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CHM 09/02/2014 CITY OF FRIDLEY CHARTER COMMISSION MEETING SEPTEMBER 2, 2014 CALL TO ORDER: Vice Chairperson Reynolds called the Charter Commission meeting to order at 7:02 p.m. ROLL CALL: Members Present: Commissioners Gary Braam, Marion Flickinger, Manuel Granroos, Novella Ollawore, David Ostwald, Pam Reynolds and Lois Scholzen Members Absent: Commissioners Pete Borman, Don Findell, Carol Hoiby, Ted Kranz, Rick Nelson, Barb Reiland, Cindy Soule and Richard Walch Others Present: Deb Skogen, City Clerk/Staff Liaison Wally Wysopal, City Manager Moranda Zimmer, City Management and Elections Intern APPROVAL OF AGENDA Commissioner Braam MOVED and Commissioner Flickinger seconded a motion approving the meeting agenda. UPON A VOICE VOTE, ALL VOTING AYE, VICE CHAIRPERSON REYNOLDS DECLARED THE MOTION CARRIED. APPROVAL OF MINUTES Commissioner Braam MOVED and Commissioner Flickinger seconded a motion approving the Charter Commission meeting minutes of May 5, 2014. UPON A VOICE VOTE, ALL VOTING AYE, VICE CHAIRPERSON REYNOLDS DECLARED THE MOTION CARRIED. ADMINISTRATIVE MATTERS Ms. Skogen said that she had just prepared a new letter to the Chief Judge requesting the reappointment and appointments for Marion Flickinger and Ted Kranz and the appointment of Manuel Granroos and David Ostwald because she had not heard from the judge to try to get the process moving again. City Manager Wally Wysopal and Intern Moranda Zimmer were introduced to the Commission. NEW BUSINESS A. Discussion of Chapter 7 Taxation and Finances Vice Chairperson Reynolds opened the discussion on Chapter 7. Mr. Wysopal said the issue before them this evening was because the City Council wanted to see the Charter Commission address an issue that was brought forth by the League of Minnesota Cities. because th the date of the levy certification had changed from September 15 to September 30. Ms. Zimmer said the Adopted 10/06/2014 CHARTER COMMISSION MEETING OF SEPTEMBER 2, 2014 PAGE 2 main reason for the legislative change was the state not having the information available on fiscal disparities until September. The levy change now makes it consistent with county and school districts as well. Vice Chairperson Reynolds wondered if she understood fiscal disparities correctly that about 40% of the industrial commercial taxes are pooled and provided to communities that had mostly residential properties. Mr. Wysopal said she was correct. He said the program started about 40 years ago with legislation called the Minnesota Miracle. This legislation was to help communities without commercial and industrial properties receive funding from other communities to help fund their services. He said 40% of new industrial/commercial growth does go into a pool which is then distributed based on needs. He said for years the City of Fridley had contributed to fiscal disparities, however, times have changed and the City is now receiving fiscal disparities funding due to the value of the new commercial/industrial growth happening in the southwest communities like Minnetonka, Bloomington and Eden Prairie. He said there is a pool of approximately $400,000 that will be distributed back, but the City does not know how much it will receive until after it is forecast by the state in mid September. He said the City was constrained by how much it could levy, due to the levy limit, but the fiscal disparities will help bring in additional revenue. Ms. Reynolds wondered if commercial property was higher if the businesses would see a change or stay the same in 2015. She wondered how fiscal disparities would impact the City’s budget because of the Charter. Mr. Wysopal said he did not know how fiscal disparities would impact the budget at this time. The only thing he knew was the tax levy would increase by 1.9% for 2015, which is the figure they knew back in February. He said the biggest reason he saw the need for a change was that requiring the budget to be presented in August would not provide a full picture of how it might impact homeowners as they would not have the full financial picture available to them until September. His would like to have the ability to present the whole picture, budget and levy, to the public at one time. Commissioner Granroos wondered if Medtronic, by moving their corporate headquarters outside of the United States, would affect the City. Mr. Wysopal said that would only affect income taxes and not property taxes, so it would not have an impact on the City. Mr. Wysopal thought it would be good for the Charter Commission to deliberate on language and come back with a recommendation so the issue could be resolved before next year. The Commissioners began discussing language but were concerned about requiring it to be the second th meeting in September because that meeting could fall on September 30, which would be too late. If they did that they would have to include language about calling a special meeting and the Commissioners all decided that was not a good idea. Vice Chairperson Reynolds said she did not want say in accordance with state law but wondered what would happen if the legislature made another change in a year or two. Ms. Skogen reviewed Section 7.09, pertaining to the tax levy, and said that language did not need to be changed as it currently stated, “in accordance with Minnesota state law.” She said they could look at Sections 7.04 and 7.05 and put in similar language or other language they felt was better. After further discussion it was determined the following changes would be recommended: Adopted 10/06/2014 CHARTER COMMISSION MEETING OF SEPTEMBER 2, 2014 PAGE 3 Section 7.04.2. last sentence, “The estimates shall be submitted to the Council at its last regular monthly meeting in August in accordance with Minnesota state law, and shall be published twice in summary in the official publication pror to November 15.” Section 7.05, first sentence, “The budget shall be a principal item of business at the last regular monthly meeting of the Council in August a regular meeting in September, and the Council shall hold subsequent meetings from time to time…” Mr. Wysopal said the changes would be very workable and could be used when determining the dates for the next fiscal year and thanked the commissioners for their time and consideration. He said it may seem small but it is important. Staff will draft and ordinance with the recommended changes and provide them to the Commission for their October meeting to review. Vice Chairperson Reynolds recommended the commissioners all review Sections 7.06 through 7.08 as well prior to the next meeting. B. Discussion of Chapter 1 Vice Chairperson Reynolds opened the discussion. The Commissioners briefly discussed why this was back up for discussion. It was understood that Chairperson Nelson asked to have Chapters 1, 6 and 10 brought up for review at the last meeting in May. Commissioner Flicking MOVED and Commissioner Ollawore seconded a motion tabling the discussion of Chapters 1, 6 and 10 until the next meeting in October. UPON A VOICE VOTE, ALL VOTING AYE, VICE CHAIRPERSON REYNOLDS DECLARED THE MOTION CARRIED. FUTURE MEETING TOPICS/COMMUNICATIONS The future meeting topics for October are: Update on reappointments/appointments Discussion of Chapter 7 – drafted ordinance for amendment to Sections 7.04 and 7.05 Removing from the Table Chapters 1, 6 and 10 ADJOURNMENT: Commissioner Braam MOVED and Commissioner Ollawore seconded a motion to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, VICE CHAIRPERSON REYNOLDS DECLARED THE MOTION CARRIED AND THE MEETING WAS ADJOURNED AT 7:58 P.M. Respectfully submitted, ________________________ ________________________ Debra A. Skogen, Commissioner Donald Findell, Secretary City Clerk/Staff Liaison Adopted 10/06/2014