08-13-03 Special
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Special City Council Budget Meeting
August 13, 2003
The meeting was called to order by Mayor Kirsch at 5:35 p.m.
Members Present:
Martin Kirsch, Mayor; Susan Rosenberg; Sue Sandahl; Gertrude Ulrich;
and John Enger.
Staff Present:
Samantha Orduno, City Manager; Steven Devich, Administrative Services
Director; Mike Eastling, Public Works Director; Bruce Nordquist, Acting
Community Development Director; Jim Topitzhofer, Recreation Services
Director; Kevin McGinty, Fire Services Director; Bill Fillmore, Liquor
Operations Director; Dan Scott, Public Safety Director; Chris Regis,
Finance Manager; Brad Sveum, Assistant Fire Chief/Fire Marshal; and
Cheryl Krumholz, Recording Secretary.
Item #1
City Manager Orduno stated tonight's meeting is held to meet City Charter requirements to
have a Special budget meeting before the first Tuesday in September. She said complete
numbers with which to determine levy limits and tax increment values are not yet available, as the
State and County do not generate that information to the cities until the end of August. She added
the Charter Commission is reviewing this budget meeting requirement to change the date to reflect
a more realistic timeframe that is consistent with current State law and practices.
Administrative Services Director Devich provided a budget overview including:
. Timetable & Key Events
. Major Issues for 2004
. 2004 Budget Influences
. Budget Preparation Philosophy
. 2004 Proposed Budget
. Major Initiatives & Issues
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August 13, 2003
. Equipment Certificate - Purchases
. Full-Time Regular Personnel
. Gross Tax Levy History
. Gross Levy History
. General Fund History
. LGA Comparison
. 2004 (2003) Proposed Budget General Fund Revenues
. 2004 (2003) Proposed Budget General Fund Expenditures
. 1994/2004 Expenditure Profile
. 2003 Proposed Levy Estimated Impact -LHN Decert.
. 2003 Tax Capacity Rates
M/Enger, S/Ulrich to schedule the Truth-in-Taxation meetinQ for December 2.2003 with a
continuation to December 9. 2003 if necessarv. or whatever dates are consistent with County
Quidelines.
Motion carried 5-0.
Administrative Services Director Devich clarified the Truth-in-Taxation dates are December
1, 2003 with a continuation to December 8,2003.
City Manager Orduno reviewed previous years and 2004 State imposed levy limits for
Minnesota cities.
City Manager Orduno stated her recommendation to levy to the maximum because the
amount set by the City Council can be reduced but not increased.
City Manager Orduno reviewed and answered questions regarding the revised and
proposed Legislative/Executive Department budget. The divisions reviewed included
Council/Mayor, Other Agencies, Human Services, City Manager, Legal and
Board/Commission/Organizations.
Council Member Sandahl asked for a clarification of the HALA and LGA reductions and if
they are cumulative.
City Manager Orduno said the reductions are not cumulative and are permanent cuts.
City Manager Orduno compared the property taxes paid on a $160,000 Richfield home to
the cost of City services and other typical home costs.
Council Member Ulrich said it appears that if it's not paid for, it's not valued. She added
that residents don't know the property taxes do not cover basic City services. She expressed
support for charging a fee for everything.
Administrative Services Director Devich reviewed and answered questions regarding the
revised and proposed Administrative Services Department budget and reduction impacts. The
divisions included Administration, Finance, IT, CATV, Assessing, Human Resources, Risk
Management and City Clerk.
City Manager Orduno announced that since Council Member Enger needed to leave the
meeting early and it was his request to research the paid on-call Firefighter matter, this discussion
would be deferred to the September 3 City Council Worksession.
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August 13, 2003
Council Member Ulrich asked if Human Resources professional development continues,
especially with the reduction in Humart"Resdtirces staffihg,because personnel policies need to be
consistently reviewed and updated.
Administrative Services Devich stated there are good solid policies in place and staff does
attend training on a regular basis.
Public Safety Director Scott reviewed and answered questions regarding the revised and
proposed Public Safety budget and reduction impacts. The divisions included Support Services,
Police and Inspection. He also reviewed the Part I Crime Trend and Construction Valuation.
Council Member Enger left the meeting at 6:37 p.m.
Council Member Sandahl asked if the permit fees report factors in overhead costs.
City Manager Orduno said yes, but many fees should be increased.
City Manager Orduno distributed the draft user fee study prepared by Springsted, Inc. and
submitted to the State as required.
Council Member Sandahl asked if the proposed fee in the study is the actual cost.
City Manager Orduno explained the process used to determine the fee.
Liquor Operations Director Fillmore reviewed and answered questions regarding the
revised and proposed Liquor Operations budget and program highlights. This review included
gross sales, customer service, expenditure containment, non-sale additions to income and
responsible selling commitment.
Acting Community Development Director Nordquist reviewed and answered questions
regarding the revised and proposed Community Development budget and program highlights. His
review included awards and recognition, focus, key goals for 2004 and budget decrease results.
Fire Services Director McGinty reviewed and answered questions regarding the revised and
proposed Fire Services budget.
Recreation Services Director Topitzhofer reviewed and answered questions regarding the
revised and proposed Recreation Services budget and program highlights and reduction impacts.
His review included Wood Lake Nature Center, Community Center and Recreation Programs and
the Enterprise Funds of Ice Arena, Pool and Mini-Golf.
Council Member Rosenberg asked if the City will receive any revenue from the new
skateboard park.
Recreation Services Director Topitzhofer said the City has no financial risk in the park,
including any construction overruns. He added that if there is a surplus, the funds need to go back
into the facility either for a building or other amenities. He said opening is scheduled for
September 15.
Council Member Sandahl asked about the response from the Focus Group meetings being
held regarding park programs.
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August 13, 2003
Recreation Services Director Topitzhofer said an outside facilitator is conducting the
meetings and there is resistance from the group participants regarding fees for the programs. He
added more Focus Group meetings are scheduled.
Public Works Director Eastling reviewed and answered questions regarding the revised and
proposed Public Works budget and reduction impacts. His review included General Fund Divisions
of Administration, Engineering, Streets, Park Maintenance and Forestry; Utility Fund Divisions of
Water, Wastewater and Storm Sewer; and Internal Fund Divisions of Central Garage and Building
Services.
Mr. Eastling stated this summer's windstorm clean-up costs were not included in the
presentation, but should be included in the September 3, 2003 discussion. He said estimated City
costs are $130,000.
Council Member Sandahl requested that, from the comment cards received from the
August 12, 2003 public meetings regarding street light service fees, it be determined how notice of
the meeting was received - water bill or postcard.
Public Works Director Eastling stated utility franchise fees could be targeted for street
maintenance which may increase public acceptance of the fees.
Council Member Rosenberg asked that identification of the water plant be removed from
the building for security purposes.
City Manager Orduno suggested discussion of the street light service fee be deferred to the
September 3 Special City Council Worksession to allow time for review of the comments received
from the public.
Administrative Services Director Devich provided a summary of the research regarding
franchise fees for electricity (Xcel) and gas (CenterPoint) services. He said Xcel is only amenable
to a residential and commercial per meter charge, but CenterPoint will allow a percentage of use or
per meter charge. Mr. Devich explained the per meter charge will be the only option since each
utility company must be treated the same.
City Manager Orduno said a per meter fee remains a flat rate because it doesn't fluctuate
based on usage.
Public Works Director Eastling said street sealcoating, patching and limited overlay costs
are estimated at $500,000 annually.
Administrative Services Director Devich said a charge of $1.45 per meter would provide for
street maintenance costs.
City Manager Orduno stated that if City streets are to be kept in good repair and if the City
is trying to wean off LGA in anticipation of additional cuts, franchise fees can provide the necessary
funds. She added that if the franchise fees have a dedicated use, it may be more acceptable for
the public. Ms. Orduno said at a minimum, the City should have a $500,000 LGA set aside.
Mayor Kirsch stated the City needs to wean off LGA.
Council Member Sandahl stated the fee connection to street maintenance makes sense
because streets are dug up to install utilities.
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August 13, 2003
Council Member Rosenberg sa.i.da~..extensive public relations effort needs to be
undertaken. She added residents neecfdfealize it's either a franchise fee or assessment to keep
streets maintained.
City Manager Orduno stated staff will return to the City Council on September 3, 2003 with
a public relations plan and additional alternatives related to franchise fees.
City Manager Orduno said the amount of LGA set aside is dependent on the fees imposed.
She added the proposed levy limit may already be over what's allowed, but it's not known yet.
City Manager Orduno suggested the elimination of the City news portion of the Your City
newsletter, but continue the quarterly Recreation Services brochure. She explained the newsletter
appears to be an ineffective means of communication for City news and a limited cost benefit. A
more effective means is the website, using CATV and placing a monthly City news column in the
Richfield Sun Current. She said the cost savings could be used to hire a part-time person to work
on the web page and cable television to ensure current and prompt communication.
Council Member Ulrich stated support for stopping the City news portion of the newsletter.
Council Member Rosenberg stated the website and CATV need to be continually updated.
Council Member Sandahl stated support for the Sun Current column.
The City Council consensus was to eliminate the City news portion in the Your City
newsletter and increase use of the website and CATV.
City Manager Orduno said additional discussion regarding LGA set aside will be on
September 3, 2003.
City Manager Orduno discussed the need for a long-term plan to review the on-going
maintenance issues of the City Hall building and projected future costs.
Council Member Sandahl stated support for forming a citizen/staff task force to review City
Hall building maintenance issues.
The City Council consensus was to have staff prepare additional information regarding the
formation of a task force to review City Hall building issues for discussion on September 3, 2003.
Council Member Ulrich said the City Hall roof replacement and lack of handicap access are
major issues.
City Manager Orduno asked if staff was going in the right direction on budget preparation.
Council Member Rosenberg said the City Council needs to know the worst case scenario
for planning for no LGA.
The City Council thanked staff for following City Council directives regarding budget
reductions, but maintaining a high level of services. They also thanked staff for assuming extra
duties due to the budget reductions.
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August 13, 2003
All budget presentation materials are Clerk's File No. C-392.
The meeting was adjourned by unanimous consent at 8:21 p.m.
Date Approved: September 9, 2003
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Martin J. Kirs (
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Cheryl K mhol
Recording Secretary
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