09-07-1999 ERMU MIN - SPECIAL MTG SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
TUESDAY, SEPTEMBER 7, 1999
Council Members Present: Mayor Klinzing; Councilmembers Dietz, Thompson, Farber
and Motin
Council Members Absent: None
City Staff Present: Pat Klaers, City Administrator; Lori Johnson, Finance
Director; Sandra Peine, City Clerk
Utilities Commission
Members Present: Chair Tralle, Commissioners Dietz and Zabee
Utilities Staff Present: Bryan Adams, General Manager; Bob McCartney, Glen
Sundeen, and Pat Hemza
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 5:00 p.m. by Mayor Klinzing.
2. Consider Agenda
The following amendments were made to the council agenda:
The Mayor requested that a brief discussion on Item#4 take place prior to Item
#3.
COUNCILMEMBER FARBER MOVED TO APPROVE THE 9/7/99 CITY COUNCIL AGENDA
AS AMENDED. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
4. City Council Discussion on 2000 Budget
Lori Johnson explained that staff was directed by the council to add $150,000 to
the tax levy to balance the 2000 general fund budget. Lori Johnson reviewed the
9/2/99 information she prepared showing how the additional $150,000 tax levy
would affect certain types of property. She noted that residential, commercial
and industrial properties will see a less than 1%increase in their taxes from the
total proposed city levy. She noted that this information is based on a net tax
capacity provided by the County Assessor. Lori stated that this is an estimate as
the tax capacity will change prior to the tax statements being sent out next year.
Lori also informed the council that the county's tax capacity increased by 4.88%.
Councilmember Farber indicated that raising additional tax revenues is a good
way to balance the general fund budget because it only raises the property
taxes per household by about$4.
City Council Minutes Page 2
September 7, 1999
Mayor Klinzing indicated that the council would continue discussion on this item
following Item#3.
3. Joint City Council/Utilities Commission Meeting to Discuss the Water and Sewer
Departments and a Possible Joint Water/Sewer Superintendent Position
Pat Klaers stated that this issue has surfaced due to the recent retirement of the
city's Wastewater Sewer Superintendent and the expected retirement of the
Water Superintendent.
Mayor Klinzing explained that discussion should take place regarding a couple of
issues pertaining to this item:
• Whether the Commission has considered joining the two entities(sewer
and water)
• The possibility of sharing a supervisor for the two departments
Chair Tralle stated that most of the discussions regarding this issue by the Utilities
Commission pertained to sharing a supervisor rather than combining the water
and the sewer utilities.
Councilmember Dietz noted that it was never his intention to have the water or
the sewer departments move to a different jurisdiction, but to have the
superintendent position be a shared position. He stated that he sees this as an
opportunity to have two departments that are closely associated with each other
work together.
Chair Tralle stated that if the departments were to join, he would prefer to see the
water department move to the sewer department. He indicated that due to the
continued growth of the city, it is important for the elected officials to have
control of the sewer department.
Bryan Adams, Utilities Superintendent, stated that there are not a lot of positives
for combining the two departments.
Commissioner Zabee stated that there is not total agreement among the Utilities
Commission regarding this issue. He noted that if the departments were
combined, he would like the sewer to come over to the utilities, but the city
would have to do the bonding and go through the assessment process.
Commissioner Zabee indicated that a joint supervisor could cause some
problems, such as in financing and deciding which department to support if the
city and utilities had a disagreement. Mr. Zabee indicated that he was uncertain
if a joint position would result in cost savings.
Discussion was held regarding the utilities' actual need for a water
superintendent. It was noted that the water superintendent is a shared position
with an electrical technician. Discussion was held about the possibility of
separating these positions in the future.
V
City Council Minutes Page 3
September 7, 1999
Mayor Klinzing stated that she is not prepared to move the sewer or water
department. She stated that she sees no reason to make any changes at this
time.
Councilmember Thompson stated he sees the water and sewer superintendent
positions having similar qualifications. He suggested hiring one manager to
manage the water and sewer departments and then eventually hiring a lead
person for each department. He stated that the benefit to the end user would
be increased.
Councilmember Motin indicated that he concurs with the Mayor that this is not
the time to make changes. He stated that problems could arise with the shared
position. Councilmember Motin noted that in the future he would like to see the
water department move to the city.
Chair Tralle concurred with Mayor Klinzing that this is not the time to join the
position of water and sewer superintendent.
Councilmember Farber noted the majority of the Commission is not comfortable
with the idea of sharing a position, so the position should not be pursued. He
stated that he feels the city and utilities work well together, and that a shared
position could also work well for both departments.
Mayor Klinzing indicated that the council will discuss this issue when the position of
sewer superintendent is reviewed.
4. City Council Discussion on 2000 Budget
Mayor Klinzing discussed budget under-spending and that this can create carry-
over revenues for the following years' budget. She stated that she would like to
see these estimated for 1999. Mayor Klinzing noted that the city should be
responsible for money that is not spent in the budget and reduce taxes
accordingly.
Councilmember Farber noted that carry-overs have been limited and the council
has consciously been putting them, plus excess revenues, into the fund balance.
Councilmember Farber left at this time-6:00 p.m.
It was the consensus of the council to raise the tax levy by$150,000 to help
balance the budget. The City Administrator suggested adding the available
balance of the $24,750 that is proposed to be cut from the department budgets
to the Council Contingency Fund. Discussion was held regarding the city
contributions to the Historical Society and to the River's of Hope and other
organizations that ask for contributions. It was suggested that organizations
approach the council for contribution requests and that the money come from
the Council Contingency Fund.
COUNCILMEMBER DIETZ MOVED TO MAKE THE BUDGET CUTS SUGGESTED BY THE
CITY ADMINISTRATOR,TO ADD $150,000 IN TAXES TO THE GENERAL FUND REVENUES,
AND TO ADD THE FOLLOWING ITEMS TO THE COUNCIL CONTINGENCY FUND: $3,000
V
City Council Minutes Page 4
September 7, 1999
HISTORICAL SOCIETY, $2,000 COMMUNITY THEATER, $3,000 RIVER'S OF HOPE,AND
APPROXIMATELY$15,000 FROM THE DEPARTMENT BUDGET CUTS. COUNCILMEMBER
MOTIN SECONDED THE MOTION. THE MOTION CARRIED 4-0.
Lori Johnson, Finance Director, distributed a sample proposed tax levy increase
resolution which requires a public hearing. She noted that there is no requirement
for publication of a public hearing notice. It was the consensus of the council to
hold the public hearing on September 13.
Discussion was held about the ice arena budget shortfall of$64,500. No action
was taken regarding this shortfall, however at the request of the council, the
Finance Director will provide quarterly updates to keep the council abreast of the
ice arena finances.
5. Adiournment
There being no further business, Mayor Klinzing adjourned the meeting at 6:30
p.m.
Sandra Peine
City Clerk