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08-25-99 Special CITY COUNCIL MEETING MINUTES Richfield, Minnesota Special City Council Budget Meeting August 25, 1999 CALL TO ORDER The meeting was called to order by Mayor Kirsch at 7:00 p.m. ROLL CALL Members Present:Martin Kirsch, Mayor; Sue Sandahl; Susan Rosenberg (until 8:00 p.m.); Russ Susag; and Kristal Stokes. Staff Present :Steven Devich, Acting City Manager; Thomas Ferber, City Clerk; Bruce Palmborg, Community Development Director; Dan Scott, Public Safety Director; Mike Eastling, Public Works Director; Jim Topitzhofer, Recreation Services Director; William Fillmore, Liquor Operations Director; Chris Regis, Finance Manager; and Corrine Thomson, City Attorney. Item #1CONSIDERATION AND DISCUSSION OF 1999 REVISED/2000 PROPOSED BUDGET, 2000 PRELIMINARY PROPERTY TAX LEVY AND TRUTH IN TAXATION HEARING DATES C.L. NO. 198 Acting City Manager Devich reviewed Council Letter No. 198 regarding discussion of the 1999 Revised/2000 Proposed Budget and 2000 Preliminary Property Tax Levy. Acting City Manager Devich provided an overview of the 1999 Revised/2000 Proposed Budget and 2000 Preliminary Property Tax Levy including the following: x Calendar of Events & Dates Special Budget Review Meetings - August 25, September 1 (only if necessary) * Adoption of Preliminary Levy - September 13 * Submit Levy/TNT Dates - September 15 * Truth in Taxation Hearing Dates - December 6 & 13 (if necessary) * Council Meeting Minutes-2-August 25, 1999 Last Day to Take Council Action - December 27 * Misc./Transfers 4% * Fines/Forfeit 2% * x Local Government Aid (LGA) Comparison 9.6% total decrease since 1989 * LGA represents 24% of General Fund Revenues * x How Property Taxes are determined Total Proposed BudgetProperty Tax Revenue (levy) -Non-Property Tax Revenue+Total “tax capacity” =Property Tax Needed =Tax Capacity Rate (tax rate) x 1999 Tax Capacity Rate *School District 280 - 48% *Hennepin County - 27% *City of Richfield - 19% *Misc. - 6% x 1999 Tax on $100,000 Home *School District 280 - $842 *Hennepin County - $482 *City of Richfield - $334 *Misc. - $110 x 1993 - 2000 Tax Capacity History x 1994 - 1999 Tax Capacity Rate History x 2000 Tax Levy Analysis 2000 1999% Increase Certified Levy$8,171,762$8,054,7921.45% -Fiscal Disparities$1,234,191$1,158,593 -HACA$1,905,787$1,847,793 =Local Levy$5,031,784$5,048,406(.33)% x Levy to Budget Explanation 20001999 Gross Certified Levy$8,171,762$8,054,792 Less: HCA$1,905,790$1,847,793 =Certified to County$6,266,002$6,206,999 Less: Est. Uncollect.$ 63,080$ 62,070 =Total Taxes$6,244,880$6,144,920 x 2000 Proposed Levy Estimated Impact on $100,000 Property (No Increase) *City Portion of Tax 1999 - $333.58 *City Portion of Tax 2000 - $310.04 *Decrease of $23.54 per year x 2000 Proposed Levy Estimated Impact on$100,000 Property (6.4% Increase) *City Portion of Tax 1999 - $333.58 *City Portion of Tax 2000 - $338.36 *Increase of 4.78 per year *Certify Final Levy - December 28 deadline x Major Initiatives & Issues Continue Present Level of Services * Airport Redevelopment Area (CARA) * Redevelopment Projects * Council Meeting Minutes-3-August 25, 1999 Continue Street Lighting User Fee? * Airport Expenditures * ¡ $812,000 - 1999 ¡ $455,410 - 2000 ¡ Transfers from capital fund x General Fund History 1991 - 2000 x Gross Tax Levy History 1993 - $7,122,366 - 4.00% Increase * 1994 - $7,293,600 - 2.40% Increase * 1995 - $7,452,200 - 2.17% Increase * 1996 - $7,637,200 - 2.48% Increase * 1997 - $7,787.090 - 1.96% Increase * 1998 - $7,929,927 - 1.83% Increase * 1999 - $8,054,792 - 1.57% Increase * 2000 - $8,171,762 - 1.45% Increase * x 2000 Proposed Budget General Fund Expenditures Public Safety 55% * Public Works 22% * Recreation 10% * Administrative Services 7% * Legal Executive 5% * Community Development 2% * x 1990/2000 Expenditure Profile x Full-Time Personnel 1992 - 2000 x 2000 Proposed Budget General Fund Revenue Intergovernmental Revenue 42% * Taxes 34% * Fiscal Disparities 7% * Charges for service 6% * Licenses/Permits 5% * Acting City Manager Devich reviewed and answered questions regarding the following 1999 Revised/2000 Proposed Legislative/Executive/Legal Department Budget and program highlights: 1.City Council x Develop Marketing Plan x Richfield/MAC Noise Mitigation Plan x Attendance at national conferences x Goal setting & team building 2.Human Services x Continue as City Liaison to SHERPA x Continue success of Familink work x Youth Net program x Clarifying state/county/local collaborative 3.Other Agencies x Continued funding of social services agencies 4.City Manager Council Meeting Minutes-4-August 25, 1999 x Recruit and appoint new City Manager x Monthly City newsletter x Communication program for City Vision 5.Legal x City Attorney hourly rate increased $5/hr x Prosecution costs unchanged Acting City Manager Devich reviewed and answered questions regarding the following 1999 Revised/2000 Proposed Administrative Services Department Budget and program highlights: 1.Data Processing operations x E-mail and calendar system x Hardware/software upgrades - Y2K compliant x Y2K analysis 2.Cable Television x Streamlined Cable Commission Administration x Implemented Richfield "head end" telecast x Sprint contract - Logan Tower 3.Work on Consolidated Pension Legislation 4.Growth in Motor Vehicle Revenues 5.Vacancy held in Human Resources for 1999 6.Risk Management x Rate reductions to departments x Most favorable WCRA rate Acting City Manager Devich reviewed and answered questions regarding the following 1999 Revised/2000 Proposed Recreation Enterprise Fund and Internal Service Fund Budgets and program highlights: x Rich Acres Gold Course Financial downturn in 1999 * Uncertainty for future operations * Elimination of Golf Course * Golf Course facts worth noting * Revenues & expenses * x Mini Golf Attendance trends/financial success * Carpet - repair artificial rock * Redesign hole #3 * x Ice Arena/Pool Second ice sheet construction * Two sheet operation - 1999 & 2000 * * One additional FT employee Future pool infrastructure needs?!? * Attendance trends @ pool down * x Self Insurance Rate reductions * Cost containment * Council Meeting Minutes-5-August 25, 1999 x Central Services Private sector orientation/helpdesk * Software upgrade complete * Y2K compliance * Public Safety Director Scott reviewed and answered questions regarding the following 1999 Revised/2000 Proposed Public Safety Budget and program highlights: x Support Services Implemented a new computer program for tracking environmental health complaints * Part-time licensing clerk position converted to full-time by adding 5 hours per week * "Neighbors Helping Neighbors" program * x Police Operations Crime rate trend * x Fire Division highlights Over 4,000 roofing and siding inspections completed since the big storms last year * New fire pumper and re-chassied fire rescue vehicle in '99 * Fire and Emergency Calls * 19971998 Medical2,1702,429 Fire Related614655 Fire items not funded * Painting inside of two fire station garages - $8,000 Airbag rescue tools - $4,000 x Police Services Office space remodeled * New carpet and wallpaper * New system furniture * Improved ADA compliance * Dispatch center totally remodeled * Police and Inspections areas physically separated to address security concerns * New layout uses space more efficiently * x Communications Systems Begin upgrade to 800 MHz radio system * Deploy new mobile computing devices (laptops) in police squads using federal grant * money Division items not funded * A full-time dispatch supervisor is needed Convert 2 part-time dispatch positions to full-time ($35,300 net cost) x Inspections Due to increased construction activity, the division hired a temporary building * inspector and temporary inspection clerk The costs for the additional positions are offset by increased permit revenues * Construction valuation trend * Building permit revenue trend * x Emergency Services Y2K contingency planning and public information * Complete training for 8 new reserves that were added to the program in '99 * Emergency Services items not funded * Council Meeting Minutes-6-August 25, 1999 Replacement of "mother boards" for outdoor warning siren radio decoders - $6,000 Community Development Director Palmborg reviewed and answered questions regarding the following 1999 Revised/2000 Proposed Community Development Department Budget and program highlights: x Focus Housing replacement * Multi-family housing options * Other strategies to strengthen housing * x New project initiatives Lakes at Lyndale * th Southwest quadrant (66 and Lyndale) Lyndale Garden Center CARA * I-494 Corridor * th Lyndale South (North of 76 Street) * Right of Way Acquisition * th Phase III 77 Street Project x New Program Initiatives GIS * Ombudsperson * x Continuing Projects Lakes at Lyndale * WoodlakeCentre (Urban Village) Gramercy Interchange West * Lyndale Gateway * PASSS * th 69 and Penn * Mitigative Strategy * Restaurant Site (adjacent to Candlewood Hotel) * x Continuing Programs Richfield Rediscovered * New Home * Deferred Rehabilitation Loan * Transformation Loans * Community Apartment Program (CAP) * Richfield Rediscovered Apartment Remodeling Program * Remodeling Advisor Administration * Comprehensive Planning and Zoning Ordinance Administration * Plan Review * Section 8 * Marketing * Remodeling Fair/Remodeled Homes Tour Spring Preview Parade of Homes Realtor Workshop Enterprise Facilitation * Council Meeting Minutes-7-August 25, 1999 x Opportunities/Constraints Affordable Housing Replacement Advisory Committee * Shrinking Funds and Gaps (escalating property acquisition cost) * Asset Management System * TIF Document Management * Crowding of staff * Public Works Director Eastling reviewed and answered questions regarding the following 1999 Revised/2000 Proposed Public Works Department Budget and program highlights: x Mission: To make Richfield the best place to live, work, learn and do business by providing for basic human needs such as: Clean water * Responsible disposal of wastewater * Safe timely transportation * Pleasant functional parks and buildings * x Financial Summary and Notes x Follow-up from last year: Major maintenance * Performance measurement * Competition * New Public Works Maintenance Facility * x Public Works Administration Work management software * Public works building site * Competition * x Engineering Division Planning Infrastructure changes for the airport mitigative area * 35W/Crosstown plan review * Investigate undergrounding of overhead utility lines * x Engineering Division Design/Construction 1999 Lyndale/I494 Bridge * th Design 76 Street-ped bridge over I-35W * TH 77 Underpass * thth Traffic signals at 67/Nicollet, 64 Portland * Complete Wood Lake dredging * x Engineering Division Design/Construction 2000 Penn/494 Bridge * x Street Maintenance Division 1999 Temporary extra PW worker position * Completing first five-year pavement maintenance program * Experimenting equipment: * Plow wings on trucks Computerized sanders Leaf vacuum for fall clean up x Street Maintenance Division 2000 Evaluate pavement management strategy * 5 year strategy Council Meeting Minutes-8-August 25, 1999 Watching for spalling Begin overlays $100,000 * Locations x Park Maintenance Division 1999 Major Maintenance Projects * Courts - Augsburg, Heredia, Fairwood Park paths - Taft, Donaldson Park shelter - Roosevelt Funding * $100,000 CIB $50,000 General Fund/staff reduction Customer driven * Neighborhood meetings Community Services Commission Recreation Services Department x Park Maintenance Division 2000 Major Maintenance New ballfield maintenance * $20,000 annual increase AHA, Roosevelt, Donaldson, Intermediate School Major Maintenance * Christian Park - asphalt rink Veterans Park - asphalt park shelter Fountains To be determined by Community Services Commission and Recreation Services Department 20 - 40% Non-routine work * th July 4 Celebration - Cattail Days Park and Recreation Programs last minute details x Government Buildings Division 1999 National standard for City Hall major maintenance - $50k * Investigate building maintenance as an internal fund * x Government Buildings Division 2000 Set up Building Maintenance as an internal fund * x Forestry Division 1999 Planted 230 trees (double) $12k * In-house inspection services * New trimming techniques are: * Trim new plantings often for best shaping Trim less from each tree Lost log storage site to MAC * x Forestry Division 2000 Investigate recycling rebate for funding new brush drop off site * x Street Light Division Retrofit reimbursement finished this year * Fee retired in 2000 * Continuation of street light fee * Offset electrical costs ($225,000) All benefited property charged x Central Garage Division 1999 Council Meeting Minutes-9-August 25, 1999 Replaced road grader with versatile truck w/wing * New vehicle maintenance management software * Removed underground fuel tanks * x Central Garage Division 2000 Replacing * Public Safety: 2 fire utility vehicles, pumper, 5 squads Public Works: street sweeper, flush truck 2 mowers, van x Utilities Locate utility structures using GPS * x Water Maintenance Division 1999 Replaced well pump number 5 * Finished installation of Carbon Dioxide tank * Produced Water Quality Report * Converted heat for Plant to electric from steam * x Water Maintenance Division 2000 Rate increase from $1.52/kgal to$1.62 * New backwash reclaim basin - better waste handling * Remove asbestos from Water Plant * Roof over well number 7 area * Replace well pump number three * x Wastewater Maintenance Division Metro charges staying flat at $1.8M * x Wastewater Maintenance Division 1999 Rebuild lift stations * rdrdth 63/Colfax and 73/14 No transfer for the new maintenance facility * x Wastewater Maintenance Division 2000 Rebuild lift station 3 * Rate increase from $2.19/kgal to $2.29 * x Storm Water 1999 Finished Wood Lake dredging * Pond at 6900 block of Penn * x Storm Water 2000 th Drainage of 70 and Russell * Possible positive cash balance by year end * Residential Quarterly Fee from $8.55 to $8.80 * Finance Manager Regis reviewed and answered questions regarding the following utility fund issues: x 2000 Sewer Maintenance Operating Budget MCES 72% * Personal Services 17% * Other Charges 8% * Capital Outlay/Depr. 3% * x Sewer Fund Operating Results 1990 - 1998 x History of MCES Charges 1988 - 2000 x Projected Yearly Sewer Rates City & Metro Average 1998 - 2005 x City Sewer Rates 1987 - 1999 Council Meeting Minutes-10-August 25, 1999 x 2000 Proposed Rate $2.29/1,000 gallons x Water Rate History 1989 - 2000 x Water Fund Operating Results 1990 - 1998 x 2000 Proposed Rate $1.62/1,000 gallons Recreation Services Director Topitzhofer reviewed and answered questions regarding the following 1999 Revised/2000 Proposed Recreation Services Department Budget, major initiatives and issues, and program highlights: x Administration Complete Vets Park Master Plan * Continue diversified marketing strategies * Complete implementation of registration software * Re-examine department organizational structure * Continue replacement of playfeatures & ballfields * Continue planning for new recreational facility (pending referendum outcome) * x Wood Lake Nature Center Develop FOWL Children's Forest * Repair trails damaged by flooding * Implement new Community Garden site * x Recreation Programs Investigate services for youth/teens * Continue outreach to Latino community * Work with Parks Division to ensure exemplary maintenance of ballfields * Support little league merger * x Community Center Develop cooperative efforts for senior programming with residential facilities * Continue to offer adaptive and inclusion services through the four-city cooperative * Identify and approach new markets for rental of facilities * Liquor Operations Director Fillmore reviewed and answered questions regarding the following 1999 Revised/2000 Proposed Liquor Operations Department Budget and program highlights: x Liquor Sales Statistics 1986 - 2000 * x Y2K Compliance Computers & registers * x Profitability Sales increase * Expenditure containment * Additions to profit * ATM site Market research Charge processing Corrugated sales x Marketing Media campaigns * Internet * Council Meeting Minutes-11-August 25, 1999 Possible future store relocations * x Staff Training Responsible distribution * Customer service * Acting City Manager Devich reviewed and answered questions regarding the following 1999 Revised/2000 Proposed Special Revenue Budget and program highlights: x Liquor Contribution Fund Funds capital improvements * x Cable TV Fund Funds Your City and communications * x CDBG x Drug/Forfeiture x Tourism Administration Acting City Manager Devich reviewed and answered questions regarding the Capital Improvement Budget and Program. Mayor Kirsch reminded residents that a copy of the budget is available at City Hall and at the library. Mayor Kirsch announced that the City Council had completed the review and discussion of the draft 1999 Revised/2000 Proposed Budgets and proposed 2000 preliminary tax levy and therefore the September 1, 1999 7:00 p.m. Special City Council Budget meeting would not be necessary and would be cancelled. ADJOURNMENT The meeting was adjourned by unanimous consent at 10:05 p.m. Date Approved: Martin J. KirschMayor Thomas P. FerberSteven L. Devich City ClerkActing City Manager