12/03/2001 - 00009713THE MINUTES OF THE REGULAR MEETING OF THE FRIDLEY CITY COUNCIL OF
DECEMBER 3 , 2001
The Regular Meeting of the Fridley City Council was called to order by Mayor Lund at 7:34 p.m.
PLEDGE OF ALLEGIANCE:
Mayor Lund led the Council and audience in the Pledge of Allegiance to the Flag.
ROLL CALL:
MEMBERS PRESENT: Mayor Lund, Councilmember Barnette, Councilmember Bolkcom,
Councilmember Billings, Councilmember Wolfe.
MEMBERS ABSENT: None.
APPROVAL OF PROPOSED CONSENT AGENDA:
MOTION by Councilmember Barnette to approve the Proposed Consent Agenda as amended. Seconded
by Councilmember Wolfe.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION
CARRIED UNANIMOUSLY.
APPROVAL OF MINUTES:
City Council Meeting of November 19, 2001.
Councilmember Bolkcom stated that on page 1 regarding water discoloration states "Five households had
water discoloration and sedimentation problems." She believes it should state "eighteen percent" instead.
Mr. Burns stated that it would be changed.
Councilmember Bolkcom stated that on Page 4, it states "Councilmember Bolkcom asked if the
commuter rail comments included a breakdown in satisfaction or if it was a good idea." She asked if it
included a breakdown by ward.
Mr. Burns stated that it would be changed.
Councilmember Bolkcom stated that on Page 8, Item 13 states that the public hearing was removed from
the agenda. It should include why it was removed from the agenda.
Mr. Burns stated that it would be changed.
Councilmember Bolkcom thanked Dr. Burns.
APPROVED AS AMENDED.
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 3, 2001 PAGE 2
OLD BUSINESS:
ORDINANCE NO. 1162 AMENDING CHAPTER 506 OF THE FRIDLEY CITY CODE
PERTAINING TO UNATTENDED VEHICLES:
Mr. Burns, City Manager, stated that this regards the winter parking ban. The changes include
the ending date of the ban from May 1 to April 1. Staff recommended Council's approval.
WAIVED THE READING AND ADOPTED ORDINANCE NO. 1162 ON THE SECOND
READING AND ORDERED PUBLICATION.
NEW BUSINESS:
2. RECEIVE THE MINUTES FROM THE PLANNING COMISSION MEETING OF
NOVEMBER 7, 2001:
Mr. Burns, City Manager, stated that this is a motion to receive the Planning Commission
meeting minutes. Staff recommended Council's approval.
RECEIVED.
3. VARIANCE REQUEST, VAR #O1-03, BY EAST RANCH ESTATES BOB AND MIKE
SCHROER), TO REDUCE THE REQUIRED SETBACK OF A FREE-STANDING SIGN
FROM A PROPERTY LINE OR DRIVEWAY FROM 10 FEET TO 1 FOOT TO ALLOW
THE CONSTRUCTION OF A NEW FREE-STANDING SIGN, GENERALLY LOCATED
AT 7610 UNIVERSITY AVENUE N.E. (WARD 3):
Mr. Burns, City Manager, stated that this request has to do with a St. Paul Waterworks water
main that runs through the property prohibiting the sign from being placed elsewhere. The
variance was approved unanimously at the Appeals Commission meeting on November 14
subject to four stipulations. Staff recommended Council's approval.
APPROVED VARIANCE REQUEST #O1-03 WITH THE FOLLOWING
STIPULATIONS: 1. PETITIONER SHALL OBTAIN A SIGN PERMIT BEFORE
INSTALLATION OF SIGN; 2. THE SIGN SHALL MEET CODE REQUIREMENTS FOR
SIZE; 3. THE SIGN SHALL BE A MINIMUM HEIGHT OF TEN (10) FEET FROM THE
BOTTOM OF THE SIGN TO THE FINISHED GROUND GRADE; 4. THE SIGN MUST
BE DESIGED SO IT DOES NOT OVERHANG THE PROPERTY LINE.
4. SIGN PLAN REQUEST BY NORTH CENTRAL BUSINESS CENTER, GENERALLY
LOCATED AT 452 NORTHCO DRIVE N.E.:
Mr. Burns, City Manager, stated that this is to consider approval of the sign plan for Northco
Central Business Center. It meets all City criteria for the multi-tenant building. Staff
recommended Council's approval.
APPROVED SIGN PLAN REQUEST.
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 3, 2001 PAGE 3
5. APPROVE 2002 SIXTY-DAY ACTION APPLICATION DEADLINES FOR THE
PLANNING COMMISSION AND APEALS COMMISSION MEETINGS:
Mr. Burns, City Manager, stated that this is a motion to approve the sixty-day action deadlines for
items that are reviewed by the Planning and Appeals Commissions. Staff recommended Council's
approval.
APPROVED 2002 SIXTY-DAY ACTION APPLICATION DEADLINES.
6. RESOLUTION NO. 69-2001 IN SUPPORT OF AN APPLICATION FOR A MINNESOTA
LAWFUL GAMBLING PREMISE PERMIT FOR CLIMB THEATER (MAPLE LANES,
6310 HIGHWAY 65 N.E.) (WARD 2):
Mr. Burns, City Manager, stated that this is a renewal application from CLIMB Theater for a
charitable gambling license effective from March 1, 2002, to February 28, 2004. Staff
recommended Council's approval.
ADOPTED RESOLUTION NO. 69-2001.
7. RESOLUTION NO. 70-2001 IN SUPPORT OF AN APPLICATION FOR A MINNESOTA
LAWFUL GAMBLING PREMISE PERMIT FOR FRIDLEY AMERICAN LEGION,
POST 303 (7365 CENTRAL AVENUE N.E.) (WARD 2):
Mr. Burns, City Manager, stated that this is a renewal application from the Fridley American
Legion, Post 303, for a charitable gambling license effective from March 1, 2002, to February 28,
2004. Staff recommended Council's approval.
ADOPTED RESOLUTION NO. 70-2001.
8. RESOLUTION NO. 71-2001 IN SUPPORT OF AN APPLICATION FOR A MINNESOTA
LAWFUL GAMBLING PREMISE PERMIT FOR THE MINNESOTA SPORTS
FEDERATION (SPIKERS GRILLE & BEACHCLUB, 7651 HIGHWAY 65 N.E.):
Mr. Burns, City Manager, stated that this is an application by the Minnesota Sports Federation for
a charitable gambling license which would replace the previous license held by Totino-Grace.
The license will become effective either February 1 or March 1 for a two-year period depending
on the State license. The State requires that our premise permit be approved first. Staff
recommended Council's approval.
ADOPTED RESOLUTION NO. 71-2001.
9. APPOINTMENT (CITY EMPLO
Mr. Burns, City Manager, stated that staff recommended the appointment of Todd Desjardin to
replace Shannon Coulter. Todd is a Minneapolis resident who graduated from DeLaSalle High
School and Minneapolis Community College. He served in the U.S. Air Force from 1987
through 1991. He has been employed as a Security officer for Hennepin County since 1994.
Staff recommended Council's approval.
APPOINTED TODD DESJARDIN AS PATROL OFFICER.
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 3, 2001 PAGE 4
10. CLAIMS:
APPROVED CLAIM NOS. 102636-102761.
11. LICENSES:
APPROVED ALL LICENSES AS SUBMITTED.
12. ESTIMATES:
APPROVED ESTIMATES AS FOLLOWS:
Frederic W. Knaak, Esq.
Holstad and Knaak, P.L.C.
1690 Minnesota World Trade Center
30 East Seventh Street
St. Paul, MN 55101
Services Rendered as City Attorney
For the Month of November, 2001 $5,000.00
ADOPTION OF AGENDA:
MOTION by Councilmember Bolkcom to adopt the agenda as presented. Seconded by Councilmember
Wolfe.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION
CARRIED UNANIMOUSLY.
OPEN FORUM, VISITORS:
No persons in the audience spoke.
PUBLIC HEARING:
13. CONSIDERATION OF THE 2002 CITY OF FRIDLEY BUDGET:
MOTION by Councilmember Bolkcom to open the public hearing and waive the reading. Seconded by
Councilmember Wolfe.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE PUBLIC
HEARING OPENED AT 7:41 P.M.
Mr. Burns, City Manager, stated this is a maintenance budget and does not add a lot of new services or
programs. It supports the very strong programs we have. He would like to thank the Finance Director
Rick Pribyl and Craig Ellestad, the budget Accountant for their work in helping put this budget together.
During the legislative session this year, financial responsibility of government services was switched
around. The State took on the $900,000,000 in K-12 education, and they paid for that at a cost to local
cities by eliminating $260,000,000 in HACA statewide. They also changed the tax rate system, providing
tax reductions for everybody. The process, however, had undesirable results with respect to
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 3, 2001 PAGE 5
redevelopment programs and tax increment financing. It will be much harder to use tax increment
financing. The City lost over $130,000 in local government aid.
Mr. Burns stated that in the planning process over the last five years, staff has used a
CounciUCommission survey to identify issues. Staff develops questions relating to issues they see on
their operational horizons. The answers are compiled, meetings held, and cable television shows
conducted. There is a very thorough and comprehensive review of City issues through this process. Staff
develops goals and objectives and their annual budgets come before the Council in June during budget
work sessions. Council sees the proposed budget again in August and December. Expenditure issues
identified in this year's survey were hiring a new firefighter, adding new municipal garage facilities
including remodeling for better office/restroom facilities for staf£ It also included energy efficiency
improvements to the garage bays by adding energy efficient doors. Replacing the cast iron water main as
part of our street reconstruction project was favored and will be included in the Capital Improvements
budget at an addition of $100,000. Not everything was approved, such as winter maintenance of
bikeways/walkways. Council and the commissions decided we should not fix the drainage problems at
Community Park East and also rejected no-fault sewer back-up insurance. Springbrook Nature Center
improvements were rejected. There are revenue issues with rising water and storm sewer rates. There are
also concerns about what to do with property taxes.
Mr. Burns stated that Table 1 in the budget message described all the funds. The 2002 budget has
allocated $14,734,000, a 2.3% change over this year's amount. The General Fund section of the budget
shows a$900,000 increase, an increase in spending in that area by 7.5%. Most reflect rising personnel
costs including a 4% cost of living adjustment for our employees and an additional cost of health
insurance for employees in the amount of $810,000. These numbers have all been rounded up or down.
The cost of the police officers whose salaries were previously funded by grants but are no longer, is in the
amount of $15,000. The cost of the Fire Captain position is in the amount of $64,000. There are five
Special Revenue Funds used to account for different types of funding and resources. Altogether we are
budgeting $1,100,000 which was reduced by 17.3% from last year. This amount reflects the Housing
Revitalization Fund and the reduction of the Grant Management Funds which was caused by moving the
cost of two police officers to the General Fund.
Mr. Burns stated that the Cable Television Fund is the second of two special revenue funds at $149,000,
which is $34,603 more than budgeted for this year. It includes $27,000 for equipment upgrades. The
Grant Management Fund budget is $352,504 and is $80,000 less than what was budgeted for this year. It
supports one police officer and two other grant-funded police personneL It is also the source of the City's
Section 8 Housing Coordinator's funding, the Handyworks Coordinator out of the Senior Center, and the
Community Development Block Grant Housing Rehabilitation Fund. The amount of $125,000 has been
budgeted for that. The Housing Revitalization Fund has nothing in it because we have not been spending
the $250,000 budgeted for it. Solid Waste Abatement Fund is budgeted at $321,000. That provides
funding for the Recycling Coordinator and two part-time yard waste monitors. The bulk of the money is
used to pay for our recycling hauler. We have a Police Activity Fund which is listed as a Special
Revenue Fund. We were notified by the State that we were getting Police pension turnback money not
needed to fund retirement obligations for police officers. We have about $2,100,000 and have been
transferring parts of that to the General Fund to pay for police-related costs for previously grant- funded
employees and technical improvements. The total transfer is $303,000.
Mr. Burns stated that the budget for Capital Project Funds is $1,043,000, $304,6001ess than budgeted for
2001. It is allocated among three sub-plans. One is buildings at $788,000, mostly for the garage addition.
The amount of $140,000 has been budgeted out of money for streets with another $650,000 for that
purpose as well from State Aid. Staff is planning a$600,000 street reconstruction program for various
Fridley areas. The amount of $100,000 has been budgeted for street sealing in the west central section of
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 3, 2001 PAGE 6
Fridley. The Parks Improvements budget is set at $109,800, with $7,000 for Commons Park parking lot
repairs, $30,000 for court resurfacing, $30,000 for resurfacing the trail around Fahr Lake, $20,000 for
replacing park signs, and $20,000 in fence repairs. The amount of $10,000 is our local match for the
Federal grant established for the pier at Moore Lake.
Mr. Burns indicated that the fourth category of funds is labeled Enterprise Funds. Water, Sewer, Storm
Water, and Liquor comprise the Enterprise Funds. The budget includes spending of over $11,000,000 in
these four areas. There has been a big drop in the liquor operations and a sizable increase in the sewer
plans. The Water Fund appropriation is $1,900,000 and is half a percent more than what was budgeted
for 2001. There will be a$104,229 reduction in debt service but a$65,000 increase in the transmission
and distribution section for contractual service items. This amount also includes a$45,510 increase in the
administrative section for the purpose of contracting with an outside carrier for a new billing process. The
Sewer Fund is at $3,300,000 and is 9.8% more than what was budgeted for this year. Almost all the
increase is accounted for by increase in disposal costs passed on by the Metropolitan Council. Storm
Water appropriation is $453,000. The Liquor Fund appropriation is $5,400,000, 18.3% less than this
year. The decrease is due to the closing of the Holly Center store.
Mr. Burns stated that another category for budgeting is for various debt service funds such as special
assessments for street reconstruction, water, sewer, and storm water projects. The amount of $180,000
has been budgeted. Another debt service fund has been set up for water system improvements at
$376,000. A third debt service funds has been set up for sanitary and storm sewer at $136,000.
Mr. Burns said that there is no long-term general obligation debt and no debt service charge to the
General Fund. This helps to maintain an Aal bond rating and keeps taxes low. All of our neighbors have
high debt service with high cost. We attempt to take our tax increase and then look at the tax increases
for the school districts and other taxing jurisdictions in Fridley and figure out the taxes on the average
local home. One of the City's employees owns an average local home. Staff has been using that for an
example the last three or four years. It has an average value of $132,600. Local property tax rates were
reduced dramatically by the State legislature. The tax changes were accompanied by big reduction in
State aid to Cities. Cities were expected to levy back the lost State aid. Fridley has chosen to levy an
amount equal to the lost State aid which amounts to about $1,200,000 and have opted to raise last year's
property tax base by another $4,200,000. The effect of the changes is to raise the City's property taxes by
a little less than 34%. Anoka County has also raised its property taxes substantially. Revenues from
State aid with property taxes are only about 1.25% higher than they were for 2001. These need to pay for
the General Fund operations. We have not been wasteful in spending habits and taxing practices. The
market rate levies approved by the voters for the school districts are included in determining property
taxes and market value homestead credit consideration that the State allows for residential property. In
2001, there was tax reform by the State legislators, but it did not make the tax system more simple. The
tax break for the average home is only $38 (3.1%) in Spring Lake Park In School District 14, the tax
break is $236, or about 17.2%. In Columbia Heights it is $47 or 3.1%. In School District 11, that tax
break is $167, or about 12.1 %.
Mr. Burns stated that part of the problem is that the average value of property is low and the tax breaks
the legislature passed really affected higher value property. A$250,000 home in Fridley will get a 40%
tax break. Table 3 contained in the budget message has the most recent calculations for fund balances
based on a five-year history. Table 4 shows the amount of General Fund revenue from inside and external
forces. Up to 1999, the City was not pulling down internal resources. From 1999, the City was spending
at least $600,000 in its fund balances to balance the General Fund. Table 5 depicts changes in various
sources of General Fund revenue. Property taxes as a source of revenue have risen from 34.8% to 44.3%.
Table 6 displays the budget and sources of internal transfers to the General Fund. We are projecting to
use $827,028 in General Fund reserves in 2002, and we are using an increasing amount of our liquor fund
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 3, 2001 PAGE 7
profits to fund the General Fund. Table 7 shows that General Fund expenditures have grown at a rate of
inflation and they are not out of line and are less than the constant dollar figure for 1995-1997. New
construction has dropped from $20,000,000 for the first ten months of this year and is less than those two
previous years. The unemployment rate has grown from 2.6% to 3.28%. crime rates appear to be down
and burglary rates are at an all-time low. There has been a 7.2% increase in the number of people on
public assistance.
Mr. Burns stated that while Fridley continues to offer quality governmental services at a lower cost than
any of its neighbors there are significant challenges ahead. Taxes are lower but there are substantial
pressures to raise those taxes. More of the City's local school districts may be going to the voters for levy
increases. The State is projecting deficits for revenues projected for the State for the next budget year.
There is a great possibility that the State may want to tamper with local government aid again to find
ways to reduce expenditures and stay within annual revenues. That will put more pressure on cities.
Approximately 63% of our expenditures for Capital Improvements this year are from fund balances. The
City is also going to be challenged to find local funding for previously grant-funded police personnel.
That will have a bearing on the youth programs funded out of the Police Department. We are facing a
prospect of putting up a local share of $700,000 to fund a county-wide public safety radio replacement
system. The budget for 2003 should be cautious particularly in this economy.
Mr. Burns presented the 2002 budget for Council's consideration.
Councilmember Barnette stated that 3 of the 4 referendums for the school districts failed but they will be
back. Do the unemployment figures reflect the citizens of Fridley or the businesses?
Mr. Burns stated that he is referring to Fridley residents and the figures come from the State.
Councilmember Bolkcom asked if the Water Fund was at .4% or .5%.
Mr. Burns stated that it is at .4%.
Councilmember Billings stated that we spend about $230,000 for our Prosecuting Attorney. Some
residents figure that all the fines they pay for speeding tickets, etc., come back to the City and that is why
we do law enforcement on various roads. He asked what portion of the revenue stream was generated
from our share of the court fines.
Mr. Burns stated that he understands it to be a break-even situation and would refer to Mr. Pribyl for more
information.
Mr. Pribyl stated that the revenue generated is $190,500.
Councilmember Billings stated that speed traps and other things are not things we are doing, but cost us
more to prosecute than the small return we get from the courts.
Mr. Burns stated that it is by no means a windfall.
Councilmember Bolkcom asked what the process is for the next step.
Mr. Pribyl stated that this is the public hearing for the 2002 budget. The next step would be to have
Council review and approve the resolution for the 2002 budget. There will also be a resolution to certify
the property tax levy for Anoka County. This will be before Council at the next meeting.
FRIDLEY CITY COUNCIL MEETING OF DECEMBER 3, 2001 PAGE 8
MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember Wolfe.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION
CARRIED AND THE PUBLIC HEARING WAS CLOSED AT 8:20 P.M.
14. INFORMAL STATUS REPORTS:
Mr. Burns stated that another newsletter is coming out.
Councilmember Barnette stated that there is a lot of good information in the newsletters.
Mr. Burns stated that his assistant, Jennifer Dunn, has done an excellent job on this edition.
Councilmember Wolfe stated that Officer Kurt Morse, is the new Gymnastics Coach for Fridley High
School.
ADJOURN:
MOTION by Councilmember Bolkcom to adjourn the meeting. Seconded by Councilmember Barnette.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE DECEMBER 3,
2001, CITY COUNCIL MEETING ADJOURNED AT 8:22 P.M.
Respectfully submitted,
Signe L. Johnson Scott Lund
Recording Secretary Mayor