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HomeMy WebLinkAbout12.05.22 Council Minutes COUNCIL MINUTES REGULAR December 5, 2022 1. CALL TO ORDER The meeting was called to order by Mayor Hoyt at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Hoyt led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Hoyt, Bernhjelm, Lien, Porter, Wilson Members Absent: None Also Present: Leah Koch, City Attorney; Lynn Gorski, City Administrator;Julie Flaten, Assistant City Administrator/HR Director; Chris Regis, Finance Director;John Powell; Public Works Director; Kellee Omlid, Parks and Recreation Director; Gary Rutherford, Police Chief;Justin Elvestad, Fire Chief; Cynthia Muller, Administrative Assistant Audience: Keith Molnar, Dave Steinke, Lyle Stratton 4. APPROVE AGENDA Councilmember Lien asked to move 5a) Recognition of Councilmember Bernhjelm to the end of the meeting. City Administrator Gorski added item 7f) Consider Contract for Completion of Building Inspection and Report for Substandard Designation for TIF District Creation. MOTION by Bernhjelm, second by Porter to approve the agenda as amended. APIF, MOTION CARRIED. S. ANNOUNCEMENTS Moved to the end of the meeting. 6. CITIZEN COMMENTS Mr. Keith Molnar, 18742 Englewood Way, had questions on his property tax form. Looking at county, city, school, parks and rec there is a 27% increase. He asked if items in the budget could be moved back to reduce taxes this year. Council explained more information will be provided later in the meeting when the 2023 budget is discussed. 7. CONSENT AGENDA MOTION by Porter, second by Lien to approve the Consent Agenda as follows: a) Approved November 21, 2022, City Council Meeting Minutes—Administration b) Adopted RESOLUTION R82-22 Approving Polling Locations for 2023 — Administration C) Approved Temporary On-Sale Liquor License—Knights of Columbus— Administration d) Approved Various License and Permit Renewals—Administration e) Adopted RESOLUTION R83-22 Granting a Time Extension of Recording of Final Plat—Denmark Housing Addition—Community Development Council Minutes(Regular) December 5,2022 Page 2 f) Approved Contract for Completion of Building Inspection and Report for Substandard Designation for TIF District Creation —Community Development g) Approved Additional Staff Issued Business Credit Cards—Finance h) Approved Bills—Finance i) Approved Amendment to the Fire Services Agreement with Castle Rock Township—Fire j) Approved Reclassification of Communications Specialist Position—Human Resources k) Approved Staff Changes and Recommendations—Human Resources 1) Adopted RESOLUTION R84-22 Approving The Better Health Collective—Human Resources m) Approved Annual Non-Bargaining and Paid-On-Call Firefighter Wage Increase— Human Resources n) Approved Agreement for Demolition of Bathhouse—Parks and Recreation o) Adopted RESOLUTION R85-22 Approving Dakota County All-Hazard Mitigation Plan—Police P) Approved ESRI License Agreement—Public Works q) Approved 2022 Tree City USA Recertification —Public Works r) Approved a Contract with Ehlers for a Utility Rate Study—Public Works APIF, MOTION CARRIED. 8. PUBLIC HEARINGS a) Approve 2023 License Renewals-Administration A public hearing was held for license renewals for On-Sale Liquor, On-Sale Sunday Liquor, On-Sale Wine, 3.2 Beer and Intoxicating Malt Liquor and Club licenses for various businesses. MOTION by Bernhjelm, second by Lien to close the public hearing. APIF, MOTION CARRIED. MOTION by Bernhjelm, second by Porter to approve the On-Sale Liquor, On-Sale Sunday Liquor, On-Sale Wine, 3.2 Beer and Intoxicating Malt Liquor and Club licenses. APIF, MOTION CARRIED. b) Adopt Ordinance Approving 2023 Fee Schedule -Administration For 2023,there are increases to Rambling River Center rental rates and Schmitz- Maki Ice Arena rates. Park development fees are proposed to increase 3%to help cover the increasing costs of equipment, amenities and construction. There are increases to various Fire items. Community Development increases include reprinting the permit pack and cancelled permits, on-site sewage treatment, and business subsidy applications. Residential building valuations will be adjusted in 2023 to reflect a 10% increase in the cost per square foot values. The last increase in cost per square foot values was 2%adopted in 2018. In Engineering, the water tower antenna base rate increased 5%. The Water Board recommended a utility rate increase of 5%. A utility rate study is recommended for 2023. Sewer and storm water rates have a 5% increase. Development fees are increased by 3%. Sanitary sewer trunk and water fees are increased by 3%. Council appreciated the modest changes. MOTION by Bernhjelm, second by Porter to close the public hearing. APIF, MOTION CARRIED. MOTION by Council Minutes(Regular) December 5,2022 Page 3 Bernhjelm, second by Lien to adopt ORDINANCE 022-770 approving the 2023 fee schedule. APIF, MOTION CARRIED. 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Adopt Resolution Approving 2023 Final Budget and Tax Levy- Finance The 2023 budget was developed according to council's goals. The preliminary budget and tax levy was approved on September 19, 2022. Items to note— property taxes are the primary funding source; local government aid of$105,587 was cut; the 2023 budget includes three new positions; three new positions were added in 2022; the debt service levy decreased $196,223; there is a transfer from the solid waste fund to the general fund of$150,000; increased fuel budget across all funds;the vehicle replacement plan has a 33%funding increase. The 2023 budget has a net tax levy of$12,749,859 which is a 5.96% increase over 2022. Revenues are budgeted at$3,796,853, a 5.13% increase. Expenditures are budgeted at$16,884,783, a 7.34% increase. The city's existing debt service is decreasing each year. The proposed tax rate is a 15.22%decrease due to market value decreases. The city's portion of the property tax levy in 2022 was $1,420.33 based on a market value of$280,570. In 2023, the city portion of the property tax levy is$1,467.26; a $46.93 increase or$3.91 per month with an estimated 21.84% increase in market value. This is based on a taxable market value of$341,851. Mr. Dave Steinke, 1412 Lower Heritage Way, asked if the building permit revenue took inflation into account and should the city expect a 20% increase? The housing market is losing steam. Finance Director Regis noted the building official is comfortable with these numbers. They do not include commercial permits. Councilmember Bernhjelm noted this is a very conservative budget. Mr. Steinke asked if the city has any input into the estimated market value the county assigns. Mayor Hoyt noted that is through the county assessor's office. Mr. Steinke stated looking at comps online, there is a $100,000 gap between the county and online comps. Mayor Hoyt stated an owner can do an independent appraisal and bring it to the county in June. Councilmember Bernhjelm noted Farmington has one of the lowest increases in the county. She appreciated the collaboration of council and staff and not sacrificing core services. Councilmember Porter thanked staff for their hard work. She encouraged councilmembers to be an advocate to local representatives regarding losing LGA. Councilmember Wilson appreciated the Council Minutes(Regular) December 5,2022 Page 4 work of staff. They brought everything to the table and it was very beneficial. The cost of everything is going up and council is mindful of that. We have parks that need maintenance and council wanted to support a nice standard in our parks. He is okay with having the expense knowing the return is a better looking community. Mayor Hoyt thanked everyone for their work on the budget. We started the budget process earlier and analyzed long-range planning. It's nice to see the tax rate go down. MOTION by Bernhjelm, second by Wilson to adopt RESOLUTION R86-22 approving the 2023 tax levy. APIF, MOTION CARRIED. MOTION by Bernhjelm, second by Wilson to approve the 2023 budget. APIF, MOTION CARRIED. S. ANNOUNCEMENTS a) Recognition of Katie Bernhjelm's Contributions as City Councilmember- Administration Councilmember Bernhjelm was recognized for her service since 2017. Her term will end December 31, 2022. She provided many great aspects and staff appreciated her insightfulness. Councilmember Wilson appreciated her honesty and approach to serving on the council. He stated, she enabled me to be a better councilmember. She represented residents to the best of her ability. Councilmember Porter noted Councilmember Bernhjelm said yes to serving at a time not convenient for a new mom. She provided a wealth of knowledge and was a great mentor. Councilmember Porter appreciated her work for the community and wished Councilmember Bernhjelm and her family all the best. Councilmember Lien stated Councilmember Bernhjelm was a role model when he walked in. He appreciated her insight. Mayor Hoyt stated Councilmember Bernhjelm was appointed in April 2017 and elected in November 2018. She served on boards of directors for several committees. She served with integrity, professionalism and grace. She is an inspiration to others to rise to civic duty. He learned how to be a better listener. Farmington is greater today and in a better position moving forward. Councilmember Bernhjelm stated deciding not to seek re-election was very difficult. She needs to spend more time with her family and on other activities. She is only the 7th woman elected to serve in Farmington's history. When she started on the council she was curious where taxes went and how decisions were made. She is a lifelong learner and the best learning is on the job. A community thrives because of the people who lift them up. She served with seven different councilmembers and two mayors and saw many city accomplishments. She is blessed to have worked for companies that allowed her to do this. She thanked her husband for his support. The council set priorities and a vision and left it to the team to execute. Social media is an interrupting tool for government. We need less polarizing politics and more common ground. It was a pleasure to get to know each of you. City staff are the unsung heroes of this town. Council Minutes(Regular) December 5,2022 Page 5 13. COUNCIL ROUNDTABLE Gorski. It's okay to be emotional. It shows you care. It's not easy being a public servant. Flaten: Councilmember Bernhjelm has been very helpful and appreciated how she could disagree respectfully. Powell. Appreciated how Councilmember Bernhjelm supported the vision of staff. Regis: Councilmember Bernhjelm understood the budget process very well and could see both sides. Omlid: Restated that Councilmember Bernhjelm was only the seventh woman to serve on the council and it was a pleasure to work with you. Thank you for your support of parks and the city. Elvestad: Thanked Councilmember Bernhjelm for her service. She always challenged us to look outside the box. Rutherford: Future councilmembers will look to Councilmember Bernhjelm as a role model. Koch: Councilmember Bernhjelm has the professionalism, clarity and conduct any city attorney would love. Lien: Thank you to the volunteers at Dakota City Heritage Village. Porter. Thank you to the residents for coming tonight. This will be the last weekend for residents to see Christmas at Dakota City Heritage Village. Merry Christmas and Happy Holidays to all. Hoyt: This is the holiday season so travel safe. He had a great time at Dakota City Heritage Village. The community has lots going on. 14. ADJOURN MOTION by Bernhjelm, second by Wilson to adjourn at 7:55 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia NuCCer Cynthia Muller Administrative Assistant