Loading...
12/07/1994 - 00004840� � ' THE MINUTES OF THE SPECIAL MEETING OF THE FRIDLEY CITY COUNCIL OF DECEMBER 7, 1994 The Special Meeting of the Fridley City Council was called to order by Mayor Nee at 7:30 p.m. PLEDGE OF ALLEGIANCE: Mayor Nee led �he Council and audience in the Pledge of Allegiance �o the Flag. ROLL CALL: MEM$ER5 PRESENT: MEMBERS ABSENT: ADOPTION OF AGENDA: Mayor Nee, Councilwoman Jorgenson, Councilman Billings, Councilman Schneider, and Council- woman Bolkcom f�� .6'iL- MOTION by Councilman Schneider to adopt the agenda as submitted. Seconded by Councilwoman Bolkcom. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously, OPEN FORUM, VISITORS: There was no response from the audience under this item of business. PUBLIC HEARINGS: 1, PUBLIC HEARING ON ADOPTION OF THE 1995 CITY OF FRIDLEY BUDGET: AND PUBLIC HEARING TO LEVY A TAX WHICH APPEARS TO BE IN EXCESS OF 16 MILLS: MOTION by Councilman Schneider to waive �he reading of the public hearing notice and open the public hearings. Seconded by Council- woman Jorgenson. Upon a voice vote, all voting aye, Mayor I+Iee declared the motion carried unanimously and the public hearings opened at 7:34 p.m. Mayor Nee stated that the first part of this hearang would be the presentation of the budget by the City Manager, Mr. Burns. He stated that the other part of the hearing would be 'to levy a tax which appears to be in excess of sixteen mills. Mayor Nee stated that after the budget presentation Council would hear comments from the public. Mr. Burns� City Manager, began by explaining the context in which the budget was prepared. He said tha� the State is sunsetting the � � � FRYDLEY CITY COUNCYL MEETING OF DECEMBER 7< 1994 PAGE 2 local government trust fund in 1996, and with all the changes in local government funding, the impact on Fridley will be a slight increase of about 1-1/2 percent from 1994, He stated that another part of the budget contained Councilas goal setting which emphasizes housing, crime, community image, and neighborhood spirit and pride. Mr. Burns stated that in keeping with Council°s goals, the depart- mental priorities for Community Development are scattered site housing, new rehabilitation Toan programs, multifamily projects, new ordinances regarding home occupations, point-of-sale inspec- tions, and an annual certificate of occupancy program, He stated that Police Department goals emphasize crime preventzon by using ten police officers to conduct Neighborhood Crime Watch meetings, surveying residents regarding fear of victimization, community education and youth safety camps, expansion of the D.A.R.E. program to the eighth grade level, the use of one of three new officers as a youth resource officer in the schools, continuation of the youth outreach worker prograrn, and a uniform curfew program. Mr. Burns stated that another issue discussed in the budget work sessions related to employee salaries and benefits, tuition reim- bursement cap, and the upgrading of the GIS Technician position to full-timee He stated that a number of revenue issues were raised including a transfer from the Liquor Fund, a water and sewer rate increase, and the use of reserves for housing and to balance the General Fund. He stated that a number of non-budget related issues were discussed at the work sessions relating to the acceptance of credit cards for payment of City services, increased expenditures for Public works equipment, and a City-wide cleanup day. Mre Burns said that �fie proposed 1995 budget of $11,879,784 represents a 3.7 percent increase from the i994 budget fox a31 funds. He stated that the General Fund of $9.9 million increased 6.2 percent, with personal services accounting for $7.1 million or a 3.9 percent increase to cover salary and benefit increases, an additional Youth Outreach Worker, rental inspection personnel, and filling the Planning Coordinator position. He stated that supplies increased by 3 percent, and other services and charges increased by 7 percent. Mr. Burns stated that the Capital outlay Budget increased by 9.1 percent to cover the cost of a dump truck, snow- blower, pick-up, and pothole patcher, as well as four patrol cars. Mr. Burns stated that Special Revenue Funds increased from $519,000 in 1994 to $817,000 in 1995. He stated that these funds include cable television, grant management, and solid waste abatement. He stated that the housing rehabilitation fund was created and accounts for $250,000 of the increase in SpeciaT Revenue Fund expenditures. Mr. Burns stated that the Capital Project Fund budget for 1995 nas decreased from $1,110,000 in 1995 to $1,600,000 in 1994, He stated FRIDLEY CITY COUNCIL MEETING O� DECEMBER 7, 1994 PAGE 3 � that some of these projects include re-carpeting �he lower level of the Municipal Center, improvements at the City garage, concrete aprons in front of the Fire Department, and an op�ical disk system for record storage. He stated that �he street projects include $500,000 £or neighborhood street reconstruction, $140,000 for sealcoating, $90,OD0 for street overlays, and $36,00o for emer- gency signal preemption equipment. He stated that the park projects include funds for safety improvements at ball fields, parking lot overlays, ADA improvements, a Commons Park press box, court resurfacing, and replacing the gate and sign at 5pringbrook Nature Center. Mr, Burns stated that there are a number of funds that produce a charge for services or products, and these are the Enterprise Funds which include the Water, Sewer, Storm Water, and Liquor Funds. He stated that this increase is due mainly to the large increase in sewage disposal costs. He stated that there are a number of capital improvements to be funded from the Capital Improvements Fund which include $180,000 for the water system, $163,000 for the sewer system and $164,000 for storm water projects. We are also encumbering funds for several storm water projects not completed in 1994. Mr. Burns stated that the 1995 proposed property tax levy is � maintained at 1991 levels for the fifth consecutive year and $1.2 million in reserves has been budgeted. He stated that the amount certified is 1.6 percent higher than the 1994 certified levy. He stated that this is a result of the fiscal disparities levy distribution, He stated that other variables gmpact the tax bill which include commercial and industrial tax challenges, appreciation of property values that have increased abou� 4 percent, and increases proposed by other taxing jurisdictions. Mr. Burns stated that the value on an average home in Fridley of $75,000 would increase to $76,800 1n 1995 or a 2.4 percent increase. He stated that this would increase the City's portion of the property owners tax bill tax by $6.00. He stated that the percentage of the total tax dollar the City receives is a little Tess than 13 percent. He stated that the schools receive about 57 percent, the County about 26 percent, and other Laxinq jurisdictions about 4 percent. Mr, Burns stated that about 55 percent of the tax base is from residential proper-ties, with commercial and industrial properties accounting for about 32 percent, and apartments about 10 percent. Mr. Burns stated that every year the City looks at internal and external indicators in determining the City's financial health. Ae stated that the fund balances have been growing at a fairly � strong rate but would decline about $3 million by the end of this year. He stated that from 1990 through 1992, the external revenues exceeded the General Fund expenditures. He stated that in 1993, the City used about $20,D00 from reserves and will use as much as � � � FRIDLEY CITY COUNCIL MEETING 6F DSCEMBER 3, 1994 PAGE 4 $713,OOD in 1994a He stated that the 1995 budget reflects $1.2 million to be used from reserves. Mr. Burns stated that due to program changesp there will be a little more spent in 1495 because of the major emphasis on crime and housing, resulting in the hiring of a Youth Outreach Worker and rental housing inspectors, Mr. Burns stated that while unemployrnent is down, the numl�er of jobs available in Fridley has decreased. He stated that the job loss is in the retail sector, and retail sales continue to decline. He stated that unfortunately the data received from the State do not reflect the new Wal-Mart store. He stated that the number of people employed in manufacturing rose by 3.7 percent. He stated that the impact of the recession appears to be over, and the economic indicators were better this year, Mr. Burns stated that property values increased by 1.5 percent, and crime rates increased by 5.9 percent. He stated that the more serious crimes have decreased by 6.2 percent, but the less serious crimes have increased by 13.1 percent, He stated that the number o£ people receiving Aid for Dependent Children and food stamps has increased by 2.4 percent, and the number of students receiving free or assisted meals in School District No. 14 has increased 5.2 percent. Mr. Burns stated that the 1995 budget was nrepared in the context of continued concern about urban blight, and the goals and objectives reflected Council's priorities of crime reduction and housing. He stated that the budget also reflects the need to correct conditions of water and sewer funds. He stated that the qrowing demand for services has been accompanied by an improved economy but not enough to significantly increase revenues. Mr. Burns stated that as the City moves forward, the use of fund balances needs to be addressed. He stated that in the area of housing, Council may want to consider alternatives to using the General Fund and other fund balances. He stated that it may be prudent to use Housing and Redevelopment Authority (HRA) balances first. He also suggested that the HRA and Councii enact a smaY1 levy to help offset the cost of housing programs. Mr. Burns state� that another option is to approach the iegislature for special legislation that would enable the HRA to capture value from housing improvements and to use reserves as collateral aqainst bonded indebtedness. He stated that as the City spends down some of the fund balances, spending priorities should be established so there is enough interest generated to offset the need for an additional levy. Mayor Nee opened the discussion to the public on these two public hearing items. � FRIDLEY CITY COUNCIL MEET3NG OF DECEMBER 7, 1994 PAGE 5 Mr. Peter Eisenzimmer, 6535 Oakley Drive, stated that he can understand the sewer and water rate increase, but he questioned who makes the decision on the hourly wages for the employees. Mr. Burns stated that the City negotiates contracts with several bargaining unions. He stated that, generally, Council sets the guidelines for the increase, and it has been about three percent over the last several years. Mr. Eisenzimmer stated that he only received a 2.6 percent increase in his social security, and this does not include any benefits, He stated that recycling has increased. When all these increases are taken into aonsideration, senior citizens cannot afford it. He stated that he attended the 5chool Board meeting last evening, and the taxes just keep going up to keep the schools running. He stated that the increase in taxes is forcing him to move out of this district. Mr. Eisenzimmer stated that in 1980, his taxes were about $300, and today they are over $1,000. He stated that it is quite an increase and, even with the changing times, he felt there could be cutbacks. He stated that the City does not need all �he parks that cost a lot to maintain with the equipmen� and personne3. Mr. Eisenzimmer stated that Council was elected to keep taxes down but each year they increase. He felt that Council should try to � keep the senior oitizens in the community rather than �axing them out of their homes. Mayor Nee asked Mr. Eisenzimmer the amount of the City°s portion of his tax increase. � Mr. Eisen2immer stated that i� increased $6,00, but he is looking at the total tax bill. He stated that the school taxes were somewhat higher with almost two-thirds of his taxes going to the schools. Councilwoman Jorgenson stated that the City only has control over the City's portion of the taxes. Mr. Eisenzimmer asked if the City had control over the School Board. Councilman Schneider stated that Council has no power over the School Board, but he does try to work with them on joint activities to save money. Mayor Nee stated that he is sympathetic to the problem, as he shares some of the same concerns. Mr. Eisenzimmer stated that the cable television fund increased $4,00o this year.