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HomeMy WebLinkAboutWK August 22, 2000 I i ~ GVJ w'Ìl:tu\ '- 'fÞ5 -ðÙ CITY of ANDOVER Special City Council Workshop - Tuesday, August 22, 2000 Conference Room A Call to Order - 7 :00 PM J)i~C01Hi:~inn TtfJomfi: 1. Select Interview Dates/City Council Member Candidates 2. Approve EA W for Distribution/Andover High School Site' 3. Budget Discussions 4. Order Plans & Specs/00-27/2000 Overlays 5. Approve Plans & Specs/00-27/2000 Overlays 6. Other Business Adjournment I Q,eí'\.M cJ:... 0.0 ( uJ\í;t:D.Y1 ~-5~ CITY of ANDOVER SPECIAL ANDOVER CITY COUNCIL WORKSHOP-AUGUST 22,2000 MINUTES A Special Workshop of the Andover City Council was called to order by Mayor Jack McKelvey on August 22, 2000, 7:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present: Don Jacobson, Mike Knight, Ken Orttel Councilmembers absent: None Also present: City Building Official, Dave Almgren City Engineer, Scott Erickson Finance Director, Jim Dickinson Public Works Superintendent, Frank Stone Fire Chief, Dan Winkel Community Development Director, Dave Carlberg City Administrator, Richard Fursman Others SELECT INTERVIEW DATE/CITY COUNCIL MEMBER CANDIDATES The Council agreed to hold a special meeting on Thursday, September 14,2000, 6:30 p.m., to interview the candidates for the vacant City Council position, allowing 15 minutes for each interview. APPROVE EAW FOR DISTRIBUTION/ANDOVER HIGH SCHOOL SITE Mr. Carlberg requested the Council approve the Environmental Assessment Worksheet for the Andover High School site for distribution. Staffhas reviewed it and made minor corrections to the document. This approval is to allow distribution of the EA W to other agencies. There is a 30-day comment period, after which a full assessment could be ordered if the need is determined. Motion by Orttel, Seconded by Jacobson, to so move. Motion carried unanimously. ORDER PLANS AND SPECS and APPROVE PLANS AND SPECS/lP00-2712000 OVERLA YS Motion by Jacobson, Seconded by Knight, approval of Items 4 and 5. (See Resolution R179-00 ordering the improvement and directing preparation of plans and specs for lPOO-27 for 2000 overlays and Resolution R180-00 approving final plans and specs and ordering advertisement for bids for IPOO·27, 2000 overlays) Motion carried unanimously. [ Special Andover City Council Workshop Minutes - August 22, 2000 Page 2 2001 BUDGET DISCUSSIONS Mr. Dickinson reviewed the goals of the budget and the tax base growth in the City. The preliminary data from the county indicates a local tax rate tax capacity value increase of approximately 16.5 percent because of the City's residential and commercial/industrial growth. All properties in the City experienced a market value increase between 7 and 9 percent. Subtracting that increase and an inflationary index of 3 percent, the net increase in revenue to the City amounts to about 11 percent. The proposed balanced budget represents about a 3 percent increase for the property owners next year. The City's tax rate will be about 21.7 percent, a slight decrease from last year's 22.57 percent. In reviewing the chart comparing Andover with other cities in the county, Mr. Fursman indicated many other cities have their HRA, EDA, watershed, bonds, etc., broken out as special tax levies, which may account for a lower tax rate. Mr. Dickinson also noted the City will receive an additional $186,762 of fiscal disparities next year and the utilization of reserves was reduced by approximately $423,000. All capital outlay was removed ITom the budget. Approximately $1.2 million worth of capital outlay was requested. The fire bond is dropping off next year, so there will be an ability to bond for capital equipment without increasing the debt. Also, only one new employee is factored into the budget. It is an Engineering Tech 11 which will actually generate more revenue than the salary paid. All other requested positions were excluded to achieve the budget goals. The City must certify the maximum tax levy by September 15. After that date, the tax levy can be decreased, but it cannot be increased. He asked for direction from the Council on four issues: 1. Are the levy calculation assumptions appropriate or would the Council like more or less restrictive assumptions? 2. Is a 3 percent cost-of-living appropriate? 3. Should new positions be pursued or should they be delayed to 2002? 4. Should Staff pursue structuring a Capital Equipment Note to fund capital equipment needs? The Council generally agreed to the 3-percent increase as proposed in the draft budget. It was understood that property owners will see a value increase, but the tax will not increase in that same percentage. There was discussion on options available for funding capital outlay. Mr. Dickinson stated based on growth, the City should be able to support another bond the following year or fund the capital equipment within the budget. He'd suggest financing a new fire station through the EDA lease revenue bond which can be applied to a special levy that would be outside the levy limit. The Council also generally agreed with Items 1 and 4, but discussed the requests for new positions. Councilmember Jacobson felt it may be time to discuss the idea of a parks coordinator. With the City growing and with so much money invested in the parks, there is a need for supervision. Mayor McKelvey suggested that person could be located in the concession building at Sunshine Park, thinking that may cut down on much of the vandalism. Mr. Stone stated the position could be another money-making proposition. Mr. Fursman stated Staff can bring back a job description with - - - r" Special Andover City Council Workshop Minutes -August 22,2000 Page 3 (Budget Discussions, Continued) the overall duties and possible funding sources. One source is a user free from the youth athletic associations to contribute toward the maintenance of the fields. Right now the City is subsidizing 100 percent of the youth leagues that play on the fields. Park and Recreation Commission Chairman Jim Lindahl stated there are three soccer groups and several baseball and softball groups that schedule the field use before the seasons start. Right now it is working smoothly, but he foresees potential problems down the line. He also felt it is time for the youth associations to be paying fees for using the fields. As the community evolves, there will be a leveling off of youth and a disproportionate usage in the parks. The others may not be happy if the associations are not paying their way. In discussing the requests of other new positions in the 2001 budget, Mr. Almgren stated he always budgets conservatively. The revenues represent the increase in housing, but does not represent the accessory buildings, decks, porches, etc. He would like the funds for an office temp in the Building Department, feeling he can afford it. Chief Winkel stated if the Council takes the position that no new positions will be added that are not revenue generating, then some of the Departments will never get new positions. For some positions there are no other revenue sources, such as a Fire Marshal. The only way the person can be funded is through the General Fund unless there is a change in policy. The only way the position can generate revenue is if the Council wishes to charge an inspection fee. On the other hand, some will complain they are then being taxed twice. Charging inspection fees is a practice in some cities. He would have to get the data for the Council. Mr. Stone stated earlier this year the Council had consented to hiring a mechanic for Central Equipment. He held off at that time because of money, but he expected the funds would be made available for the position in the 2001 budget. The total salary be $43,730, but they already pay half of it, so another $22,500 would be needed to bring that person on full time as was promised. He felt very definitely this position would pay back to the City. Councilmember Ortte1 agreed the position would save the City money because it lengthens the life of the equipment and there is less down time. Chief Winkel stated he had budgeted a full-time fire marshal in the budget. That was removed and $20,000 put back into salaries to hire a part-time person on an hourly basis, which they have done for a couple years. That $20,000 is actually duplicated because he had already budgeted for the part-time fire marshal. The Fire Department also benefits from the mechanic's position, so he proposed transferring that $20,000 to the Capital Equipment budget for the position. The Council suggested Staff take a closer look at the positions of Building Department temporary office help, park coordinator, mechanic and fire marshal to determine duties, to look at revenue sources and projections and come back with an impact to the 2001 budget. Counci1member Orttel also suggested the Fire Department look at billing for responding to accident scenes. Everyone else gets paid except for the Fire Department. Mr. Dickinson projected there will be some surplus at the end of the year. Only $35,000 is allocated for contingencies in the proposed budget. Mr. Erickson asked if the Council is interested in pursuing - -- - - .., - -' 1 Special Andover City Council Workshop Minutes - August 22, 2000 Page 4 (Budget Discussions, Continued) the position of forester. They get a lot of calls for forestry related expertise that the City cannot provide. He acknowledged, however, that the bulk of the work would be in the summer. Council suggested Staff send out notices to see if there is any interest in sharing the position with another City. Mr. Carlberg asked about the possibility of funding a Planning Intern. They have a six-month intern now. The intent was to open it up to a one-year position. He would like the opportunity to examine additional revenue sources for it. The Council asked for ajob description and potential funding sources. Mr. Dickinson stated he will have the approval of the maximum tax levy on the September 5 Council agenda. The rest of the work on the budget can be done after that as long as it stays within that tax levy. Changes in the proposed budget can be made until the end of November, at which time he will have a better projection of this year's surplus. Motion by Jacobson, Seconded by Knight, to adjourn. Motion carried unanimously. The meeting adjourned at 8:40 p.m. Respectfully submitted, ~=~cL Recording Secretary - ._0" - ---.---