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HomeMy WebLinkAboutSP November 1, 1989 ·CA. CITY of ANDOVER Special City Council Meeting-November 1, 1989 7:00 P.M. Call to order 1. 1989 Year-to-Date Discussion 2. 1990 Budget 3. Adjournment . -- ·~."" .-- ~' . , / "CITY of ANDOVER >:,L . ... ,- C'OM'OWN 'OU,"","O NW. . 'NOO"". "'NN"O", ~ . "'" ,~,oo SPECIAL CITY COUNCIL MEETING - NOVEMBER 1, 1989 MINUTES A Special Meeting of the Andover City Council was called to order by Mayor Jim Elling on November 1, 1989; 7:00 p.m., at the Andover City Hal I, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councllmenbers present: Jacobson, Knight (arrived at 7:30), Orttel, Perry Councilmenbers absent: None Also present: Fire Chief, Bob Palmer: Fire Marshal, Joyce Noyes; Public Works Supervisor, Frank Stone; Park and Recreation Commission Chairperson, Marc McMullin; City Planner, Jay Blake: City Finance Director, Howard Koollck; and City Administrator/Engineer, James Schrantz 1989 BUDGET YEAR-TO-DATE DISCUSSION Mr. Koollck explained that If no more capital expenditures are made this year, the savings would be about $90,000. He also noted that when discussing the 1989 budget, the Council talked about Isslng bonds for equipment In 1989, but that was never done. He reviewed the items that could be funded with certificates as outlined In his memoradum to the Council, which totals $88,165. Those certificates would be levied for outside of the City's levy Jlmit. Council discussion with Mr. Koollck was on ways to save on expenditures to avoid a deficit by year's end. If certificates were issued for the $90,000 worth of Public Works equipment and civil defense sirens, Mr. Koollck guessed the budget wou]d be at zero to $30,000 in the red by the end of the year, though there Is no way to tell for sure. Discussion was on the suggestion to fund the equlmpent by certificates. There was some concern over not wanting to over-extend the City's Indebtedness, a thought being that with a $2 million budget, capital expenditures should be able to be funded out of the general fund. Mr. Koollck gave an overview of the existing certificates noting some cities use certificates and others use the genera] fund. It Is the Council's decision. Other suggestions to balance the 1989 budget were to use the defeasance funds when they are available or to transfer Administrative Funds to the General Fund. CouncIl thought the defeasance funds should be earmarked for major Improvements such as water treatment and not used to ba]ance the budget. Mr. Koollck stated there Is about $400,000 In the Administrative Fund this year, guessing a total of $550,000 will be In It by the end of the year because of the large amount of assessing done this year. Special CI ty Councl ¡ Meet!ng November 1 . 1989 - Minutes Page 2 (1989 Year-To-Date Budget Discussion, Cont!nued) Councllmember Orttel explained the way the Administrative Fund has been set up, those fees are transferred to the City annually to cover the City's costs of administering the fund. He did not want to transfer funds unless there was some basis for It, not wanting to rob the future of funds needed for administration. Mr. Schrantz explained most of the administrative work on a project Is done in the early years: It Is not necessarily done on a straight-line basis like the fund Is set up. There Is an argument for transferring more the first three to five years of the project than at the end. Mr. KooJick stated he has talked with the auditor, who explained the fund Is set UP so each group of assessments Is assessed for administration; and the transfer to the General Fund should be depeleted as the assessments are paid off early. A reason for making the transfer from the Administrative Fund to the General Fund now could be for those assessments that have been prepaid, since that part of the assessment roll no longer has to be administered. Mayor El ling asked that the amounts paid off, the administrative funds availabJe. and what Is needed for the future administration of the rolls be determined. Mr. Koolick stated that can be determined. The Mayor also noted some assessment rolls have been paid off and there may st II I be some money left In the Administrative Fund that has not yet been transferred. Discussion was then on the administrative costs for handJing the assessment rolls In-house for developers. Mr. Koollck stated there Is Increased administrative costs, yet the developers are charged the same rate for administration as those being certified to the county. (Councllmember Knight arrived at this time. 7:30 p.m.) Counc II generally did not feel the General Fund should be subsidizing the costs to handle assessment rol Is In house. Mr. Koollch was asked to look at the costs of administering those In-house rolls and make a recommendation to the Counc II . MOTION by Jacobson, Seconded by Perry, that the CI ty Counci I authorize the Mayor and legal counsel and/or whatever other entitles are necessary, to bond In the amount of approximately $90,000 to reimburse the General Fund for 1989, for Civil Defense Siren, for a 1989 Ford Dump Truck, for a 1989 Ford 350 Dump Truck and Fire Department Chevy Suburban which cost the City $88,165. DISCUSSION: Counc i I discussion with the Fire Chief noted that approximately $20,000 was spent from the Fire Department budget on the equipment van. It was agreed that should be Included In the certificate as we!! . Special Ci ty Counci I Meeting November 1, 1989 - Minutes Page 3 (1989 Year-To-Date Budget Discussion, Cont!nued) Councllmember Jacobson AMENDED the motion to make the bond up to $110,000. Second Stands. Motion carried unanimously. Staff was directed to proceed with the Issuance of a certificate for those items. It was general I y fe]t that wi th the issuance of the certificate, the 1989 budget should balance or only be slightly under, which posslbJy could be made up with surp]us depletion rather than a transfer of Administrative Funds. Another concern was having the funds necessary to cover the salaries negeotiated by contract for Pub] Ie Works. WI th the Inclusion of the Fire Department equipment van in the certificates, It was felt the necessary funds would be available. PROPOSED 1990 BUDGET Mr. Koollck reviewed some of the changes made in the Special Legislative Session which leaves a deficit of $84,157 In the previously approved 1990 bUdget. He noted the Council can cut expenditures, Increase revenues, or do both to balance the budget. ELECTIONS 4141.580 Equipment: Mr. Koollck stated only $5,000 is budgeted for electronic voting machInes, but the total cost will be about $30,000. Counc I I agreed to take out the $5,000, leaving the line item at zero, the thought being the City may have to consider bonding for the voting machines. After discussing several other Items, it was generally felt that the expenditures have been cut to the minimum amounts already. Mr. Koollch stated the wages for the Public Works employees for 1990 reflects this year's wages plus three percent for 1990. He was also confident that the amount of prepaid assessments would reflect a transfer from the Administrative Fund to the General Fund which would be suff ic lent to cover the remaining $79,157 shortfall. Counc i I asked that for the November 7 meeting Mr. Koollch have the specific amount that can legitimately be transferred to the General Fund from the Administrative Fund due to prepaid assessments. They also asked for a legal opinion that such a transfer can be made and a written letter of agreement from the City Auditor. Council also suggested that for some future time Mr. Koollch look into the possibility of transferring a greater percentage of the AdmInistrative Fund for projects during the first three or four years of the project rather than using the straight-line method as Is currently being done. The item Is to be on the November 7 meeting for further consideration. ~MOTION by J~journ. MeetIng adjourned at 8:18 p.m. ~eÇi"1e6bcretarY