Loading...
HomeMy WebLinkAboutSP September 30, 1997 I ._.l CITY of ANDOVER 1685 CROSSTOWN BOULEVARD NW. . ANDOVER, MINNESOTA 55304 . (612) 755-5100 SPECIAL CITY COUNCIL MEETING - SEPTEMBER 30, 1997 MINUTES A Special Meeting ofthe Andover City Council was called to order by Mayor Jack McKelvey on September 30, 1997, 7:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota, to discuss the proposed 1998 General Fund Budget. Councilmembers present: Dehn, Knight, Orttel Councilmember absent: Kuoza Also present: City Building Official, Dave Almgren Finance Director, Jean McGann Public Works Superintendent, Frank Stone Fire Chief, Dan Winkel City Clerk, Vicki Volk Community Development Director, Dave Carlberg Park and Recreation Commission Chairperson, Dave O'Toole City Administrator, Richard Fursman Others 1998 Property Tax Revenue: Mr. Fursman explained they have received the final tax capacity numbers from the county. He illustrated the net effect on taxes on properties at various valuations. With the change in the state taxing law, the actual percentage increase starts to drop the higher the valuation of the property, from 2.9 down to 2.1 percent. Assunùng the county imposes a 3-percent across-the-board valuation increase on homes in Andover, the net effect of the proposed budget would increase taxes from 7. I down to 5.8 percent, depending on the individual property valuation. Under the new law, the higher the value of the property, the lower the impact of taxes will be to that property. Mr. Fursman did not know if the county is imposing an across-the-board valuation increase to properties, nor did he have the tax impact the school distIicts will have. The county did not raise its tax rate for 1998. It is expected the taxes will fall next year due to the school district, but he stated he will have actual property adjustments City-wide before the Council makes its final decision on the budget. The Council looked ahead to the years 1999 and 2000, wondering what the State legislature will do with aid to the school districts and the potential impact ón residential property taxes. Because of the State surplus and the strong economy, it was hoped the Legislature would come up with either tax cuts or additional aid for the schools. The Council did not want to increase the City's tax and then have a great fluctuation in taxes if school taxes increase considerably in the future. Also, are the increases in the City's tax levy proportionate to the increases of services being provided in the community? Mr. Fursman noted that for the first time, the City is a net contributor to fiscal disparities. The Council questioned how that happened, thinking fiscal disparities was tied to industrial development. They asked Staff to check into that item further. . ~. .- -. - ---_._._--~- -_.. J Special Andover City Council Meeting Minutes - September 30, 1997 Page 2 Where additional property tax revenues are allocated: Ms. McGann stated the funds not used this year will roll into the 1998 levy. Special levies are above and beyond the City's levy limitations. The number provided to the couPly is less that the City's levy limitation, but it is about $70,000 more than was originally agreed to at the first budget meeting. The additional expenditures in the 1998 budget are for the police contract, payment for the Public Works Buildi'1g, new employees, the street program plus additional overhead for maintenance of City buildings. The budget has $407,000 of additional expenditures, which is $108,000 more than the actual property tax revenues generate. That $108,000 is coming ITom additional Building Department fees and engineering fees. The salaries have been increased 2.9 percent for cost ofliving, plus Staff is proposing a wage adjustment scale for 1998. Mr. Fursman explained the wage adjustment scale proposed for 1998. A concern ofthe Council at the last meeting was providing incentives and to compensate for longevity. The wage adjustment scale has been amended to add 1 percent for longevity for those employed 10 years or more, up to a 2 percent longevity increase for someone with 20 or more years with the City. Those are not one-time percents but would be provided every year. Ms. McGann stated Staff discussed incentive bonuses, but it will take more research to make sure the City is in compliance with all regulations and is not discriminating. It is their intent to research that further. A health insurance premium increase is also being proposed and is included in the budget. There was a lengthy discussion on the wage adjustment plan, the impact on the budget, how individual employees are affected, performance evaluations, and how the amounts in the steps of each employee was determined. Staff explained the proposal falls in line with the pay equity rules. Step increases are not automatic; job evaluations are done for each employee. Job descriptions are being rewritten to make reviews easier. An adjustment is being made this year, because just applying the cost of living increases ev~ry year widens the gap in the scale. It is expected other adjustments will be needed every several years. The Council generally agreed to the wage adjustment plan as proposed. Discussion was then on the Mayor and Council wages which have not been changed in several years. Any increase in wages must be done prior to the 1998 elections. The Council felt if there is a change to their wages, then consideration must also be given to the stipend for all Commissions. Ms. McGann stated she will put together a report showing the stipends for all Commissions and the Council and how an increase will impact the budget. Capital Purchases: Ms. McGann explained the number approved and sent to the county for the 1998 budget does not include any funding for capital improvements. One source of funding for capital improvements includes $250,000 ITom the MSA State Aid Fund which must be used for the streets. Another possibility would be to make capital purchases now of some items requested in the 1998 budget and pay for them from the left -over 1997 budget. About $98,000 from the 1997 budget that was spent on stúrm cleanup will refunded from FEMA. If the Council chooses to keep the additional $70,000 submitted to the county for property taxes, that amount could also be put toward capital purchases. __dO _.~,._ ~ 0_ - [, Special Andover City Council Meeting Minutes - September 30. 1997 Page 3 (Capital Purchases, Continued) The Council discussed the sources of funding for the capital requests, existing equipment certificates and the logistics of issuing a new equipment certificate in 1998. They finally agreed to keep the $70,000 from property tax numbers sent to the county. Ms. McGann stated in 1998 an equipment certificate of about $1,225,000 could be issued without having an impact on the tax levy because the existing equipment bonds and fire station bonds will be falling off The Council agreed that one of the trucks for Public Works should be purchased in the spring of 1998 and paid for from these allocated funds, but the second truck should be purchased the end of the year to be funded with an equipment certificate, assuming no down payment is needed. Chief Winkel pointed out the capital purchase for radios can be reduced by $7,000 if the county program to help purchase the radios is approved. About $6,000 is still needed in the budget for those radios. To balance the capital improvement requests with allocated funding, Mr. Stone and Chairperson O'Toole each agreed to reduce their respective capital requests for Public Works and park improvements by $9,000. Ms. McGann stated more than likely a revised list of capital purchases will be presented in 1998 when an equipment certificate is being considered. She also advised the goal is to establish a vehicle committee to review vehicles and future replacements and to prepare a plan. Ball Tournament Application Form: Mayor McKelvey reported Pov's Sports Bar made an application to use the City's ball fields for a tournament scheduled for this weekend. He found out that the Park and Recreation Commission has approved an application that requires the directors of adult tournaments to have an Anoka County Sherifr s Deputy on duty for security in the park during the entire tournament. On top of the payment to use the field and the deposit, it adds about $600 to rent the City's park, and apparently private security guards are not acceptable. He has since learned that the reason for that requirement is because people were seen drinking beer in the park at an adult league last year. He felt the result of the requirement is that no adult leagues will be able to use the City's fields. In addition, all tournament applications must now be approved by the Park and Recreation Commission, He understood the Council had given that responsibility to Todd Haas, the Parks Coordinator. The Mayor did agree that it was poor organization on the part ofPov's Sports Bar to wait until so late to submit the application. Pov's does not have a problem with the fee nor the deposit but would prefer to have its own security rather than incur the expense of hiring a deputy. Chairperson O'Toole stated he was told there was quite a bit of drinking in the park during an adult league last year, and that is why the Park Commission looked at the policy of requiring a deputy to be on duty during tournaments. Coon Rapids does not charge for that security in their parks because they have their own police department. The reason for the security is for the protection of the parks. They have a lot of money invested in the parks, and they do not want to see them damaged or destroyed. This tournament was advertised in February's paper, so Pov's had this scheduled a very long time before coming to the City for approval. Councilmember Knight also noted that someone representing the City must be present to tell organizers when they can and cannot use the fields. Without that, games will continue through inclement weather, and the fields are then rapidly destroyed. The City of Anoka usually has park people on hand. ... -- --------~--~ 1 Special Andover City Council Meeting Minutes - September 30, 1997 Page -I (Ball Tournament Application Form, Continued) Chairperson O'Toole stated if the Council wants to re-examine the need for security, he would be agreeable; but it should not be done two days before a scheduled tournament. He had assumed the Council had approved the tournament application. The Council discussed the issue, noting they had not seen nor given approval to the tournament application. They felt that someone should be present for security purposes, bt't it does not necessarily have to be a deputy. It was suggested the tournament application be changed to reflect that policy. Also, those deputies on duty in the City should be advised of the tournaments and be asked to stop in as they are on patrol. Another suggestion was to increase the damage deposit to cover any expenses if a field is damaged. Fire Department: Ms. McGann stated the proposed increase in pay for the fire fighters of $8 per hour per call is reflected in the budget, but the increase in the City's contribution to the Relief Association is not because she has not received the information from the Fire Department. Chief Winkel stated he passed that on to the Relief Association but has not yet heard from them. Mayor/Council input: Rezoning of property between Hanson Boulevard and Nightingale to M-2 - Mayor McKelvey reported he met with Jeny Windschitl regarding the proposed M-2 zoning. Mr. Windschitl received the impression from the Council that they did not want to see apartments there, even if they are for seniors. The Mayor state:! he didn't believe that was correct, that the Council favored senior apartments similar to those in Ham Lake on Bunker Lake Boulevard. Mr. Windschitl is also hesitant about a contract zoning of the property for senior housing only because he has a brokers license. Severa' Councilmembers indicated a concern that even with senior housing, the density allowed in the M-2 zone has the potential of being very high. Mayor McKelvey thought the intent was to construct only one apartment with 64 units and the rest as town houses under the PUD, which allows greater flexibility. Mr. Carlberg stated Staff is checking into Mr. Windschitl's concern regarding a definition for senior housing and how it relates to a brokers license. The item has b~en tabled from the October 7 meeting at the request of Mr. Windschitl. MOTION by Orttel, Seconded by Dehn, to adjourn. Motion carried on a 4- Yes, I-Absent (KullZa) vote. The meeting adjourned at 9:55 p,m. Respectfully sUbmit~ ~-~;"g::: ... -- ~-----~-_.-.._- - -----~------ -