10-26-05 Special
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Special City Council Meeting
October 26, 2005
The meeting was called to order by Mayor Kirsch at 6:05 p.m.
Members Present:
Martin Kirsch, Mayor; Susan Rosenberg; and Fred Wroge.
Members
Not Present:
Bill Kilian; and Sue Sandahl.
Staff Present:
Steve Devich, City Manager; Mike Eastling, Public Works Director; Dan
Scott, Public Safety Director; Jim Topitzhofer, Recreation Services
Director; Bruce Palmborg, Community Development Director; Brad Sveum,
Fire Services Director; Bill Fillmore, Liquor Operations Director; Chris
Regis, Finance Manager; and Cheryl Krumholz, Recording Secretary.
M/Rosenberg, S/Wroge to excuse the absence of Council Members Sandahl and Kilian
from the October 26.2005 Special City Council MeetinQ.
Motion carried 3-0.
Item #1
City Manager Devich stated tonight's Special City Council meeting was called by the City
Council as an extra opportunity for citizens to speak about the budget prior to the Truth-in-Taxation
meeting on December 5, 2005. Previous budget meetings have been conducted where the budget
was reviewed in detail. The budget was submitted to Hennepin County in September as required.
A budget show for cable television has also been playing.
City Manager Devich reviewed a comparison of City tax collection for 2006. Richfield's
preliminary tax levy is 8.57%.
Special Council Meeting Minutes
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October 26, 2005
Council Member Rosenberg requested speakers to be respectful with credible questions
and solutions.
City Manager Devich made a presentation regarding the 2006 Proposed Budget and Tax
Levy, which was provided at previous meetings.
Council Member Wroge asked about the total annual income from the increased franchise
fees and what the affect would be on property taxes if that amount was included.
Finance Manager Regis said the annual amount for the franchise fees on both gas and
electric is approximately $700,000. If that amount was included in the property tax, the total levy
increase would be 14.94%.
Larry Wozniczka, 6744 Wentworth Avenue, read a prepared statement related to the
budget and suggestions for items to optimize budget use to improve services (Clerk's File No. C-
412).
Heidi Gaibor, 6915 Wentworth Avenue, said franchise fees should be eliminated and placed
on property taxes. It is not necessary for Richfield to be competitive with other cities and it's time
to put the brakes on the City's run away spending.
Elizabeth Arnold, 148 East 66th Street, asked about the utility companies charging the City
for the franchise fee. She added these fees should be put on property taxes so low-income
households are not hit. She said these fees were started in 2003 as a stop gap measure and not
to be continued.
City Manager Devich replied the City is not charged by the utility companies for the
franchise fees because, as permitted by State law, each utility has to have a franchise ordinance in
the city it operates which typically, includes a fee within the statutory limit. He added the franchise
fees are ongoing and are reviewed by the City Council on an annual basis as part of the budget
process.
Ms. Arnold asked about the use of the gas tax to pay for the proposed 66th StreeUPortland
Avenue intersection improvement use and its affect on the budget.
City Manager Devich explained the gas tax allotment received from the State, including the
larger construction portion and smaller maintenance portion and the restrictions on use.
Ms. Arnold suggested the motor vehicle transaction fee be advertised as a benefit to the
City to encourage residents to use the Richfield Motor Vehicle office.
City Manager Devich said the amount of the transaction fee is set by the State and is part of
the City's general fund.
Ms. Arnold suggested more budget detail, especially on each department be provided,
including a breakdown of outside consultant use by each department.
City Manager Devich reviewed the 2005 Budget, 2005 Revised Budget and 2006 Proposed
Budget for each department.
Council Member Rosenberg stated the financial records of the City are always open to the
public and encouraged anyone with questions to contact Chris Regis, Finance Manager, or City
Manager Devich.
Special Council Meeting Minutes
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October 26, 2005
Bob Hall, 7309 Oliver Avenue, suggested budget cuts, future savings opportunities, and
voiced questions on spending. He suggested the City sell some assets, specifically the Public
Safety mobile command vehicle.
Mr. Hall asked why Local Government Aid (LGA) for Richfield was reduced.
City Manager Devich explained the State's LGA formula and its affect on Richfield. He also
explained fiscal disparities.
Mr. Hall questioned the City's use of consultants.
Mr. Hall questioned the City paying to correct the water drainage problem at 76th
StreetlLyndale Avenue.
Council Member Wrage also questioned why the Twin City Christian Home architect and
developer were not held responsible to fix the drainage problem.
Public Works Director Eastling explained the correction of the 76th StreetlLyndale Avenue
drainage issue and why it was a split cost with the City and Twin City Christian Home.
Public Safety Director Scott explained the purpose and various uses of the Police mobile
command vehicle.
Council Member Wrage thanked City staff for attending tonight's meeting and the public
who were present but added that he had hoped hundreds of residents would have attended.
The meeting was adjourned by unanimous consent at 7:45 p.m.
Date Approved: November 7, 2005
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Cheryl Krtmholz \
Recording Secretary