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12/20/1999 - 00000876THE MINUTES OF THE SPECIAL MEETING OF THE FRIDLEY CITY COUNCIL OF DECEMBER 20, 1999 The Regular Meeting of the Fridley City Council was called to order by Mayor Jorgenson at 7:30 p.m. PLEDGE OF ALLEGIANCE: Mayor Jorgenson led the Council and audience in the Pledge of Allegiance to the Flag. ROLL CALL: MEMBERS PRESENT: Mayor 7orgenson, Councilmember Barnette, Councilmember Billings, Richard Wolfe, and Councilmember Bolkcom MEMBERS ABSENT: None ADOPTION OF AGENDA: MOTION by Councilmember Billings Barnette, to approve the adoption of the Agenda with the addition of a resolution providing for sewer rate decreases. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM: No persons spoke regarding any issues to be discussed that are not on the agenda. OLD BUSINESS: 1. RESOLUTION CERTIFYING THE FINAL TAX LEVY REQUIREMENTS FOR 2000 TO THE COUNTY OF ANOKA (TABLED DECEMBER 13, 1999): MOTION by Councilmember Barnette to remove this item from the table. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Burns, City Manager, stated that this was consideration of a resolution certifying the final tax levy requirements for 2000 to Anoka County. Mr. Burns said the City is proposing to certify $4,035,671 to Anoka County as the City's property tax levy for the year 2000. The total includes the following components: 1) The General Fund, $3,947,992; 2) Capital Improvement Fund - Parks $72,689; 3) Six Cities THE MINUTES OF THE SPECIAL MEETING OF DECEMBER 20, 1999 PAGE 2 Watershed Management Organization, $6,200; and 4) Stonybrook Creek Subwatershed District, $8,900. Councilmember Billings stated that he realized that staff indicated that because of the information that has been provided to the State with the need to approve the levy before they approve the budget, maybe Council should be discussing the budget before they approve the levy. Mayor Jorgenson asked if they should discuss the budget first. It may make more sense to accept the special election canvass before anything else. Councilmember Barnette stated that it does not make a difference which sequence they take. The Canvass could probably wait. Councilmember Bolkcom stated that she thought they should do the special election canvass first. MOTION by Councilmember Billings to discuss Item No. 3. Seconded by Council- member Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAJOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. RECEIVE THE STATEMENT OF CANVASS FROM THE SPECIAL ELECTION OF DECEMBER 14, 1999: Ms. Deb Skogen, City Clerk, stated that the special election was held on December 14, 1999, regarding the proposed franchise fee. The statement of canvass had to be approved within seven days from the date of the election. The total number of ballots cast in this election, was 3,373. The total number of yes votes was 577, and no votes was 2,795, with one blank ballot. On election day at 7:00 a.m. there were 16,210 registered voters and 94 new registered voters for a total of 16,304 voters. There was a twenty-one percent turnout on election day. For a special election, this is considered high compared to some elections which ran from ten to twelve percent. The question was defeated and the margin of defeat was eighty-three percent. Council needs to verify the results of the election by motion. MOTION by Councilmember Barnette to receive the Statement of Canvass from the Special Election of December 14, 1999. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAJOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. Mayor Jorgenson stated that the last portion of New Business can wait until after the Old Business information was finished. THE MINUTES OF THE SPECIAL MEETING OF DECEMBER 20, 1999 PAGE 3 1. RESOLUTION NO. 109-1999 CERTIFYING THE FINAL TAX LEVY REQUIREMENTS FOR 2000 TO THE COUNTY OF ANOKA (TABLED DECEMBER 13, 1999): Councilmember Billings asked Mr. Burns, City Manager, if the resolution was the same budget that was presented on December 6. Mr. Burns stated that was it was the same budget. Councilmember Billings asked if it had $650,000 as an income item from the franchise fee. Mr. Burns stated that it listed that under Charges for Services. Councilmember Billings asked if it would be appropriate to strike that income item since they know that income will not e�st. Mr. Burns stated that was a matter of Council's discretion. Councilmember Billings stated that he feels a total lack of sense of responsibility approving a budget that he knows is out of balance. Councilmember Barnette asked if they could still balance the budget by transferring funds out of the reserve. Mayor Jorgenson stated that they could, but they would be looking at a$1,000,002 draw down of the reserves in order to balance the budget. Mr. Burns stated that they could transfer it out, or wait until some point when it is more apparent where they will wind up in terms of the expenditures. A combination of positive variances in expenditures and revenues may very well cover that $650,000 and they would not need to transfer that. Councilmember Bolkcom asked how realistic that was because $650,000 is a big variance. They would be better off taking the franchise fee out as Councilmember Billings suggested and actually look at what they can cut out for the expenditures for ne�t year. Mayor 7orgenson stated that she would have to agree with Councilmember Billings and would like it removed from the budget. Councilmember Barnette stated that was the responsible thing to do. He heard loud and clear the people do not want any new taxes. Councilmember Bolkcom stated that she heard a lot of people say they do not believe the City should have a franchise fee, but she heard a lot of people say they have no problem with having their property taxes increased. They cannot do that at this point because they had to certify their preliminary levy to the County in September. THE MINUTES OF THE SPECIAL MEETING OF DECEMBER 20, 1999 PAGE 4 Mr. Pribyl, Finance Director, stated that what they could do for due process would be to approve the budget as it is right now and modify it during the first quarter. This would be in lieu of actually switching items around now, Council and staff could evaluate where the cuts would be, and then provide resulting changes to the budget in a supplemental resolution. Passing it, would be in order, and then in the first quarter go through a process of evaluating what those changes would be. Councilmember Bolkcom asked why they would not take the franchise fee as revenue off the budget now, and still leave everything else that is in there. She asked why the City would leave something in there that they know is not going to happen. Mr. Pribyl stated that is an option. Mayor Jorgenson stated that she agreed that Council would have to look at ne�t year's budget to see where additional funds would come from or what is going to be removed. That would have to be done by the first quarter of 2000. She concurred with Councilmember Billings that they should examine the budget. Councilmember Bolkcom stated that they have already had some discussion about things that could be cut from the budget. Maybe the conference meeting in 7anuary would be a good time to discuss this. Mr. Burns stated that the meeting was January 31 and that could be the topic. Councilmember Wolfe stated that it was really clear to him that no one wants a new tax. No one seems to have a problem with their taxes being raised, but it is the new tax that is bugging them. Councilmember Bolkcom stated that the problem is that they cannot do anything about increasing the property taxes. Councilmember Wolfe stated that he realized that, but maybe at some point in the future they may if they have to. Mayor Jorgenson stated that there was a real possibility that in the Fridley budget, year 2001, they will see an increase in property taxes. She was not willing to transfer any more money from the reserve. She also felt there was a way of cutting down some expenditures. Councilmember Billings asked Mr. Pribyl where the $650,000 appears. Mr. Pribyl stated that it is listed under Charges for Services in General Government. Councilmember Billings stated that if they take $650,000 out of there, the number becomes $888,260. In the expense items for the appropriations, the painting of the signal poles and fixtures and Fire/Public Works classroom, office, and locker room appears in that line item. THE MINUTES OF THE SPECIAL MEETING OF DECEMBER 20, 1999 PAGE 5 Mr. Burns stated that the painting of the signal poles and fi�tures were in the Capital Improvements under Streets Capital Improvement. The Fire/Public Works classroom, office, and locker rooms appears under Capital Improvements under General Capital. Councilmember Billings asked where the ADA improvements appeared. Mr. Burns stated that it appears in Parks Capital Improvement under General Capital. They will have some positive hearings for the budget as a result of police officer turnover. He said there is actually $50,000 less for salaries. Because of the starting salaries for new employees. There have been some savings to help with the situation. Mr. Pribyl stated that they have the PERA information and they have to figure out how it is going to be integrated into the budget for the year 2000 but it will probably be of some assistance. Mayor 7orgenson asked if he meant the Public Employees Retirement Association. Mr. Pribyl stated that was correct, it is the police pension. Mr. Burns stated that he is not sure they want to take the ADA improvements out of the budget. If they do, the parks improvements without the asphalt paths would not be as valuable Mayor Jorgenson stated that makes sense. Mr. Burns stated they also have the refund coming from the State of Minnesota, which can be used to offset some of the loss of the $650,000. Councilmember Barnette stated that he knows this is the last year for the playground equipment. He felt it was a little premature to talk about specific items. He would like to talk in more general terms if they could. The park improvements are the last of the six year plan. Councilmember Bolkcom stated that Mr. Pribyl indicated that they do not necessarily have to do the cuts this evening. It may be appropriate for each department manager to go back and set priorities on the loss of the $650,000 and possibly talk with them in January. Maybe there are more creative ways to do some other things. Councilmember Barnette stated that they really have not talked about these things in detail and waiting until the January meeting would be appropriate to talk about specific things. Mayor Jorgenson stated that if they want to reduce those revenues by $650,000, they have to reduce the expenditure side as well. They could say they will reduce the expenditures by $650,000, which will be determined at a conference meeting in January. Councilmember Billings stated that was good in theory, but it is not practical. They need to have line items that balance. They cannot put a line item on the appropriations side of a negative $650,000 to be determined later. In terms of the General Fund, they are looking THE MINUTES OF THE SPECIAL MEETING OF DECEMBER 20, 1999 PAGE 6 at reducing the charges for services by $650,000 and increasing the General Fund reserves brought down by that same amount so the General Fund balances. They would then have to determine whether they want to leave it like that and look at changing the Capital Projects fund in 7anuary. They would be able to balance the General Fund by taking funds out of the reserve fund and reducing the amount that is coming out of the reserve under another one of the funds, typically the Capital Projects Improvements fund. Based on the instructions from the State, they can talk about the budget, but when it comes time to make a motion, they have to save the approval of this until after they file the appropriations to the County. They should concentrate on whether the current ad valorem amount of $3,825,521 should be changed. Mayor Jorgenson did not want to vote on this until they received the outcome of the franchise fee vote. Mayor Jorgenson stated that they could not increase the ad valorem amount, only decrease it. She was responding to citizens' inquiries of why they were going to go ahead and certify the final tax levy and the budget before they had the election resolved. People do not understand the ramifications of those two items and they thought Council was being premature by passing them before the election vote. She does not feel the need to change the ad valorem part of the General Fund. MOTION by Councilmember Bolkcom to approve the Resolution No. 109-99 Certifying the Final Tax Levy Requirements for 2000 to the County of Anoka. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. RESOLUTION NO. 110-1999 ADOPTING THE FINAL BUDGET FOR THE FISCAL YEAR 2000 (TABLED DECEMBER 13, 1999): Mr. Burns stated that this was consideration of a resolution adopting the final budget for the Fiscal Year 2000. The total appropriations for all funds is $13,988,218. This includes the following components. 1) The General Fund $11,524,624. 2) Special Revenue Funds, $916,164. 3) Capital Projects Fund, $1,541,200. 4) Agency Fund, $6,200. The City held its Truth in Taxation Hearing on December 6 and as required by Minnesota law announced the date of consideration of the budget resolution. Staff recommended Council's approval of the budget resolution. MOTION by Councilmember Billings to adopt the Resolution No. 110 with the following amendments, Charges for Service General Government: changing the General Fund estimated revenue striking $1,538,260 and substituting the amount of $888,260. The total revenues and other financing sources would become $10,401,289. The General Fund Reserve would become $1,123,365 (increased by $650,000). Seconded by Councilmember Barnette. Mayor 7orgenson asked if Councilmember Billings was suggesting that they take money from the General Fund until the time that expenditure cuts can be made on the appropriations side. THE MINUTES OF THE SPECIAL MEETING OF DECEMBER 20, 1999 PAGE 7 Councilmember Billings stated that the motion is to change the amount under the General Fund to reflect that the $650,000 comes out the General Fund Reserve. It is likely that there would be other motions to adjust other portions of the budget. Councilmember Billings stated that the motion reduces the General Fund by $650,000 so the item reads $888,260, increases the General Fund reserves by $650,000 so that line item reads $1,123,365, and directs staff to put the appropriate numbers in to make it add up. He believes that appropriate number, to be $10,401.298, under Total Revenues and Other Financing Sources. UPON A VOICE VOTE, COUNCILMEMBER BILLINGS, COUNCILMEMBER BOLKCOM, COUNCILMEMBER BARNETTE, AND COUNCILMEMBER WOLFE VOTING AYE, AND MAYOR JORGENSON VOTING NAY, MAYOR JORGENSON DECLARED THE MOTION CARRIED FOUR TO ONE. Councilmember Billings asked Mayor Jorgenson if she wanted to leave the $650,000 in the line item for General Government. Mayor Jorgenson stated that she did not want to see that item placed under the General Fund Reserves. She felt that in the 7anuary discussion it would be determined that nothing will be cut from the budget. Councilmember Billings asked what items she would like to eliminate under the appropriations side of the General Fund Mayor Jorgenson stated that she understood that $650,000 was going to be removed from the General Capital Improvements, Street Capital Improvements, and Parks Capital Improvement funds. Then they could come back and make additional supplemental changes following the 7anuary meeting. Councilmember Billings stated that is in a different portion so in order for the General Fund to balance they need to take more out of the reserves and put it into the General Fund. Then they can take less out of reserves under the Capital Projects Fund. Councilmember Billings stated that they could leave the motion the way it was presented and not make any changes to the other portion. Councilmember Billings stated that would be up to a majority vote of Council. Councilmember Bolkcom stated that she does not have enough information to do some slashing on Capital Improvement. Mayor Jorgenson stated that it should not necessarily by taken from the Capital Improvement portion. Councilmember Bolkcom stated that they can adjust those as they go along. THE MINUTES OF THE SPECIAL MEETING OF DECEMBER 20, 1999 PAGE 8 Councilmember Barnette stated that he does not want to make any decisions now on where the cuts should be exactly. Councilmember Billings stated that the Total General Fund amount of $11,524,654 would stay the same. Mayor Jorgenson stated that the original motion is still on the floor, the amendment passed. She asked if there were other suggestions or amendments. MOTION by Councilmember Billings to amend the item of the Capital Projects Fund, under General Capital Improvements to amend to $19, 500, to amend the Streets Capital Improvement fund to $680,000, and to amend the Parks Capital Improvement fund to $103,700. The total Appropriations would be changed to $803,200. Fund Balance would be changed to $270,425 on the revenue side. The total Capital Projects Fund would be $803,200. Seconded by Councilmember Barnette. Councilmember Billings stated that this would take $300,000 from the Streets Capital Improvement Fund which is the painting of signals and fi�tures. It would take $237,000 from General Capital Improvement Fund which is the Fire/Public Works classroom, office and locker room facility. It would take $201,000 from the Parks Capital Improvement Fund which is the ADA improvements. This adds up to $738,000, appro�mately $88,000 more than what they are losing with the franchise fees but put these in the position where they have a balanced budget. The total impact would be to draw down the reserves less than the original proposal and still allow them in the first quarter to look at changes in the budget. Councilmember Bolkcom stated that if they did this, they could still have discussion and then change the budget as they go along. There may be something that is not due ne�t year or as costly as they think. Councilmember Billings stated that any time during the year, they can have a resolution to change the budget. The big difference is that ne�t year it will take four votes and this year it takes three votes. He would like a five minute recess to add up the numbers so the total numbers are the same before they actually pass the budget. Councilmember Bolkcom stated that she was a little concerned about taking the money out of the Capital Improvements Fund. She was not so concerned about the painting of the light fi�tures. That is why she asked if they could have resolutions at any time for changes because they would have to do that relatively soon to change the Parks fund. Her concern was that Council would still have a lot of discussion in 7anuary. Councilmember Billings stated that is his goal, but his main concern this evening was to pass a budget that balances and is logical. He has heard the people that contacted them. Unfortunately, seventy-nine percent of the people chose not to contact them or vote. The first impulse was to say that the twenty-one percent who did vote speak for the entire seventy-nine percent. There was some validity that those who chose to be silent are allowing those who voted to speak for them. The majority of people said that they do not want Council to spend any more money than they have to. They want police and fire protection, streets that are well-maintained and plowed. He heard they did not want the THE MINUTES OF THE SPECIAL MEETING OF DECEMBER 20, 1999 PAGE 9 City to take care of children after school, senior citizens and people that are using recreation programs. If people are going to use those programs, there needs to be user fees. Councilmember Barnette stated that is what Council needs to discuss at their conference meeting and have input from citizens. He has heard different things from different people. Mayor 7orgenson stated that she would have to disagree. The survey showed that there was a decrease in the number of youth that were participating in the programs. They are going to have to take a look at the types of services the City is expected to provide for the citizens, and it is generally police, fire, public safety, and public works. She has heard strong support for City parks. Councilmember Bolkcom stated that she felt that people were basically happy with the services they received. There needs to be more discussion about the drop-off, curfew and the Zone and some other things. There is a fine line between what government does and some of the social issues. Mayor Jorgenson stated that neighbors outside of School District No. 14 asked why the services were being provided in that school district and not in any other school district. Mr. Pribyl stated that all of the figures have been checked. Under Charges for Services, General Government is $888,260. Fund Balance is $1,123,365. Total Revenues and Other Financing Sources is $10,401,289. Councilmember Billings stated that the General Fund now balances. MOTION by Councilmember Billings to call a five minute recess. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Bolkcom stated that she did not think there should be any more changes because the budget is now balanced and they need to seriously look at this in detail. MOTION by Councilmember Billings to amend the resolution to include under the total of all funds, the new number which is $13,250,218. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESS: 42. CLAIMS: MOTION by Councilmember Billings to approve payment of Claim Nos 90876 through 90974. Seconded by Councilmember Bolkcom. THE MINUTES OF THE SPECIAL MEETING OF DECEMBER 20, 1999 PAGE 10 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. INFORMAL STATUS REPORTS: Councilmember Bolkcom stated that they received an e-mail on the Y2K improvements. Mr. Burns stated that there is standby staffing of the Public Works Department as well as the public safety departments. They tested their generators and they are all working. He felt they were prepared. If anybody has any questions they can call Bill Champa, Management Assistant, at 572-3502. Mayor Jorgenson stated that on December 31 there will be a family New Year's Eve event at Springbrook Nature Center at 4:00 p.m. There will be an evening program there for adults as well. Advance registration is required by calling the City of Fridley at 571-3450. 6. RESOLUTION NO. 111-1999 PROVIDING FOR SEWER RATE DECREASES: Mayor 7orgenson stated that this is another item added to the agenda by Councilmember Billings for a resolution for sewer rates for the City of Fridley. The resolution is regarding sewer rates decreasing. She would like to have some discussion regarding this resolution. Councilmember Barnette stated that this is not a part of the budget. Mr. Burns stated that was correct. They budget the Enterprise Funds separate. Councilmember Billings stated that the Metropolitan Council has been lowering the rates since 1998. The Metropolitan Council operates the treatment plant and charges all of the cities in the metropolitan area a fee. They have reduced their rates. Many of the cities in the metropolitan area have reduced their rates. The Metropolitan sewer board has decreased rates from $135 per 100,000 gallons in 1998 to a fee of $120 per 100,000 gallons in the year 2000. That amount go down to $118 per 100,000 in the year 2001. The intent of the City Council is to pass those rates onto the sewer customers for the utility billing process. Last summer when staff presented these numbers to them, it was his suggestion that they look at the possibility of reducing these rates to reflect the reduction from the Metropolitan Council. Addressing this issue now in December is important to make the adjustment for the billing period of January 2000. Mayor Jorgenson stated that this reduction would only be taken on the Metropolitan Sewer and Waste Commission's portion of the bill. Councilmember Billings stated that was correct. Mayor Jorgenson asked Mr. Pribyl if he was going to be able to have this implemented with the January billing. Mr. Pribyl stated that they would be able to do that. MOTION by Councilmember Billings to approve a resolution providing for sewer rate decreases. Seconded by Councilmember Barnette. THE MINUTES OF THE SPECIAL MEETING OF DECEMBER 20, 1999 PAGE 11 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. ADJOURN: MOTION by Councilmember Barnette to adjourn the meeting. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE SPECIAL CITY COUNCIL MEETING OF DECEMBER 20, 1999 ADJOURNED AT 8:45 P.M. Respectfully submitted, Signe L. Johnson Nancy J. Jorgenson Recording Secretary Mayor