09-01-1993 SpecialCITY OF RICHFIELD, MINNESOTA
SPECIAL CITY COUNCIL MEETING
BUDGET HEARING
September 1, 1993
MEMBERS PRESENT: Martin Kirsch, Mayor; Susan Rosenberg;
Russ Susag; and Don Priebe.
MEMBERS NOT PRESENT: Michael Sandahl.
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 #1 CONSIDERATION AND DISCUSSION OF 1993 REVISED/1994
PROPOSED BUDGET, PROPOSED 1994 PRELIMINARY TAX LEVY AND
SET TRUTH IN TAXATION HEARING DATES. C.L. No. 248
City Manager Prosser reviewed Council Letter No. 248
regarding the 1993 Revised/1994 Proposed Budget and Proposed 1994
Preliminary Tax Levy. He stated the proposed budgets generally
provided a continuation of approximately the same level and mix
of services for the community. The City Manager summarized the
budget procedures, methods, and policies which are used in the
preparation of the proposed budgets.
City Manager Prosser outlined the 1994 Proposed Budget mayor
initiatives as follows:
• Competitive Quotations for Selected Services
• Business Plans for Enterprise Operations
• Combine Water and Sanitary Sewer Funds
• Fourth Liquor Store
• Hold General Fund Increase to, at, or Below Inflation
• Implement Comparable Worth Adjustments
• Establish City Electrical Services Fund
City Manager Prosser outlined the 1994 Proposed Budget
unresolved issues as follows:
• Governor's Unallotment Process
• Funding for Street Maintenance
• Property Maintenance Inspection Program - Cost and Fees
• Health Insurance Costs
• Contract Settlements
City Manager Prosser reviewed the full time employment
trend, General Fund expenditure trend, and General Fund
expenditure distribution by department.
Special Council Budget Meeting Minutes
Page 2
September 1, 1993
Administrative Services Director Devich reviewed and
summarized graphics regarding the following:
• Revenue Sources
• Local Government Aid
• Tax Capacity Analysis - Reduction in Commercial and
Apartment tax capacity
• Proposed Property Tax Levy Increase of 3.18
• Estimated Impact of Proposed City Levy on an 585,000
Property (tax increase of $20); on a 5100,000 Property
(tax increase of S26). This would represent an 8.36 tax
increase.
Discussion and questions followed regarding the tax capacity
impact of the acquisition of the Cloverleaf property and Lampert
property, the loss of homes due to the 77th Street Construction
Project, and the New Ford Town/Rich Acres buyout.
Administrative Services Director Devich stated that the 1994
Proposed Budget reflects the cost of utilities and custodial
services in all departments versus the previous method of
charging the full amount to the Community Services Government
Buildings Division.
Discussion followed regarding tax capacity trends and the
impact of the reduction of tax capacity resulting in a percentage
tax increase to homeowners to raise the same amount of revenue.
City Manager Prosser reviewed and answered questions
regarding the Legislative/Executive/Legal Department Budget.
Public Safety Director Erskine reviewed the StoreFront/Youth
Action services and budget in response to questions from Council
Member Rosenberg. City Manager Prosser summarized the process
used to recommend the distribution of the unallocated funds to
the human service agencies by the City Council. City Manager
Prosser reviewed the alternative communication strategies related
to the Your City & Schools newsletter and other newsletter
mailings in response to questions from Council Member Priebe.
Administrative Services Director Devich reviewed and
answered questions regarding the Administrative Services
Department Budget.
Discussion followed regarding the change which distributes
utility and maintenance costs to each department and the
possibility of changing the Motor Vehicle Licensing Division to
an Enterprise Fund.
Council Member Priebe noted that the Finance Division
manages City and HRA investment portfolios totaling approximately
S30 million.
Special Council Budget Meeting Minutes September 1, 1993
Page 3
Public Safety Director Erskine reviewed and answered
questions regarding the Public Safety Department Budget. Council
Member Priebe suggested that all department budget narratives
contain more specific goals.
It was the consensus of the Council to adjourn at this time
and reconvene the meeting on September 8.
M/Rosenberg, S/Susag to recess the Special City Council
Meeting of September 1, 1993 and reconvene the meeting on
Wednesday September 8, 1993 at 7:00 p.m. in the Council Chambers
of Richfield Cites Hall, 6700 Portland Avenue for the purpose of
continuing the consideration of the 1993 Revised/1994 Proposed
Budget and the Proposed 1994 Preliminary Tax Levy.
Motion carried 4-0.
''~
ADJOURNMENT
The meeting was adjourned at 9:05 p.m.
Date Approved : 9/ 13/ 93
n tin J . i h _: Mayor
~~0~12t1~ ~t-
Thomas P. Ferber ame D. Prosser
City Clerk ity Manager