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HomeMy WebLinkAboutSP July 18, 1994 ,,,,,,,,,:::,:·i";~:~.~'_ ~, .~ I," " '- \ CITY of ANDOVER ' , .', .I.. .:: 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (612) 755-5100 "-~'--"",",.- " SPECIAL CITY COUNCIL MEETING - JULY 18, 1994 MINUTES A Special Meeting of the Andover City Council was called to order by Mayor Jack McKelvey on July 18, 1994, 7:05 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota, to discuss the proposed 1995 General Fund Budget. Councilmembers present: Dalien, Jacobson, Perry Councilmember absent: Knight Also present: City Finance Director, Daryl Sulander City Administrator, Richard Fursman Others Mr. Fursman explained the budget before the Council reflects the goals and objectives set by the Council at their June 30 meeting. The assumption made during salary consideration is that the Council was wanting to bring Staff up to 85 percent of the Stanton average. Currently employees' salaries are allover the board, with some no where near 80 percent and others close to 100 percent. The new format for the budget is designed primarily to focus on the goals and objectives and to look at the Departments overall. The budget also assumes a zero increase in fees. Councilmember Jacobson suggested the Council first determine how much of an increase they are willing to levy before making an attempt to balance the budget. Mr. Sulander reviewed the City's capacity rates for 1993 and 1994, noting those revenues in the budget that are estimated since fiscal disparities have not yet been calculated. The budget as presented assumes a five percent increase in valuation resulting from growth in the City plus a five percent increase in expenditures, for a total increase of ten percent. The levy, then, would increase five percent. Councilmember Jacobson felt the increase above growth should be about the same as inflation, that is three percent, for a total increase of eight percent. He was also concerned with the potential of having a big jump the following year to finance a new City Hall. Mayor McKelvey thought the recently passed school bond would be going on the 1996 tax rolls, so it may be better to raise the levy this year to catch up on the services that the City has not been able to provide in the past. He strongly felt there is a need to hire an in-house City engineer. Mr. Fursman noted with the total ten percent increase, the budget before the Council still is $1,050,000 short. By removing the capital equipment from the General Fund with the idea of bonding for it, the shortfall is still $471,000. Mr. Sulander explained the Staff recommendation to bond for capital equipment of about $505,000 for one more year. That can be done with little to no affect on the tax currently being levied for equipment bonds because of the bonds that will be retired. Following next year, any capital equipment purchases would be financed internally. ýY\~ ~ ___ r-[?-I'1''f --- --.----.-------- - ---- Special Andover City Council Meeting July 18, 1994 - Minutes Page 2 Mr. Fursman continued that to stay at the 10 percent increase could mean eliminating things the Council has said they want to accomplish such as catching up on sealcoating and additional personnel. There is about $200,000 additional in sealcoating, which only begins to catch on in that area. The budget also has about $108,000 for new hires, a park coordinator, City Engineer, Fire Chief, and others. It is the feeling of the Staff, however, that if an in-house City Engineer is hired, Mr. Haas' time would be freed up to work on parks; so a park coordinator would not be needed for 1995. He felt it is possible to get down to the five percent increase provided the Council greatly reduces the mission statement and the services provided. Discussion continued on just how much of an increase the Council would be willing to levy over and above the five percent growth factor. Mr. Sulander reviewed the tax capacity of the rest of the metropolitan area, noting Andover is substantially less than the average. Mr. Fursman pointed out the City is about $2 million behind in its seal coating, and the budget for 1994 was only about $100,000. The proposal for next year was to allocate about $300,000. The question is whether to raise taxes $20 to $30 more a year or to neglect seal coating and have to assess up to $5,000 for new streets in a few years. He felt another means to help with this program would be to institute a policy of requiring developers to escrow for the first sealcoat project in their development before the Council accepts the final plat. Council noted the City Attorney has said they cannot escrow for sealcoating. Mr. Fursman stated it is done in many other communities. Council suggested they ask the City Attorney his opinion on the matter again. Mr. Sulander estimated a five percent levy increase would mean about a $14 increase in taxes on a $100,000 house. After further discussion, the Council generally agreed to the five percent increase to the 1995 budget because of the limited impact to the residents and because of the need to raise the level of services in the City. Discussion was then on possible sources to reduce expenditures in the budget in order to balance it. Mr. Fursman again noted the $471,000 shortfall after taking out capital equipment purchases. He noted the ability to eliminate the park coordinator position if an in-house City engineer is hired, which reduces the expenditures by another $43,750. Council generally agreed to eliminate the park coordinator position based on Staff recommendation, several expressing an urgency in hiring an engineer. Mr. Fursman then pointed out it may be unrealistic to meet the goals and objectives of the Council with only a five percent increase. Another area that the City has not dealt with is the engineering for those projects that were never ordered. Mr. Sulander explained 25 percent of those project costs will have to be borne by the City, and those project costs will have to be paid off. This budget has eliminated about one- third of that liability by budgeting $10,000. These are the types of projects an in-house engineer should be working on. -- - -.--.0..-- Special Andover City Council Meeting July 18, 1994 - Minutes Page 3 Mr. Sulander also stated he has arbitrarily cut out all Fire Department requests from Item 13 to the end of the list from the 1995 operating budget, which is reflected in the $471,000 shortfall. Also reflected in that shortfall is a reduction in the park capital budget of $38,900. That brings the park capital budget to what it is for 1994; and if a park bond referendum is successful, those projects would then be financed with the bond. Staff is hopeful there will be a spring bond referendum. The Council generally agreed that a spring bond referendum would be preferable to one in the November general election. In discussing the Park Department budget, the Council generally felt the parks have been neglected and that the citizens want to see an increased activity in the parks. It was suggested the $38,900 cut from their budget be placed in the Contingency Fund; and if the bond referendum does not pass, that amount would be returned to parks. If the bond does pass, it would not be necessary for parks. Council also noted that the monies in the Park Dedication Fund should also be earmarked for park improvements. Park Board members present, Dave 0' Toole and Tom Anderson, noted most those funds have been designated for specific items. The Field of Dreams project will be very expensive. They also noted the inability to keep the parks updated because of the limited budgets in past years. There was continued discussion on Staffing and salary adjustments, street improvements and the park budget with no definite decisions made. Councilmember Jacobson then noted the recommendation of Staff to increase the budget by more than 10 percent total. If the residents are looking at the total dollar amount of the tax increase, the difference between a five percent and seven or eight percent increase is only a few dollars. While he felt it is important to keep the taxes down, at the same time the Council has a responsibility to make sure the City operates properly. He suggested the budget be given back to Staff for further cuts, noting the Council's discussion on parks, sealcoating and personnel. Staff can trim the budget and come back with a recommendation on the percent of budget increase needed above the growth factor. Councilmember Dalien suggested some creativity, such as hiring for a new position in the middle of the year rather than the beginning, to save money. Mr. Sulander also thought he would have more accurate estimates on State revenues around the first week in August. Council agreed to send the budget back to Staff per Councilmember Jacobson's suggestion. The next budget meeting was set for Wednesday, August 3, 1994, 7 p.m., at the City Hall. MOTION by Jacobson, Seconded by Dalien, to adjourn. Motion carried on a 4-Yes, I-Absent (Knight) vote. The meeting adjourned at 9:12 p.m. ResP~'~J ~lla A. Peach, Recording Secretary