07-02-2001 CC MIN - SPECIALSPECIAL MEETING OF THE ELK RIVER CiTY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, JULY 2, 2001
Members Present:
Members Absent:
Staff Present:
Mayor Iadinzing, Councilmembers Dietz, Kuester, Motin, and Tveite
None
City Administrator Pat Iadaers, Finance Director LoriJohnson, Director of
Planning Michele McPherson, Recreation Manager Michele Bergh, Ice
Arena Manager Rich Czech, Streets/Parks Superintendent Phil Hals, Chief
of Police Tom Zerwas, and Assistant Police Chief, Jeff Beahen
Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called
to order at 6:00 p.m. by Mayor I~dinzing.
2. Budget Discussion
City Administrator Pat I~aers provided an introduction of the agenda topics for the
evening. There are a number of specific items that the Council should consider and discuss
before a general review of the 2002 proposal takes place. It was noted that the legislative
session has ended and that levy limits are going to be in effect for 2002 but the impact of
these limits on the budget is uncertain at this point.
Ice Arena Bleachers
~rena Manager Rich Czech reviewed with the City Council the planned cost sharing
approach for funding additional bleachers, heat, and improving the speaker system for the
east side of the arena. The total cost of the project is estimated at $90,000. Elk River Youth
Hockey will be contributing $10,000 per year for three years for this project, $30,000 in total.
The school board agreed to contribute $1.00 per ticket for high school games for three years
for this project. It is estimated that this ticket revenue will generate a total of about $30,000.
The city would be responsible for the remaining one-third and would initially have to fund
the entire project. Mr. Czech noted that the project would take about 18 weeks to be
complete. Councilmember/Ice Arena Commissioner Tveite reviewed ~vith the City. Council
the discussion of the Ice Arena Commission on this request and noted the commission's
support, provided other groups participate in the funding of the project.
COUNCILMEMBER TVEITE MOVED TO AUTHORIZE THE CITY TO
ADVERTISE FOR BIDS FOR THE EAST SIDE BLEACHERS, HEAT, AND
PUBLIC ADDRESS SYSTEM AND THAT THE FUNDING SOURCE FOR THE
CITY'S SHARE BE THE 2001 CAPITAL OUTLAY BUDGET THAT WAS
ORIGINALLY PLANNED FOR THE REVERSE OSMOSIS SYSTEM.
COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
City Council Minutes
July 2, 2001
Page 2
Lion's Park Building Project
City Administrator Pat Klaers noted that the City Council had authorized the expansion of
this building for additional space for the recreation staff. Sketches showing the original
layout (A), the expanded layout (B), and a new preferred layout with even more additional
square footage (C) were reviewed. Director of Planning Michele McPherson distributed the
final version of option C. Option C includes an expanded restroom area and an expanded
storage area along with a better layout of the recreation offices. The city cost for option C is
estimated to be $29,000. Funding for this expenditure is the RDF/NSP reserve. This reserve
will also fund the furniture, fixture, and equipment that are needed to make the open space
usable for community functions. The furniture, fixture, and equipment for Community
Recreation will be discussed as part of the city recreation budget.
COUNCILMEMBER MOTIN MOVED TO AUTHORIZE USING $29,000 OF
CITY FUNDS FOR OPTION C WITH THE FUNDING SOURCE TO BE THE
RDF/NSP RESERVE. COUNCILMEMBER KUESTER SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
GIS
City Administrator Pat Iadaers provided a brief update on the status of the GIS mapping
system and our dependence on the county for this work. It is being suggested that the dry
take over responsibility for the GIS map of Elk River and that the city fund the remaining
work that is needed to complete the map.
Director of Planning Michele McPherson revie~ved with the City Council the uses of the
map, how the system would be updated, what is necessary for the map to be completed, and
the cost for this work. Finance Director LoriJohnson informed the Council as to how this
GIS mapping system would provide information needed to value the city's infrastructures as
required by GASB 34. It was noted that the county has verbally indicated that it would
complete the city map by the end of 2002 but that any number of situations could develop
to delay this completion date.
The Mayor expressed her desire to get a commitment and agreement from the county in
writing so that the city could make appropriate plans for use of this map. It was suggested
that the city contact the county again to try an reach an agreement on sharing the cost for
the mapping work. The Council requested an update at a future meeting on discussions with
the county on this mapping system.
City Prosecuting Attorney
Chief of Police Tom Zerwas reviewed with the City Council the need for a dry prosecuting
attorney and how things are currendy being handled at the county. The backlog of city cases
at the county was discussed. It was noted that it is uncommon for dries of our size to have
the county prosecute misdemeanor cases. Most cities contract with private law firms for this
work. The request for the Council to consider is whether or not we should hire an attorney
versus contract for these services and also if we should provide the county with sLx-month
notice indicating that we will be ending our current arrangement with them for prosecuting
services. This item is not currendy in the proposed 2002 budget. The cost for this endeavor
is estimated to be $135,000 for wages and benefits and another $15,000 to create offices out
of the e.,dsdng police department conference room.
City Council Minutes Page 3
July 2, 2001
COUNCILMEMBER MOTIN MOVED TO AUTHORIZE STAFF TO PROCEED
WITH THE HIRING OF A PROSECUTING CITY ATTORNEY AS A STAFF
MEMBER BEGINNING IN 2002 AND TO PROVIDE THE COUNTY WITH
SIX-MONTH NOTICE OF TERMINATION OF SERVICES.
COUNCILMEMBER TVEITE SECONDED TI-IE MOTION. THE MOTION
CARRIED 5-0.
2002 Budget Discussion
City Administrator Pat K. laers reviewed the 2002 budget items and issues listed in his June
20, 2001 memo. Presentation began w/th an overvie~v of the 2001 legislative session. Items
noted include levy limits, the possible need for equipment certificates, the elimination of
HACA, increases in LGA, and the impact of the new tax formula on TIF districts.
Furthermore, it was noted that no truth-h-taxation public hearings are required for the 2002
budget.
An overview of the 2002 budget indicates that the revenues are projected to increase 9% or
$581,700. Revenues are projected in the amount of $7,051,700. Expenditures are projected
to increase almost 15% or by $964,000. Total expenditures requested amount to $7,434,000.
Comparing these two figures creates a budget gap between projected revenues and requested
expenditures of $382,300.
The revenues discussion centered on additional property taxes and additional growth related
revenues in such areas as building permits and plan check fees. It was noted that an
additional $450,000 in tax revenue is projected for the general fund and that the growth
related revenues are more closely related to 1999 levels than the extraordinarily high levels
that were received in 2000. The street services additional revenue is based on anticipated
money from the municipal utilities for mechanic services. It was also noted that the l/quor
and utilities transfers are both increasing by $10,000.
The expenditure categories were reviewed and most of the discussion related to personal
services, additional employees, and capital outlay (equipment/vehicle) expenditures. The
possible need to use equipment certificates was discussed. It was noted that interest rates are
currendy very Iow for equipment certificates.
Finance Director LoriJohnson reviewed the optical imaging system that is proposed as a
capital outlay purchase for 2002. The city administrator suggested this expenditure be
removed from the general fund budget and that it be placed into the equipment reserve
budget. Furthermore, revenues (by way of administrative project fees from the East Elk
River project) need to be put into the equipment reserve to fund this expenditure.
The Council discussed the f~re department floor repair project. It was suggested that this
$22,500 item also be moved into the equipment reserves budget and that revenue come into
this budget by way of the State reimbursement for city expenses associated with the July
1997 storm.
The $150,000 street/park department truck was discussed. The city administrator suggested
that half of this truck be £manced with tax revenue and the other half with equipment
reserves. The Council indicated that maybe all of the truck cost should be financed outside
of the general fund; either by way of equipment reserves or equipment certificates.
City Council Minutes Page 4
July 2, 2001
Personnel additions were reviewed. The Council indicated its support for the additional time
in the senior citizen program. The Council questioned the timing and need for the
environmental assistant. Discussion took place regarding the need for the CSO employee in
the police department. Mayor IGinzing stated her strong support for adding a police officer
to the drug task force and she felt that the public would support this expenditure. The
Council concurred and discussed whether or not this should be in addition to the CSO
employee or in replacement of the CSO.
MAYOR KLINZING MOVED TO INCLUDE A DRUG TASK FORCE POLICE
OFFICER IN THE 2002 BUDGET. COUNCILMEMBER MOTIN SECONDED
THE MOTION. THE MOTION CARRIED 5-0.
COUNCILMEMBER DIETZ MOVED TO AUTHORIZE STAFF TO PURSUE
THE ESTIMATED $53,000 OPTICAL IMAGING SYSTEM AND TO HAVE THIS
FUNDED OUT OF EQUIPMENT RESERVES AND TO HAVE EAST ELK
RIVER PROJECT FEES GO INTO THIS FUND AS A REVENUE.
COUNCILMEMBER TVEITE SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
COUNCILMEMBER TVEITE MOVED TO AUTHORIZE THE FIRE CHIEF
TO PURSUE THE FIRE DEPARTMENT FLOOR REPAIR AND TO PRESENT
INFORMATION AND QUOTES ON THIS PROJECT TO THE CITY
COUNCIL WITH THE FUNDING SOURCE TO BE EQUIPMENT RESERVES
WITH REVENUES GOING INTO THIS RESERVE FROM THE STATE
REIMBURSEMENT TO THE CITY FOR THE 1997 STORM.
COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
It was noted that the next budget meeting would be a special meeting on Tuesday,
September 4, 2001. It was further noted that the next budget would include revisions for
additional revenues and expenditures for the city recreation program and the city
prosecuting attorney.
3. Adjournment
There being no further business, Mayor IGinzing adjourned the meeting of the Elk River
City Council at 9:07 p.m.
Pat I~daers
City Administrator