08-20-08 Special - Budget
SPECIAL CITY COUNCIL
MEETING MINUTES
Richfield, Minnesota
Special Meeting of the City Council
August 20, 2008
CALL TO ORDER
The meeting was called to order by Mayor Goettel at 5:41 p.m.
ROLL CALL
Council Members
Present: Debbie Goettel, Mayor; Susan Rosenberg; Sue Sandahl; Fred Wroge; and
Bill Kilian.
Staff Present: Steven L. Devich, City Manager; Mike Eastling, Public Works Director;
John Stark, Interim Community Development Director; Barry Fritz, Interim
Public Safety Director; Jim Topitzhofer, Recreation Services Director; Brad
Sveum, Fire Services Director; Bill Fillmore, Municipal Liquor Operations
Director; Chris Regis, Finance Manager; Pam Dmytrenko, Assistant to City
Manager; and Cheryl Krumholz, Recording Secretary.
Item #1 DISCUSSION OF 2008 REVISED/2009 PROPOSED BUDGET AND 2009
PRELIMINARY TAX LEVY
City Manager Devich and Finance Manager Regis presented the 2009 Proposed Budget
and tax levy overview.
City Manager Devich discussed reduced staffing levels and the need for possible
adjustments in the level of services provided.
Finance Manager Regis stated the proposed property tax levy increase is 10.46%. The
remaining Local Government Aid (LGA) setside balance is approximately $520,000. In the
proposed budget, $85,000 was used in 2008 and 2009 respectively.
City Manager Devich said the key financial strategies projection was a 15% increased tax
levy.
Special Meeting Minutes -2- August 20, 2008
Mayor Goettel asked about a contingency if there is no or a reduced LGA allocation.
City Manager Devich responded that if LGA is significantly reduced, the City will need to
consider reviewing basic service packages. He discussed increasing inspection fees to recover
costs for problem properties but there are limits on the amount collected and more revenue is a
small part of the budget.
Council Member Wroge suggested the monthly costs for City services and the tax impact
include comparisons with comparable cities, not the optional other services, i.e. cable television.
Council Member Sandahl sated she preferred to retain the optional services. She added a
contingency was started with the implementation of franchise fees.
Council Member Kilian expressed concern with comparing to other cities because cities like
Richfield have a primary tax base of single family while others have commercial/industrial.
City Manager Devich discussed the significant increase in health insurance premiums for
2009.
City Manager Devich reviewed and answered questions regarding the revised and
proposed Legislative/Executive Department budget, including Council/Mayor, Other Agencies,
Human Services, City Manager, Legal and Boards/Commissions.
City Manager Devich reviewed and answered questions regarding the revised and
proposed Administrative Services Department budget, including Administrative, Finance,
Assessing, Human Resources, Risk Management and City Clerk.
Interim Public Safety Director Fritz reviewed and answered questions regarding the revised
and proposed Public Safety budget, including Support Services, Police, Inspections and
Emergency Services. He also reviewed Part I Crime Trend and Construction Valuation.
Interim Public Safety Director Fritz discussed the reviewal of increasing rental licensing fees
and options, including a provisional license with annual inspections for problem properties.
Council Member Wroge suggested including single-family rental and duplexes in yearly
inspections because they are creating the most concerns in the community.
City Manager Devich explained that increasing rental fees would not be adequate to add
staff to do only inspections.
Council Member Kilian suggested initiating a fine if a property is rental and the City is not
informed.
Council Member Wroge questioned why inspections could not be done during winter
months since the property maintenance program is not conducted.
Interim Public Safety Director Fritz explained the staff duties related to various inspections.
Council Member Sandahl suggested information be provided on the number of problem
properties per rental category.
Special Meeting Minutes -3- August 20, 2008
Fire Services Director Sveum reviewed and answered questions regarding the revised and
proposed Fire Service budget, including the impacts of staffing shortages resulting in significant
overtime.
There was discussion regarding first-responder legislation and possibly generating revenue
related to security companies.
Interim Community Development Director Stark reviewed and answered questions
regarding the revised and proposed Community Development budget.
There was discussion regarding increased marketing of housing programs and the inclusion
of assistance for people wanting to purchase foreclosed property with the incentive to homestead
only.
Council Member Rosenberg, on behalf of Attainable Housing Committee, expressed
appreciation for the assistance provided by the Community Development staff.
Interim Community Development Director Stark discussed the HRA’s Housing Trust Fund
which is a deferred loan forgiven over time to assist with mortgages. The program provides the
ability to have Richfield be competitive in the housing market.
Council Member Wroge questioned why the City needs to be competitive by giving funds
away.
Interim Community Development Director Stark responded that is an HRA policy decision
for housing programming.
Council Member Kilian suggested housing programs be options for some targeted areas in
Richfield.
Public Works Director Eastling reviewed and answered questions regarding the revised and
proposed Public Works budget, including the General Fund Divisions of Administration,
Engineering, Streets, Park Maintenance and Forestry, and the Utility Divisions of Water,
Wastewater, and Storm Sewer.
There was discussion related to establishing a street light fee, which is not included in this
proposed budget but may need to be considered in the future.
Council Member Sandahl said she would not support reducing lighting in Richfield but
would rather bill for the service.
Council Member Wroge questioned who pays the street light fee. He stated he believes the
budget be accountable for services, not through fees, and the City Council should have the
courage to charge the taxes.
City Manager Devich explained payment would be determined by a residential and
commercial rate mechanism.
Council Member Kilian commented that different parts of the City may need different
lighting.
Council Member Wroge said maybe the City Council should also consider charging for
sidewalk snowplowing.
Special Meeting Minutes -4- August 20, 2008
City Manager Devich reiterated the budget does not include a street light fee. The City has
no authority to have more tax levy than the base levy so there are tough decision to be made in the
future because there is no way to absorb some services within the levy limit.
Council Member Kilian added that sometimes fees are the logical option because not all
properties pay property taxes.
Recreation Services Director Topitzhofer reviewed and answered questions regarding the
revised and proposed Recreation Services budget, including the General Fund Divisions of Wood
Lake Nature Center, Recreation Programs, Community Center and the Ice Arena, Pool, and
Special Facilities Divisions.
There was discussion regarding the ice arena profit and swimming pool impacts due to the
66th Street and Portland Avenue reconstruction project and the economy.
Recreation Services Director Topitzhofer stated continuing the crosswalk attendant for 66th
Street near the pool needs to be considered for next season.
Municipal Liquor Operations Director Fillmore reviewed and answered questions regarding
the proposed and revised Liquor Operations budget.
Mayor: Goettel requested City Manager Devich comment on the Richfield Historical
Society's recent $20,000 funding request.
City Manager Devich explained that if the City had an extra $20,000, he-would recommend
it be used to address property maintenance issues and inspection services.
City Manager Devich continued that the City Attorney's opinion was that, statutorily, a city of
Richfield's class cannot give funds but rather is required to pay for services and the request was to
fund the Historical Society's director's salary.
- The City Council consensus was to have City Manager Devich write a letter of response
back to the. Historical Society explaining the legal aspect and budget constraints resulting in the
inability to provide the funding requested.
Budget presentation materials are Clerk's File No. C-441.
ADJOURNMENT
The meeting was adjourned by unanir
Date Approved: september ii, 2008
Cheryl rumholz
Recording Secretary
City Manager