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09-08-2008 CCMP'1EE7'1PIG OF THE ELK RIVER CITY COUi~1Cli. H~~,~,~T THE CITY O~ ELK R1VER {UPPER TOdVN COI~IFER~INC~ ROOM) P~tOI~E)AV, SPT~MBER 8, 20Q8 ~rem~ex ~'re~ent: ~a~or I~~a~, ourac~lrnerrabers ~ar~~r, ~ot~ arad ~r~ gas ou~nemhex un~phxey arrived at ~:~ p.m. ~~~xnbers 1~bsent: ore ~~.~ xeent: ~~y ,dm~n~stratox Lori ~'ahnson~ Finance ~xectoa' ~"i.~n ' an, ccount~.nt L~r~ Bch grad ~.ecordin~ ecretar~r Deh~e ~uebra~r ~, fall ~r~, ~'o C~rd~ar pursuant to due cI and node th~xeof, ~~~ meet of the ~~~ Raver ~ Gourac' to order ~,~ (a:1~. . b - pia or ~~1in ' ~~"as cabled ~ ~ ~. ?. ans~der ou~aI ~.~enda ~o~racil~aerraber ~otin added ~ ne~vspa~er ardel~ item as ~te~a .~. 3. ons~d~r ans~~.~ ~;end~ - ,_ ~~~~~~ ~~ ~~ ~o~~v~~x~~~ 3., ~5',~ T~~~~' LN _ ~.~ ~~]S'~.~D .ALA ~enray Walsh, ~` ~'ropertie ~- stand he ~s the o~~n~z of acl~san ~lac~ and re nested ~~ ~ ~ zet~.l ~.roper~es ~ ~ o parl~n stns on Taira meet ~~:~~ ~~ Jacl~son glace he ~ ~d fix ~~~ mute paxl~ra, grad one far 3~-mute a~n ~~ ailou cu ~ p taus the a~~ty to het rn an ant ~uzc~.y. e stated these a±ee pa~I~.n spots axe ~~~y to ~e success of the c ~ I~a~n business, ~aunc~xae~aher ~er~afas as~.ed about the current pax~in ~.t foa' theses ace p ifs. Johnson stated the pa,r~.ra emit ~s ,3 hors and Hated this issue ~~as xev' ~~rhen ~~ca 's Restaurant had as~c~d ~ aousl discussed Y that they not he s~ned for ~~ nur~utes. qty Count 1~ut~s eptern~er S, ~~0~ ~'~~e ~ our~ci~en~bex ~axbex stated he i rat oppascd t4 ~.it~n ~e paxl off' the three ~ aces. aunc~nebex ~ex~~ras stated ~~~nain~zte ~axl~rn ~vauld be difficult to enforce. ~~ ~rther stated there are ~~a salons lac~.t~d daurnto~vn and ~ r.~nutes wo~.d Hat be enou h t,c fax them, fir. fah stated ~~o~le cc~~n~ to those types o businesses .now the axe air to be a~~rhile and do not n~€nd arl ~ ~ttle ur~her a ~ ~ ~ ~ way to ~vall~ to them. ~e stated he understand the enfa~ce.ent issue but felt it vas ~varth ~ txy, auncilxne~nbex a~bex stated most people ~u abide by ~e signa e and enforcement could be ~ to ed u to deal ~v~th it if needed, ~~ aun~ne~nbe~ ~otin suested the ~~~rn%nute paxl~in be signed for 7 a.xn. -~ G .€~. P ~r~ayor I~n~in Hated that e~cn thauh a paxl~g sdy eras done; QUncil undexstood paxl~in ~vauid be dictated by actual e~:pexience. She stated Council su orts the a~l~so,~ uaxc retail businesses and ~v ~~ ~ ~. ant them tc~ be succes~u. Councilrnen-~ber ~axbex Hated ~~eCay's Restaurant ~~as upset about lasin e d~xee ar.:n spaces do~vnta~~n fox tine arl~ but didn't be~eve an ~ ~ ~ ~ one ~~auld ads the spots f ox the gems o~ a pax1L that is no~,~ a dra4v fox bus~ncsses. Coun~en~ber ~er~vas suested ~-mi~,ute parl~ing instead of ~~. i~fayax flir~~in stated ~5 minute since tees penp~e the parl~n~ is meant far uich, t~ s~ ~ ~ c~unci,~ne~nbex e~~as concuxxed and nested adding linage that the s ace is i~ax loading~u~.oading and . ~ T~ ~"~ ~'~' ~N'~ 1V~~`~3 ~~~ ~~ Nom' ~"~~T A~ AC~N~' ~ 'D~~'~: ~h'. ~~aish stated he vas ~vil~ng to provide the signs. 1rfs.~ol~nson stated sta~~~vauid need to male suze tine suns met cit~T s eci~icadans. .P Caunciexnbex ~f atin e~pxessed cc~ncexn hoer ~~ ~estric~cd ar~~in~ a a~~ect ~e business space an the north side o~ the bu~.d~n . ~ ~ ~ ~~r. Walsh stated they are only a~.n for t~~ree spaces to be si ed and noted tl~exe is other parl~n a~va~,able, .fie Hated the uicl~ "in ~y x ~ ~ and nut mad be bene~c~al to a patent?a% business such as an ice cxearn place, Coun~embex Humphrey arved ~t this c ~:?~ p,m,~ pity Cod. ~,~n.uts ept~r~~er 8, ?a0$ 5. ~. axial .~ ort ~ag~ 3 ~. Oman pxoded bacl~aund znfarrnation regardin Coverr~ent ~cc Standards ~3oard ~~~ statem,en aun~n ~ } t o. ~5 and the xesu~t~n act~ar'ial s tlad ~ V"an~~~raa~den. ~~ stated the results of ~e snarl ~. ~~ inc~ud ,~ Y Y Y ed ~e M~D~ ~at~~al statements. ~~r. i.mon e~p~aed that die ac~axial accrued abi~ is ~~ 7~$ and auditors have indicated e relim.ir~ ~' ~ r ~e city's ~ air amounts are ~mrnatexial and xnay only re~~e Hate disclosure. ~f zt becomes rnater~ai after e 1J~ funds axe added der ' evexance ~a~ Fund balance to sho4v the a ~ ~ enough ~ the qty is ~~~ percent funded. ~Ix, man stated that this nu~ber if ~rery important to xat~ng agef~aies, and that the nu ty tuber ~~ ver~r ~o~v can~par~son to other cities, ~~ayor ~~n.~in allied if the auaci~ should take action tam. ht to male ' the funds. ~v~r. won stated i ~e designation of t could be appxap,riate to wait and see if e amount is ~xnn~ate~al or material, ,~. ~esa~udan ~uthori~in the Pxa osed Pro erg ~"a~: eve fax Coil ~ ~c~~n xn .~UQ ~~s. ~ohr~san provided background xegard~ng the net taws ca aci , Sherburne noun ,She ~ ~ } ~nfaxatian fr~xn ty noted that the ~ ~ncxease far tapes parable ?DQ ~~ most ~l~el be no h~hex khan three percent, ~vh~ch at the ?QQ$ ta:~ rate of ~?.~9~ l ~ Y Fund budget shortfall afa1~ BQ. ~e eaves a .~~0 enexal v~r~. to the le~-y ~t far ?04~ ~vauld in.cxease the ta+~ rate to ,Q7~ a.~ad reduce the budget shortfall to ~~,~~~, ~sF ohnon xevie~ved ' tai ~nfornaadon xe ax ` ~ ~ h~sto~cal ~ ding T"C, levy, ar~d tai rates from ~~0~ ^ ~OaB and rp osed ~~0. PP ~s, Johnson explained the ?D$ "~~ error by the Caen a.nd zts irn ac '~ She stated that this •ear tl~e tau ~ ton the .~D~~ ~ev~r. ~' my Mans to levy far the 7~~~~ the aunt. loaned to a off tlae ~,F d~strxct to cozxect the error. the stared the s ecial le 'station ~v ~ ~ ?D0~ rc~ aila~v tilern to leti ~~ ~ as apprav~ed ~ ~ far ~e Funds. ~s. Johnson explained that the ci r ~n,a - a eat and asl~ that ~e Zev~y be spread over sev~era~ -ears ar tlxa ~ ~' pP y t the lei be collected at the end afthe district by e~ten~ing the team of the district, She Hated that the e ar been ~ zn they vsitir~n of ~`~ ~ dent ofevenue has P ezro~s ~tl~.n a ane~yeax ~xne frame to reduce the possibility of addi~onal e.rrox~s. the cancu~rred that ~t is cliffict~it ad~s~ ` correction aver rnult~ ~e ears bur at~ve~y to rnal~e a ~ ~ ~ that means ore of ~a things; the eit's rate is o~ to 0 Grp ar an adc~.~,or~al $~,?~~ needs to be cut fraxn the bud et if the ~ ~ the tai, rate to exceed :~~,~~,. ~ Caunc~l does not avant the referenced a ~€st of possible adjustments tQ tl~e ?ODD budget and discussed other options to help with e shortfall inclu ' " the ?Q07 fund balance xe ~ ding us~g a portion of sez~~e or ~enexa.l fund balance. ouncilznernber ~axber stated he felt ,e aunc~, cannot cut an • mare ~~-ithaut cut~n osition and he ~v ~ dam ~e budget g P as Hat rn favor of that option, ~~e suggested usin xee~~es to corer die shaxtfa. g ~ayar I~~ing ached what the amount of tai revenue tivould be if the l ~Q~G rate a~'=~-~,9?~°f~. ~s. oh.nson stated what } • e` ~~ere set at the ~ the add~r~onal revenue enerated at the ?0~6 and ?U07 tai. zates ~~'au~d be. She e~ la~ned that after a g p `strat~ve adjustments and coxrectio~xs e o.~gin budget sho,~tfall of 5~9z~a is dawn to ~-8Q ~Q~. additional revenue enerated by incre x Subtxact~ng the ~ f as~ng the ta:~ rate to ~-~.~?~, the shortfall. would be apprc~~~i~mate~~t 1~D,0~a. ~ncreain the ray, rate ta =~3.a~°~o ~vo~ld result ~ shortfall. T~iscusslan continued abautthe - a -~~Of~a~ ta:~ rates and reult~ig budget shortfall, pity ou~c~ l~.f~r~utes eptcrnber ~, ?D~8 P~g~ ~ L~~cussign ~ouo~ved regarding cost a~,ving and duel adjustrr~ents, IVis,~~hnsan stated fuel may be adjusted since ~e cast sees to be going do~rn. ~~x. Simeon stated that cutting e projected i'uel price by ? eer~ts per g~.on would result i~ a savings a~ ~~,~DD , ~~,D~~. ~ayo~ inin noted e budget can still be adjusted, aid only the taws levy needs to be set at tk~s tine, She stated the ounce' goal has been to not rase people's tapes, and she felt it x~na~~e sense to stag at the ?0~~ rate. GIs. ~'al~nson stated that r~e~t year the NTH will Ii~l~ely i.rlc~ease even less. She explained that as proper~r values a down and the tai rate stays the same, property's r~~vr~ers' ta~~es ~ll o dv~vn. ~n order to enerate the same anaaunC off' tai, revenue ,the ta,~ rate needs to i~cxease i~ the NTH decreases. Counc~arnerr~ber Zen~ras stated everything that can be cut should be cut, a~zd see where to 0 ~rarn ere, Coun,lmeber barber stated there still is a deficit a~ I,QO~ with all the cuts and he d€dn't th~n~. ~uxther cuts could be made without cutting jabs. auncil.~nerriber ~otin as~.ed ho~v such o~ the fund balance could be used. GIs, ~ohnsan e:~plained the need far maintaining and adequate end balance and ~e , •'s current ol~c .She stated that de et~din u • ~ ~ P Y P ~ pon ho~~ ~.~0$ comes out, ~e en.re a.~nount set aside ~xorn ?~D7 could be used iit wasn't needed in ?ODS. She can.cred that their could loo~L at Further cuts and listed the ~ollo~vin items, Sta~~' cuts wilding Safety e~voad operating cost~sta~~.~ng ~eaath insurance~ca~eteria cor~tribuC~an increase ~st~rr~.ated fiael pz~ces National can.~erences~aut o~ s tote gavel ~vertin~e ~i,e~ ~x~ auly parade} gavel study Caut~~eber evas stated e natianai conferences should be cut. ouncil,merr~ber ~a~be~r stated he vas not in I"avor o~ tg posidvns~ ou~ciernber ~Io~in stated he concurred ~~~d~ cutting national Cnn.~erences, Hat cuttin positions, and redun the del b ? cents er Ilor~. ~e g g y p ga stated he did not want to cut the cable tele~-isior~ part~ttrne assistant, ~~sF ~ol~nsan stated that there still i ~~,Q00 far contxact~n out a~ hiring a paxt~ti,m,e assistant, I~Iayar I~.n~~ng Hated that sorr~et%me the tai rate changes after the Council has set it. She asl~ed what the ~~~ tai rate vas. ~~ty ~a ~~n~tes September 8, ~DO~ ~'ag~ S ~r~s. ~ohnson stated that ~t eras 43,~~~, and 43.8? in ?0~~. She stated it than ~ because the NTH is not e:~act until ~e s after the fact oun naes everything in January, She stated e cuxrent '~ estimate does not ~nciude personal p.raperty that needs to be added an ne~v veteran pro er ~ralue eye dan that d e p tY p needs to be subtracted. She rern~nded the aunc~ that the ~a~ 1~1T ~ be cl~fferent than the current estimate. She if the ~" oes ~ ~e ta.~ rate further stated that p= wdl go darn, ~rfs. Johnson expla~.ned that e ad'utment for the ~ error ~ be added to the rate e ounce sets ~~ ~ they ~ need to make add~~onal cuts to a~'fset that levy i~ they ~~rant the ta;~ rate to sta at the ra y to they set. ~aunci~lznen~ber Farber stated he ~~rould ~e to make sure the residents are not .ine~eas~ng the Ie~ b the .3~ ercen a~~rare e ~~ ~s ~ y p t estimated for the ~~` errorr, and that it is bean arbitrarily dune because off' the County error. ~~s. Jal~nson noted that it can also be e~plaixxed at the Truth in Ta~atian he ` Johnson noted that errors ha en but ~• GIs, Pp ~ this error ~s ~~itt~ng especially hard this year because off' tie e~tre~zely la~~r ~" increase. ouncn.ernber ~~adn stated he did not want to go back tQ the ?ODD rate, discuss~an ~ollo~ved re ardin the cuts a urd~er nd use of ,~eSe.~re funds. oun.ci~eznber er~vas requested tl1at e ~,I~00 for dxe sly stacld,n of left ~ the bud et since it is a re L ' g ~al~e Orono be ~ a~ttvel~ ,mall arnaunt and ~auld allow e Zal;e assoaa~,on to continue tlaeir program. ~ouncilrnem,ber barber stated if funds become av,able, that e ealcaa ' added bacl~ ~n, since se~.caatin extends t~~e ' progxa~n be life o~ stxeets and saves rnor~ey. ounci~nernber ~er~vas asl~ed that ~e 0=OQ~ fax the cable assistant be lie ' Caunc,-nen~her Farber concurred. ~t ,~ zf possible. GIs. Jo~~nson Hated that based on the Cauncil,'s discussiana her undexstan ' ding a~' e~ decdan is that addition to the ?9=~,5,~~ of ~~:n ased cuts the ash. st Fuel ~~~. be reduced h ~ ?~ cents , p = ocl~.ng ~~ be deft sn, ~ a gallon, the senzoar planner pc~szt~on ~~ be Ieft vacant the .~ year, and a~ out of state travel ll be cut, The tai rate ~~ be tar eted ' levy at 43,Q~ ercent. The ounce c g zn the ma:~u~€um ~ oncurred. auncilrnernbe~• I~lotin asl~ed what 4vould be ~e result if CC~.~ eras cut ~~ , ~ eI'~ei~ t, lbs. Johnson stated if tivould be around ~~,QOD. ~~~~ B~ C~~I~l~~4.~~~ I~T~ ~~ 5~~~E ~ C~~I~~~~El~~~~ JfAA...~~ ~~I'S ~{~J ~i*S 7~'[~ f'~ t x * f~ ~ j1~ I'~ {h 'J''7 7'~ f~"~';~./1.''~ J. ~~..f~A''.4L~~~~~JA 7 .k • 4J. V~~~~ 11~~~~C.1~LJ ~~4,..1 l W,i. 4fi ~~w~f ~1..~ ~~~~.4..fy4~ ~ ~~.~f~ W~~~~~ ~~ ~~~~i ~~ayar ~~in noted that the total lei arnaunt is set far a tax et ta.~ rate r ~ which does not i~c~ude the ro g of ~~.~~ l~, ~ posed a,dclidonaz .33~~~~ Tl~ disict error levy to be €m aced by the ~ar~nty. ~ 1~/.Y ~.f11R~wM ~1irri'J~'{'4 '''}~~.~.yy( 7'~ Y M ~ ~~~ W ~~ ~~~ ~~ ~~~~ ~i Cou~.~.l ~~nut~~ gage G ~pte~ber $, ?~~S 5.3. open ~o~urn - No i~~ues. G.1. Ne~~~ a ~~ .r~c~e ~~~.m, -~ ~unci,~merr~er ~roi ounei~mernber loan discu~~ed a regent axtiele in ~Ze ,S~crr ~'r~br~rre xeardu~ an zssue hein~ ~~sed ~ soy cities off` toy much busine~~ being done at ~~rv~l~esi~ns that are not te~e~,sed. ~~ ~ta~ed he would encourage puttg items ~n reulaar ae~,das fat naafi be contr~~earsial, ~~ ~ahns~n stated that the ~ounril approves the ~vora~ses~ioz~ i~e~.s pox ~~ hem eu~g paced ~ the agenda. and it is ~it~r ou~,cil's prexoati~e t~ ~~~ any ~vor~sessior~ iterr~ agenda to a re~ulax meeting aenca. ~rla~or ~~nin ~~t~d fat all meetings are open to the pubii~, ~hed~er fey are televised or not. ouncilmernber ~a.r~er sugges~~d ti~a~ tiae ~"~~' ~,e~y error be e~pla.ined at the truth in ~'axation~ bearing} ~ than resides are a~~~.re oi` tl~e ~•eason for the increase. ~. our~c~ ~oda~es - done S. ~a~~` ~ dates - done 9. .d~~urr~rn~nt there berg no ~uxther business, I~~ayor ~lir~.ing adaourned the meeting off` ~e ~l~ ~.~ er ~ Cour~e~. at ~:?9 p.m. ~~inutes prepared bar ehbie uehner. ,r; :.~-~ ~'" ~ '~ ~:, 'zr~a lard pity lerl~