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HomeMy WebLinkAboutSP August 12, 1993 i;.'.':/~:'···"'-·">\·.:\J CITY of ANDOVER -:1:/ '\ .L ,/ "". '.' '.,--'~ ..j ·'>:·"·.':"c~::/ SPECIAL CITY COUNCIL MEETING - AUGUST 12, 1993 MINUTES A Special Meeting of the Andover City Council was called to order by Mayor Jack McKelvey on August 12, 1993, 7:03 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present: Jacobson, Knight, Perry Councilmembers absent: Dalien Also present: City Finance Director, Daryl Sulander City Planner, Dave Carlberg Building Official, Dave Almgren Public Works Superintendent, Frank Stone Fire Chief, Dale Mashuga Others 1994 PROPOSED GENERAL FUND BUDGET/REVIEW AND REVISION Mr. Sulander explained he and the Mayor went through every line item in the budget and recommended cuts and deletions. The Council had copies of the recommended reductions and the proposals for capital equipment. He also explained that the 1994 General Fund Budget will be approximately 10 percent more than 1993 because of the increased growth in the City. The two far right columns of the revenue section before the Council reflects the budget with just that 10 percent increase and with that increase plus increasing the tax burden on existing residents of an additional 5 percent. If the Council chose not to increase the tax burden by 5 percent, there still needs to be about $200,000 more cut from the budget, that is after the Mayor's proposed reductions. Mayor McKelvey stated the recommended reductions to the various line items reduces the proposed budget by approximately $140,750. Most of the capital equipment items were removed from the budget, and he had a report before the Council indicating which items could be purchased from the PIR Fund totaling $144,000, which ones could be purchased through the additional Building Department funds for a total cost of $2,400, and which ones should be deleted completely, eliminating $294,600. The Mayor noted the biggest increase in the budget for 1994 was for increased wages. Of the additional 10 percent increase due to growth, approximately 7 percent will be used for new employees and a 4 percent raise for existing employees. There was some Council discussion regarding the needs of the City and on the dilemma of whether or not to increase the tax rate further. The Council generally felt the priority this year is in street maintenance. Other priorities were parks and building a capital account for future purchases. The preference was not to increase the tax burden. Mr. Sulander also noted there is a capital equipment bond due in 1994 which would make about $26,000 available for another equipment bond. That is equivalent to about a $156,000 equipment bond. Mr. Stone suggested moving the ball field leveler to the PIR fund this year because he can get one for under $10,000 now. Normally they cost considerably more. JT\~ ~. <f>- <r \-¡/q:3 - "_ - _.0__-. __ Special Andover City Council Meeting Minutes - August 12, 1993 Page 2 (1994 proposed General Fund Budget, Continued) There was discussion on seal coating at this time and again later in the meeting. Mr. Stone stated of the $110,000 budgeted, $80,000 is for sealcoating, $10,000 is for crack sealing and $20,000 is for overlay. It would take about $200,000 a year in sealcoating to develop a program where all roads in the City would be sealcoated routinely. Councilmember Jacobson suggested the possibility of assessing all or a portion of the seal coating to the residents and do about a fourth of the streets each year to catch up. Then the maintenance can be scheduled on a rotating basis. Another option would be to have a higher tax increase, say 10 percent rather than 5 percent, to catch upon the sealcoating. The other Councilmembers did not favor assessing for seal coating, arguing most other cities do not assess and residents generally expect street maintenance to be done from tax monies. They preferred cutting elsewhere for several years until the street maintenance program is back on schedule. At this time it was also suggested that the entire $110,000 originally budgeted for crack sealing and sealcoating be left as is. Council asked if it would be more cost effective to hire an assessor in- house. Mr. Sulander thought it would be more expensive to do it in- house, plus there would be Staff support needed and records duplicated. Council also discussed the philosophy of code enforcement in the City. It was generally felt that a Code Enforcement Official is needed and that he/she should be supported by the Council in that enforcement. The majority felt the ordinances should be either upheld or changed if necessary; and that it would be the responsibility of the Official to check on things in the City, report back, and make recommendations as to whether the regulations should be enforced as is or changed. Mr. Carlberg felt it would be better to hire a Code Enforcement Official than to hire the secretarial help. He felt there is a need for the Official, but they can and have done all of their own typing of reports, etc. Discussion at this time and again later in the meeting was on the effect of a 5 percent increase in tax burden to the residents. It was determined that the 1990 median valuation of homes in Andover was $95,900. A 5 percent increase would amount to an extra $65 per year on a $100,000 home. Those with higher valuations would pay more that double that amount because of the tax structure. A $200,000 home would have a tax increase of about $160 per year. Mr. Almgren also noted the Metropolitan Council mandate to inspect all septic systems in the City every two years beginning January 1, 1994. He did not know how that would occur. Charging the resident $50 per inspection would generate about $65,000/year, but he really didn't know how much it would cost to City to do this. The City may have to contract this item since it does not have the Staff to do it. Council advised that the charge to the residents should not be more than what it costs to carry out the project. It was also noted that if the MUSA expansion does not get approved, this probably would not be done either. .- "- --- Special Andover City Council Meeting Minutes - August 12, 1993 Page 3 (1994 proposed General Fund Budget, Continued) Council reviewed several items in the budget and made the following comments and/or changes: Page 54, Park and Recreation, .530, Improvements - Mayor McKelvey had removed $20,000 from the $50,000 requested. Mr. Stone explained the Park Board would like to see that $20,000 added back into the budget. Their park dedication is dedicated to the new City Hall Park Complex #2 and lighting of the fields. Of the $50,000, $20,000 is earmarked for the Kelsey Park grant. That leaves them very little for improvement. By bonding for the equipment, the amount budgeted for that could be moved back to improvements. The Council generally felt parks is a high priority this year and agreed to leave the item at $50,000. Page 1, Mayor and Council, .433, Dues/Registrations - Mayor McKelvey felt the membership in the North Metro Mayors' Association has been very beneficial for Andover. The dues were supposed to be over $5,000, but they have agreed to lower them. Council agreed the $4,200 budgeted should remain. Page 2, Newsletter - In an effort to save money, councilmember Perry suggested the newsletter be eliminated and four town meetings be scheduled throughout the year instead. Mayor McKelvey disagreed, as the last town meeting was not well attended and he has had a very positive response to having the newsletter printed again. He has reduced the total budget by $5,700. It was agreed to leave the budget at a total of $5,555 as recommended by the Mayor, which reduces postage by $3,700 and printing by $2,000. Page 6, Administration, .433, Dues/Registration - Mr. Sulander explained the additional $500 was to allow the City Clerk to go to the clerk's convention in 1994. Mayor McKelvey noted the $2,400 budgeted has already cut by $1,400. Council agreed. Page 13, Attorney - Mr. Sulander noted the increase is projected because of increased prosecutions expected due to the hiring of a Code Enforcement Official. Mr. Carlberg stated they will be looking at the procedure used for code enforcement so the attorney is not brought into the process right away. Mayor McKelvey also noted the reductions he had proposed in various line items of the Attorney's budget. Council agreed. Page 18, Planning and Zoning - Mayor McKelvey noted cuts have already been proposed in three line items, though the one for .433, Dues and Registrations should be a reduction of $300, not $700 as shown, for a budget item of $700. Mr. Sulander also noted an error in the salaries line item. The item was calculated for a 10-hour a week secretary, and the request was for 20 hours a week. The item should be increased by $2,900 for secretarial salaries. Special Andover City Council Meeting Minutes - August 12, 1993 Page 4 (1994 Proposed General Fund Budget, Continued) Page 20, Data processing, .301, Professional Services - Mr. Sulander explained the $18,000 represents equipment maintenance contract agreements for the computer equipment. Mayor McKelvey stated he had reduced that amount by $4,000. Since the $18,000 represents actual contract amounts, it was agreed to add the $4,000 back into the budget. Page 22, City Hall Building, .510, Land - Mayor McKelvey reported the School District has decided to purchase the land north of the City Hall for the location of a new middle school. They will also be purchasing a portion of the land just south of City Hall to expand Andover School. Councilmernber Jacobson stated that being the case, the $12,940 budgeted for the land payment may not be needed because of the potential sale to the school district. No specific action was taken. Page 23, Fire Station Building - Councilmember Jacobson stated the Personnel Committee discussed the request to make the fire chief a full- time paid position. The Committee did not make a recommendation, feeling that is something the entire Council should decide. Mr. Sulander stated the intent would be to combine the current part-time fire chief position with the half-time Fire Marshal position. That would impact the budget by an additional $33,000. Chief Mashuga stated his duties come to about 30 hours a week, not including calls and training. With the number of firefighters and stations, a lot of time is required. After Council discussion, the general feeling was that there may be a need for a full-time paid fire chief in the next couple years, but that it is not financially feasible in 1994. Councilmember Jacobson did say he has changed his position on the issue and feels that such a position is needed now. Mayor McKelvey noted the proposed reduction in the Fire Department budget of $62,500 eliminates the full-time paid position. With that reduction and taking out capital equipment, the Department budget is about the same as it was for 1993. Chief Mashuga asked the Council to reconsider deleting the commercial washer and dryer, as it is required to wash the turnout great to remove possible carcinogens. Council did feel it may be possible to purchase it through the PIR Fund, but no specific direction as given at this time. They did agree to the $62,500 reduction as proposed by the Mayor. Revenues - Council discussed the possibility of increasing the revenues by using an average of an additional 400 homes constructed in the City next year rather than the 330 homes used to calculate the budget. It was agreed that without knowing whether the Comprehensive Plan will be approved or additional MUSA acreage granted, that the more conservative figure should be used. No change was made to revenues. Contingency - Mayor MCKelvey also noted one reason for the higher amount in the contingency is in the event the City Administrator and City Engineer must be made two positions. If Mr. Schrantz is unable to return to work, the City may not be able to find someone qualified to fill both positions. . ~-- . Special Andover City Council Meeting Minutes - August 12, 1993 Page 5 (1994 Proposed General Fund Budget, Continued) Page 40, Civil Defense, .530, Improvements - Mr. Almgren suggested the $10,000 be removed from this line item. Council agreed to reduce the item to zero. At this time Council suggested that Mr. Sulander take another look at the budget, making the adjustments according to the reports prepared by the Mayor and recommended by the Council this evening. That recommendation includes removing all capital equipment from the General Fund to be financed either from the PIR Fund or with bonding. The Council generally did not want to see a tax increase of more than five percent, that no increase would be best, but that something in between would be acceptable. The intent would be to retain the proposed budgets for street maintenance and parks. Firefighter Tom May addressed the Council regarding the request of the Andover Relief Association to increase the City's contribution to the retirement fund to $750 per firefighter per year. There has not been an increase in the City's contribution for several years, and the contribution to each firefighter has actually been reduced because of the increased number of firefighters in the Department. The budget does not reflect this proposal, so Item .124 on Page 34 would be increased by about $15,000. After discussing the item, the Council agreed some increase in the City's contribution is in order but that it doesn't look financially feasible to double it for the year 1994. Council agreed to take the request under advisement and discuss it further. Mr. Sulander noted the balanced budget must be approved at the September 7 Council meeting in order to have the information to the county to meet the deadline. Council agreed to decide on Tuesday, August 17, 1993, whether or not another special budget meeting is needed. By then Mr. Sulander should be able to report the status of the budget after reviewing this evening's adjustments. MAJOR AMENDMENT TO COMPREHENSIVE PLAN/MUSA The Council made the following recommendations: Page 6, IV. A. - Recommendation to research the accuracy of the prices listed for housing and revise if necessary. Page 8, V. D. - Recommendation to expand the description regarding how the water body will be protected. MOTION by Jacobson, Seconded by Knight, that the Council approve the document as presented with the changes in the areas that have been discussed this evening. Motion carried on a 4-Yes, I-Absent (Dalien) vote. MOTION by Jacobson to adjourn. Motion carried on a 4-Yes, I-Absent (Dalien) vote. The meeting adjourned at 10:30 p.m. '~~""bi'"' ¿ a e la· A. P~ ,'-- fcW ~~g Secretary -- ., --- -.~ -