Loading...
HomeMy WebLinkAbout12-06-10-S --2UTLN HILLS Approved: January 10, 2011 CITY OF ARDEN HILLS, MINNESOTA SPECIAL CITY COUNCIL MEETING DECEMBER 6, 2010 6:00 P.M. -ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Stan Harpstead called to order the special City Council meeting at 6:05 p.m. Present: Mayor Stan Harpstead, Councilmembers David Grant, Brenda Holden, Fran Holmes, and David McClung Absent: None. Also present: City Administrator Patrick Klaers; Director of Finance and Administrative Services Susan Iverson; Parks and Recreation Manager Michelle Olson; Community Development Director Jill Hutmacher; Public Works Director Terry Maurer; and City Attorney Jerry Filla; PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA Councilmember Holden requested Item 4A be pulled from the Consent Calendar for discussion. MOTION: Councilmcmber Holden moved and Councilmcmber Grant seconded a motion to approve the meeting agenda as amended. The motion carried unanimously 2. PUBLIC INQUIRIESANFORMATIONAL Greg Larson., 3377 North Snelling Avenue, indicated Ray McGraw passed away this past Sunday and was a tireless booster for the City of Arden Hills. He was a dedicated resident of the City and will be dearly missed. Mr. Larson thanked Mayor Harpstead and Councilmember McClung for their years of service to the City. Mr. Larson then stated he was not in favor of seeing the TCAAP property become a potential site for the new Vikings Stadium. He recommended the Council forego this request. He expressed concern that the previous meetings and discussions on this topic were not made public information. ARDEN HILLS SPECIAL CITY COUNCIL—DECEMBER 6, 2010 2 2. PUBLIC INQUIRIES/INFORMATIONAL (continued) Russ Bertsch, 4419 Amber Circle, questioned where the City stood with the tax levy. He appreciated that his property value was holding steady and has not decreased as many have in the metro area. Mr. Bertsch expressed concern with the proposed tax Ievy increase. 3. APPROVAL OF MINUTES A. October 25,2010 Regular City Council Meeting Councilmember Holmes requested the following changes: Page 9, Second Paragraph under Council Comments and Requests should read"an address". MOTION: Councilmember Holden moved and Councilmember Holmes seconded a motion to approve the October 25 2010 Regular Cit y Council Meeting Minutes as amended. The motion carried unanimously 5-0 . 4. CONSENT CALENDAR B. Accepting the Liability Coverage Limits from the League of Minnesota Cities Insurance Trust(LMCIT) for 2011. MOTION: Councilmember Grant moved and Councilmember Holmes seconded a motion to approve the Consent Calendar Item 4B and to authorize execution of all necessary documents contained therein. The motion carried unanimous) 5- 5. PULLED CONSENT ITEMS A. Resolution 2010-069, Supporting the Application for a Metropolitan Council Environmental Services Municipal Inflow and Infiltration Grant Councilmember Holden requested further information from staff on this issue. She questioned if these grant funds could be used for additional projects not already planned for 2011. Public Works Director Maurer explained City staff was including additional work, beyond that stated within the 2011 CIP, to reach an approximately$100,000 grant fund level. MOTION: Councilmember Holden moved and Councilmember Grant seconded a motion approve Resolution 2010-069, Supporting the Application for a_Metropolitan Council Environmental Services Municipal Inflow and Infiltration Grant. The motion carried unanimous) 5-0 . ARDEN HILLS SPECIAL CITY COUNCIL—DECEMBER 6, 2010 3 6. PUBLIC HEARINGS A. Truth-In-Taxation Hearing and Presentation Director of Finance and Administrative Services Iverson presented the Council with a detailed account of the proposed 2011 budget and tax levy. She explained why and how property taxes vary from year to year. It was noted the median market value on a single family home in Arden Hills went down by 1% from 2010 to 2011 while commercial/industrial property values dropped 12%. Commercial property values dropped due to the large amount of vacant properties - throughout the northeast metro area. She noted that property tax values were set by the County in the spring of each year. Due to this property value shift, residential property taxes would increase as a result of the decrease in commercial/industrial values. Councilmember Grant clarified that property taxes could rise, without an increase from the City, because of County taxes, school district levies, special taxing districts, etc. Therefore, the discussion this evening was strictly on the City's impact. Director of Finance and Administrative Services Iverson indicated the City would not be receiving market value homestead credit from the state in 2011. This reduced the amount of money received from our tax levy and did affect the 2011 budget, along with other State law changes. Ms. Iverson reviewed how to calculate property taxes in detail with the Council. She noted the proposed levy for 2011 had a 0.8% increase over 2010. Director of Finance and Administrative Services Iverson indicated the City's proposed levy was higher than the levy limit allowed due to Special Levies the City has for PERA increases, Public Safety wages and benefit increases and the 2010 and 2011 unallotment of market value homestead credit. The impact on property taxes was reviewed with an assumed 1% decrease in the market value of homes. Councilmember Grant questioned why the City of Arden Hills' property value held steady while neighboring community's value dropped upwards of 6%. Director of Finance and Administrative Services Iverson was unaware of the differences but indicated she would speak with the County to gain further information and would report back to the Council. She explained the City does have the third lowest tax rate in Ramsey County and fourth lowest in comparison to surrounding communities. Director of Finance and Administrative Services Iverson reviewed revenues for 2011 indicating staff was expecting them to remain the same. Revenues have been conservatively estimated as the City is primarily built out and has little redevelopment and expansion planned. Operating costs remain flat unless there have been increases in contract services. She noted the unalloted market value homestead credit accounted for a 2% increase in the levy. Staff reviewed the key budget projects and elements proposed for 2011. Mayor Harpstead opened the public hearing at 6:50 p.m. ARDEN HILLS SPECIAL CITY COUNCIL—DECEMBER 6, 2010 4 6.A Truth-In-Taxation Hearing and Presentation (continued) Tom Mulcahy, 3530 Siems Court, felt the Truth in Taxation hearing was unhelpful to the public. The hearing should be more meaningful to the public. The information provided this evening was too technical. He requested the information be broken down and reported simply to allow the Council to remain transparent to the public. Mr. Okahee expressed concern with the increase in staff members given the state of the economy. He requested the City provide a staff head count which could be broken down by department for the public to review. He felt the City was grossly overstaffed. Mr. Okahee suggested the City create a subcommittee for residents to oversee the financial tendencies of the City. In addition, he requested that five-year projections be included in -- the budget to provide a more thorough view of the budget. Russ Bertsch, 4419 Amble Circle, commented that the budget increase was greater this year based on the reduction of property value for commercial property. He questioned if the increase was 6% for 2011 and if any other changes were expected to the levy. Director of Finance and Administrative Services Iverson explained the preliminary levy was sent out to the residents this fall and the final levy was reviewed this evening. She stated the shift between commercial and residential property values did increase residential property taxes approximately 6%. She recommended Mr. Bertsch contact City staff if he desired to further review his proposed property taxes. Mayor Harpstead closed the public hearing at 7:03 p.m. Mayor Harpstead commented that the City staff head count was broken down by department and the information was available on the City's website. He thanked all those present for providing comments this evening. 7. NEW BUSINESS A. Emergency Management Proposal City Administrator Klaers summarized the Emergency Management Proposal with the Council. Staff met with three individuals to review and discuss the emergency management needs in Arden Hills. He recommended Lance Ross and Emergency Preparedness Resource Group (EPRG) to meet the emergency management needs of the City. Lance Ross, Emergency Preparedness Resource Group (EPRG), addressed the Council stating his organization had practical experience in real world events and could greatly assist the City of Arden Hills. He was familiar with the needs of the City and had response experience both with man-made and natural disasters. Mr. Ross indicated he completed an assessment with Staff and recommended several training sessions for Staff to prepare them to handle an emergency situation. Councilmember Holden questioned how many training courses were recommended at this time. Mr. Ross stated one six hour table-top seminar was recommended to refresh staff of necessary emergency information. ARDEN HILLS SPECIAL CITY COUNCIL—DECEMBER 6, 2010 5 7.A Emergency Management Proposal (continued) Councilmember Grant indicated the budgeted amount differed from the actual amount within the 2011 budget. He questioned how Council was to proceed with this issue and what amount should be approved this evening. City Administrator Klaers explained a portion of the expense was for 2012 and would not be approved this evening. He noted $6,825 was the amount needed for 201 L Mayor Harpstead noted that in a time of emergency the City Administrator would have the ability to alter these amounts if necessary. In addition, the Council could convene to expend funds, where necessary. MOTION: Councilmember Grant moved and Councilmember Holden seconded a motion to approve the Emergency Management Plan and enter into a contract with Lance Ross from Emergency Preparedness Resource Group in an amount not to exceed $7 500. The motion carried unanimous) 5-0 . S. UNFINISHED BUSINESS None. 9. COUNCIL COMMENTS AND REQUESTS Councilmember Grant stated he was made aware of McDonald's intentions to rebuild. He questioned if the City has received plans. Staff indicated the City received plans today. Mayor Harpstead responded to Mr. Larson's comments made earlier this evening regarding TCAAP. He explained this parcel has had a number of proposals brought before Staff, but not all of these proposals were brought forward to the public, as many were not feasible, Mayor Harpstead indicated the development of this site would have regional impact and would go beyond the current economic climate. He stated the property would require great upfront costs to mitigate the property before it can be developed and requested the residents be patient with Council until a viable option was found. ADJOURN MOTION: Councilmember Grant moved and Councilmember Holden seconded a motion to adjourn. The motion carried unanimously (5-0). Mayor Harpstead adjourned the Special City Council Meeting at 7:24 p.m. Patrick Klaers David Grant City Administrator Mayor