08-27-2007 CC MIN• SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL (UPPERTOWN CONFERENCE ROOM)
MONDAY, AUGUST 27, 2007
Members Present: Mayor Klinzing, Countilmembexs Zerwas, Farber, Gumphrey, and Morin
Members Absent: None
Staff Present: City Administrator Lori Johnson, Finance Director Tim Simon, Accountant
Lori Stich, and Recording Secretary Jennifer Johnson
1. Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Coundl was called
to order at 6:30 p.m. by Mayor I{]inzing.
2. Consider 8/27/2007 Agenda
MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY
COUNCILMEMBER FARBER TO APPROVE THE AGENDA. MOTION
CARRIED 5-0.
3. Consider Consent Agenda
MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY
COUNCILMEMBER FARBER TO APPROVE THE FOLLOWING CONSENT
AGENDA.
2.1. CONSIDER PYROTECHNIC FIREWORKS DISPLAY LICENSE FOR
RES SPECIALTY PYROTECHNICS, INC.
MOTION CARRIED 5-0.
4. Budget Discussion
Ms. Johnson started the budget discussion as outlined in a PowexPoint presentation
prepared by staff. She reviewed the budget and capital improvement plan (CIP) schedule
stating the preliminary levy would be adopted on September 11, the Truth in Taxation
Hearing would be held December 3, and the final levy adopted later in December. The
complete CIP is planned to go to the Council in November with the intention to adopt it in
December. She stated that the department heads had met with the Council earlier to discuss
their staff and capital outlay requests and program changes to their budgets; the proposed
budget being presented tonight incorporates the department head requests as discussed at
the previous Council meetings.
Ms. Johnson explained the tax levy information. She stated that the proposed budget
assumes a six percent net tax capacity (NTC) increase and a tax rate of 43.056% which is the
• same as the 2007 tax rate. She stated the six percent NTC increase was based on earlier
discussions with the county assessor. However, today she received an updated estimate of
City Council Minutes
August 27, 2007
Page 2
11.66%. The county NTC is increasing around seven percent which maybe why the •
original estimate for the city was so low. She stated it was still early to use this as a final
figure but this would at least allow the council and staff to make decisions regarding the
2008 budget.
The 2008 budget will include a tax levy for the YMCA, and Ms. Johnson explained the
figures regarding the estimated levy amounts and how the Landfill Legacy Grant funds will
be applied. Based on the estimated marked value from the county assessor, the YMCA levy
amount would cost a homeowner approximately $27.00 on a $200,000 home. Ms. Johnson
explained how the levies are decreased with the use of the giant money, and the council
agreed with spreading the grant proceeds towards the cost of the YMCA as she presented.
Ms. Johnson then coveted the budget assumptions up to this point; the tax rate of 43.056%,
COLA of 3%, flexible benefits contribution increase of 3%, and gas was to be figured at
$3.50 a gallon. She noted the decrease in the building permit revenues due to the changes in
the buildiag industry and suggested a $62,500 decrease in permit revenue based on the
number and value of new home pemuts issued to date in 2007.
Staff additions were reviewed by Ms. Johnson. One full time staff addition was requested
For 2008, which was for a patrol officer for the police department. Three part-time
positions were requested; code enforcement officer, IT support specialist, and an energy
coordinator. The street department's request to change apart-time position to full-time was
taken out of the budget by Public Works Director Terry Maurer.
Councilmember Farber felt the code enforcement officer should be a full-time position due
to the rise in code violations and amount of work required for such a position, and feels that •
by hiring a full time person fox this it would show the city stepping up enforcement of code
violations.
Mayor Klinzing agreed with Councilmembex Farber and also requested afull-time position
for code enforcement.
Councilmember Zerwas suggested after the enforcement program was set up if the person
hired for the position could start in the middle of the yeaz and work full time.
Councilmember Morin suggested the position be'/< time and asked what was taking so long
fox staff to step up enforcement. Ms. Johnson stated that enforcement has increased and
staff is setting up a solid enforcement program; however, some ordinance changes may be
needed to allow fox greater enforcement. She stated staff is meeting tomorrow with the city
prosecutor and city attorney Peter Beck to go through the legal issues related to
enforcement and to determine how to best handle issues that need to go through the court
system.
Mayor Kli^zing discussed the energy coordinatar position, stating the commission is very
interested in having the city hire a coordinator.
Councilmember Zenvas stated he doesn't believe the commission is ready for a staff person
and suggested the energy expo be a bi-annual event.
Counrilmember Gumphrey pointed out that not only would the city benefit from this, but •
the county and local businesses would benefit from this.
City Council Minutes
August 27, 2007
Page 3
• Counciknember Morin felt that the community should step in and also assist in funding this
type of position.
Ms. Johnson stated that Rebecca Haug would be present at the September 10 council work
session and could provide more detail into what the position entails, as well as the costs and
schedule of future expos.
Mayor Klittzing, along with Councilmember Zexwas and Councilmembex Morin., requested
that this position be removed from the budget at this time until more details can be
provided.
Ms. Johnson and Mr. Simon then discussed each department's expenditures, General Fund
revenue projections, special revenue fund budgets, and capital outlay.
Questions were asked by both Councilmembers Farber and Motion regarding the purpose
and benefit of the Brick Block surveys.
Ms. Johnson explained the survey, which would help determine the viability of preserving
the Brick Block buildings in downtown Elk River by evaluating a building's structural
integrity, building code requited improvements, and other structural aspects. It would not
include a financial Feasibility study. The cost to conduct the survey would be $20,000. Ms.
Johnson stated that if it was left in the budget, the council would need to approve it before
the survey took place.
Discussion also took place on the request to investigate local historic neighborhood districts,
• which would help identify areas of the city that have local historic significance worth
preserving at a cost of $5,000. The City would also apply fox grant funding from the state to
help pay for the costs of the study. After discussion, the Council decided to remove the
$20,000 survey of the Brick Block budget request, and to keep the $5,000 historic
neighborhood districts survey.
Counciknembex Gumphxey asked about the purpose of the electronic timecazd
implementation, stating he felt it would send the wrong message to city stafF and said he
believed it would cause more problems then its worth.
Ms. Johnson explained how having an electronic timecazd system could increase efficiency,
increase accuracy of reporting hours, and eliminate the need for double entry by staff. It
was proposed to help increase the efficienry of the payroll function.
Mayor Klinzing agreed with Councilmember Gumphxey and Councilxnember Fazber asked
that it be removed from the budget.
Mr. Simon explained the council contingenry budget, and Councilmember Morin asked why
the amount in the fund was so high.
Ms. Johnson stated in the past the contingency budget had been increased to a point that
was azound 2'/z % of the budget. Last year it was decreased and could be again this year;
she agreed that 2 '/a % seemed higher than it needed to be.
Mayor Klinzing and the rest of the council agreed to set the contingency fund at'/a% of the
• budget.
City Council Minutes
August 27, 2007
Page 4
Mr. Simon discussed the park and recreation capital outlay, and answered questions about •
the consulting fees, which were budgeted at $15,000 Fox park planning-type studies. Ms.
Johnson stated this figure may be high because of decrease in park dedication funds means
that there will be fewer park projects in 2008. After discussion, the mayor and council felt
this figure to be high and requested that the other professional services line item be reduced
to $10,000.
Councilmember Zerwas brought up the request for schooling and asked if staff had more
information.
Ms. Johnson stated that the schooling was requested by Parks and Recreation Director Bill
Maertz for the project management training for Tonya Love at a cost of $3,000.
Council requested more information regazding the schooling for Ms. Love before they
would consider keeping it in the budget.
Discussion took place regarding the front end loaders fox the street depaztment budget. It
was agreed that more information was needed from the Public Works Director to determine
the necessity of the front end loader, single axle with plow, and replacing the floor in the
cold storage building.
Discussion also took place regazding the 80 HP Tractor/loader/snow blower requested by
park maintenance. The mayor and counc$ requested this item be removed from the budget.
5. Adiournment
There being no further business, Mayor Klinzing adjourned the meeting of the Elk River •
City Council at 9:00 p.m.
Minu~te~s//prepared by Jennifer Johnson.
c..~~ / , '
((,ii /.
Tina Allazd
City Clerk
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