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HomeMy WebLinkAboutCC 12-13-1993 . MINUTES CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING December 13, 1993 7:30 P.M. _ Mounds View High School Cafeteria CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Sather called to order the regular city council meeting at 7:30 p.m. Present: Mayor Sather; councilmembers Beverly Aplikowski, Dale Hicks, and Paul Malone. Absent: Councilmember Dennis Probst; Also present were: city Accountant, Terry Post; Community planning Coordinator, Brian Fritsinger; Park Director, Cindy Severtson; Public Works Superintendent, Dan Winkel; city Administrator, Dorothy Person; and Recording Secretary, Renee Kaulfuss. ADOPT AGENDA MOTION: Aplikowski moved, seconded by Hicks, to adopt the December 13, 1993 agenda as presented. Motion carried . unanimously (4-0) . TRUTH-IN-TAXATION HEARING Mayor Sather opened the meeting at 7:31 p.m. for the purpose of conducting a public hearing on the matter of the proposed 1994 budget/levy. Administrator Person reported that Truth In Taxation notices, in compliance with State law, were mailed to residents of Arden Hills by Ramsey county. Notices were published in the December 7, 1993 edition of the Focus News and December 8, 1993 edition of the New Brighton Bulletin. A summary report handout was provided to the public. city Accountant Terry Post presented a report showing a 1994 Budget introduction, levy comparison, allocation of a tax dollar by School District, community comparisons, tax capacity information, tax supported services, 1994 budget summary, a synopsis of personnel and contractual services. Mr. Post reported that the city's proposed 1994 levy after HACA Aid reflected a 9.94% increase over 1993 and explained what constitutes the city's levy. There is $118,750 proposed in the Capital Projects category for government buildingS/facilities for existing and/or future facility capital requirements. In addition, there is $37,409 proposed to restore the General Fund . -- " . Arden Hills Council 2 December 10, 1993 balance. Mr. Post reported that Arden Hills' tax rate is lower in comparison to neighboring cities of Mounds View, Shoreview and New Brighton. The Arden Hills proposed tax capacity rate of 17.078% is very close to the average rate in comparison to neighboring communities. The City's 1993 rate was 14.382%. Mr. Post commented that the November, 1993 final report on local services funding by the Governor's Commission on Reform and Efficiency (CORE) found that Arden Hills' total expenditures on basic services were 28% below the basic spending level as defined in that study. Input and comment from the audience was invited. Tom Mulcahy, 3530 Siems Court questioned whether there is a maximum levy limit. He further commented he is not interested in the city providing additional services to the community. Councilmember Malone confirmed that levy limits no longer are applicable, and this law was appealed in 1992. Councilmember Malone further commented that a major reason in the shift of collection of tax revenue to residents is due to the industrial and commercial businesses appealing to the courts for . a reduction in their valuations. Councilmember Malone addressed the restoration of the General Fund balance and explained that the city recently received the December tax settlement payment from the County which had a revenue shortfall of $100,000. He further explained that the City's outside auditors suggest that the City begin year 1994 with a general fund balance of approximately $600,000. The reason for this request is that taxes are collected two times per year and the city receives little property tax dollars from the county until July. The city therefore could in some future year, need to borrow money by April if the $600,000 balance is not initiated on January I, 1994. Currently, the General Fund is not able to maintain a positive cashflow between receipt of these County tax settlement receipts. Councilmember Malone referred to the Pavement Management program and explained the city streets need repair. As the City ages, infrastructure needs increase and the city is budgeting for additional pavement management projects. (Councilmember Probst arrived at 7:50 p.m) . Eugene Richter, 3552 Glenarden Road questioned whether the City challenges these appeals made by the industrial and commercial . Arden Hills council 3 December 13, 1993 . businesses. councilmember Malone stated the city has no direct input to these appeals. The County defends the appeal process, not the City. Councilmember Aplikowski commented that a taxpayer has the right to file an appeal. Mr. Richter stated he understood, however, he found that an individual resident has very little success in an appeal. Dobson West, 1149 Amble Drive questioned which businesses in Arden Hills have actually filed an appeal. Mr. Post stated this list includes properties such as Land 0' Lakes (corporate), MSI (Corporate) , Arden Plaza, pine Tree Drive office buildings and the Dunlap area between the Grey Fox and Red Fox Roads. Councilmember Probst commented one reason the industrial and commercial businesses are requesting appeals and winning, is due to the foreclosures on the savings and loan properties. Due to the foreclosures, properties are now selling at $.10 on the dollar. Attorneys are reasoning that large corporations will have difficulty in selling their entire campus. Mr. West questioned whether Bethel and Northwestern College pay for police and fire protection. Mayor Sather stated no, however, . Bethel makes a one time per year contribution to the General Fund. In addition, Bethel is a good neighbor and allows our City, as well as other communities, to use their facilities for youth programs. Mr. West then questioned why North Oaks' rate is so low. It was noted that the streets in North Oaks are private, and average valuations in North Oaks are substantially higher than the average valuation in Arden Hills. North Oaks residents receive much less service from their city as in comparison to Arden Hills' residents. Scott Tolson, 1321 Wyncrest Court requested an explanation be provided to him as to how the formula to determine how the tax capacity rate was calculated on his property tax notice. Mr. Post demonstrated how the formula determines a person's tax amount, however, Mr. Post offered to review Mr. Tolson's property tax notice after the hearing. Edward Woo, 3988 Glenview Avenue questioned whether the taxes he is expected to pay would include any anticipated future expense to road improvements on his street. Councilmember Malone stated the City could assess up to one half of the cost of the assessment for any improvements to his street. . - Arden Hills council 4 December 13, 1993 . councilmember Malone commented that the city is striving toward bringing in new development into the Gateway Business District area which would bring the city new revenue. In addition, he commented that if cut backs had to be made, examples of possible cut backs could be less than 24 hour patrol from the Ramsey County Sheriff's Department, or cut back on street repair which would adversely impact the street improvement program. Councilmember Malone commented that the City receives many requests for additional services, such as snow removal on the sidewalks. He further commented that he does not foresee the rate continuing to escalate in the future. Mayor Sather commented that councilmember Aplikowski has worked to establish a new Economic Development Committee in Arden Hills and representation on this committee include businessowners in the community. Jack Toumie, 1755 County Road F W, stated his valuation has not increased in four years and does not understand his tax capacity rate. Mr. Post stated he could go over Mr. Toumie's statement after the meeting with him. Tom Mulcahy requested Council to confirm in his mind which areas are the major changes in the budget. It was explained two areas . are the funds needed for preparation of government buildings/facilities for existing and/or future facility capital requirements and the other item is the funds proposed to restore the General Fund balance. Councilmember Probst commented that the City is currently in a "catch up" mode with street improvements. The streets in Arden Hills are in need of additional maintenance and the city cannot get further behind on this process. If we would cut back on street maintenance, there would be a later need for additional street reconstruction, which is even more costly. Councilmember Probst further commented that TCAAP property represents 1/3 of the land of the city. currently the representatives of TCAAP are requesting access for sewer and water service. The city currently cannot provide this service to them due to a lack of infrastructure in the proximity of need. The city would prefer to be ready to offer services. Councilmember Aplikowski commented the city is taking a pro- active approach to assist the businesses to stay healthy and develop land. . Arden Hills Council 5 December 13, 1993 . Harry Cedarholm, 1271 Ingerson Road commented he has been a resident for 21 years and he located to Arden Hills because of the commercial tax base. He expressed his concern that the city cannot represent itself on the appeal hearings. Mayor Sather stated unfortunately, many times an appeal is heard before the City is even aware an appeal has been filed. Eugene Richter questioned whether city officials have considered merging with another city for shared services. Mayor Sather noted that the city abolished the police department and now participates in shared services for police and fire protection with Ramsey County and Lake Johanna Volunteer Fire Department. The City also participates in a shared effort for park programs. Councilmember Hicks made comment that merging with another city doesn't always reduce services. He continued to note that the total mileage of roads would remain the same and the same number of vehicles such as trucks, snowplows, and sweepers would be needed. There could be a reduction in employees, but this would be minimal. Any merging with neighboring cities would financially benefit them, however, not Arden Hills. State Senator Linda Runbeck introduced herself and stated that 85% of the tax statement is allocated to the School District and . county. She further commented that the City of Arden Hills receives no Local Government Aid funding and is an extremely efficient city. Senator Runbeck questioned whether the City has ever considered joint planning sessions with the School District and the County. Mayor Sather explained that many joint planning sessions are ongoing between the County, the Army Reserve, and the National Guard to negotiate a shared public works facility. Benefits of a shared facility could be salt/sand storage, recreational programs and shared office space. In addition, current ongoing discussions include continued use of park tree programs, police and fire services. Senator Runbeck urged the residents to write to their Senators and Legislative Representatives. This is an election year and there is a major property tax reform being proposed this upcoming session that would prohibit excessive expenditures. Hearing no further comments, the Mayor and each Councilmember reflected on the budget sessions held over the past several months, addressing their individual reasons for recommending the 1994 budget as proposed. The City council believes this budget has been reduced as much as possible, however, will continue to . --- ,- Arden Hills Council 6 December 13, 1993 . provide for the services they understand the citizens have requested. In addition, the fund balance has begun restoration and this budget establishes a fund for City facilities. The Pavement Management fund allows for City streets to continue to be reconstructed and improved. The hearing closed at 9:00 p.m. A fifteen minutes recess was called. The meeting reconvened at 9:15 p.m. PUBLIC HEARING - CONTINUANCE OF ASSESSMENT HEARING REGARDING 1993 ARDEN PLACE DRAINAGE IMPROVEMENT PROJECT and PUBLIC HEARING - FINAL ASSESSMENT ROLL , COST ALLOCATION IN THE MATTER OF 1993 ARDEN PLACE DRAINAGE IMPROVEMENT PROJECT Mayor Sather advised the Council that the cost sharing agreement between Noyed, Bauer, and Bongard and the City has not been finalized as of this date. Staff will continue to work with all parties to resolve the issues that remain outstanding. Mayor Sather commented that since the cost . sharing agreement for the Arden Place private/public drainage improvement had not yet been finalized, it would be prudent to continue both public hearings that had been scheduled to take place this evening. There were no public comments. Council concurred. APPROVAL OF COUNCIL MINUTES Malone moved, seconded by Hicks, to approve the minutes of the November 29, 1993 Regular Council Meeting as prepared. Note was made to a name correction on the Worksession minutes of November 29, 1993. Motion carried unanimously (5-0) . CONSENT CALENDAR MOTION: Malone moved, seconded by Hicks, to approve the Consent Calendar and authorize execution of all necessary documents contained therein. Motion carried unanimously (5-0) . a. Approve Official Meeting Calendar for 1994. b. Approve Resolution #93-66, recognizing the last Saturday in April 1993 as Arbor Day and May 1993 as Arbor month. . Arden Hills Council 7 December 13, 1993 . c. Approve court ordered agreement relating to dog nuisance issue. Order requires the City to approve a variance to erect a solid fence. d. Approve List of Claims/payroll. PUBLIC COMMENTS There were no public comments. UNFINISHED AND NEW BUSINESS UPDATE ON RETROCESSION City Administrator Person commented that today she received a copy of an agreement between the Army and the Spring Lake Park Fire Department. The agreement is signed by an officer of the Army. As this agreement was only received today prior to the meeting, Ms. Person asked the Council if she could review the contract in detail and readdress this item at a later date. The Council concurred. 1994 UTILITY RATE ADJUSTMENT AND RECOMMENDATION . Ms. Person referred to a revised memo received this evening relating to the recommendation of the 1994 utility rate adjustments and recommendation. To be consistent in the process of establishing rates, a correction was made to the recommended rate increase. Council concurred with the process being consistent with past practice. Council further concurred that after review of the utility cost structure, a water utility rate increase is necessary to enable the utility to remain self-supporting. MOTION: Hicks moved, seconded by Aplikowski to approve Resolution #93-67, revising the water utility rates effective January I, 1994. Motion carried unanimously (5-0) . MOTION: Malone moved, seconded by Aplikowski to approve Resolution #93-68, revising the sewer utility rates effective January I, 1994. Motion carried unanimously (5-0) . SHOREVIEW ARDEN HILLS LIONS CLUB GAMBLING PREMISES PERMIT APPLICATIONS . --...----- Arden Hills council 8 December 13, 1993 . Ms. Person commented that the Arden shoreview Lions Club is requesting renewal of their gambling premises permits for Big 10 Supper Club and Ramada Inn. She further commented that Bingo license applications have been received from the Arden Shoreview Lions Club, and secondly from the Climb Theatre requesting a Bingo license be considered at the Pot O'Gold Bingo Hall. Councilmember Malone commented consideration for a request for a Bingo license application is on a first come, first service basis. MOTION: Malone moved, seconded by Hicks to approve Resolution #93-69, permitting a charitable gambling premises permits to the Arden Shoreview Lions Club to conduct business at the Big Ten Supper Club, 4703 N. Highway 10, and the Ramada North Hotel, 1201 W. County Road E. Motion carried unanimously (5-0) . UPDATE ON ARMY/CITY OF SHOREVIEW REOUEST TO APPROVE SANITARY SEWER CONNECTION Ms. Person referred to her memo provided in the Council packet regarding the request for a sanitary sewer connection on the TCAAP property to the city of shoreview sanitary . sewer. She stated that all parties involved are aware of the City's effort to begin strategic planning of this area. It is critical at this time for the Army to begin disbursement of this water, and due to a timeliness issue, staff is recommending that this agreement be approved. Councilmember Malone concurred with staff's recommendation and further stated that there is a statement in the agreement that at such time when the city extends this infrastructure TCAAP sewer customers agree to connect to the Arden Hills system. Councilmember Probst concurred and stressed the importance to proceed with infrastructure planning for the future. He further commented on the need for funds in the Arden Hills budget to be available when the time would come to begin any development of this property. Mayor Sather indicated his concern that Arden Hills is not prepared to offer these services to the Army. He stated that Arden Hills needs to be in a position of servicing all in Arden Hills, including TCAAP. Several similar requests have been made from adjoining cities where the city of Arden Hills was unable to assist. Arden Hills needs to prepare its infrastructure for all services to its businesses and . ----------- Arden Hills Council 9 December 13, 1993 - and residents, including TCMP. MOTION: Probst moved, seconded by Malone to approve the agreement between the Army, the city of Shoreview and the City of Arden Hills to allow the installation of a sanitary sewer connection on the TCMP property to the city of Shoreview with the agreement to include a statement that the sanitary sewer connection will be made to Arden Hills from TCMP as it becomes available from Arden Hills. Motion carried unanimously (5-0) . COUNCIL COMMENTS Councilmember Probst stated that the Park & Recreation Committee will not meet in December. He informed the Council he would not be able to attend the worksession meeting of December 16. Councilmember Malone commented that the Fire board has rescheduled their meeting for December 22, 1993. Anticipated topics of discussion are a request for a Fire Marshall and a part-time secretary. . Councilmember Malone referred to the information received from the League of Minnesota cities relating to the proposed amendment changes to the Charter. The proposed changes to be voted on at the annual meeting include: allowing school districts, watershed districts, soil and water conservation districts and all other governmental subdivisions the right to vote on all League matters. He asked staff to look into this request as the above mentioned are not currently dues paying members. Councilmember Malone stated he attended the Met Council meeting and if any of the members would like to review the materials, let him know. ADJOURN MOTION: Hicks moved, seconded by Aplikowski, to adjourn the meeting at 9:40 p.m. Motion carried unanimously (5-0) . Thomas R. Sather, Mayor Dorothy A. Person, Administrator . ------