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HomeMy WebLinkAbout11-17-08-WS ~ ~HILLS Approved: January 12,2009 CITY OF ARDEN HILLS, MINNESOTA CITY COUNCIL WORK SESSION MEETING NOVEMBER 17, 2008 5:00 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 City Council Work Session meeting at 5:07 p.m. Present: Mayor Stan Harpstead; Council Members David Grant, Brenda Holden, Fran Holmes, and Dave McClung. Absent: None. Also present: City Administrator Ron Moorse; Public Works Director Gregory Hoag; Finance Director Susan Iverson; Civil Engineer Kristine Giga; Community Development Director James Lehnhoff; Elizabeth Diaz, Ehlers & Associates and Jonathan North, Ehlers & Associates. 1. AGENDA ITEMS A. Utility Rate Study City Administrator Moorse explained that back in May the Council reviewed draft utility rate study information and looked at a number of alternatives. He noted expenditure and revenue gaps were pointed out and some direction was given from Council as to the fee structure that should be implemented. City Administrator Moorse indicated Ehlers & Associates was present to review the new fee structure in more detail. Jonathan North, Ehlers & Associates, thanked the Council for their time and apologized for the delay in getting the information to them. He reviewed a new fee structure with the Council based on their direction from May 2008. Mr. North ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17, 2008 2 indicated the information includes recommendations for the water and sewer utility rate structure along with storm sewer information. Mr. North reviewed the overall purpose of the utility fee structure and that it needed to cover the expense of the water purchase from Roseville, operations from day to day, payroll, capital improvements, etc. He further presented fee structure information, capital outlays and expenditures with the Council. Mr. North eXplained that TCAAP was not included within this summarization but would have its own analysis completed by the end of December. Mayor Harpstead stated the information presented shows operating revenues are less than operating expenses at this time. Mr. North reviewed three different rate structures with Council noting the first was status quo. The second option was to include a base meter charge, as done with the status quo with a quarterly meter fee along with three fee tiers based on usage. He stated the third option would be to strictly pay for the gallons used by each property. Mr. North indicated there are certain fixed costs that need to be covered by revenues and that by adding the fixed meter charge; some of the risk can be eliminated based on the weather cycles. Mr. North reported the Council directed him to further investigate Option 2 in greater detail with a base meter charge and three tiers of water fees. He noted he was also to consider how this could be phased in to the current rate system to limit the impact in 2009 and reduce the reliance on debt. Mr. North added that the DNR has mandated that all communities in the metro area adopt conservation rate structures by January 1, 2010. He indicated the conservation rate structures do promote conservation and helps allocate the costs to the people using the system. Mr. North further reviewed the rate structure numbers with the Council and asked for comments and questions. Councilmember Holden questioned what the median usage was for the City at this time. Elizabeth Diaz, Ehlers & Associates, indicated the median usage for households was 20,000 gallons per quarter or 80,000 gallons per year. Discussion ensued regarding the suggested water rate structure and how the fees would be assessed in 2009. ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17, 2008 3 Mayor Harpstead questioned which option would be the easiest for the City to implement, along with the pros and cons. Finance Director Iverson indicated she felt Option 2 would meet all the criteria and would be the easiest to handle from an expense standpoint. She noted the City's fixed expenses would be covered under this Option as well. Mr. North then reviewed how the Council could proceed with Option 2 and reduce the need for outside debt through the use of Interfund Loans. He referred to his handouts noting rates would increase by 13% in 2010, 12% in 2011, 12% in 2012, and 1% in 2013-2014 to cover the capital in the water fund with the use of Interfund loans. Ms. Diaz noted in the projection in May, there was a placeholder for Interfund proceeds but that the difference between Option 2 and 2A were that the usage rates were being increased more slowly. Mr. North indicated the low end users will receive a better water rate based on the numbers within Option 2A but would still be charged a meter fee to cover the City's fixed costs. He further eXplained the differences between the senior rates in 2008 versus the new proposed rate, along with their new meter rate. Mayor Harpstead questioned if the proposed rate structure met the new DNR water conservation mandate. Ms. Diaz eXplained the proposed rate structure did meet the mandate as there was a percentage difference between the three water usage tiers. Mr. North reiterated the fact that Option 2A would reduce the rate increase impact to the residents in 2009. Further discussion ensued regarding the rate increases. Mr. North reviewed the effect of Option 2B and stated Intefunds would not be used with this option, only cash. He stated the needs of the system would require 13%, 25% and 10% rate increases projected for 2010-14. Mr. North explained that with Option 2, presented in May, shows the rate increases for 2010 would be 6%, along with years 2011-14. He indicated the means used to pay for the capital expenditures will greatly affect the rate increases and if the debt repayment is spread out over a number of years. ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17, 2008 4 Councilmember McClung was in favor of the tiered payment structure and that payment would be based on use. Councilmember Grant questioned what the Met Council fee was yearly. Finance Director Iverson noted this was a $50,000 sewer fund expense, and that this may increase for 2009. Further discussion ensued regarding the rate structures and which would benefit the City most. Councilmember McClung indicated if a policy switch is made, his view would be to have this change be easy to communicate to the residents. Mr. North agreed stating that was why he was recommending the original Option 2 for Council's approval. Councilmember Holden indicated she would be m favor of proceeding with Option 2. Mayor Harpstead agreed with Option 2, without the A and B additions. He felt that Option 2B would collect too much revenue for the City. Councilmember Grant indicated he was more in favor of Option 2 as it streamlined the change and was easy to explain. Mayor Harpstead asked staff to report back on the fee schedule price differences between a I" line and %" line. It was the consensus of the City Council to direct staff to proceed with Option 2 as the new water rate structure for the City of Arden Hills. Mr. North further reviewed the sanitary sewer information with the Council. He indicated the rates would increase by 6%, 7% and 7 Yz% going into the future. Mr. North stated the analysis has been completed for three types of users based on these increases. Ms. Diaz eXplained a goal for the City would be to balance the total utility bill, including water and sewer fees within the individual funds. She noted the cash ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17, 2008 5 within the sewer fund has been declining fairly rapidly over the past few years. Ms. Diaz indicated the new structure would rebuild the cash balances. Councilmember Holden stated she was in favor of Option 2A for the sewer fund. Mayor Harpstead agreed stating he would be in favor of the water rate being Option 2 and the sewer rate being Option 2A. Councilmember Grant agreed that 2A was a better option, especially for a low- end user. Councilmember Holden indicated 1&1 would be a continual maintenance item for the City in this area. Mayor Harpstead suggested Option 2A be implemented for the next 2-3 years and that after that time, revisions be made. Councilmember Holmes asked if less money was being brought in for the City under Option 2A versus Option 2. Ms. Diaz explained that a percent increase over time would create more money if started from a larger fund base. She indicated the percent increase, even when less was bringing in more because the starting point was bigger. Councilmember Holmes questioned if there was a senior discount with either option. Finance Director Iverson reported Option 2A was giving a senior discount. Mayor Harpstead indicated he would be interested in smoothing the bump from $45.20 to $70.50 for seniors. Ms. Diaz eXplained the current sewer charge for residents was $67.83 and that this could be for a low-end user. She indicated the senior rate would be a base rate of $45.20. Councilmember McClung indicated the best option may be to select Option 2, but to phase out the senior subsidy over a course of several years. ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17, 2008 6 Mayor Harpstead agreed with this suggestion for the sewer side rate structure for low-end users. Councilmember Holden questioned if the City was doing away with the senior discount rates. Mayor Harpstead indicated the Council had discussed continuing a senior meter charge. Finance Director Iverson noted the senior discount rate was not totally eliminated as there was concern for the price jumps. Mayor Harpstead stated the senior discount was removed for usage but not on the base charges for water or sewer, as presented in the current model. Mr. North apologized to the Council, but stated he would need to excuse himself from the meeting. Councilmember Holden indicated she would like to take this information home and review it further before proceeding with a rate structure. Finance Director Iverson explained the numbers could be rerun without a senior discount for the Council to review before a final decision was made. Mayor Harpstead stated he would like to see, that by say 2012, the difference between the senior meter charge and residential charge be zero. The Councilmembers agreed. Ms. Diaz clarified the Council's wishes by stating they were in favor of Option 2 for the water fee structure phasing out the senior meter charge, starting at 70% for 2009. She indicated this fee would be 100% by 2011. Ms. Diaz stated the Council would like the sanitary sewer fund to be Option 2A, phasing it 70%, 80%, 90% and then 100%. Mayor Harpstead explained Option 2 with similar phasing may be an acceptable option to pursue as well. Ms. Diaz began to review the storm sewer water rates with Council. She noted the current billing structure has a fixed quarterly charge of $8.92 for single family homes and $11.56 per unit for townhomes and $113 for commercial/industrial ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17, 2008 7 properties. Ms. Diaz indicated the proposed breakdown include a 4 Yz% increase. She noted the sewer rate structure would not be changed in any other way. Discussion ensued regarding the fee differences between single family residential and multi-family dwellings. Finance Director Iverson reviewed how the surplus funds would be used on future capital improvements within the City and which years would draw on these funds. She indicated the City would be building cash balance in order to handle future unexpected repairs. Mayor Harpstead was in favor of the suggested rates as they were in alignment with neighboring communities. Councilmember Holmes questioned what would happen in 2011 when there was a large gap. Finance Director Iverson stated an Interfund loan could be used and paid back if needed. She indicated this large gap was created due to a large budgeted capital improvement involving storm sewer ponds. Mayor Harpstead recapped utility rate study discussion noting the Council was in favor of rate structure, Option 2, phasing out the senior meter discount and rate usage by 2011. He indicated the storm sewer increase would be a 4 Yz% bump with no change in the rate structure. The Council was in agreement with these conclusions. The Council took a five minute recess. B. Capital Improvement Plan City Administrator Moorse presented the Council with a broad overview of the Capital Improvement Plan (CIP) and the guiding plan. He explained this was a working document and guiding plan for multi-year capital needs. City Administrator Moorse indicated the CIP would assist the Council in matching large future capital expenses to a funding plan. He further reviewed a power point presentation with the Council. City Administrator Moorse noted the City did have a healthy balance in the Capital Improvement Fund at this time gaining interest. He indicated the City was ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17,2008 8 levying $200,000 yearly for capital improvement expenditures. City Administrator Moorse explained without a plan the City roadways will continue to deteriorate to a condition that becomes more costly to replace or reconstruct. He asked that the Council review the next five year capital improvements and assist in identifYing priorities along with funding sources. Discussion ensued regarding the capital improvement plan and future funding sources. Mayor Harpstead suggested each Council member give a general overview of what they like and do not like with the CIP providing staff with feedback and questions. He noted a more in depth conversation could be held with staff to convey additional concerns of needed before the next meeting. Councilmember Holden stated she would like to see 2009 items discussed first during this meeting in depth and detail in order to set the CIP before year's end. Mayor Harpstead questioned if the City had an equipment fund established. Finance Director Iverson eXplained this fund was established last year but had no funds allotted. She indicated back in 2006, the equipment, non-assessable road projects and the PIR fund were combined into the PIR fund. Mayor Harpstead suggested these funds be separated between capital and improvements. Councilmember Holden asked if the repair and labor costs could be kept separate from maintenance expenses. Staff indicated they would be clearer with these items in the future. Councilmember Grant commented on the PCI road life expectancy within the City and the rule of 72. He understood the importance of these numbers but asked if it was necessary to continually improve these surfaces ifthere wasn't yet a need. He indicated this was a huge expense to the City. Mayor Harpstead stated that the CIP was to be used to add value to the City and its residents along with increasing the property values within the community. He stated the roadways could be seen as investments for the abutting properties. ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17, 2008 9 Councilmember Grant indicated he felt the City should not be proposing a fire station as the current one is serving the City well and could be improved or renovated to meet future needs. He stated if this item were placed in the CIP the public would assume it's a done deal, along with the fire department. Mayor Harpstead agreed with this comment stating he would like to explore the joint powers agreement to meet the fire needs within the City. Councilmember McClung noted there were a great deal of fire stations surrounding the City of Arden Hills and that joint power agreements can be explored but that future needs would have to continue to be discussed. Councilmember Holden indicated she would be in favor with increasing the relationships between the City, local businesses and educational institutions to increase collaboration in the future for large improvement projects. Mayor Harpstead then asked the Council to discuss the 2009 CIP items to prioritize them and provide staff with comments. He indicated the first item was gateway signs. Mayor Harpstead explained he would be interested in erecting one gateway sign in the City to establish a benchmark and methodology before all the signs were replaced. Councilmember Holden stated the EDC was not looking for large, costly monument signs. She noted they were more in favor of the park-like signs to greater define entrance points within the City. Councilmember Holmes indicated she felt these SIgnS were not crucial for business development. Mayor Harpstead suggested he would be in favor of one intersection being chosen with the $10,000 funds allotted for a gateway sign. Community Development Director Lehnhoff indicated if the gateway sign were to be similar to the park signs, the expense would be roughly $3,500. He eXplained that higher grade materials would increase the expense to the City. Councilmember Holden stated she did see the value of gateway signs establishing the location of businesses to passer-bys. The Council agreed to have the EDC pursue placing a gateway sign at a high profile intersection within the City and report back to Council. ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17,2008 10 Public Work Director Hoag indicated the next item on the CIP was heat for the public works cold storage area. He eXplained this area was used for maintenance on the large City equipment. Public Works Director Hoag stated this has been a long-standing request from his department. Mayor Harpstead questioned if the entire area needed to be heated or if a small part of it could be heated. Public Works Director Hoag indicated this could be done, but that an interior wall would need to be erected to hold the heat in a specific area. He felt it may be more costly to alter the walls than to heat the entire space. Public Works Director Hoag noted he has been in discussions with the Ken Haider at the County regarding large vehicle maintenance. Councilmember Holden stated she would be in favor of funding this expense and taking care of the City's equipment. Mayor Harpstead suggested this item be sorted through with the shared service spaces with the County. The Council agreed. City Administrator Moorse indicated the next item was for the City Hall office space expansion on the second level. He explained additional information is being gathered in terms of future needs. Finance Director Iverson stated the funds were allotted for 2008 but would be transferred to the general fund in 2009 to the equipment fund where they will be expensed when the work was completed. The Council was in favor of this suggestion, forwarding the funds to an equipment fund for consideration in 2009. Public Works Director Hoag eXplained the next item on the CIP was City trail slgnage. Mayor Harpstead questioned how many signs this would entail. Councilmember Holden indicated she would like to see a detailed plan from the PTRC before this item was to proceed. ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17, 2008 11 Mayor Harpstead suggested the PTRC focus on the Elmer L. Andersen Memorial Trail and that implementation be considered for 2010. The Council was in agreement with this suggestion. Mayor Harpstead indicated the next item on the CIP was the Lexington Avenue Trail, which ran from the railroad track to Cub Foods. Councilmember Holden noted she flagged this item and stated it may be a great opportunity for a partnership between the City and Northwestern to complete this trail segment, and possibly have it completed in 2010. City Administrator Moorse stated Cub could be approached as well for funding. Mayor Harpstead suggested the trail segment be kept in the plan for 2009 with a challenge made to staff to find external financing for 50% of the trail, be it from Cub, Northwestern, etc. The Council was in agreement with this suggestion. Public Works Director Hoag indicated Cummings Park irrigation was an effort to keep the ball fields in better shape. He indicated the soccer and softball fields are overused and do not bounce back from the abuse to the grass. Public Works Director Hoag explained the irrigation would go a long way to increase the resilience of the sod. Councilmember Holden asked what the $16,000 estimate would cover. Public Works Director Hoag indicated the $16,000 came from a supplier that designed an irrigation system from an overhead map of the Cummings Park. Councilmember Holden questioned if all parks would be irrigated in the future. Public Works Director Hoag indicated it would be in the best interest of parks with ball fields, to have them irrigated. He stated in the long run, the fields will need to be replaced if not properly watered. Mayor Harpstead explained this item was not high on his list. He felt if there were businesses that used these fields on a high level or if the softball leagues wanted to assist in funding this. ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17, 2008 12 Councilmember Holden suggested that additional information be gathered regarding the irrigation system for Cummings Park before proceeding. The Council agreed. Mayor Harpstead indicated the next item was Hazelnut outfield fence. Councilmember Holden stated this would be a controversial item by the neighbors surrounding this park as they do not want a permanent fence in that area. Councilmember Grant felt the fence was a safety issue, but he understood that many people were opposed to adding this to the park. Mayor Harpstead indicated there was potential to reduce the expense and size of the fence but that if safety was a concern, this needed to be addressed. Mayor Harpstead explained the next item was the DNR connection and safe routes to school grant. He felt the City had grant funds available and that these connections should be exercised. The Council was in agreement. Mayor Harpstead indicated the next item was the Old Highway 10 sidewalk improvement/CP rail amounting to $225,000. He noted this expense was for the implementation. Councilmember Grant stated he would be in favor of improving the County Road E bridge before addressing this item. Mayor Harpstead was in agreement. Councilmember Holden questioned if this was a funded project by the County. Community Development Director Lehnhoff stated the County did not consider this a priority and is not funded. Mayor Harpstead stated the next item was the Lake Johanna Fire Department equipment. Councilmember Holden asked for further clarification as to the details of this equipment. Councilmember McClung clarified the items this would cover and indicated the Council was already committed to these items, the new fire truck and capital improvement projects to the station. ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17, 2008 13 Mayor Harpstead reviewed the history of this item with staff in greater detail and asked that the items for the fire station be broken down into two different categories for better clarification as to what year the expenditures would be spent. Mayor Harpstead indicated the next item was emergency vehicle preemption. Councilmember Holden questioned which intersections this expense would cover, as most intersections already had this amenity. Councilmember McClung indicated the intersections of Lexington and Grey Fox and Lexington and Red Fox do not have the preemption system, which is a busy area for emergency vehicles. Mayor Harpstead noted this was a safety issue and was in favor of proceeding. Mayor Harpstead eXplained the next item on the CIP was the sewer lining and I & I rehabilitation. He suggested $100,100 be allotted to sewer lining as funds were set aside for this sanitary sewer improvements. Councilmember Holden questioned if these funds were supposed to be used for the manhole replacement program. Public Works Director Hoag indicated roughly $65,000 could be used for manhole replacement with the additional funds used for sewer lining. He explained additional funds could be used for the sump pump program if available. Mayor Harpstead suggested $150,000 be allotted for these items for 2009. Councilmember Holden questioned if the manhole program had to be done in 2009 or if it could be scaled back to address the sewer lining and sump pump concerns. City Administrator Moorse stated the sump pump expenses could be estimated before a decision was made. The Council agreed to proceed with this item allotting $100,100 split 50/50 between the manhole and sump pump initiatives and $80,000 for the sewer lining. ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17, 2008 14 Mayor Harpstead indicated the next item was PMP for the Glenarden neighborhood. He stated this was an expensive line item but was needed. Staff explained this item would only proceed pending a public hearing in January. Councilmember Holden questioned the Katie Lane subdivision. She indicated the developer has not sold any lots and questioned if the overlay should be completed ahead of the development. Staff eXplained they would be meeting with the developer to discuss his plans further and stated the overlay could be pushed back to 2010. The Council agreed to move this expense to 2010. Mayor Harpstead noted the next item was Nursery Hill and Wyncrest planning dollars. He indicated he would excuse himself from the vote on this item because he lives in Nursery Hill. Mayor Harpstead explained the catch basins in this area should be replaced with sump basins to help improve water quality. Councilmember Holden indicated she was not interested in doing a PMP project for this neighborhood. Mayor Harpstead stated it would be helpful to have information from staff defining the minimum size project that was economically viable. Further discussion ensued regarding the possibility of doing reconstruction one year within the City and overlays the next. Councilmember Grant indicated the mobilization fees would be good to know as the Council plans out future improvement projects. Civil Engineer Giga stated she would look into this further and report back to the Council. Further discussion ensued regarding the storm ponds and water runoff within the City. Mayor Harpstead questioned if Valentine Park repair and improvements had water concerns if this line item covered the expense. Civil Engineer Giga stated it potentially could but that greater information would be gathered at the Progress Update Meeting with WSB. She noted she did not see this as a 2009 expense. Public Works Director Hoag noted Valentine Park playground structure was scheduled for replacement in 2010. ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17, 2008 15 Mayor Harpstead continued with the CIP indicating the next item was erosion correction on Old City Hall trail. Public Works Director Hoag explained there was an erosion issue on the trail south of Old City Hall where the embankment of the trail was crumbling. He indicated this project was driven by the neighboring resident but would need a financial investment to be done correctly. Mayor Harpstead questioned if the $20,000 would correct this problem or be a patch. Staff indicated this would properly correct the problem on the embankment. Councilmember Holden indicated she was in favor of correcting the trail without spending a fortune on the neighboring property. The Council agreed. Finance Director Iverson explained the next item was technology and office equipment to replace the computers as they become outdated, along with a color printer. She noted the lease was up on the copier in 2009 and that a change may be made to a color copier to allow the City to print in color, along with making black and white copies. Mayor Harpstead indicated the next item was the repair and repainting of the south water tower. Public Works Director Hoag noted this has been delayed for several years and should be completed in 2009. He eXplained the City logo would not be added to the water tower but that maintenance and repair would be completed. Public Works Director Hoag indicated the City Hall parking lot would need to be addressed and asked if they Council was still in favor of expanding the lot if the elections would no longer be held on site. Discussion ensued regarding this item and Councilmember Grant suggested expanding the sidewalk to the corner and that this walkway be lit to allow for additional parking and that the current lot not be expanded. Mayor Harpstead questioned if the lift stations were going to be worked on in 2009. He noted stations 1, 11, 12 and 13 were on the work list. Discussion was held regarding the lift stations. Mayor Harpstead had staff review the needed equipment for 2009. ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17, 2008 16 Councilmember Holden indicated $55,000 was allotted for this expense. She asked ifit could be pushed back to 2010. Public Works Director Hoag explained the differing options available on the new mowers along with how they would be used for the City. He indicated the new mowers would reduce the man hours spent on mowing next summer. Public Works Director Hoag stated he reviews the equipment fund on a yearly basis and is keeping the repair and maintenance needed on these items in mind when making his request to the Council. The Council agreed to proceed with the purchase of new mowing equipment for 2009. Councilmember Grant questioned if the S-lO truck was gomg to need replacement in 2009. Community Development Director Lehnhoff stated the vehicle has already totaled due to hail damage and that staff would like a place keeper for this item in case the vehicle fails. He explained the prices of vehicles have come down and that the City may find a great value next spring. He stated that we would not need another vehicle with four wheel drive and that we will consider a used vehicle. C. 2009 Budget Finance Director Iverson presented the City Council with the final levy limit numbers. She indicated the final allowable levy was $2,961,994, which was $41,440 lower than the August estimate. Finance Director Iverson explained this happened to several other cities as well and she suggested the contingency be reduced to $6,315, along with reducing the EDA transfer to $15,000. She indicated these reductions would balance the overall budget for 2009. Finance Director Iverson recommended the equipment fund transfer be reduced from $50,000 to $40,000. She explained this would leave the City with a tax levy with an increase of 5.9% versus the 7.4% in August. Finance Director Iverson noted the tax rate would go up to 20.622, which was an increase of 5.3% over 2008. She reported the impact to the residents would be a decrease of $1.80 annually. Finance Director Iverson stated the average tax payer paid $554.37 and last year it was $556.17. She reviewed the Truth in Taxation notices with the Council stating the meeting would be held on December 1, 2008. ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17,2008 17 Councilmember McClung indicated the fire department budget has numbers that include an assistant chief. He stated he reported the City of Arden Hills would not support that position, which would reduce the budget by $13,348. Finance Director Iverson indicated this would reduce the levy to 5.4% creating a 4.8% increase in the tax rate to 20.520. Councilmember Holden questioned if the fire department was a partnership how the City of Arden Hills could be kept from paying our percentage. Mayor Harpstead agreed, but stated the position of the Council at this time was not to support this position and to reconsider how the fire department could seek out better efficiencies amongst their staff. Discussion ensued regarding the EDA fund transfer and the negative balance. Finance Director Iverson stated the fund transfer for 2009 would allow the fund to eliminate the negative balance. She noted a swing in property values and taxes being taken in shifted the balance but that future expansion in the City will make this a viable fund. Councilmember Grant indicated he would be in favor of lowering the levy to 5.4% based on the fact the City will not be supporting the assistant chief position for the fire department. Councilmember McClung questioned what the obligated balance of the 2008 budget was and ifthere would be surplus. Finance Director Iverson stated the audit report has not been run to date, but that there could be roughly $80,000 to use towards additional projects. Mayor Harpstead indicated he felt it was not the responsibly of the City to take the residents money and store it, but only take it when the City has an investment that increases the value of the community. He felt the bridge across County Road E would be a positive investment in the City. Finance Director Iverson stated the Park Fund is struggling and will need to look at a new revenue source since charitable gambling funds were not available. She stated if the fire department position were not funded the additional funds could to the Park Fund. ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17, 2008 18 Councilmember Grant suggested the City pursue additional grants for park projects because there was funding out there. He stated he would like the information greater explained to the public regarding the levy limit. Finance Director Iverson indicated the levy limit press release is state mandated and has to be posted in a certain font, style, etc. She eXplained this could be greater defined within the City newsletter if required. Finance Director Iverson stated this information could also be greater explained at the TNT meeting to get the focus off the levy and onto the tax rate which creates the impact on the homeowner. Mayor Harpstead agreed asking if the levy limit information could be posted on cable, in the bulletin and in Arden Notes. He questioned if the Council was in support of the budget as presented with the exception of the fire department assistant chief position and bringing it forward to the TNT meeting December 1, 2008. Councilmember Holmes stated she was in favor of the budget as presented with the additional funds going into a contingency fund to be used as an investment into the City. Mayor Harpstead agreed. Finance Director Iverson questioned if she should proceed with the 5.9% rate and that it could be reduced to 5.4% at the TNT meeting. . Councilmember McClung indicated he would not vote for a levy limit higher than 5.4%. 2. COUNCIL COMMENTS AND REQUESTS Councilmember Grant indicated there were a ton of signs posted along the City roads throughout the City. He noted these signs were on City right-of-way and asked that they be removed as they were posted for commercial purposes. Councilmember Grant questioned if the permit software was operational. City Administrator Moorse stated it should be to the City at the end of November. ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17,2008 19 Finance Director Iverson indicated she has not paid for the software training and will not pay for it until the City receives the software even though the training has taken place. Councilmember Grant encouraged staff to be more timely in getting information to the Councilmembers. He indicated it is difficult to act on items without information prior to the meeting. Mayor Harpstead thanked Ryan for his work on the local fund match for the County Road H intersection. He indicated the last bonding bill the Senate set aside $20 million. Mayor Harpstead further explained how this item was proceeding and thanked the Council for their support in addressing the Governor with Sandy Kramer. Mayor Harpstead adjourned 9:59 p.m. Ronald J. oorse City Administrator ''',,-. ~. -------