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HomeMy WebLinkAbout2021-06-23 CC WS & Council Minutes - Approved Approved CITY OF CENTERVILLE CITY COUNCIL WORK SESSION & COUNCIL MEETING JUNE 23, 2021 6:30 p.m. Pursuant to due call and notice thereof, the City of Centerville held their regularly scheduled City Council Work Session & Council Meeting on June 23, 2021. WORK SESSION I. CALL TO ORDER Mayor D. Love called the Work Session meeting to order at 5:00 p.m. ROLL CALL PRESENT: Mayor D. Love Council Member Steve King Council Member Russ Koski Council Member Michelle Lakso Council Member Darrin Mosher ABSENT: None. STAFF: City Administrator Mark Statz City Finance Director Bruce DeJong II. AGENDA ITEMS 1. Block 7 – Centra Homes Administrator Statz stated that Centra Homes was present for discussion of the preferred hybrid of Concept 2 recommended by the Planning & Zoning Commission and Council. He stated that he believe resident input was received at the Planning & Zoning Commission and generally they were also in favor of the concept. He reviewed that the concept showed that homes would be facing Heritage and Sorel Streets with two (2) roadways rather than an alley between the buildings. An additional four (4) units would be gained by this concept. Administrator Statz stated that Centra Homes is requesting that the City assist in the added costs associated with the hybrid Concept 2 of $80,000. The Council had lengthy discussion in regards to the length of time it would take for the City to recoup the $80,000 from property taxes and it was estimated to take 24 years. Additional discussion took place regarding windows, landscaping, green space, public input, taxes, the original concept versus the desired, larger units, less density, garages and driveways, guest parking, allowing public input at this evenings meeting versus providing an additional informational meeting for abutting property owners or placing the item on the Council Agenda accepting input, required siding materials per the City’s Downtown Master Plan, the clarity of the Not Approved City of Centerville Council Meeting Minutes June 23, 2021 plan, twenty-six (26) units versus twenty-four (24) and the added gain to the developer, the giving of the property and the next process being a purchase agreement by the first meeting in July. 2. Preliminary General Fund Budget and Levy Discussion Finance Director DeJong gave an overview of line items that were believed to fluctuate (increase/decrease) for the upcoming budget: public safety; salaries; insurance costs; elections; decease in Local Government Aid; addition of an additional staff member (intern, office professional, Assistant Administrator, etc.); building permit revenues and additional meetings regarding this item and that this was Staff’s first draft. Administrator Statz stated that there would be more opportunities to dive deeper into this item. III. ADJOURNMENT Mayor Love closed the Work Session of June 23, 2021 at 6:25 p.m. allowing for a five (5) minutes recess prior to the regular Council meeting. COUNCIL MEETING I. CALL TO ORDER Mayor D. Love called the meeting to order at 6:30 p.m. ROLL CALL* PRESENT: Mayor D. Love Council Member Steve King Council Member Russ Koski Council Member Michelle Lakso Council Member Darrin Mosher ABSENT: None STAFF: City Administrator Mark Statz City Attorney Kurt Glaser *Note that “present” is construed to mean that the noted individuals were visibly and audibly present on the videoconference call. II. PLEDGE OF ALLEGIANCE III. APPROVAL OF AGENDA Mayor Love provided an opportunity for others to add or delete any items. Administrator Statz requested the following revisions to the Consent Agenda. Page 2 of 7 City of Centerville Council Meeting Minutes June 23, 2021 1. Add Check #33849 and Voided Check #33839. 2. Add Item 5 to Consent Agenda – Acceptance of CenterPoint Energy Grant. Motion by Council Member Koski, seconded by Council Member Lakso, to Approve the Agenda as Amended. Mayor Love and Council Members King, Koski, Lakso & Mosher voted in favor. Motion carried. IV. APPOINTMENTS/PRESENTATIONS 1. Audit Presentation – Abdo Eick & Meyers Brad Falteysek, Abdo, Eick & Meyer, presented the financial report, required management communications, and audit insights. He provided a PowerPoint presentation to review the audit. As part of the presentation, overall fund balances, revenues, taxes and tax rate information were reviewed including a comparison of Centerville with other cities in the State. It was noted that Centerville has been in compliance for the last 5 years. Mr. Falteysek reported one item was found incompliant. He stated that a bill for services received in 2020 was expensed in 2021 rather than 2020. He informed Council that the amount was $66,000 and associated with the remodel of City Hall. He report that there was no illegal activity on behalf of the City. During the course of the presentation, it was mentioned for a city to be in good financial standing, it would need to maintain a general reserve fund balance of approximately 40- 50% of the general fund for the following year’s budget. At end of year 2020, Centerville was at 63% of their general fund balance, which is above the minimum requirement. Revenues came in mostly from taxes, and tax levies. It was reported that for the last 5 years, Centerville has been above the minimum reserve requirement going into the following year. In total, the City ended with $1.6 million in reserve funds. Council Member Koski questioned why the garbage and recycling funds have a deficit. Mr. Falteysek stated it was due to startup costs. Administrator Statz explained that this account is a pass through where funds are received from utility billing and then paid to the waste hauler. Mayor Love stated the City decided to attempt to save residents fees in their garbage charges by assuming the billing on behalf of the hauler. Mayor Love proposed to offset the deficit with funding to clear the account. Mr. Falteysek noted that Centerville, in a tax trend study with other cities up to 10,000 in population, is right in the middle when compared to other cities. Administrator Statz questioned why such a drop in per capita tax in 2019. Mr. Falteysek suggested it may have been due to the City Hall city street project but he could not be certain. Council Member Mosher wondered why the dip in the tax rate. Finance Director DeJong commented it is due to an increased tax base over the years. It is also related to commercial development which provides a more significant impact on taxes. Administrator Statz stated bottom line is that taxes are going down based on tax base not tax per capita. Page 3 of 7 City of Centerville Council Meeting Minutes June 23, 2021 Council Member Lakso wondered if the error in expenditures from 2020 to 2021 would have been uncovered without the assistance of the auditor. Finance Director DeJong stated it would been noticed in the 2021 audit. Mayor Love was happy to see positive vibes, CARES Act money coming back, and the budget moving forward. Administrator Statz stated the audit had a complicated ending and looked like 2021 was headed for a loss because CARES money were received in 2020 but expended in 2021. Mayor Love indicated he had no problem with fund balance going down as long as the people can see the work being done. He noted that Finance Director DeJong puts all the numbers into a long- range financial plan and will bring it back to Council for review. Mayor Love wondered if the City should offset the intended deficit in the stormwater fund. Mr. Falteysek stated that if 2020 is similar to 2021, then it should take care of itself if the long-range plan is utilized. Council Member King questioned whether the CARES Act and the ARP Act would contain different guidelines on how to spend the money. Finance Director DeJong stated the ARP funding would allow expenditures until the end of 2023. Mr. Falteysek was provided with a list of what the allowable expenditures were for the CARES Act and what the allowable expenditures would be for the ARP funding. Administrator Statz commented that allowable monies to fund payroll under the ARP funding would have to be documented and used for COVID expenses for these 2 years. Financial Director Bruce believes stormwater revitalization is covered under ARP funding. Administrator Statz explained that once approved, the financial statements will be published on the City’s website and available for inspection by the public. It was noted that action on the audit report will be considered as IX. New Business, Item 1. Approval of Annual Audit. V. PUBLIC HEARINGS 1. None. VI. APPROVAL OF THE MINUTES 1. February 10, 2021 City Council Meeting Minutes Mayor Love provided an opportunity for Council to make modifications to the minutes if desired. Motion by Council Member Koski, seconded by Council Member King, to Approve the February 10, 2021 City Council Meeting Minutes as Presented. Mayor Love and Council Members King, Koski, Lakso & Mosher voted in favor. Motion carried. 2. February 24, 2021 City Council Work Session & Meeting Minutes Page 4 of 7 City of Centerville Council Meeting Minutes June 23, 2021 Mayor Love provided an opportunity for Council to make modifications to the minutes if desired. Council Member Koski questioned when Closed Session meeting minutes become available to the public. Administrator Statz stated it depends on what is discussed and not until matters are completely resolved. Motion by Council Member King, seconded by Council Member Mosher, to Approve the February 24, 2021 City Council Work Session and Meeting Minutes as Presented. Mayor Love and Council Members King, Koski, Lakso & Mosher voted in favor. Motion carried. VII. CONSENT AGENDA 1. City of Centerville Claims through June 23, 2021 (Check #33813-33843 & 33849) & Voided Check #33839 & (1715E-1720E) 2. Centennial Lake Police Department Claims through June 17, 2021 (Check #13856-13881), (2021028E) & Payroll (Check #13868-13869) 3. Centennial Fire District Claims through June 8, 2021 (Check #9094-9101) & (2021010E), Payroll (Check #9089-9093) & Voided Check (#9066) 4. 1823 Prairie Drive, Encroachment Agreement – Fence 5. Acceptance of CenterPoint Energy Grant Mayor Love provided an opportunity for the Council to add or remove any item(s) to/from the consent agenda. Motion by Council Member Koski, seconded by Council Member King, to Approve Consent Agenda as Amended. Mayor Love and Council Members King, Koski, Lakso & Mosher voted in favor. Motion carried. VIII. OLD BUSINESS 1. None IX. NEW BUSINESS 1. Approval of Annual Audit Council Member Koski stated his appreciation for the financial information Mr. Falteysek provided. Motion by Council Member Lakso, seconded by Council Member King, to Approve the Comprehensive Annual Financial Report as presented. Mayor Love and Council Members King, Koski, Lakso & Mosher voted in favor. Motion carried. X. COUNCIL/ADMINISTRATOR ANNOUNCEMENTS 1. Administrator’s Report Page 5 of 7 City of Centerville Council Meeting Minutes June 23, 2021 Administrator Statz did not have a written report. He mentioned Fete des Lacs has collected more money than ever before and encouraged the public to volunteer. He reported the Planning and Zoning Commission will have the trucking development and a small residential 2 lot development next on their agenda. Also, the Planning and Zoning Commission meeting has been moved back one week to July 13, 2021 due to scheduling conflicts. He also mentioned an open house at City Hall from 9:00 a.m.-11:00 a.m.to see the newly remodeled city hall. Council Reports a. Lakso – Council Member Lakso stated that she would absent on July 14, 2021 City Council Meeting i. Anoka Fire Protection Council – No report was given. ii. Parks and Recreation Committee – No report was given. b. Koski – Council Member Koski thanked the Fete des Lacs Committee for their dedication. i. Fire Steering Committee – The next meeting would be held on July 15, 2021. ii. Planning and Zoning Commission – Council Member Koski stated that discussions will be had regarding a proposed trucking firm to be located on property south of Main Street on Rehbein property at their July 13, 2021 meeting. c. King – i. Economic Development Authority – Council Member King stated that staff will be accepting “swag” from local businesses to be placed in Main Street Market bags for distribution at a Music in the Park event. d. Mosher – i. Economic Development Authority – Council Member Mosher stated that the banners had been installed on polls in the Downtown area. ii. Police Governing Board – No report was given. e. Love – i. North Telecommunications Commission – Mayor Love stated that they are back producing programs in person. ii. Police Governing Board – No report was given. iii. Fire Steering Committee – No report was given. Page 6 of 7 City of Centerville Council Meeting Minutes June 23, 2021 iv. Other Mayor Reports – Mayor Love stated that tomorrow at the League of MN Cities they would be holding their Annual meeting where elections for Board Members would take place and there is a possibility he will be elected for the President of the Board. XI. ADJOURNMENT Motion by Council Member King, seconded by Council Member Mosher to Adjourn the Regularly Scheduled Council meeting at 7:28 p.m. All in favor. Mayor Love and Council Members Koski, Lakso, Mosher & King voted in favor. Motion carried. Respectfully submitted by City Clerk, Teresa Bender Page 7 of 7