them. He indicated that once the survey is in draft form. the Council can review the survey questions and determine if they are adequate. 7. City Administrator Update e The City Administrator distributed a draft resolution to the City of Elk River regarding a loan to Sherburne/Wright County Cable Communication Commissions. Pat K1aers indicated that the Cable Commission was going to borrow $50.000 from a Bank and he suggested that the City of Elk River loan the Cable T.V. Commission $50.000 at the City's special assessment rate of 8.5% with the funds to be repaid over a five year period. Tim Keane. the City Attorney. recommended that the City adopt the resolution subject to the condition that the execution of a promissory note be made so that there would be a clear avenue to follow in the case of default. COUNCILMEMBER KROPUENSKE MOVED TO APPROVE THE CONCEPT OF THE CITY LOANING THE CABLE COMMISSION $50.000 CONTINGENT UPON THE CITY ATTORNEY DRAFTING THE RESOLUTION. COUNCILMEMBER DOBEL SECONDED THE MOTION. Counci1member Holmgren questioned the reason for the deficit of $50.000. The City Administrator indicated that the $50.000 is needed to eliminate the annual budget transfer which would then enable them to change the budget process. He stated that the $50.000 will enable the Commission to pay back the loan and operate the system. THE MOTION CARRIED 4-0. e 5. e e e City Council Minutes October 9. 1989 The City Administrator indicated that he has had a request from the Chief of Police to allow Sergeant Tyler to drive the unmarked investigators car home so that he will be able to respond more directly to investigation scenes. It was the consensus of the City Council to allow Sergeant Tyler to drive the investigative vehicle home with the exception that when he is on vacation. that the car returns to City Hall. 9. Adj ournment There being no further business. COUNCILMEMBER KROPUENSKE MOVED TO ADJOURN THE MEETING OF THE ELK RIVER CITY COUNCIL. COUNCILMEM!ER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. The meeting of the Elk River City Council adjourned at 9:04 p.m. Respectfully submitted. J~ dI<A.L~-e~/ Sandra Thackeray City Clerk 6.