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HomeMy WebLinkAboutSP August 24, 1992 CA. CITY of ANDOVER SPECIAL CITY COUNCIL MEETING - AUGUST 24. 1992 MINUTES A Special Meeting of the Andover City Council was called to order by Mayor Ken Ortte] on August 24. 1992. 8:30 p.m.. at the Andover City Ha]] . 1685 Crosstown Boulevard NW. Andover. Minnesota. to discuss the proposed 1993 General Fund Budget and other related items. Counci]members present: Jacobson. McKelvey, Perry, Smi th Councilmembers absent: None A]so present: City Administrator. James Schrantz Building Offici a]. Dave A]mgren City Clerk. Vicki Vo]k Public Works Superintendent. Frank Stone Park and Recreation Commission Chairperson. Jeff Kieffer Fire Chief. Dale Mashuga Financial Consultant. Howard Koo]ick Mr. Koo]ick briefly reviewed the amended 1993 budget for the General Fund. Lower Rum River Fund and the Drainage and Mapping Fund. The general agreement by the Council on August 11 was to increase the levy by 5 percent plus sales tax. total ling a 6.59 percent Increase. Wi th the changes discussed at the August 11 meeting, the expenditures still exceed revenues by $100.849. The budget was prepared with the assump t i on that Certificates of Indebtedness for capital purchases would not be sold until the middle of 1993. The budget inciudes $50.000 for sealcoating and crack sealing for next year. Counc i I discussed the revenues for the Building Department. Since the projects for the 1992 budget have already been met because of the rapid building rate in Andover. the Counc i 1 felt the projection of 300 homes in 1993 is very conservative. It was then agreed that a more realistic projection would be 330 homes. which would increase revenues by $19.366. To levy for the amount needed to balance the budget at this point would mean a 10.5 to 11 percent increase. The consensus of the Counc i ] was not to raise the levy that much. so the discussion continued on other options. The Counc I 1 then discussed the amount of State Aid Maintenance money that is credited to the Genera] Fund. For the last three years. a] ] of those funds have gone into the General Fund. The City's 1993 a I ] otmen t is anticipated to be around $140.000. and the proposed budget currently includes $100.000 of it. The Counc i 1 debated whether the remaining $40.000 should be added as revenue to the Genera] Fund. It was f e ] t that the balance in the State Specia] Ci ty Counci I Meeting Minutes - August 24. 1992 Page 2 Aid Project Fund is sufficient to pay for those projects and street lights that are anticipated for 1993 and that the remaining $40.000 for next year/s alJocation could be put in the GeneraJ Fund wi thout harming the State Aid Maintenance fund. This wi I I increase revenues by $40.000. Salary increase: Mr. Koolick explained that the budget aJlows for a 4 percent salary increase for a] J Staff . Counc i I debated as to what is happening in the private sector and other governmental agencies regarding saJary increases. It was pointed out that some employees are getting no increases at a]]. or even being asked to take reductions: that the Staff had a 2 percent increase in 1992: and that the inf1ation rate is more than 3 percent. The majority of the Counc i I then agreed to leave the increase at 4 percent. Establish severance fund: Mr. Koo]ick explained the budget incJudes a transfer of $3.000 to establish a severance fund which is designed to accumuJate over a number of years to pay severance benefits as emp10yees leave the City. At the present time. the City has no funding for severance pay, which can amount to a considerable sum for an employee who has been with the City for a number of years. Mr. Kool ick estimated the City/s severance pay J i ab i J i t y as 0 f the first of the year to be $70.000. The Counc i I agreed that a severance fund shou1d be estabJ ished and made no change to this item. The Counc i ] then discussed the possibiJity of raising the remaining amount needed to baJance the budget, approximatelY $41.000. by a raise in the levy. It was argued that the City has had about a 6 percent growth increase: that wi th the growth in popuJation comes an increased demand for services: that there are some items that do not grow in proportion to the population growth such as Jaw enforcement. efficiency in Staff ing. etc. : that the City has not kept up in its abi] i ty to provide services for the past severaJ years because of levy limitations mandated by the State: and that the overa I I tax capaci ty of the City has not increased in proportion to the popuJation growth because of legis]ative changes. Mr. Koolick stated to raise $41.000 wouJd be a 2.2 percent Jevy. which wouJd mean a total Jevy increase for 1993 of 8.7 percent. Of that amount. 1.5 percent represents the amount needed for sales tax that the City is now required to pay. The Counc i I ta1ked about the effects of the increase on the residences with different va1uations. Counc i I also noted that with the establishment of the Lower Rum River taxing district. those in the Coon Creek Watershed District wiJ J actual]y have a reduction of 1 percent because those expenditures had been comi ng ou t of the Genera] Fund. The net levy increase would then be 7.7 percent. The Counc i I agreed to that increase. Mr. A]mgren suggested the City spJit and seJ I the lot it owns at 159th and Seventh Avenue. which wi]] aJso generate some revenue. The Counc i I suggested the Staff ]ook at that option. Special Ci ty Counci 1 Meeting Minutes - August 24. 1992 Page 3 Fire Department Secretary: It was the Council's understanding that the position was eliminated at the last budget meeting. but the bUdget st ill includes $4.494 for a one-quarter time secretary. Chief Mashuga explained that he cut the position back to ten hours per week. Wi th the three stations. there is an increased amount of paperwork. The other firefighters are doing their own paperwork. and he can't expect them to be doing his. They haven't even caught up from the move to the new stations. This person would not be taking the minutes of the meetings. At ten hours a week. the time would have to be scheduled when he could be at the station as well. Mr. Koolick stated this would be a new employee. Mr. Kool ick did not believe that such a person would meet the criteria to be hired on a contract basis and suggested hiring from a temporary service may be an option. The Counc i 1 recognized the increased time needed for the administration of the Fire Department but did not feel they could add another permanent employee to the Staff. It was then agreed that someone could be hired on a temporary part-time basis. that is for ten hours a week until the work is caught up. Mr. Kool ick stated he wi II prepare a resolution for the September 1 meeting regarding the changes agreed to this evening. balancing the budget wi th a levy increase of under 8 percent. BLAZER FOR BUILDING DEPARTMENT The Counc i 1 agreed that the Building Department should purchase the Blazer that was proposed for 1993 from the 1992 General Fund since by year end the Building Department income will be considerably over what was budgeted. COMPUTER SYSTEM AND PROGRAM/ASSESSING The Counc i 1 directed Staff to seek information and bid prices for the hardware and software needed to computerize the assessing records. The funds would come from the excess revenue generated by the Building Department in 1992 or out of the mapping fund if monies are available. CAPITAL EQUIPMENT PURCHASES Counc i I noted the problem with funding capital expenditures. Nr. Stone explained he is in the process of talking with neighboring cities about the possibility of sharing equipment and manpower for some of the projects. It would be done under a Joint powers agreement where cities with a piece of equipment would trade the equipment and an operator or crew with another city for the use a different piece of equipment and operator/crew. Counc i I felt that is an excellent idea and encouraged Mr. Stone to pursue that option. Special Ci ty Counci I Meeting Minutes - August 24. 1992 Page 4 ANIMAL CONTROL Mayor Orttel stated that several cities are going with the Anoka County Humane Society for their animal control. Apparently the price and service is better than the City's current contract. They may be worth considering Just because of the ability to provide better service since they are so much closer. He asked that Staff check into this further. 20INING/BUILDING INSPECTIONS POSITION Mayor Orttel wondered if it would be more efficient for the City to hire a full-time person for inspections of all types. both zoning and bui lding. Many of the zoning items relate more to the Building Department. The position would do building inspections as needed. but would also do zoning things like Junkyard inspections. tree inspections if qual ified. enforcement of the housing ordinance. etc. The Mayor suggested Mr. Almgren and Mr. Carlberg. the City Planner. discuss the item further and make a recommendation to increase the efficiency on inspections that need to be done. MOTION by Jacobson to adJourn. Mayor Orttel declared the meeting adJourned at 10:17 p.m. Respectful ly submitted. "-.- '_ "";'7> ')\~_('\.z,--C~L Cl c--r;c'<Jl Mar'ce I I a A. Peach Recording Secretary