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HomeMy WebLinkAboutCC 08-31-1992 . MINUTES CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING August 31, 1992 7:30 P.M. - City Hall QAL1 TO OR~g;R/ROLL CALL Note that Council met at 4:00 p.m. for a budget worksession. and at 6:30 p.m. (in closed session) to conduct a performance evaluation. Pursuant to due call and notice thereof, Mayor sather called to order the regular City Council meeting at 7:30 p.m. Present: Mayor Thomas Sather; Councilmembers JoAnn Growe, Dale Hicks, Thomas Mahowald, Paul Malone. Also present were: City Attorney, Jerry Filla; City Engineer, Mark Graham; Public Works Superintendent, Dan Winkel; City Accountant, Terry Post; Acting Clerk Administrator, Catherine Iago; Recording Secretary, Foster. . ADQPT AG]';NDA Council was notified that two items should be deleted from the agenda. those being Item 5 "Discussion with Architect" and Item 10D "Authorization to Extend Public Works Employee Term of Employment". Council agreed to these deletions. Council was notified that two items should be added to the agenda, those being Item lOG "Request from Zeos for Tent Sales" and 10H "Management Financial Summary from Finance Commi t tee". Counci 1 agreed to these addi ti ons. City Attorney Filla requested a short closed meeting immediately after the regular agenda to discuss status of litigation involving the City. Council agreed to conduct that closed meeting. MOTION: Mahowald moved, seconded by Growe, to adopt the August 31, 1992 agenda including the above-noted deletions (2), additions (2) and closed litigation meeting. Motion carried unanimously (5-0). IlISCUSSIcgN WITH... ARCHITECT This agenda item was deleted under adoption of agenda. . APPROV_~L. OF COUNCIL MINUTE~ Councilmember Malone asked that the third paragraph of page seven of the August 17, 1992 meeting minutes be revised to read: "Norris Strawbridge. . specific points along the . Arden Hills Council 2 August 31, 1992 roofline of the proposed building requiring a variance to 75' height." Council agreed to this l'evision. Malone moved, seconded by Hicks, to approve the minutes of August 17, 1992 Regular Council Meeting with the above-noted revision to page seven. Motion carried unanimously (5-0). MOTION~ CONSENT CALE!iPll.R Councilmember Mahowald and Growe agreed to approve item "a" under Consent Calendar, but expressed interest in further di::"cussing the item under "Council Comments". Hicks moved, seconded by Malone to approve the Consent Calendar and authorize execution of all necessary documents contained therein. Motion carried unanimously (5-0). MOTION: a. . b. c. d. e. PUBL I C_~911.MENTS Accept resignation from Jerry Miller, Chair, Public Safety/Works Committee. Appointment of Additional Election Judge for the 1992 State Primary Election. Approval Final Pay Estimate #5 for 1991 North Snelling Avenue Improvements. Approve Release of Collateral Held on City's Behalf from Norwest Bank. Approve List of Claims/Payroll, There were no public comments. PUBI.IC Hj;;ARINGS KEITHSON POND ASSESSMENTS (continued from July 20 & June 29, 1992) Mayor Sather opened the meeting at 7:40 p.m. for the purpose of continuing a public hearing (from July 20 and June 29, 1992) on Keithson Pond Assessments. Acting Clerk Administrator lago verified remailing of notices to affected property owners on July 30, 1992. Reviewing background, City Engineer Graham recalled that estimated assessments for the proposed Keithson Pond project were presented at the June 29 and July 20 assessment hearings, where affected residents were given the opportunity to register their objections. . Graham added that on July 20, Council: 1) Based on the opinion of the City appraiser, established a maximum supportable per lot assessment of $1,500; and 2) Based on the opinion of the City Engineer after review of the topography of the area, determined which . . . Arden Hills Council " ~ August 31, 1992 affected lots should be assessed 100%, 50% or 25% of the maximum supportable per lot assessment. Graham reported that assuming this project were awarded to the lowest bidder, the total cost of the project, including construction and 30% overhead (administration, legal, etc.) would be $42,558. Assumj_ng assessment rates established by Council on July 20, $11,625 would be assessed to affected property owners and the remainder would be paid by the City at large. Graham stated that a summary of the events surrounding Keithson Pond and responses to all registered objections were compiled within one document dated July 27, 1992 and forwarded to affected parties along with their notice of this meeting. Members of the audience reported they had not received the Summary and Response document Graham referred to. Acting Clerk Administrator lago comm~nted that she had directed staff to attach the Summary and Response document to the meeting notices, and apparently the document was not included in the mailing. staff provided copies to all members af the audience. Mayor Sather reminded the public that this evening's meeting will be limited to discussion of previously registered objections. Kurt Lawrence, 4516 Keithson Drive, asked why Council has lied to owners about this project, why no other owners are being assessed when other properties contribute to the drainage, and if the City will be able to answer those questions in court. Ron Nelson, 4504 Keithson Drive, stated that a letter from residents on his block was sent to the City over 30 days ago. Residents showed an acknowledgment of the City's receipt of their letter on July 15, 1992. Nelson asked why the Summary and Response document was just received this evening. Dick Foster, 4527 Keithson Drive; Teresa Giel, 4534 Keithson Drive; and Jean Crimmins, 4509 Keithson Drive; echoed Ron Nelson's comments. In light of residents not receiving copies of the Summary and Response document pd or to this meeting, Mayor Sather suggested a recess in order to give resj,dents the opportunity to review the document. Mark Magers, 4521 Keithson Drive, asked to reschedule this public hearing to provide residents more time to adequately review the ma teri a I . . Arden Hills Council 4 August 31, 1992 Jean Crimmins asked when construction would begin. Graham stated that the contractor had initially indicated the work would begin right after Labor Day, but that schedule has now been postponed for a couple of weeks. Attorney Filla commented that the purpose of t.onight's meeting is to allow an exchange regarding previously registered objections and responses, and he assured that Counoil is aware and has considered all the previously heard comments on this issue. He stated that he would be comfortable conducting the public hearing tonight, but if Council so desired, the meeting could be rescheduled to a 3pecific date. . Mayor Sather stated he would be amenable to postponing if residents desire. Counoilmember Mahowald reminded that those in attendance this evening already know everyone's positions on this issue, and the issue has already been delayed. Councilmember Malone echoed Mahowald's comments and reiterated the fact that additional objections will not be introduced this evening. Councilmember Growe stated she would accept postponing or moving the item to the end of this evening's agenda to allow residents adequate time to review the Summary and Response document. Councilmember Hicks stated that Council has been trying to resolve issues involving Keithson Pond for a very long time, and he does not appreciate innuendo that Council has lied to the public on this matter; he agreed to postpone if residents so desire after review of the material. Councilmember Mahowald concurred with Hicks and stated that Council has tried at length to YAso:ve the Keithson Pond isslle and is not likely to be receptive to negative comments made against Councl,l's intent.ions in this matter. Council agreed to recess fo~ 15 minutes, then let the residents decide whether to postpone the hearing. The meeting recessed. Mayor Sather reconvened the public hearing at 8:15 p.m. and reminded residents that discussion would be limited to the previously registered objections and their responses. Attorney Filla asked to focus on each object.ion case by case as out! ined in the Jul y 27 Summary and Response document. . Nelson Opjection - 1504 Keiths~~ Ron Nelson complimented staff for the.tr summary of Kei.thson Pond background. He asked if the estimated project costs reported this evening by Graham include easement acquisition on the Reiling property. At.torney Filla reported that the Reiling property needed for the pond is currently involved in condemnation; the project costs reported this evening do not include any Reiling property acquisition costs. Graham added that the . Arden Hills COllneil o '0 August .).J.., 1992 total project costs of approximately $45,500 given this evening inclllde approximately $34,000 for construction 3nd 30% for overhead (administration. legal, etc.). Ron Nelson contended that his property is not benefitted in that it will not become more valuable as a result of the proposed Keithson Pond project. He stated he has not received answers to his satisfaction. that he was told when purchasing his home that the pond would be developed and therefore assumed the cost to develop an adequate pond was included in the cost of his home. He asked why the City released the developer's performance bond and why the nearby townhomes are not being assessed since some of their drainage contributes to Keithson Pond. Attorney Filla reiterated that COIIDCil ],) Established a maximum per lot assessment. of $1,500 based upon the City appraiser's information that $1.,500 was supportable; and 2) Determined what percentage each lot contributes drainage to Keithson Pond. based on the City Engineer's analysis of topography. . Ron Nelson stated that his basis for argument is that the pond existed when he purchased his home and he assumed it was adequate. He added that when he moved in to the home. the street was straight, but in time, the grade of the street changed to such a degree that a catch basin had to be relocated. Regarding the townhomes. Graham explained the townhomes have their own large pond which collects drainage from the townhOTIles. He added that he did review the topography and found townhome property run-off is collected in its own l?ond. Regarclj.:':"lg assumpt.ions ;11ade by residents when purchasing their homes, Filla stated that typically a home purchase includes a "pa.ckage" of LTlprovements, but there are other types of improvements which can affect property. He reiterated that the City appraiser has opined that a maximum $1,500 assessment per lot is supportable for Keithson Pond improvements in that affected properties would receive that amount of economic benefit from the project. He reminded residents that all off-site drainage management system does benefit a property in that the property need not collect all j,ts own run-off on site. . Attorney added that if this matter goes to court, he is comfortable that appraisal information is correct within 5 10%. He reminded those residents who may potentially be ass~ssed that the CJ.ty at large is paying the Ii,on's share of the project. He stHted that from a legal standpoint, . Arde':"l Hi lID Coun:~~j 1 6 ,;ugust. 31, 1992 storm sewer improvements a~e difficult to handle in court. Pegarding the release of performance bond, Filla explained that typically the City has a list of items which must be accomplished to the satisfaction of the City Engineer before a performance bond can be released. In the case of Keithson Pond. that list did not specifically include drainage and grading. At the completion of the development. the engineer recommended releasing the performance bond on the basis that the items on the list were satisfactorily accomplished. Graham stated that until this evening he was not aware that there had been any changes in street grade. Rcc.heleau Obiection ._~.4503 Keithson: Rainer Rocheleau. 4503 Keithson Drive, commented that he does not believe this project will benefit his property. Attorney Filla replied that the City Cauncil has determined that the Rocheleau property should be assessed at 100% of the maximum supportable lot assessment of $lJ500. . Crimmins Obj~_Q_tJQJL_ - 4509 Kei thson: Jean Cr:rnmins commented that when the inlet was installed. her property was altered and damaged by negligent lack of action by the City. she added that the City also is negligent in allowing 50 much tilne to pass before respondiIlg t.o residents' concerns. Attorney Filla replied that the City has been working toward resolution for some time;. with regard to pursuing tho developer. Council has taken the position that to do so would likely only add legal costs to the project with little chance of recovering any cf the costs. Attorney Filla Doted that. Crimmins' had previously registered all objection on the basis that they understood there was money allocated to pay for this improvement. He stated that there has not been money allocated for this i.ffiprovement and to ~is knowledge, the City has not given such information to residents. He added that even in situatj.ons where money has b~en allocated for an improvement project. the City is allowed to assess as long as there is sllpportable benefit to residents. . Jean Crimmins commented that Rice Creek Watershed District and the former City engineering consultant should be held =esponsible for approving the inadequate drainage and releasing bonds. She added that she does not consider the Keithson Pond projec:. an "improvement" ~roject. Attorney Filla reiterated that drainage/grading plans were not on the original list of accomplishments required prior to the release of performance bond. He further stated that all required improvement were completed to the City . Arden Hjlls CouDc~il 7 l\ugust :'11: ]992 Engineer's sat.isfact.ion and, he recommended releasing the bond, which the City did Jean Cd.mmins summarized her objection that the City and Rice Creek Watershed District was negligerrt by releasing the bond and approving an unacceptable drainage plan, they were further negligent by not addressing the issue in a timely fashion, and further negligent by allowing the Crimmins property to erode. she added that some of the townhom8 property drains through the Nelson and Horwath parcels and therefore should be aS3essed. Horwath ob~ection - 4510 Keithson: Filla referred to the Horwath's objection outlined in the July 27 Summary and Response document, wherein the Horwaths contend they paid a share of developITlent cost with the purchase of their property and their property does not abut the pond improvement and therefore will not benefit, . Fi'l~ explained ~hat water rlln-off from the Horwath property eventu.ally runs to Keithson Pond, so there is a benefit.. He Gdd",,] that from the very begi nning. it was unders toed by the City that the existing pond was not designed or intended to be a complete drainage system; the design clearly showed t~ere would be a need for" a downstream drainage system sometiDe in the future. Nancy Horwath asked how many times residents would have to pay; 'elha t would happen if Kei thson Pond, af t er improved is still inadequate, or if the Reiling property is developed. Graham explained that if the Reiling property were developed; the developer would be requjreJ to adequately address drainage, Filla added that per the City assessment policy, a property can only be assessed once for any given assessm~nt, but special assessments can be levied up to the amOllnt of benefit. He saj,d if it can be proven thBt a property has received benefit, the City has the right to ac;.:;ess. . Lat'V;,ence at l f~ct i. OJ),. ... 4516 Rei thson: K.urt LawreD.ce contended that the proposed assessments are illegal because the properties involved are not receiving benefit and certain properties (such as the townhomes and the Reiling property) are not proposed to be assessed. Filla stated that in order to assess, the City must prove equitable assessment to similarly situated properties; in his opinion that has been done. Kart. LcCi..':c::ence cormfiented that tbe Keithson Pond project is ;-lOt an "improvement" project but rather something being done to protect the City frem liability, so other funding sources should be sought. Filla replied that this project is not . Arden Hills Council 8 l'iUgUst :'11, , 0('''; ,_ j ,J ,<. being done to side step any liability issl1e, b~t rathH~ tt~s :;:.:r:oject. \'las al ways in~€'r.ded, 'Rf?gar.-ding the issue of funding the project, Filla reminded that the City at large will pay the majori.ty of the project and there ar8 no nther known means Pilla added that if the City did pursue the developer, anytbing ~ecovered could theoretically be applied to the City's portion rather than decrease individual assessments. Kurt LawrGnce said the developer. at one time, planned to improve the pond, but the City said it was not needed. Graham stated that not having been involved at that time, he does not know what actually took place. Filla stated that the City has never sai,d this pond or the pond outlet was not needed. Councilmember Hicks added that in conversing with the former City engineer. they also have no recollection of discouraging the developer from improving the pond. Dick Foster explained there was once a pipe from the street to the old pond which was removed. . Maqel-s/T.r_.~Q~I~~p~ection ,- 4521 Keith.'3oJ.l,:~ Mark Magers s~,ated that in 1989 he called the former engineer and Mayor Sather tc review the concerns of the Keithson properties; several meetirlgs took place, but the developer had no plan to address the problems then; now the developer is no long~~ involved and more time has elapsed. He said that when the City Engineer released the bond, tte drainage issue was not r'esolved. Fi~la comrnented 'that an outlet to the Reiling property was always intended and now the City is taking action to obtain the easement for the outlet through condemnation proceedings. Filla added that Rice Creek Watershed District approved the drainage plans assuming an outlet would be added sometime in the future. Toni Tredal said she has a copy of the Rice Creek Water'shed District permit spelling out the conditions the developer was reqllired to meet; but the developer did not complete any of the conditions. She stated ~hat she is offended by Counci lmember Hicks E-;,1rI ier comments becallse ,Magers/Tredal have spent very mIlch time trying to deal with this matter. . ~,nde:~;:;CJn Obi~_:'2J,_Jcc': - 4522 Keithson: James Anderson asked why the Reiling property is not proposed to be assessed. Graham stated that the Reiling property is adequate to hold ;ts own drainage, part of the pond is located on the Reiling property, and Mr. Reiling has not granted an easement or donated his property to contain drainage from other properties FO;3T.er _ObjS'~;j::iorL__:_4_?27 Keith2on: Dick Fost.er- commented that the Reili,Ilg property drains more J,nta the pond than any other property in the area. He questioned whet~er the City . Arden Hills counci.l Q August 31: 1992 is bargaining with Mr. Reiling. Filla stated that so far there lias b0en no negotiation with Mr. Reiling to make a trade of assessment for property or any similar agreeme~ts. Filla stated that it is the City's hope that the layout of the pond will benefit the Reiling property to a degree that Mr. Reiling may cooperate and the City can reduce its exposure to compensate Reiling for intrusion on his property. Filla added that if the Reiling property were to be assessed, assessment hea~ings would need to be .l:>:::~con.ducted . Filla referred to Dick Foster's cbject:Lon i.n the Summary and Response document that if the Reiling property had been developed at the same time as the Keithson development, the cos t of thi s impr'ovemen t woul d be less. Fi 11 a commented that this may be true, but Mr. Reiling did not wish to develop his property at that time. . Dick Foster cornmented that if t.he Ci ty had tak.en action a few years ago by digging the existing pond deeper, problems ~ciuld have been corrected then. Fi,lJa reiterated that Mr Reiling has [leVer ~gl~~ed to grant an easement to allow the City to do so; if he had, the City would have taken action earlier. Filla added, however, that assessments would hav~ be0n sl.1pportable in t~at scenario. !:LiJ~L-,Q.Qj",ctio:: _~~.A5.2.lLJ\eithson: Regarding Hills objection o~ the premise that this project benefits the entire community, Filla stated he ag,-eed and that is Hhy the City at large will be absorbing such a large share of the costs. He added that certain prope,-ties, those proposed to be specially assessed, receive additional berlefit. Giel Obiection - 4534 Keithson: Teresa Giel stated her comments have al ready been answered this e1lening r but she was offended by some Council comments earlier this evening. II a wy.S"~r 0 bie c t i oD-'----=__~~V)~}2___E,~:t",th_:?_QJ1_~ objection bas al2~eady been co,rered pj,llB stated this tri,is evening. . stenn",o?. Obj_",ct,ior, - 4S40 Kei ths_on:. Fil] a refen'ed to stennes' objection that the majority of the Stennes p~operty does not d~ain j,nto the pond and therefore does not receive be~efit. Filla explained that Council determined tha~ 25% of the stennes property drains to Keithson Pendt therefore the owner would be assessed 25% of the maximum supportable per lot assessment. Attor::ey Fillarecornmended that the July 27/ 1992 Summary and Response document and the videotape record::a9 of this evening's l~eeting be preserved for at least 90 days. The public hearing was closed at 9:47 p.m. . Arden Hjlls Councj,l 10 August 31, 1992 Councilmember Hicks asl:ed about the accuracy of topographical maps. Graham stated that in his experi,ence they are very accu.rate and it is co:-nmon to det.etrnJ.ne drainage using topographical maps, which ~s what was done j,n this case. Hicks asked how costly it would be to survey pac:'"::"; "r\di I.-j, (]1):,_1 p t-nrI21~ty j n"'o 1 '.led . Graham sa j d s11rveying woul.d likely cost about $100 per hOU~F so it would be quitp expensivp to sllrvey all properties. Councilmember Malone thanked City Attorney Filla and the ~esj,dents for patiently working through the hearing this evening on this complex, multi-faceted issue. He asked Graham if the catch basin in the street was actually moved a~ reported this evening by re~;idents. Graham stated he was not aware of that untj,l this evening. Ron NelsoIl and Ron Horwath stated that the catch basin was moved from the Crin~ins driveway area to a locatio!l by the pond. Nelson said streets were paved in July 1987 when he moved in to his 'home.. . Counci Imember Mahowald said he apprpciates t.hat. eve::~yone has toned down discussi.ons this evening. He apologizerl fot thp Summary a.nd Response documexlt n.c,t hf::';~ 11.g ;:::f:n"t nut r.C) rpsidents as i.nstrllcted. He stated that the City is accpptj.ng a large portion of responsibility for this project by accepting the lion's share of project costs; it would have been easier to accept 100% of costs, but it would not be fair to '-he general taxpayer to do so. He said the City has been seeking a solution since this matte~ came to the forefront and he understa~ds that assessed residents may not be satisfied with being assessed, but the assessments are appropt'iate. MOTION: Hicks lfioved, seconded by Mahowald, to adopt Resolution No. 92-41 Adopting the Final Assessment Roll for the 1992 Keithson Area Pond Improvement, with assessments as established by Council on July 13, 1992 as follows: ASSeSSITlents are to be run OVer a five year' period and calculated un the basis of 100% being equal to $:/500 pet" 1. at. 100% benefit ($1,500 aSSeSSITlent) to lots wj,th addresses 42,27 r 4521, 4509/ 4503 Keithson Drive; 50% benefit ($750 asspssment) to lots with addreP-sep. 4504 t 4::,10 f 4516, 4.522.. 4528, 4.534! 4539 Ke~ tbsoD Dy';.,re ,: 25% benefit ($375 assessment) to lot wj.th addr~ss 4540 Keithson Drive Motion carried unanj.mously (5-0), . . . ~ Arden Hills Coun(~il August 31, 1992 1 ] UNFINISHED AND NEW BUSINESS bCCEPT BID I~fORM~TIQN ARDEN FL.ACE STORM SEWER Erjgin(~~:L Graham acLri.sed hat~ tl-~:(ee bids 1H"ere received and apeLed on August 27, 199 for Arden Place Storm Sewer Improvements. He added hat bj.dder2 were asl(ed to provide bids for reinforced concrete pipe (RCP) or high density plasti.c pipe (HDPE). Graham recommended the use of HDPE and st8tea that the lowest bid recpi,red was from Ro-So Corltracting; Inc. in the amount of $?6,048. He st~ted that he h~s experience working with Ro-So Contracting and would be comfortable awarding the bid to them, however I Council may wish to conduct the assessment hearing before awarding the bid. Council was further advised that the Public Works Departrnent, ~pon the direction of Council, arranged for- a contractor to make one final attempt to unclog tl~e ex~sti~g A~deIl Place drainage pipe, however, they were met with resistance from Ray Johnson; the p~oper~y owne~ at 1540 Ard8TI Place, w1.o refused to allow access tc his property. Ccuncil was provided a copy of a 'atter dated August 28, 1902 from Mr. Johnson's attorney. Cuunci1niember Malone commented that the Ardel,"; place drainage issue is a sensitive situation, and although residents have approached the City for relief, he questions whethel" this is a City Drable~ or a private property problem. MRyor Sather added t~at the City has attempted ~ correct tIle existing clogged ripp; and the residents do have a pYnb],~m, so t~e City needs to t~ke some kind of action, CQ~Jncjlmemher Growe agreed that nnt taking some kind of action would likely mean this issue would h~unt the City later, councjlmember Mahowald stated that the c~ty needs to take action regardless of who caused the problem. He suggested waiting until the City appraiser determines whether there would be benefit to residents if a storm sewer prCJject is done. MOTION: Hicks moved, seconded by Mahowald, to accept all bids in the matter of Arden Flace Storm Sewer Improvements. Motion carried unanimously (5-0). M07ION: Hicks moved, seconded by Mahowald, to order the preparation of the proposed assessment roll, and :-ic}\edille a. p\lbli.c 11earing ~_o be held September 28,. 1992 at 7:30 p.m" in the matter of Ayden place storm Sewer r:IY1~_,:~o-\lelTlerlt~::. Motion carried unanimously (5-0). . . ~ Ard~n H~.lls COllTICiJ ,A.ugu.St. 3' I 1992 1? Councilmember Mahowald asked that the assessment process be clearly explained in the notices. Attorney Filla stated that individual notices would state the maximum potential assessment assumillg the engiI~eer-' s esti.mate of construction costs plus overheadl divided by the number of parcels. He added that tIle actual assessment can be less tllan ttlG amount listed in the ~Qticel but not morel and would be determined ~ater according to the appraiser's opjnioD regarding benefit. Engineer Graham said abo~t eight parcels are i,nvolvec1, Attorney Filla advised that if Council wishes to conduct the assessment hearing prior to awardirlg the project, it woul~ be a tight schedule since bid prices are only good for 90 days. :::ISCUSSION ]99~ STREET IMPROVEMENTS Ccn~J-;ciJ 'cevjJ:'T;,led a letter dated August 27: 1.9::2 from ~ngj.neer Graham wherej.n Graha~ suggested Council corsider thp 1993 street ~ehabilitatj,or and pavement majntenance program so that necessary feasi1)i,1~ty studies and field infnymation ~an be completed before i.nclement weather. Enginesr Graham stated that current street ratings j,ndicate that ~he next two streets requiriI19 reconstruction are Bussard Court (Snelling Avenue to the west cul-de-sac), and Dunlap Avenue (Ingerson Road to Cannon Avenue). Councilmember Mahowald commented that during preliminary budget discussions, it was Council ccnsenSllS to concentrate on overlay and sealcoatirlg projects in 1993 due to limited funds and t~he fact that several projects were done in 1992. Council,membel: Malone said that Council consensus does not preclude taking a look at Bussard Court and Dunlap Avenue ?,CEBDUI,E TRUTH TN_':'1\XATIOIL HE1'EULQf Council reviewed Truth i,n Taxation Provi.sicLS f~00 Ramsey CCJllnty Dep3Ytr;',ent of Taxation and Records Administ.r.a.t.ion, and a merriorandum from staff suggesting possible dates for the City's Truth in Taxation Fublj,c hearing. MOTION: ~alone movedF seconded by Growe, to schedule the City's Truth in Taxation public hearing for Monday, November 30, 1992 at 7:30, with a continuation hearing (i~ needed) on December 10, 1992 at 7:30. ~otion carrie:} unanimoLsly (5-0). . . . '. Arden Hills Council A'L~9ust 31, 1992 , 0 AUTHOR I ZA T I ON TO EXTEND PUBI,Lt::, RQRK~,El1ELOYEE,],E,E!:L OF EMPLOYMENT This agenda item was Lemoved during adoption of agenda. APPROVE SALARY INCREASE ~OR DEPUTY CLERK/ZONING ADMINISTR~1QP PY~or to th~s e\!ening's regular agend8; dllJ~ing closed session! Council, conducted a perf0ym~nCe ev~J.uatj.on on De~11ty C'pyk Tag0. .MOTTe;!'! : Malone moved seconded by Growe, to approvp a sRlary increase for Depllty Cle]~k/Zoning Adm~nj.strator Catherine Iago to Level 5 of the 1997 Pay Plan e:=ective September 3/ 1992/ and to te~minate Ms, Iago's duties as Acting Clerk Administrator effective September 7, 1992, Motion carried unanimously (5-0). Council thanked Deputy Clerk Iaga far her extra effort P\lt fOl~th in tll,e last. couple of months as Acti:-l.S C:e.r-k A drni 11:1. oS t :( at,) j Cou:~ci liliembe~- Hal'Jlie c.)lTimented that it 'would be apprc)pl'iate to take necessary action to create a City Admi~istrator antllc.tity type government giving the newly appointed City Adrrdrdst.l~3t.nY bl'oader: aut.'"J.orj,ty. I-I01J1rON: Malone moved, s~ccnded by Hj.cksl to direct the City ~tt.orrley tel draft an appropriate resolution creating broader City Administrator authority type of QOiIernment. .M.ot.ion carried unanimously (.5-C), S~,HEDULF, COUNr::IL WORKSEBSION SEPTEMBER QL,_J2,9.2 BCTIC!'!: Malone movedl seconded hy Mahowald! to schedule a Council worksession September 8, 1992 at 4:00 p.m. Motion carried unanimous~y (5-0). Co~ncilmembe~ Hicks advised that he would be unable to attend the September 8 worksession. ~EOUEST FO~ TENT SALE ZEOS COMPUTER FACTOR, CUTLET Council reviewed an application from steve Larson, Manager of the Zeos Computec Factory Cutlet:, requesting permissioD to erect: two tents in front of the Ze03 Computer Factory Outlet store at 3787 North Lexington for use as advertisement and a snack bar for Zeos' sale from September :', through 7, 1992, . . ~ Arden, Hi ~ 1 S CCJ1::nci~. :n.ngust 31,' lqg?: 14 staff recommended apprOV21.1 (if t.he 3.I'I;}j_cat': eH!. cnnt,j,ngent llpCln revjpw of t~2 8pp]j.cati.oD by the Fire Cl'lj~f and E1Jilding Inspector to i.nslll~e the tents meet code :cequireme:rlt.s. MOTION: Malone moved, seconded by Growe, to authorize Zeos Computer Factory Outlet to erect two tents as outlined in their application, contingent upon review and approval by the Fire Chief and Building Inspeotor. Motion carried unanirnously (5-0). MANAGEMENT FINANC~P.~L SUMMr...R~_ Counci Imember Mal cne advis ed that. the Fj,:J.ance Commi t t cot:: ha~j worked very hard at putting together the Jul.y 1992 Management Financial Summar~i and tr.ey would appreci8te COl.n-:.cil input 0:-', tbe S11nirn3Y"y before t.he Fin,ance Committee's Septemb~r 24 meeting. COUNCU. COMMF:N_TS E'DJtI,J c:S ~EF,'I'YJWQgJ{llnC:QMM I TTEE Referri~g to Jer]~y Mil.1er's resjgnati.oD accepted this evening unde~ the consent calendar, Councilmember Growe suggested a letter of thanl:s be sent to Mr. Mille~ Eor his work r,.;rith the Public Safety/Horks C:crr:lmittee. Council corlcurred. Growe added that Dick Roessler has volunteered to chai r the Cornmi t tee and he '..;rClul d be an ass et in t.hat. capacity. HCTICN: Malone moved, seconded by Growe, to ratify the appointment of Dick Roessle~ as Chair of the Public Safety/Works Committee. Motion carried unanimously (.5-0). ACKNOWLEDGMENT OF ATTORNEY FILLA with regard to the Keithson Pond drainage hearing conducted earlie~ this evening, Councilmember Mahowald thanked Attorney Filla for tak~ng the position of spokesperson representing the City, clearly and calmly explaining the ci:rc1;mst.ances :;;urrounding t.he i;::.sue; and rlelping mH.intain a positive exchAnge between the City and the residents, Counci.l concurred. r:TTJ'__L TTIG!\.T10N ;t Attor~ey Filla's reqllest, council met in closed for the purpose of discussing City Ij.tigation. e . . .r Arden Hills Council P,ugust 31, 1992 15 .1m JOURN Council reCO!lVe!led at J.O:40 p.m. MOTION: Malone moved, seconded by Hicks, to adjourn the meeting -rL ~o w~ uoonimnunh (H) Thomas R. Sathel- Mayor Deputy Clerk NOTICE OF MEETINGS: The next. CCHlnci 1 work-session 1,.]i l' t':.e l-:P'.J Septembf?!;-: 8: } 992 ;::j.t. 4:00 p.m. at City Hall. The next regular Council meeting will be held September 14: 199' at 7:30 p.m. at City Hall, . MINUTES OF THE ARDEN HILLS COUNCIL BUDGET WORKSESSION MONDAY, AUGUST 31, 1992, 5:00 P.M. - CITY HALL CALL TO ORDER Pursuant to due call and notice thereof, Acting Mayor Mahowald called the meeting to order at 5:00 p.m. ROLL CALL The roll being called the following members were present: Acting Mayor Mahowald, Councilmembers Paul Malone, JoAnn Growe and Dale Hicks. Mayor Sather arrived at 6:25 p.m. Also present: Accountant Terrance Post, Park Director John Buckley, Public Works Superintendent Dan Winkel, and Acting Clerk Administrator Catherine Iago. PROPOSED 1993 BUDGET REVISIONS City Accountant Terrance Post reviewed his memorandum dated 8-28-92, outlining the comments, revisions and Council direction from the previous budget meeting. (SEE ATTACHED MEMORANDUM FROM ACCOUNTANT DATED 8/28/92) . Post also reviewed possible methods of increasing 1992 revenue and decreasing expenditures to minimize the projected deficit. Council directed staff to prepare the appropriate revisions to the budget document prior to the 9-14-92 regular Council meeting, at which time the preliminary budget document will be adopted. (SEE ATTACHED MEMORANDUMS FROM ACCOUNTANT DATED 9/2/92 AND 9/10/92, OUTLINING DISCUSSION AND COUNCIL DIRECTION) Council thanked staff for their efforts in compiling the budget documentation. INFORMATION: TAX IMPACT OF NEW CITY HALL/PUBLIC WORKS FACILITIES Council was referred to the memorandum from Juran & Moody dated 8-28-92, outlining information on the tax levy and corresponding tax impact on residential homestead property for various sized bond issues. . Council concurred to conduct a Special Worksession Meeting on Monday, September 8, at 4:00 p.m., to discuss the proposed facilities and financing strategy. Staff was directed to request the Architect and Financial Consultant attend this meeting. . Minutes of the Arden Hills Budget Worksession, 8-31-92 Page 2 PERFORMANCE EVALUATION - ACTING CLERK ADMINISTRATOR IAGO Council met in closed session between 6:45 and 7:15 p.m. to conduct the annual performance evaluation for Acting Clerk Administrator/Deputy Clerk Catherine Iago. ADJOURN Mahowald moved, seconded by Growe, that the meeting adjourn at 7:15 p.m. Motion carried unanimously. (5-0) Thomas R. Sather Mayor Catherine J. Iago Acting Clerk Administrator . . . MINUTES OF THE ARDEN HILLS COUNCIL BUDGET WORKSESSION MONDAY, AUGUST 31, 1992, 5:00 P.M. - CITY HALL CALL TO ORDER Pursuant to due call and notice thereof, Acting Mayor Mahowald called the meeting to order at 5:00 p.m. ROLL CALL The roll being called the following members were present: Acting Mayor Mahowald, Councilmembers Paul Malone, JoAnn Growe and Dale Hicks. Mayor Sather arrived at 6:25 p.m. Also present: Accountant Terrance Post, Park Director John Buckley, Public Works Superintendent Dan Winkel, and Acting Clerk Administrator Catherine Iago. PROPOSED 1993 BUDGET REVISIONS City Accountant Terrance Post reviewed his memorandum dated 8-28-92, outlining the comments, revisions and Council direction from the previous budget meeting. (SEE ATTACHED MEMORANDUM FROM ACCOUNTANT DATED 8/28/92) . Post also reviewed possible methods of increasing 1992 revenue and decreasing expenditures to minimize the projected deficit. Council directed staff to prepare the appropriate revisions to the budget document prior to the 9-14-92 regular Council meeting, at which time the preliminary budget document will be adopted. (SEE ATTACHED MEMORANDUMS FROM ACCOUNTANT DATED 9/2/92 AND 9/10/92, OUTLINING DISCUSSION AND COUNCIL DIRECTION) Council thanked staff for their efforts in compiling the budget documentation. INFORMATION: TAX IMPACT OF NEW CITY HALL/PUBLIC WORKS FACILITIES Council was referred to the memorandum from Juran & Moody dated 8-28-92, outlining information on the tax levy and corresponding tax impact on residential homestead property for various sized bond issues. Council concurred to conduct a Special Worksession Meeting on Monday, September 8, at 4:00 p.m., to discuss the proposed facilities and financing strategy. Staff was directed to request the Architect and Financial Consultant attend this meeting. l Minutes of the Arden Hills Budget Worksession, 8-31-92 411 Page 2 PERFORMANCE EVALUATION - ACTING CLERK ADMINISTRATOR IAGO Council met in closed session between 6: 45 and 7: 15 p.m. to conduct the annual performance evaluation for Acting Clerk Administrator/Deputy Clerk Catherine Iago. ADJOURN Mahowald moved, seconded by Growe, that the meeting adjourn at 7 : 15 p.m. Motion carried unanimously. (5-0) Thomas R. Sather Catherine J. Iago Mayor Acting Clerk Administrator . . . , ATTAClli1ENT FOR OFFICIAL COPY OF THE AUGUST 31, 1992 BUDGET WORKSESSION MEETING MINUTES - SIX PAGES CITY OF 1lRDEN KILLS ME!DlANOOM DATE: A1lgUSt 28, 1992 TO: ~:@ SUBJECT: Mayor and City OOUncil catherine J. Iago, 1lctinq Clerk 1\dm:inistrator John Buckley, Parks & Recreation Director Dan WilIkel, Public Works SUperintendent Terry Post, City h:countant Revisions Resulting fran 8/24/92 Budget Worksession #2 BAa<GOOUND: After incorporating revisions from Budget Worksession #1 on 8/19/92 and subsequent data received (i.e. i MWCC 1993 charges), the General F\lnd was in the following si'bJation prior to the agenda items of Budget Worksession #2: CATEGORY 101 Revenue 101 El/pend. SOURCE REV 082492 REV 082092 1992 BUCGEI' EST _ $1,855,688 $1,913,880 1.824.441 2.001.864 PROPOSED 1993 $1,867,578 1,909,702 SUrplus <Deficit> $ 31.247 $ < 87.948> $< 42.124> w::lRKSESSION NO. 2 AGENDA ITEMS - CDolMENl'S. REVISIONS. & OJUNCIL DIRECI'ION: DIRECroR PARKS & REX:RFATION AREA OF RESFONSffiILITY 1. SUmmer PlaVQrO\.ll"d revenue and program costs essentially static. 2. Skatina rinks - estiJnated rental costs for ~rtable toilets substantially less than 1992 l::Aldget. 3. Park Maintenance - 1993 proposed temporary employees (seasonal Park Maintenance workers) shows a 69 percent increase over 1992 estiJnate (not tudgeted in 1992). 'lhe 1992 est:il!late includes subsidized Ramsey County work program employee. 'lhe 1993 proposed assumes City not being able to participate in subsidized work program. Approxiltate $3,000 l::Aldget impact. If City had been unable to participate in the j,JJ.'-':jLa.ffi in 1992, and assuming the same number of l1'aI1Weeks for another worker at an unsubsidized cost, the 1992 estiJnate would be close to $13,000. A 3 percent increase on this base would be about $13,400. Council direction was to reduce cost by 52.500 in 1993 fram $16,720 to $14,000. A. . P1IGE TWO REVISICRl FRaI 8/24/92 ~ESSICN #2 '!he allocation of Park salaries to this department continues to increase (from 69% in 1991; to 73% in 1992; to 75% in 1993) as salary cost is phased out of the Park FUnd. Substantial increase to $29,600 in Miscellaneous Capital El:J:Uipment represents the planned purchase of a Toro Groundsrnaster lllCMer for $16,000. 4. Shade Tree Disease Control - Cotmcil direction to staff was to immediatelv increase pricincr by 50% for the removal of diseased trees from private property. Anticipated ilrpact was to reduce arrount of operating subsidy from the General FUnd in 1993. However, impact of pricing change will be more evident for the 1994 Budget. '!his is because llIOSt of the 1993 trees are already marked and lower prices quoted. The 1992 b.1dget deficit is furrled by a 1993 General FUnd operating transfer experriiture. 5. Pro::lram FUnd - Council gave direction to the Program SUpervisor to manaqe the furrl to a worst case $42,600 subsidy level while also evaluating revenue increases where feasible and appropriate. . Park FUnd - state omitted a planned 1993 expen:liture of $1,100 for Gateway Flower Gardens. The Park & :Recreation Director also el<pressed an interest in redirecting same capital b.1dget resources in 1993. '!he net ilrpact was to reduce the Capital Expenditures by $1,250 from $57,930 to $56,680. B. PUBLIC IDRKS SUPERINl'ENDENI' A:RFAS OF RESPONSIBILITY: 6. 1. Government b.llldi.ncis - PW salary reduction driven by allocation change. see comments in storm sewer section - Council requested the Public Works Superintendent to rerrove the City's underground fuel tank in 1992. 2. Streets - 1993 PW salaries are in excess of the 3 percent guideline. staff to adjust a=rdingly. Council direction to sell the existing street sweeper and utilize contract sweeping services in 1993. Council direction to reduce 1993 Pavement Manaqement Plan exoerxlitures by $10,000 in 1993. '!he 1992 est:i1nate costs of $210,000 include $20,000 per Keithson Drive reb.llld/repair. I. . PAGE THREE REVISICH> FRG1 8/24/92 l<<lRKSESSICfi #2 3. storm Sewer 1993 Public Works salaries should show a higher than 3% increase because of a change in salary all=ation. Previously 3% of Public Works went to stonn Sewers and 7% to government b..llldings. Beginning in 1993, 5% will go to Stonn Sewers and 5% to Government Buildings. Presently, 1992 non-assoesosable estimate:i costs of $75,000 for the Keithson Pond and Arden Place project are reflected in this deparbnent. 4. '!he ~tures of this entire deparbnent may leave the General F\Jnd if a storm water utility fund is established. In this case, the 1992 Keithson and Arden Place project costs maybe funded out of the PIR Fund in 1992 only to be repaid in future years from stonn water utility billings. Water utility - '!he 1993 increase in Public Works salaries exceed the 3% guideline. staff will revise a=rdingly. . 1992 A=unting and Audit fees should be $6915 instead of $3500. '!his increase over the $2800 b.ldget reflects audit fees of $3100 and =ntract A=untim Services of $3815. Pro Forma of water utility fund cash balance Balance of 12/31/91 145,620 Estimate 1992 negative cash flow <19.678> Estimate Balance 12/31/92 125,942 Estimate 1993 positive cash flow from operations without $125,000 water tower interior maintenance ilrprovernent less operating transfer to 501 to fund water tower ilrprovement (5 years equal installments @5% interest) Estilnate 12/31/93 cash balance 32,470 < 31.250> $127.162 5. Sanitary Sewer utility - The 1993 increase in Public Works salaries exceed the 3% guideline, staff will revise a=rdingly. . Accountim & Audit fees cornrnent silllilar to that made in the Water utility section. Pro Forma of Sewer utility fund cash balance Balance of 12/31/91 304,721 Estilnate 1992 negative cash flow < 139.925> . P1lGE FOUR REVISIctlS FRCM 8/24/82 tolKSESSIOO #2 Estimate 12/31/92 balance Estimate 1993 positive cash flow from operations Estimate 12/31/93 cash balance 161,796 40.143 201.939 6. Recvclincr FUnd - 1993 Waste Recycling Forecast to increase 4% on a tormage basis over estiIrate 1992. In::lividual billings from Property Tax Service fees forecast to remain even with 1992 b.!dget level. Pro ForIl'a of Recycling utility FUnd Cash Balance Balance 12/31/91 -0- (New in 1993) Estimate 1992 positive cash flow Estilnate 12/31/92 balance Estimate 1993 positive cash flow Estimate 12/31/93 balance 7245 7245 3110 10355 . Cash balance objective = Monthly Waste Recycling Fees ($2528) * 6 months (delay until May property Tax settlement) = $15,168. BTJ]X;E!' OVERIAYS c. 1. New Public Works Facilitv - council direction to obtain Tax levy Impact for city in total and for an averaged price home ($125,000) over a range of bond issues from $2,000,000 to $3,000,000 in $100,000 increments. City A=untant to obtain this data before b.!dget worksession #3 on 8/31/92. city A=untant to research if b:md referendum impact must be included in preliminary certified levy suJ:mitted on 9/15/92 for Truth in Taxation pw:poses. 2. New City Hall Facilitv - council made it clear that this project was not linked to successful passage of Public Works Facility Bond Referendum. F\mding sources include: (a) Fund. 315 (Refund Bonds) $600,000 (b) Cable 'IV Fund ($250K '93 & '94 receipts) 75,000 (Dedicated to 1993 & 1994 AV Equip) $0 - $350,000 (~ Public Works site Absorbs Acquisition Costs) $500,000 (If no swap to Obtain site) (c) Reduction of PIR '. (d) Sale of Eldsting site . . . . , P1\GE FIVE REVISICJolS :FRCI! 8/24/92 wautsESSION #2 3. For J::udget purposes, assume no occupancy and attendant operating costs in 1993. HeadcOl.mt Additions - Council directed staff to be prepared with work flaw timing, task descriptions, job descriptions and d=urnented need analysis before Council would be comfortable considering full-time headcount additions. 4. In-House Data Processin<l - Council gave preliminary approval to proceed with this overlay. Of total capital costs of $21,000, approximately 2/3 would be funded from the Water and Sewer utility Funds. 1993 in1pact on the General Furrl would be as follows: CLOSE 1992 LEl:X;ERS m PPI a) 1/3 Hardware Costs b) 1/3 Software Costs (YE ADJtJsTING ENI'RIES) $3,300 3.200 $6,500 5. c) Reduce planned FPI costs from $7400 to $2400 < 5,000 > (still a requirement to complete proCessing 1992 transactions into 1993) -- d) Net OVerlay Inpact < $1. 500 > storm Water utility - Council generally agreed to implementation of such a utility charge. If implemented for 1st quarter 1993, and existing Stann Water utility Maintenance Budget IroVed into a new Enterprise Fund, a possible $24,000 urrlerspen:ling in the General Fund. SUbject needs additional research, refund revenue est:i1nates and a public hearing process if instituted. 6. Restore General Fund Balance - Given the tightness of the Expenditures Budget and the unpreclictability of collecting increasingly higher HACA Aid, the best strategy may be to be very conservative on revenue est:i1nates. 7. Frin<le Benefit Review - Council generally agreed that the area should be reviewed. CouncilJnernber Mahowald volunteered to w=k with staff to ~lore the topic. D. REVISIONS FKM BUI:GEI' WJRKSESSION #2 '!he following chan;Jes directed by Council from W=ksession #2 were incorporated into the J::udget: 1. Public Works salaries were adjusted to reflect a guideline 3% increase. , . P1\GE SIX REVISIctlS :FRal 8/24/92 lIlalRSESSICfi #2 . 2. Re::1uce seasonal Park Maintenance employee cost from $16,720 to $14,000. 3. Administrative Office Capital Expen:litures were reduced from $3500 to $1500 for Conp.1ter Equipment & Software. 4 . Pavement Management Program costs in the street Maintenance Department were reduced from $115,000 to $105,000. '!he effect of these revisions was to leave the General F'urxi in a $1244 deficit position for 1993. '!he accepted overlay of adding in-house c:arrputer capability for 1993 was then added, which =eated a General F'urxi Deficit of $2744 ($6500 additional costs offset by a $5000 reduction in PPI costs) . '!his remaining General F'urxi Deficit was eliminated by the following e>.:penditure reductions: . 1. Building & Grounds Maintenance was reduced from $8500 to $7000. 2. Contract SWeeping in the street Department was reduced from $15,000 to $14,000. 3. Dog Ordinance expenses were reduced from $3650 to $3400. '!hese actions resulted in the General F'urxi being in an In Balance condition. Additional Items to Note: 1. $75.000 was transferred from the stonn Sewer 1992 Estimate and put in PIR (Furrl #501) Contractor Expenditures . 2. A $36.717 invoice from Ramsey County for the City's share of the Lexington Avenue CUrb & Gutter Project is now reflected in the 1992 Fstimate of the Lexington Avenue 90-1 Furrl (#409). 3. $25,000 was shifted from 1992 Fstimated Miscellaneous Revenue into 1993 to reflect the planned sale of the JD Tractor in that year. TRP/rk . . ...- -- . '. ~- ATTACHMENT FOR THE OFFICIAL COPY OF THE AUGUST 31, 1992 BUDGET WORKSESSION ~lliETING MINUTES-THREE~PAGES , . CITY OF 1lRDEN HILIB ~ IllITE : septPm~r 2, 1992 TO: Mayor and City CoImcil Catherine J. Iago, Acting Clerk 1\dmi.nistrator John Buckley, Parks Ii Recreation Director Dan Winkel, Public Works SUperintendent FRrn: @ Terry Post, City Accountant SUBJJ;X:T: Revisions Resulting Fran 8/31/92 Budget Worksession #3 BACKGROUND After incorporating revisions from Budget W=ksession #2 on 8/24/92, the General Fund was in the following sib.1ation prior to Budget Worksession #3: CATEl30RY SOURCE 101 Revenue REV 082792 101 Expenditures REV 083192 Surplus <Deficit> 1992 FSI'IMATE $1,888,880 1. 927 .424 <$ 38,544> Prooosed 1993 $1,892,578 1.892.572 $ 6 BUIX;El' $1,855,688 1,824,441 $31,247 Budqet Worksession No.3 - Cannnents, Revisions & COUncil Direction A. 1992 FSI'IMATE Discussion f=used on what the City could proactively do to Ininimize = eliminate the projected deficit. Items diSCIlSEed included: 1. Increase Revenue: a. Possibility of Building Permit Fees increasing another $10,000 due to Townhouse Construction project. b. City may have opporttmity to sell abandoned Lift station property to developer for development purposes. Revenue inpact undeterminable at this time. c. october Tax Settlement proceeds received in December may not show a continuation of May Tax Settlement experience of paying out instead of collecting delinquent taxes. d. city may be surprised and receive 100% of it I s Certified HACA Aid. e. Hope that C1laritable Gambling receipts stay at =ent average year-to-date monthly levels. f. Hope that Bethel College pulls it's $50,000 J:W.lding pennits in September as is =ently planned. ... .. P1\GE 'JW) REVISICN> FRCM 8/31/92 IlUJ)(;m 'i'KllKSESSlOO #3 2. Decrease ExPenditures a. Council direction to re:luce street Deparbnent Pavement Management costs from $205,000 to $197,500. '!his represents a re:luction in estimated Keithson Road repair project costs from $15,000 to $7500. b. Council direction to staff to be prudent in authorizing expenditures. Postpone discretionary spending into next year to the extent possible. B. 1993 PROFOSED . . 1. Council direction to elllninate the $14, 000 ~ture for contract sweeping. Public Works to utilize existing sweeper in 1993 am explore pricing of the contract sweeping market. Also prepare a pay back analysis on advisability of purchasing a new sweeper. 2. Related to Item #1 above, reduce General Tax Ievy receipts by a co=esponding $14,000 (Assume no del.in:ruency percentage on this increment). Without upjated flACA, fiscal disparities, am Estimated Tax Capacity numbers from Ramsey County, it is assumed that both levies would also be re:luced by $14,000. '!his change would represent a 3.7% Certifie:1 Ievy In=ease (From $1,529,678 to $1,586,000) am a .7% SPread Ievy Increase (From $1,385,696 to $1,396,000). 3. The =ent 1993 Proposed Revenue Estimate assumes 100% collection of $75,000 in Estimated flACA Aid. '!his is a risky assurrption given the state I S past payment record am the state's economy experiencing slow growth. A $35,000 - $40,000 risk factor is present. '!his risk nay be mitigated by stro~er =ent tax collections beyond planne:l delin;{uency rates (8.5% of certifie:1 levy am 9.6% of tax levy) or greater delii-quency collections ($5,000 is estiJnated) . 4. A contingency plan for repaying the PIR F\.1nd for the 1992 Keithson Pond am Arden Place storm Sewer projects should be developed in the event a storm water utility is not implemented by first quarter 1993. 5. If interior repairs to the north water tower are requi.re:1 in the aIroUnt of $125,000, it is assumed the Water F\.1nd would bo=ow the funds from PIR am repay the funds in five years. -. - . '. . . P1\GE THREE REVISlalS FRCM 8/31/92 BUDGEn' iUU{SESSION #3 C. CURRENT GENERAL FUND SITUATION: CATEJ30RY 1992 Bur::GET ESTIMi\TE SOURCE 101 Revenue REV090292 $1,855,688 $1,888,880 101 Expenditures REV090292 1.824.441 1.919.924 SUrplus <Deficit> $ 31.247 <$ 31.044> $ PROPOSED Bur::GET 'TO 1993 Bur::GET % INCREASE $1,878,578 1.878.572 6 I will be present at the 9/8/92 Council Worksession meeting to answer any questions or concerns you may have on issues raised in this memo, or to provide you with lJtXlated infonnation from Ramsey County if it J:ecomes available. TRP:rk 1.2% 3.0% . ATTACHMENT FOR THE OFFICIAL COpy OF THE AUGUST 31, 1992 BUDGET WORKSESSION MEETING MINUTES - THREE PAGES CITY OF ARDEN HILLS .. ~ DATE : 8ept~hP~ 10, 1992 Mayor, City COUncil and Dorothy Person, Clerk 1\dmi.ni.strator TO: ~:@ Terry Post, city Acoountant Budget Impact of Infonnation Received SUbsequent to Revisions Fran Budget WOrksession #3 (9/2/92 Memo) SUBJECT: . Since my 9/2/92 Memo documenting revisions from b.ldget worksession #3 was issued, additional financial information has been received that impacts the preliminary wdget the City will be certifying to the County Auditor on 9/15/92. NEW DATA FRCM RAMSEY CXlUNTY: 1. Fiscal Disoarities A total of $123,100 was previously estimated, of which $115,000 was directed to the General Fun:i. The updated County estimate is $120,481, of \Yhich $112,250 will be receipted to the General Fund. The net impact to the General Fun:i is a revenue reduction of $2.750. 2 . HACA A total of $77,600 was previously estimated, of which $75,000 was directed to the General Fun:i. The updated County estimate is $79,149, of \Yhich $73,745 will be receipted to the General Fund. The net impact to the General Fun:i is a revenue reduction of $1.255. 3. Recvcli.nq sroRE Grant A total of $18,920 was previously estimated. The updated County estimate is $19,449. 'Ibis revision has no impact on the General Fun:i and only impacts the Recycling Enterprise Fun:i (#603). '!he 1993 proposed General Fun:i revenue has been reduced by a net $4005 as a result of the Fiscal Disparities and HAC/\. updates referred to above. As the General Fun:i was previously showing a $6 surplus for 1993; these updates ncM put the General Fun:i into a $3999 deficit con::lition. REXXMMElIDATION 'IO ELIMINATE 1993 PROpos.ED DEFICIT . staff advises increasing the 1993 Certified and Tax Levies by $4000 to overcome the projected deficit. The impact of this change would be to show a 3.94% Certified Levy increase ($1,590,000 vs. $1,529,678) over 1992 and a .34% Tax Levy increase ($1,390,370 vs. $1, 385, 696) over 19920 , ., P1lGE TWO BtlDGEl' IMP1lCT MDI) '!his Certified Levy percentage increase is within the Council guideline to keep such increase less than 4%. DELINQUENCY ASSUMPI'IONS It appears that the two most =itical assumptions impacting the 1993 General Fun:i Wdget are the degree to which current ad valorem taxes and HACA will be collected. To document the assumptions used a "Del:in::{uency Analysis" schedule is attache:l for your review. As you will note, the planned del:in::{uencies of $124,770 (7.86% of the Certified Levy) appear aggressive with respect to prior years b.ldgets and actual experience. However, the 50% reserve for HACA ($40,000) appears prudent given the collection history of this state aid. . 'Iherefore, the aggressiveness or optmsm in the del:in::{uency assumption arises from the 4.89% rate used for current property tax collections. Historically, this would be a conservative rate for the City. But in the last two years, the rates have been 9.26% (1991) and 7.00% (1992 est). If the 1993 collection experience parallels the 1992 estimate, the revenue shortfall may be approximately $20,000. The alternatives to offset this risk include: - Reducing expenditures $20,000 to =eate a planned 1993 surplus of $20,000. Not being as conservative in reserving HAC/\.. Moving $20,000 from planned HACA into property tax reserve would result in anticipating to collect 75% of HACA instead of the current 50%. Evaluating if 1991 & 1992 collection experience was an aberration from historical trends or the beginning of a new benchnark level. In=easing the Certified Levy by $20,000 (a 5.25% increase) to =eate a planned surplus of $20,000. Fin::ling additional revenue sources (i.e., increasing various pennit or license fees). Exploratory work in this area is currently being researched by a SUbcommittee of the Finance Canmittee. staff reconunendation is to be less conservative on HAC/\. receipts \Yhile also anticipating a higher level of pennit/license revenue based upon price increases. 'Ihe impact of these two revenue sources should mitigate any further reduction of expenditures or increase in the Certified Levy. . MARKEr VAllJATION FWINarE During the wdget worksession process, there was some anticipation on i . - . . P1lGE THREE BtlDGEl' IMP1lCT MDI) behalf of Council that the estimated 1993 Market Valuation would show a modest in=ease. However, information supplied by Ralnsey County (see attached) indicates a .05% decrease ($470,742,500 to $470,495,600) in total market valuation and a 4.84% decrease ($11,134,617 to $10,595,922) Total Tax Capacity after Fiscal Disparities impact. I will be present at the Sep1:eInber 14, 1992 Council meeting to discuss any issues raised in this memo and to be a staff resource as the adoption of the 1993 Preliminary Budget is deliberated. TRP:rk