02-03-1988 CC MIN - SPECIAL-JOINT
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SPECIAL JOINT CITY COUNCIL/COUNTY COMMISSIONERS MEETING
WEDNESDAY. FEBRUARY 3. 1988
HELD AT THE ELK RIVER CITY HALL
Members Present: Mayor Gunkel. Councilmembers Dobel. Holmgren. Schuldt
and Tralle
County Commissioners. Alvin Ayers. Mike Johnson. Lyle Smith.
and Frank Madsen
Members Absent:
Sherburne County Commissioner Ray Friedl
Staff Present:
Lori Johnson. Finance Director; Pat Klaers. City
Administrator; Peter Beck. City Attorney; John McGibbon.
County Attorney; Tom Price. Assistant County Attorney;
Brian Benson. County Building Official; and Dale Palmer.
County Auditor
Mayor Gunkel called the meeting to order at 7:00 p.m.
At the beginning of the meeting introductions were made of all City and County
officials that were present.
1. Discussion on City of Elk River Tax Increment Financing District #4
Mayor Gunkel introduced this topic of discussion by presenting some
background information on why TIF #4 was created and what the City hopes
to accomplish with the captured funds. The Mayor discussed the planning
process that the City went through when consolidation took place
approximately ten years ago. It was indicated that the western part of
Elk River between the two rivers has long been planned to receive
municipal utilities. The Mayor further indicated that recent planning
efforts by the Growth Management Plan Task Force also are highlighting
this area as the next logical area for extension of municipal utilities.
The placement of utilities in this area would provide for logical and
manageable growth in Elk River. It was indicated by the Mayor that
preliminary financial information shows that this area cannot bear the
entire assessment of improvements and that financial assistance. most
likely in the construction of a water tower and well. would be needed in
order for assessable improvements to be installed.
The Mayor then read the League of Minnesota Cities policy statement on tax
increment financing. This statement. which the City concurs with. states
that tax increment financing is one of the few tools available for
municipalities to encourage economic development and that "tax increment
finance remains one of the few options available for cities to promote
growth and development in their cities."
The Mayor then indicated that the City created TIF #4 around the refuse
derived fuel site because of the opportunity to capture increments that
could be used to encourage development of the City in an orderly and
manageable fashion. The City believes that the long term benefits of the
capturing of these increments from the RDF Plant will benefit the School.
County. and City in the future. The capturing of these increments will
allow for future population growth in Elk River and tax base growth with
possible .employment opportunities as industries and businesses are
constructed in this area.
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February 3. 1988
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The Finance Director then distributed a handout dated 2/3/88 that
displayed the effects of the creation of TIF #4 on County and City taxes.
The figures used in this handout were received from the Sherburne County
Auditor's Office and the methods of computation for taxes when there is a
TIF District have been confirmed by the Department of Revenue. Ms.
Johnson stressed in her presentation that the amount of tax revenues
generated by the City and County does not change because of a TIF district
being created. The amount of monies available is determined by State
Statute and in 1987 the State Legislature took action to limit the amount
of monies available. The City Finance Director indicated that the
creation of TIF #4 simply did not allow the mill rate for the typical City
property owner to decrease. The material presented by the Finance
Director indicated that the TIF #4 has a potential captured assessed value
of 1.79 million dollars and the County has a total assessed value of
approximately $347 million dollars. Without TIF District #4 being
created. the County.mill rate would have been 26.62 and the City mill rate
25.18. With TIF #4 being created. the County mill rate is calculated at
26.78 and the City mill rate at 26.28. This results in the homeowner
paying approximately $5 more in taxes on a $50.000 home with TIF #4 being
created than without.
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Commissioner Smith indicated the hard work and effort of the Tri-County
Solid Waste Group in attracting the RDF proposal and all of the related
expenses that this group incurred in attracting the RDF proposal. Mr.
Smith also indicated that the County was upset over the loss of the
assessed value that would be generated by the RDF Plant.
County
Finance
generate
increments
deletion of
of the area
Attorney. John McGibbon. reviewed the figures presented by the
Director. Mr. McGibbon indicated that the RDF Plant would
over five million dollars in assessed value and that the
captured would be approximately $250.000 per year. The
these funds from the tax base would be a significant detriment
in the eyes of the County Commissioners.
The Finance Director reiterated the effect of the 1987 State Law on Levy
Limits and the effect of the assessed value on the amount of dollars
available to local units of government. The Mayor indicated the belief of
the City that the creation of TIF #4 would greatly benefit the County and
School District through greater population growth and development in the
western area of Elk River. Commissioner Johnson indicated that such
improvements taking place on the west side of the City should be assessed
to benefitted property owners in its entirety. This was done in one of
his districts in Zimmerman. Minnesota. Mr. Johnson also indicated that
TIF should be used only for a project that is directly benefited by the
captured revenues and that TIF #4 in Elk River does not follow this
pattern. Commissioner Smith concurred with Commissioner Johnson that past
Elk River TIF Projects were acceptable but this TIF #4 is a variation from
past projects and the TIF #4 does not benefit the immediate district.
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City Attorney. Peter Beck indicated that everything the City did in the
creation of TIF #4 complies to State Law. Also. the City has had approved
development districts and that improvements can take place within this
development district using funds derived from any TIF district that is
created.
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February 3. 1988
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County Staff member. Brian Benson. questioned the assessed value versus
taxes generated statements presented by the Finance Director. The Finance
Director. once again. indicated the State Law changes in 1987 that
eliminates 1987 added assessed value effecting the levy limit for local
units of government. She indicated that if this district was created in
the early 1980's. the arguments of the County that some amount of revenue
was being removed from the pool of funds available would be correct. but
that recent State Legislature action no longer makes this a factor.
Population and household increase rather than increases in assessed value
increase the government LGA and levy limit.
John McGibbon emphasized that while proper notice was given to the County
for the creation of TIF #4. that the City did not live up to "the spirit
of the law" and that a formal presentation on this district should have
been made to the County Board without the need of the County Board
requesting such a presentation.
2.
Discussion on Solid Waste Management
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The Mayor introduced this issue by indicating that the City is continuing
in its efforts to obtain Elk River Landfill compliance to the City's Solid
Waste Ordinance. At this time the City and the Landfill owners are
working together to have the landfill rezoned to its appropriate zone.
apply for a license and a conditional use permit so that the landfill can
operate legally according to city rules.
The Mayor indicated the City's very strong concern regarding disposal of
ash at the landfill. The City is strongly opposed to any disposal of ash
at this landfill. but understands that Sherburne County may be required to
dispose of its share of the ash. per conditional use permit agreement. for
the operation and burning of RDF at the UPA site.
The Mayor also discussed the City's strong interest in a recycling program
and her feelings that such a recycling program should be done on county
wide basis rather than just within the City of Elk River. Brian Benson.
County Zoning Administrator. discussed the County's recycling plan and his
feeling that the City and the County should not set up and run a program
but that a recycling program should be a privately operated business.
Mr. Benson indicated that it is unlikely that a recycling program would be
successful if it was required. A recycling program should be done on a
voluntary basis and that future cost for garbage disposal may increase
recycling efforts in the households.
Mr. Benson indicated that he will provide the City with all relevant
recycling information that he has available at the County.
3.
Discussion on County Administration Building
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Mayor Gunkel indicated to the County Board that one of many options which
the City will be evaluating for a permanent City Hall site includes the
existing County Administration Building. The City would like to receive
from the County a firm price before the end of 1988 on what the County
would need from the City in order for the City to purchase the County
Administration Building.
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February 3, 1988
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The City is looking to relocate to a permanent City Hall facility within
two to four years and if the purchase of the County Administration
Building is not feasible then the City needs a great deal of lead time in
order to arrange alternative plans.
County Commissioner Chairman
appraisal was completed which
County Administration Building
time the building was offered
Smith indicated that in the mid 1980's an
indicated an appropriate price for the
would be in $770,000.00 range. At that
to the City and this offer was rejected.
Discussion then centered on the existing old Court House near the County
Administration building. The City Council indicated that if the City
were to purchase the County Administration building, it is a requirement
that the old Court House be removed from this site and that the City would
not consider purchasing the County Administration building if the old
County Court House remained on the site.
4. Discussion on County Parks
The Mayor
wide trail
developing
such a plan
indicated
system.
a trail
could be
the City's interest in a county park plan or a county
She indicated that the City is interested in
system throughout the City and was wondering whether
incorporated into a county wide trail system.
Chairman Smith indicated his personal feeling that the County cannot
afford to be entering into a county wide park system or trail program.
The County currently has a large area of land designated for park purposes
with the State Reserve and the Sand Dunes area north of Elk River.
Chairman Smith admitted that a trail system would be less expensive than a
park system but that at this time the County has absolutely no plans to
begin a county wide park or trail system.
5.
Municipal Sewer and Water to New County Governmental Center
At this time the City Administrator distributed a feasibility study for
sanitary sewer and municipal water to the west area of Elk River. This
feasibility was done in response to a petition that the City received from
the County which requested municipal utilities be provided to the County
facility.
Mayor Gunkel indicated that if the County would like a formal presentation
on this feasibility study that the City Engineer would be available at a
future County Board meeting. The Mayor indicated that this feasibility
study has been officially accepted by the City Council. Additionally the
Mayor indicated that the Growth Management Plan Task Force is recommending
the County do a more comprehensive feasibility study on extending
municipal utilities to this area. Such a study is anticipated to be
undertaken in 1988.
6. Miscellaneous Items
Councilmember Schuldt
from the County on
middle 70's. There
this matter.
indicated that the City still has unpaid assessments
the parking lot improvement which took place in the
was no response made from the County Board regarding
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Special Joint Minutes
February 3, 1988
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Mayor indicated that if a future meeting between the City and the County
was desired that such a meeting could be arranged and that the City
Council would be willing to meet with the Commissioners at the County
Administration Building provided that the meeting was held in the evening.
Future Agenda items include; Discussion on County wide Economic
Development Plans, Future improvements on Highway 101, Discussion on
Sherburne County HOD Loan Limits, and Unpaid Assessments levied upon the
County.
At this time the Mayor thanked the County Board of Commissioners on behalf
of the City Council for meeting with them to discuss issues of mutual
concern.
7.
Other Business
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The City Administrator distributed to the City Council a resignation
letter from Police Officer David Minkel. The Administrator indicated that
through discussions with the Chief of Police the City felt that it was in
its best interest to hire temporary part-time officer Kimberly Holland to
replace Dave Minkel. The Council questioned the Administrator on what the
police Department plans were for part-time help when Kim became a
full-time officer. The Administrator indicated that such manpower issues
would be discussed during the Chief of Police Annual Report on February
29, 1988. At this time the City would provide services to the best of its
ability and within its budget constraints.
COUNCILMEMBER DOBEL MOVED TO ACCEPT DAVID MINKEL'S RESIGNATION AS A
POLICE OFFICER FOR THE CITY OF ELK RIVER AND TO HIRE KIMBERLY HOLLAND AS A
PERMANENT FULL TIME POLICE OFFICER EFFECTIVE 2-17-88, WHICH CHANGES HER
STATUS FROM A TEMPORARY PART TIME OFFICER WITH THE STARTING PAY TO BE AT
THE ENTRY LEVEL PER UNION CONTRACT WITH A ONE YEAR PROBATIONARY PERIOD.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
MOTION BY COUNCILMEMBER
DOBEL SECONDED THE MOTION.
HOLMGREN TO ADJOURN THE MEETING.
THE MOTION CARRIED 5-0.
COUNCILMEMBER
The Special Joint City Council/County Commissioners meeting adjourned at
9:23 p.m.
j24~d~
Patrick D. Klaers
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