HomeMy WebLinkAbout11.29.95 Special Council Minutes
MINUTES
COUNCIL MEETING
SPECIAL
TRUTH IN TAXATION HEARING
NOVEMBER 29, 1995
1. Mayor Kuchera called the meeting to order at 7:00 P.M..
Members Present: Kuchera, Ristow, Gamer, Galler.
Members Absent: Fitch. (Arrived at 8:10 P.M.)
Also Present: Interim City Administrator Finstuen, Finance Director Henneke.
2, Finance Director Henneke presented the goals of the City Council for the 1996
Budget. It was pointed out that the addition to the Fire Station and the remodeling
of City Hall have been paid for by cash,
3. Counci1member Galler asked the Finance Committee if they had developed a
contingency plan should the estimated revenue from building permits fall from the
projected amount in the budget. Mayor Kuchera brought up the topic of the suggested
limit of 300 new dwelling units per year and asked whether multiple unit buildings
were considered as one building permit unit; or was each unit an individual building
unit, Counci1member Gamer, a Finance Committee member, responded that individual
units in multiple housing complexes would not be part of the 300 individual unit
limit.
4. Counci1member Galler asked Member Gamer if the Finance Committee had considered
closing the City's outdoor pool in light of the facts that it was operating at a loss
and since the School District was building a new indoor pool. Counci1member Gamer
indicated that they had not addressed that.
s. It was noted that the Metro Sewer Fee is projected to drop because of the award
winning sump pump inspection and prairie Waterway projects. Mr. Henneke explained
that a sewer rate increase was proposed in order to help fund the deficiencies from
past years in that fund.
6, Salary allocations were discussed in reference to the City Administrator position
salary. It was noted that the amount budgeted may not be adequate to attract a
candidate with the qualifications the City requires, Counci1members differed on that
opinion.
7. Citizen Henry Iwerks gave comparisons of tax rates among cities and, according to
the Minnesota Taxpayers Association, Farmington has the highest tax rate per capita.
He requested the Council review this fact, Once again, he reiterated his feelings
regarding bidding for various services,
8. Citizen Jeff Thelen asked whether the space needs line item was originally set up
to fund a new Public Works garage but was used for any areas that needed remodeling,
Counci1member Galler stated that the funds were not locked into use for the garage,
however, that was the original reason for the space needs line item. Mr. Thelen then
asked why several of the City funds did not pay overhead reimbursements. He
suggested raising user fees instead of subsidizing through other funds. It was noted
that two of the funds, sewer and solid waste, did have proposed rate increases, and
it was projected that with funding from other sources, these deficit funds should
break even in 1997,
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Council Minutes - 11/29/95 - Special - Page 2
9, City insurance agent Brian Lundquist brought up the City's League of Minnesota
Cities insurance program. He noted that the LMC insurance program was designed to
meet the needs of cities only and that it was a non profit organization. He further
noted that 98% of the cities in Minnesota belonged to the LMC insurance program. He
also noted that he had recently received information which stated that the City would
be receiving a dividend of approximately $28,000 from LMC. Mr. Lundquist pointed out
that the League did not cover liquor businesses. Henry Iwerks stated that he
understood what Mr. Lundquist was saying, however, his company encouraged the
cooperatives to go out for bids. Councilmember Galler noted that the Council would
have to decide to go out for bids and they had not made that decision this year.
10. Jeff Thelen asked Councilmember Fitch what the City intended to do if the
projected revenues for building permits dropped due to changes in the current climate
of the construction industry. Member Fitch stated that cuts would have to be made.
He noted that each Department had brought in their proposed prioritized requests for
1996 and that cuts would be made in order of priority. He went on to state that it
was the Council's hope that permits would not drop off and the fund would not have a
shortfall.
11. It was noted that an error had been found in the budget revenues. The Senior
Center revenues had been accounted for in two places, The funding shortage would be
made up through transfers from the HRA contribution for Economic Development Director
salary, which will now be paid out of the General Fund,
12. It was suggested that capital outlay purchases be spread out through the year as
building permit fees were received, In that way, if there was a shortfall in permit
fees, the funds would not have already been spent thereby creating a deficit. For
example, a snowplow had been budgeted for 1996 and this purchase could be delayed
until later in 1996 when it was known whether building permits have kept their
projected pace.
13. The Council commended the Finance Committee and City staff for "a real fine job"
on the preparation of the 1996 budget.
14. MOTION by Gamer, second by Fitch to close the Truth in Taxation Hearing. APIF,
MOTION CARRIED.
15. MOTION by Ristow, second by Gamer to adjourn at 9:10 P.M.. APIF, MOTION
CARRIED.
Submitted by,
Karen Finstuen
Interim City Administrator
Approved