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CHM 01/21/2003 - 00027131CITY OF FRIDLEY CHARTER COMMISSION MEETING January 21, 2003 CALL TO ORDER Chairperson Gordon called the Charter Commission meeting to order at 6:25 p.m. ROLL CALL Members Present: Char Fitzpatrick, Anita Gerrety, Craig Gordon, Bill Holm, Janet Johnson, Nancy Jorgenson, Maynard Nielsen, Cindy Soule, and Francis Van Dan Members Absent: Suzanne Alvite Warren, Don Findell, Harry Heck, Deborah Monden, and Dale Warren Others Present: Deb Skogen, City Clerk/Staff Liaison Richard Pribyl, Finance Director Marcy Everette, Administrative Assistant APPROVAL OF AGENDA Commissioner Fitzpatrick MOVED and Commissioner Nielsen seconded a motion approving the January 21, 2003, Charter Commission agenda. Chairperson Gordon requested that Item 2 be discussed before approval of the minutes and to add meeting dates to Item number 1. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON GORDON DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE AGENDA WAS APPROVED AS AMENDED. 1. Discussion of Charter Amendment — Chapter 7 Finance Director Rick Pribyl addressed the Commission and provided a handout, Attachment 1, for further information. Mr. Pribyl said based on the city's current market value of $1,499,258,100, the city could have a debt limit of no more than 2 %, or $29,985,162. If the city needed to bond for some type of capital improvement project, the city could levy the taxpayers for the gross amount. Legal debt is incurred when there is no revenue stream that exists to pay for the debt. He explained that the city currently has approximately $16,880,000 debt; however, this debt is paid for through other revenue streams which include tax increment redevelopment bonds, special assessment bonds and revenue bonds for the utility funds. He said the city actually has no true general obligation debt. Chairperson Gordon asked if the market value had changed over time. Mr. Pribyl said the market value rarely changes unless there is new construction. He explained that market value was all of the property in the city subject to tax. Adopted 2 -18 -2003 Charter Commission Meeting Minutes of January 21, 2003 Page 2 Commissioner Jorgenson discussed a Star Tribune article she had seen regarding Local Government Aid (LGA) that said Fridley would only lose 2% of the market value or $2,045.663. Mr. Pribyl said that the Star had misinterpreted the facts in the article and the information was wrong. He said if LGA were cut by the state it would be very significant, which could require cutting some city services. He said that the fund balance, or reserve, has money set aside for the year end of approximately 7 to 8 million dollars Commissioner Jorgenson explained that the city does not receive the LGA funding throughout the year, but is paid twice during the year, which requires the city to expend funds from its reserves until payments are made by the state. Mr. Pribyl followed up on previously asked questions. He said the Medtronic project fell outside of the city's debt margin. He said the city had legal experts that make sure the city stays within the legal parameters set by the state, which is 2% of a city's market value. He said the Charter currently is 10 %, but the city could not be less restrictive than the state, which was why he was suggesting changing the Charter to reflect the state statute. Commissioner Fitzpatrick asked how much interest was charged on special assessments. Mr. Pribyl said the bond counsel usually knows where the market is and tries to match the interest rate with the market rate. He said the city has had an AA1 Bond rating for many years allowing the city to qualify for lower funds, thereby passing the savings to the taxpayers. Mr. Pribyl said one of the Commissioners had asked if the city would have to expend any money on United Defense in regards to the clean -up. He said the area was a Superfund clean -up area. The city would not expend any money to fix it up, but they would only be involved in the development of the site, should it go up for sale. Commissioner Jorgenson wondered if the city found itself with cuts from the state why the city might not take out G.O. bonds to make up for the difference. Mr. Pribyl stated the Charter did not allow for that and the city would lose their bond rating. He said for the past 20 years the City Council and Administration have been very prudent with the operation of the city. He said he could not imagine that kind of fix for the city. Chairperson Gordon asked what the city contribution to the Nature Center was. Mr. Pribyl said it was about $300,000 a year. He said there would be some difficult questions the Council would be facing. He said the city had been cutting the budget for the past 10 -15 years and that tougher cuts would be coming during the next budgeting process. Chairperson Gordon thanked Mr. Pribyl for coming and clarifying some of their previous questions. Adopted 2 -18 -2003 Charter Commission Meeting Minutes of January 21, 2003 Page 3 APPROVAL OF NOVEMBER 25, 2002 CHARTER COMMISSION MINUTES Commissioner Gerrety MOVED and Commissioner Nielsen seconded a motion approving the November 25, 2002 Charter Commission minutes. Commissioner Van Dan felt that the paragraph at the bottom of the second page was worded improperly. Commissioner Jorgenson felt it should be left alone. Commissioner Van Dan wanted the minutes to reflect her comment that the city can be more restrictive. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON GORDON DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MINUTES WERE APPROVED AS AMENDED. 2. ADMINISTRATIVE MATTERS A. Appointment of Nominating Committee Chairperson Gordon appointed Commissioner Johnson as Chair and Commissioners Gerrety and Fitzpatrick as members to the Nominating Committee. Their report will be due for the next Charter Commission meeting. Commissioner Van Dan commented about her involvement in politics and the many levels over many years. She felt that if there was a nominating committee who had a slate of candidates that it did not make sense for the floor to be opened for further nominations or discussion. B. Recognition of Outgoing Commissioner Nielsen Chairperson Gordon gave Commissioner Nielsen a plaque for recognition of his services to the Charter Commission for the past nine years. C. Vacancy The Charter Commission now has two vacancies due to Maynard's second term expiring and Commissioner Querimit's decision not to be reappointed. Carol Hoiby was suggested as a possible person who might be interested in serving on the Commission. D. Meeting Dates Chairperson Gordon said he would not be available on Monday evenings through April as he had committed to additional medical training. In addition, Ms. Skogen was also unavailable on Mondays through April. He asked if the Commissioners might be interested in meeting on a different day and proposed three dates for the next three meetings. Commissioner Jorgenson MOVED and Commissioner Johnson seconded a motion setting the next three meetings dates for Tuesday February 18, Tuesday March 18 and Tuesday April 29. Adopted 2 -18 -2003 Charter Commission Meeting Minutes of January 21, 2003 Page 4 UPON A VOICE VOTE, THE VOTE WAS 8 -1 IN FAVOR, WITH COMMISSIONER NIELSEN VOTING NAY. CHAIRPERSON GORDON DECLARED THE MOTION CARRIED AND THE MEETING DATES WERE CHANGED. Chairperson Gordon thanked the Commissioners for moving the dates to accommodate his schedule. 3. INSTANT RUN -OFF VOTING (IRV) There will be a presentation of IRV on February 18th if the speaker can accommodate the change in the meeting date. Ms. Skogen will contact him and make the arrangements. 4. DISCUSSION OF MISSION STATEMENT Commissioner Van Dan felt it was important to have a Mission Statement as the residents of Roseville are struggling to determine whether or not to become a Home Rule Charter City. She noted the most recent letter to the editor regarding the Roseville Charter Commission. Commissioner Van Dan will put together a mission statement and present it to the Charter Commission. Commissioner Fitzpatrick said Roseville was just not working as there was a real faction of the old vs. new and there was poor leadership. Commissioner Van Dan referred to the high intellectual, academia and arts related community of Roseville. 5. CONSIDERATION OF ITEMS FOR FUTURE DISCUSSION The presenter should be scheduled to speak first at the next meeting, followed by administrative matters and the mission statement. Administrative matters shall include a report from the nominating committee of officers for 2003 -04. 6. ADJOURNMENT Commissioner Fitzpatrick MOVED and Commissioner Nielsen seconded a motion to adjourn the meeting. UPON A VOICE VOTE ALL VOTING AYE, CHAIRPERSON GORDON DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING WAS ADJOURNED AT 7:21 P.M. Respectfully submitted, Debra A. Skogen St f Liaison Deborah Monden, Secretary Adopted 2 -18 -2003