Loading...
HomeMy WebLinkAboutSP August 11, 1992 · , ..fA.. CITY of ANDOVER CITY COUNCIL BUDGET MEETING - AUGUST 11. 1992 MINUTES A Special Meeting of the Andover City Council was called to order by Mayor Ken Orttel on August 11. 1992: 7:32 p.m., at the Andover Fire Station No. 1 . 13875 Crosstown Boulevard NW. Andover, Minnesota, to discuss the proposed 1993 budget. Councllmembers present: Jacobson, McKelvey, Perry, Councilmember absent: Smith Also present: City Administrator, Jim Schrantz City Finance Director, Howard Koolick Building Official, Dave Almgren Public Works Superintendent, Frank Stone Fire Chief Dale Mashuga Others Mr. Koollck explained that because this Is the first time that the City has not been limited by the amount of levy it can raise, all requests from the Departments have been Included. Al 1 revenues have been based on past trends. As of August 4, the estimated tax capacity for the City Is $240,000. The net tax capacity increase Is only about three percent because of the reduction In the percentage rate on high valued homes and because of a recentlY passed law by the State Legislature that limits the taxable market value on new homes to one-third Its value for the first year. It means It will take three years to get the full property tax on new homes. Counc I] discussed the effect of the new law on the City's taxing ability, noting with more than 300 new homes being built each year, the public actually ends up subsidizing the new homes until they are fu II y taxed. It was generally agreed that the highest priority for next year Is the streets. as they have not been adequately maintained for several years. It was suggested the Council reconsider its policy on cracksealing and sealcoating, that in order to adequately malntain the streets. a II or a portl on of it may have to be assessed to the adjoining property owners. Several assessing options were noted, with the Counc i I agreeing that this needs to be discussed further. It was determined that a 5 percent increase in the budget would Increase revenues by approximately $97,000. Of that, about $22,000 will go toward the Increases in the police and assessing budgets, leaving about $75,000 in Increases over the 1992 budget for all Departments. It was later noted that the effect of the the City now having to pay sales tax Increases expenditures by about 2.5 percent. or approximately $40,000 to $50,000. Andover City Council Budget Meeti ng Minutes - August 11, 1992 Page 2 The Counc i I began a page-by-page review of the 1993 budget as presented and made the following comments and recommendations: Assessing: Mr. Koolick explained the reason for the 17.6 percent increase is based on a contract the Gounc i i signed with the county in 1989. The County Commissioners directed the Assessor's Department to recover a II costs, and costs were raised to the City by 53 percent. The City then signed an addendum to the contract to phase in that increase over three years effective in 1991. Counc i I suggested it may be more cost effective to hire an in-house assessor rather than contract with the county, though no decision was made at this time. City Council: Because others are beIng asked to cut back, the Counc I I agreed to decrease Its budget by $500 per CouncIlmember, resultIng in a decrease, factorIng in benefIts, of $2,700. AdmInistratIon, CapItal Outiay: Counc 1 I and Staff discussed the request of $7,000 to purchase hardware and software to support automated specIal assessment records. It was noted such a system wou]d save consIderable tIme and reduce errors. No decIsIon was made, though It was felt that the hardware could be purchased for I ess than what Is budgeted. P]annIng and ZonIng, Capi tal Outlay: Given the need to reduce approxImately $900,000 from the budget to balance 1 t, Counc 1 I feH 1 t would not be able to fund a vehIcle for InspectIons. ThIs item Is to be removed. Fire Station Building: Counc i I understood that the items needed for the Fire Department were to be purchased from the bond issue and that there would be no additional capItal purchases for several years. Chief Mashuga explained that they can get along with only one data terminal as a direct link to central communications. The Departments in the county want to jointly establish a trainIng sIte, and other cities are contrIbuting toward this. They did not anticipate the need for a larger parkIng lot at StatIon #2. When training is done there now~ they must park on the street because the parking lot Is not bIg enough. Some of the capItal outlay for Fire ProtectIon is to replace aging equipment, whIch Is a safety issue. The breatIng aIr qualIty test unit is so the CIty can test Its own equIpment, something which has just been mandated by the State, rather than send It out to be tested at a much higher cost. Counc i 1 advised that those items mandated by law or for safety purposes are reasonable requests, but they dId not feel the other requests could be funded In 1993. Andover City Council Budget Meeting Minutes - August ii, 1992 Page 3 Public Works: Council noted the request for an additional public works employee to be assigned mainly to parks and for a mechanic. The funds for a mechanic would come from the vehic]e maintenance ]abor line Items from all Departments, which amounts to approxlmate]y $38,000; therefore, there should be no budget Increase for this position. Council agreed It would be to the City's best Interest to have a mechanic on site. Council also understood the need for an addltlona] Public Works employee and hoped to be ab]e to fund that expense. Council again discussed the need to put most of the $75,000 available Into streets and highways to once again maintain the streets. The only other source of funding would be from assessing all or a portion of the costs, as the Counci] did not feel the funds from from the PIR funds should be used for this or for capital purchases. Once agaIn It was agreed that the policy for crackseallng and seal coating should be looked at, possIbly using CIty funds to maIntaIn the roads for the first ten years and then assess after that. Park and RecreatIon: Mr. O'Toole, Andover AthletIc AssociatIon, stated they are in the process of desIgning a plan for a new sports complex across from CIty Hall. He requested some start-up funding. It looks lIke the project will cost about $150,000, but he recognized from listening to the dIscussions thIs evening that the funds are ]Imited. Council suggested they approach the Park and Recreation Commission with the request. Another suggestIon was to attempt to obtaIn the start-up costs from prIvate sources. The Council also suggested consideration be given to selling the property south of the City Hall site and purchasing property to the north of the City Hall for the park complex so that It wiJI be connected to the existing facilities. That would resolve the safety issue of having park faclJitles on both sides of Crosstown Boulevard and the expense of having to construct a suitable crossing. Presumably there would be extra funds from the sa]e of the City property to be able to Install lighting or a sprinkling system. Council didn't know If this could be done, but urged the Athletic Association and Park CommissIon to look into it before going any further with the project. Protective Inspection: Mr. Almgren stated the contract person for inspections may not be available If he accepts a position with another City. With the number of housing starts this year and the projection for next year, Mr. Almgren felt either a contractor or the hiring of an additional inspector is needed. He also requested an S-10 B]azer 4x4 for inspections to replace a vehic]e. This type of vehicle is needed to have clearance at the inspectIon sItes. Andover City Council Budget Meeting Minutes - August 11, 1992 Page 4 In discussing the need for the vehicle, Mr. Almgren predicted that this Department wi I I bring In approximately $100,000 In additional revenues for 1992 than what was budgeted. Counc I I stated if that is the case, they preferred to purchase the vehicle out of the excess 1992 funds. They advised Mr. Almgren to come back with the request toward the end of this year and that it be dropped from the 1993 budget. Counc i I then summarized the proposed budget: With a 7.5 percent Increase to the levy, 2.5 percent Is a pass-through for sales tax which has just been imposed upon the City, about $22,000 goes to increases in the police and assessing contracts, and approximately $75,000 is left for other requests. A priority for 1993 is streets and highways, generally agreeing with the need to hire a mechanic which shou]d not affect expenditures and a public works employee. The only Increase to Fire Protection wou]d be for mandated Items and the rep1acement of safety equipment. Mr. Stone asked to talk with the Road Committee as to priorities for street maintenance and for capital equipment purchases. Because Mr. Koollck will no longer be an employee, Council asked If he would be wl111ng to contract with the City to continue the budget process. Mr. Koollck agreed. Mr. Schrantz was asked to negotiate the detal1s of the agreement. Counc II a]so agreed to meet again on Monday, August 24, at 8:30 p.m., Andover City Hall, to review proposed changes to the budget. INTERVIEWS/FINANCIAL DIRECTOR Counc i ] agreed that Staff will Interview applicants and recommend the top three to the Council. Councl] will schedule a meeting as soon as possible to Interview the top three candidates, the feeling being It Is imperative to fill this position as soon as possible. MOTION by Jacobson to adjourn. Mayor Ortte I declared the meeting adjourned at 10:07 p.m. Respectfully submitted, ~~.G. Marc la A. Peach Recording Secretary