12-09-1992 Budget HearingCITY OF RICHFIELD, MINNESOTA
SPECIAL CITY COUNCIL BUDGET HEARING MEETING
DECEMBER 9, 1992
MEMBERS PRESENT: Martin Kirsch, Mayor; Michael Sandahl; Ivan
Ludeman; Kristal Stokes; and William Bullock.
STAFF PRESENT: James Prosser, City Manager; Steven Devich,
Administrative Services Director; Thomas
Ferber, City Clerk; Donald Fondrick,
Community Services Director; Byron Wallace,
Community Development Director; Jack Erskine,
Public Safety Director; William Fillmore,
Liquor Operations Director; and Bridget
Walstrom, Finance Manager.
The meeting was called to order by Mayor Kirsch at 7:00 p.m.
Item #I PUBLIC HEARING AND CONSIDERATION OF CITY OF RICHFIELD
1992 REVISED/1993 PROPOSED BUDGET AND 1993 PROPOSED TAX
LEVY.
Administrative Services Director Devich presented the 1992
Revised/1993 Proposed Budget and the 1993 Proposed tax levy using
graphics to give an overview of the Truth-in-Taxation process,
tax capacity rates, general fund revenues, general fund
expenditures, and the impact of the City's tax levy on a sample
property.
Ron Glaub, 7209 12th Avenue, stated concern about the levy
and tax increase. He stated some actions by the Council have
lowered the tax base such as the new home program, buyout of
commercial property by the Hub, and the New Ford Town/Rich Acres
proposed buyout. He stated that the City should not build such
things as-the water slide and miniature golf course. Mr. Glaub
suggested that the Council reduce expenditures to balance the
budget.
Council Member Bullock noted that the City's General Fund
expenditures in constant dollars have been very flat over the
past five years. He reviewed the impact on the City of the
erosion of Local Government Aid. He stated that the New Home
Program and Rainbow Food store had enhanced the City's tax base.
Council Member Bullock stated that the City Council was very
aware of the impact of the New Ford Town/Rich Acres buyout on the
tax base of the City and School District and that is why the City
has sought replacement funding as part of the buyout.
City Manager Prosser reviewed the impact of the reduced
values of commercial and apartment properties on the tax base
which results in a tax increase for residential properties.
Council Member Ludeman questioned the distribution of the
cash surplus from the cancellation of the Special Assessment
Bonds of 1967 Ad Valorem Tax Levy.
Special Budget Hearing Minutes -2- December 9, 1992
Administrative Services Devich stated that the surplus of
5375,000 would be distributed as follows: $150,000 to the General
Fund to reimburse the HRA for airport expenditures and $185,000
to the Improvement Bonds of 1965 Debt Service Fund to provide for
future debt service.
Council Member Ludeman spoke in opposition to continuing
membership in the National League of Cities (NLC), League of
Minnesota Cities (LMC), and Association of Metropolitan
Municipalities (AMM). He stated that no Council or staff attend
the conferences since out-of-state travel was eliminated several
years ago and that he was opposed to the high salary of the LMC
Director. He stated the approximate total amount of $21,000 for
dues was equivalent to the City's portion of property taxes for
90 homes.
M/Bullock, S/Ludeman to close the public hearing,.
Motion carried 5-0.
M/Ludeman to remove from the 1993 budget payment of
membership dues for the NLC, LMC, and AMM organizations.
Motion failed for lack of a second.
Council Member Sandahl stated that it may not be a good idea
to stop participating in these organizations at a time when
cities face crucial legislative issues.
Council Member Ludeman stated that the City maintains
contact with it's legislative representatives and provides them
with a legislative initiative package. He stated that a part
time lobbyist could be hired for this money.
Council Member Bullock noted that it is not a time for the
City to stick its head in the sand, but that since travel was not
in the budget and he saw minimal benefit from the NLC and LMC, he
supported eliminating them.
Council Member Sandahl spoke in support of membership in the
NOISE organization and attendance at their meeting.
M/Ludeman, S/Bullock to remove from the 1993 Budget payment
of membership dues for the LMC and NLC organizations.
Motion failed 2-3. (Sandahl, Stokes, Kirsch opposed)
Council Member Ludeman questioned the 1993 $300,000
appropriation in the Capital Improvement Budget (CIB) for
undesignated park improvements, stating support for designating
the improvement of Madison Park. He also questioned the
inclusion of park improvements for Veterans Memorial Park in the
1994-1998 Capital Improvement Program (CIP).
Special Budget Hearing Minutes -3- December 9, 1992
It was the consensus of the City Council to consider
adoption of all the budget resolutions except the CIB and CIP
resolutions at this time and to further discuss the CIB and CIP
resolutions next.
M/Sandahl, S/Bullock that the following resolution be
adopted; that it be staread in the resolution book and that it be
made part of these minutes:
RESOLUTION NO. 7936
RESOLUTION ADOPTING A BUDGET FOR THE YEAR 1993
AND LEVYING TAXES
Motion carried 5-O. This resolution appears as Resolution
No. 7936 in Resolution Book No. 61.
M/Sandahl, S/Bullock that the following resolution be
adopted; that it be sQread in the resolution book and that it be
made part of these minutes:
RESOLUTION NO. 7937
RESOLUTION AUTHORIZING REVISION OF
1992 BUDGET OF VARIOUS DEPARTMENTS
Motion carried 5-0. This resolution appears as Resolution
No. 7937 in Resolution Book No. 61.
M/Sandahl, S/Bullock that the following resolution be
adopted; that it be spread in the resolution book and that it be
made part of these minutes:
RESOLUTION NO. 7938
RESOLUTION AUTHORIZING CANCELLATION OF CERTAIN AD VALOREM
TAX LEVIES ON IMPROVEMENT BONDS OF 1973
Motion carried 5-O. This resolution appears as Resolution
No. 7938 in Resolution Book No. 61.
M/Sandahl, S/Bullock that the following resolution be
adopted; that it be spread in the resolution book and that it be
made part of these minutes:
RESOLUTION NO. 7939
RESOLUTION AUTHORIZING CANCELLATION OF CERTAIN AD VALOREM
TAX LEVIES ON REDEVELOPMENT BONDS OF 1977
Motion carried 5-O. This resolution appears as Resolution
No. 7939 in Resolution Book No. 61.
Special Budget Hearing Minutes -4- December 9, 1992
M/Sandahl, S/Bullock that the following resolution be
adopted; that it be spread in the resolution book and that it be
made part of these minutes:
RESOLUTION NO. 7940
RESOLUTION AUTHORIZING REDUCTION OF CERTAIN AD VALOREM
TAX LEVIES ON REFUNDING BONDS OF 1978
Motion carried 5-0. This resolution appears as Resolution
No. 7940 in Resolution Book No. 61.
M/Sandahl, S/Bullock that the following resolution be
adopted; that it be spread in the resolution book and that it be
made part of these minutes:
RESOLUTION NO. 7941
RESOLUTION AUTHORIZING CANCELLATION OF CERTAIN AD VALOREM
TAX LEVIES ON THE IMPROVEMENT BONDS OF 1980
Motion carried 5-0. This resolution appears as Resolution
Rio. 7941 in t~esolution Book No. K1.
M/Sandahl, S/Bullock that the following resolution be
aaovted; that it be spread in the resolution book and that it be
made part of these minutes:
RESOLUTION NO. 7942
RESOLUTION RELATING TO THE DISCONTINUATION OF
THE IMPROVEMENT BONDS OF 1967 DEBT SERVICE FUND
AND TRANSFER OF SURPLUS
Motion carried 5-0. This resolution appears as Resolution
No. 7942 in Resolution Book No. 61.
M/Sandahl, S/Bullock that the following resolution be
adopted; that it be spread in the resolution book and that it•be
made part of these minutes:
RESOLUTION NO. 7943
RESOLUTION ESTABLISHING SANITARY SEWER SERVICE
RATES AND CHARGES, WATER RATES AND CHARGES,
SPECIAL WATER SERVICE CHARGES, STORM SEWER RATES AND CHARGES
AND 5$s PENALTY ON PAST DUE ACCOUNT
Motion carried 5-0. This resolution appears as Resolution
No. 7943 in Resolution Book No. 61.
Special Budget Hearing Minutes -5- December 9, 1992
M/Sandahl, S/Bullock that the following resolution be
adopted; that it be spread in the resolution book and that it be
made part of these minutes:
RESOLUTION N0. 7944
RESOLUTION DESIGNATING CITY'S CONTRIBUTION
TOWARD HEALTH, TERM LIFE AND DENTAL INSURANCE
PREMIUM FOR MANAGEMENT AND GENERAL SERVICES EMPLOYEES
Motion carried 5-0. This resolution appears as Resolution
No. 7944 in Resolution Book No. 61.
M/Sandahl, S/Bullock that the following resolution be
adopted; that it be spread in the resolution book and that it be
made part of these minutes:
RESOLUTION NO. 7945
RESOLUTION RELATING TO THE DECEMBER 1992
GENERAL SERVICES SALARY COMPENSATION PLAN
Motion carried 5-0. This resolution appears as Resolution
No. 7945 in Resolution Book No. 61.
M/Sandahl, S/Bullock that the following resolution be
adopted; that it be spread in the resolution book and that it be
made part of these minutes:
RESOLUTION NO. 7946
RESOLUTION RELATING TO THE DECEMBER 1992
MANAGEMENT SALARY COMPENSATION PLAN
Motion carried 5-0. This resolution appears as Resolution
No. 7946 in Resolution Book No. 61.
M/Sandahl, S/Bullock that the following resolution be
adopted; that it be spread in the resolution book and that it be
made part of these minutes:
RESOLUTION NO. 7947
RESOLUTION RELATING TO THE 1993
GENERAL SERVICES SALARY COMPENSATION PLAN
Motion carried 5-0. This resolution appears as Resolution
No. 7947 in Resolution Book No. 61.
M/Sandahl, S/Bullock that the following resolution be
adopted; that it be spread in the resolution book and that it be
made part of these minutes:
Special Budget Hearing Minutes -6- December 9, 1992
RESOLUTION NO. 7948
RESOLUTION RELATING TO THE 1993 MANAGEMENT
SALARY COMPENSATION PLAN
Motion carried 5-0. This resolution appears as Resolution
No. 7948 in Resolution Book No. 61.
M/Sandahl, S/Bullock that the following resolution be
adopted; that it be spread in the resolution book and that it be
made part of these minutes:
RESOLUTION NO. 7949
RESOLUTION RELATING TO THE 1993 SPECIALIZED PAY PLAN
Motion carried 5-0. This resolution appears as Resolution
No. 7949 in Resolution Book No. 61.
M/Sandahl, S/Bullock that the following resolution be
ado ted° that it be s read in the resolution book and that it be
made part of these minutes:
RESOLUTION NO. 7950
RESOLUTION ESTABLISHING 1993 LICENSE,
PERMIT AND MISCELLANEOUS FEES
PURSUANT TO THE PROVISIONS OF APPENDIX D OF THE ORDINANCE CODE
OF THE CITY OF RICHFIELD
RESCINDING RESOLUTION NO. 7839
Motion carried 5-0. This resolution appears as Resolution
No. 7950 in Resolution Book No. 61.
Council Member Ludeman stated that he felt that the 1993
park improvement funds should be designated to a neighborhood
park improvement, preferably Madison Park, and that the
community did not want more improvements at Veterans Memorial
Park.
Council Member Sandahl stated that there were many issues
regarding funding and designation of the parks to improve that
should wait to be decided until the Planning Commission and
Community Services Commission present their recommendation to
the City Council.
Council Member Stokes noted that the Council had previously
discussed neighborhood park improvement and that $300,000 may
not be enough to complete the improvement.
City Manager Prosser discussed the possibility of
additional funding availability for park improvement in 1993.
Special Budget Hearing Minutes -7- December 9, 1992
Council Member Ludeman stated that he favored designating
the 5300,000 and whatever additional funding that may be found
up to $500,000, for a neighborhood park improvement in 1993.
M/Ludeman, S/Stakes to amend the 1993 Capital Improvement
Budget (CIB) as follows• that the funds designated for hark
improvements be specifically designated for a neighborhood nark
to be determined or selected at a later date by the City Council
and that staff is further directed to explore other revenue
sources to complete the construction of the neighborhood nark
in 1993 with the total cost of construction not to exceed
5500,000.
Motion carried 5-0.
M/Ludeman, S/Bullock that the following resolution be
adopted as amended; that it be spread in the resolution book and
that it be made part of these minutes:
RESOLUTION NO. 7951
RESOLUTION ADOPTING THE 1993 CAPITAL IMPROVEMENT BUDGET
Motion carried 5-0. This resolution appears as Resolution
No. 7951 in Resolution Book No. 61.
M/Ludeman, S/Bullock that the following resolution be
adopted; that it be spread in the resolution book and that it be
made part of these minutes:
RESOLUTION NO. 7952
RESOLUTION ADOPTING THE 1994-1998 IMPROVEMENT BUDGET PROGRAM
Motion carried 5-0. This resolution appears as Resolution
No. 7952 in Resolution Book No. 61.
ADJOURNMENT
M/Ludeman, S/Bullock to adjourn the meeting.
Motion carried 5-0.
The meeting was adjourned at 8:10 p.m.
Date Approved:
12/14/92
tin J. r h Mayor
y,
Thomas P. Ferber
City Clerk
Jam s D. Prosser
~Ci Manager