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Home My WebLink AboutSP August 9, 1999 -, CUI vcc-r ð/J IN4 CITY of ANDOVER Special City Council Workshop - Monday, August 9, 1999 CalI to Order - 7:00 PM Discussion Items 1. 2000 Budget Workshop 2. Adjournment 4._'_· CITY of ANDOVER SPECIAL ANDOVER CITY COUNCIL MEETING - AUGUST 9,1999 MINUTES A Special Meeting of the Andover City Council was called to order by Mayor Jack McKelvey on August 3, 1999,7:01 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota, to review the preliminary 2000 General Fund Budget. Councilmembers present: Don Jacobson, Julie Johnson, Mike Knight, Ken Orttel Council members absent: None Also present: City Building Official, Dave Almgren City Engineer, Scott Erickson Finance Director, Jean McGann Finance, Brian Swanson Fire Chief, Dan Winkler Public Works, Kevin Starr and John Wallace Community Development Director, Dave Carlberg Park and Recreation Commission Chairperson, Dave Blackstad City Administrator, Richard Fursman Resident, Charlie Veiman PRELIMINARY 2000 GENERAL FUND BUDGET Mr. Fursman explained the goals of the evening are to agree on a preliminary rate for the year 2000 General Fund Budget, provide direction for the various programs, share concerns and ideas, and request further information or reports on specific programs. The expenditures projected for the year 2000 budget are up about $400,000, and the revenue is down about $ I 00,000. That means there is an increasing cost for services and a decreasing amount of money coming in. The decrease is mainly due to transfers from other departments in 1999, which amounted to about $900,000. At a future workshop Staff will provide details on tax revenue projections as well as the projected 1999 budget surplus. Staff is also looking at optional revenue sources such as fee for services. In addition, he felt that in the next 12 months, the city will see the strongest growth of commercial building ever, which could add up to $200,000 in revenue in the Building Department. The proposed budget includes about $30,000 for elections, approximately $ 134,000 in wages and benefit adjustments, an approximately $50,000 increase in police protection, an increase of about $200,000 in street repairs and approximately $60,000 in capital equipment. Mr. Fursman stated Staff is recommending the Council set the tax rate at the maximum levy limit allowable by law, which is about a 4. I percent increase. This has the net effect on a house valued at $150,000 of$1.62 per month or about $19 per year. -. . ~, Special Andover City Council Meeting Minutes - August 9, 1999 Page 2 (Preliminary 2000 General Fund Budget, Continued) The Council discussed the impact of the 4. I percent. It was thought that the county assessor wiIl be adding about a 10 percent inflationary factor to homes and land in the City. Adding 4. I percent on top of that becomes a substantial impact to the homeowner. In addition, it is anticipated School District I I will be seeking a large bond referendum as well as increasing its general budget, all of which affect the overall taxes of the residents. The Council felt they need to look at the overall picture. Staff noted that if the tax levy is set at the maximum allowed, the levy can be reduced as the budget is finalized; however, that number cannot be increased once it is set. Councilmember Orttel wanted to review the 1999 budget closer regarding the transfers. It appears the threshold from this year includes those transfers, questioning whether that should be the case. Mr. Fursman stated direction is needed from the Council as to what is an acceptable limit. They have added a significant amount to the street budget and police to continue street maintenance and for public safety. The intent is to get a long life out of the street from the maintenance programs without having to go to the public with a special levy for them. Councilmember Jacobson generally agreed that the public needs to be able to see that they are getting something for their tax dollar. Councilmember Knight felt the top priority should be on police and streets. He asked if the police protection being provided has been evaluated recently as to whether or not it is adequate. Mr. Fursman stated a year ago the police protection was increased from 40 hours to 56 hours of coverage assuming the City would get grants. One of those grants fell through, but that increase in protection was meant to carry the City through to the year 2002. The anticipated income that will be generated from commercial development is not included in the 2000 budget yet. Mr. Almgren predicted the number of building units for 1999 will exceed the projections, although he is predicting fewer units in 2000 than in 1999. Mr. Erickson also stated that as the City increases the amount of money spent on the storm sewer system, they will be evaluating the option of some type of assessment or utility charge for storm sewers. Mr. Fursman stated another idea being explored to generate revenue is to charge the youth teams who use the softball fields just as they are charged ice time for hockey and court time for basketball. Right now the City spends up to $ I 00,000 per year maintaining the softball fields for youth athletics. He suggested the Council may want to distribute that cost to those organized sports which primarily use the fields. The Council felt that idea needs to be approached very carefully as people generally expect the maintenance of the parks and ball fields with their tax dollars. Chairperson BIackstad stated only the City of Anoka charges the youth athletics for the maintenance of the ball fields. Councilmember Jacobson asked ifthere is a possibility ofleasing rather than purchasing items in the budget. He also asked if it is a reasonable time for the City to consider establishing its own police department. Ms. McGann stated they will look into leasing. In October Staff will bring back a revised version with any additional revenue or unanticipated expenditures. At that time they will also be able to detennine if there are any surplus funds from the 1999 budget that can be utilized for purchases in 2000. Mr. Fursman stated it would add 80 to 100 percent more to the budget for the - " ...... - ~--- '"" ! - " Special Andover City Council Meeting Minutes -August 9,1999 Page 3 (Preliminary 2000 General Fund Budget, Continued) City to have its own police department and provide the same coverage it receives now from the county. Ms. McGann stated an equipment bond will mature this year, but it was just replaced by another bond issue. Mr. Fursman stated that not all of the equipment has been purchased using the most recent bond issue, and it is possible there will be some changes. Councilmember Orttel asked about the increase in salaries. Mr. Fursman stated no across-the-board increase was given this year. Adjustments were made according to the averages in the metropolitan area. Last year they authorized a 2.9 percent across- the-board cost of living. This year the percentage increases range from 3 to 4 percent up to 6 or 7 percent, depending on how far behind that particular classification was from the average pay. Ms. McGann stated no new full-time positions have been added in the budget. The dollar amounts in the budget may change for each department because the percentages may change. Intergovernmental revenue is down by $30,000 because of the COPS grant. Discussion was then on the shrinking resources from the State. Mr. Fursman stated he is going to invite the City's state senator and representative to review the City's budget and to discuss state aid and fiscal disparities with them. Fiscal disparities was meant to provide to those cornmunities with very little commercial, such as Andover; yet Andover is actually paying more in fiscal disparities than it receives. Also, the City's local governmental aid decreased by about $100,000. He didn't know how Andover compares with the rest of Anoka County. The Council felt that information may be valuable. It is as if the City is being penalized for being fiscally conservative. It was also suggested that some lobbying regarding fiscal disparities and state aid may provide some benefit for the City. Ms. McGann stated that at either the August 17 or September 7 meeting, she will bring back a resolution for the maximum levy increase. It can be adjusted after that point. The Council agreed. Motion by Jacobson, Seconded by Orttel, to adjourn. Motion carried unanimously. The meeting adjourned at 7:55 p.m. Respectfully submitted, ~~~L Marcclta A. Peach Recording Secretary - .~ ...... - -.--- ----~.+-