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HomeMy WebLinkAbout09-02-1997 CMW AGENDA ITEM D-1 COUNCIL/MANAGER WORKSHOP CITY OF MAPLEWOOD 5:00 p.m. Monday, September 2, 1997 Maplewood Room, City Hall MINUTES A. Call to Order Mayor Bastian called the meeting to order at 5:00 p.m. B. Roll Call Mayor Gary Bastian Present Councihnember Sherry Allenspach Present Councilmember Dale Carlson Present Councilmember Marvin Koppen Present Councilmember George Rossbach Present Others Present City Manager Michael McGuire Finance Director Dan Faust Assistant to the Manager Tim Busse Mary Ippel Carolyn Koch C. Approval of Agenda Mayor Bastian. requested to include a presentation by Carolyn Koch from HealthEast St. Johns as item C'/z. Councilmember Rossbach requested to include lowlands as item Jl. Bastian moved approval of the agenda as amended. The motion was seconded by Councilmember Koppen. Ayes: All C%z. HealthEast St. Johns Carolyn Koch, Associate Administrator of HealthEast St. Johns presented the Council with plaques of appreciation for the support the city has given to St. Johns. Council/Manager Workshop September 2, 1997 page 2 D. Tax Increment Reporting Forms for 1996 Mr. McGuire reported that the Office of the State Auditor is requiring Maplewood to file amended tax increment fmancing reports on adistrict-by-district basis for 1996. Mr. Faust said the work done to segregate the balance in each fund would eliminate the need for additional work in the future. Councilmember Rossbach moved and Kop~en seconded that the city retain Taut eg s. Redpath and Company to assist in the preparation of the revised 1996 TIF forms for a cost of up to $6.900. Ayes: All E. Overview and Discussion of Proposed 1998 Budget Mr. McGuire summarized the details of the proposed 1998 Maplewood City Budget. Mr. McGuire reported that the 19971egislature enacted a tax levy limit for taxes payable in 1998 and 1999, and that the limits allow adjustments for inflation and housing growth. The law also allows certain special tax levies such as debt service exempt from the limit. Mr. McGuire pointed out that the levy limit makes it virtually for the city to expand or add services for city residents. Mr. McGuire reported that the 1998 Budget was developed with the following major objectives in mind: •Keep the property tax levy increase under the inflation rate and population growth rate; •Maintain the level of services provided by departments; •Decrease the Community Center's net loss before depreciation to less than $100,000; •Provide an operating reserve with the General Fund contingency account to approximately one percent of the budgeted 1998 expenditures; •Provide a General Fund budgeted ending fund balance equal to 34.6 percent of the budgeted revenues; •Implement funding for the first year of the 1998-2002 Capital Improvement Plan which includes $3.5 million for major equipment purchases and construction projects. Mr. McGuire reported that the 1998 Budget was developed using the following revenue assumptions: 1. Property taxes wi1P be collected at a 99.4 percent rate; 2. Special assessment collections for 1998 will be 36.1 percent less than in 1997; 3. License and permit fee rates will increase by an average of three percent to keep pace with the projected rate of inflation. License and permit fee revenues will increase 17.1 percent due to updated estimates on the number of business licenses and assuming that building permits will equal the average of 1994 to 1996; Counci]/Manager Workshop September 2, 1997 page 3 4. Intergovernmental revenues will be 6.4 percent less than the 1997 budget primarily due to a decrease in street construction state aid; 5. Revenues from service charges will be 4.1 percent higher than 1997 due primarily to an increase in the sewer rates; 6. Revenues from fines and penalties will be 6.9 percent more than 1997; 7. Miscellaneous revenues will be 9.3 percent more than in 1997. Proposed revenues for City operations were summarized as follows: •Taxes $8,480,550 +1.4% •SpecialAssessments 226,650 -36.1% •Licenses and Permits 1,001,750 +17.1% _ •Intergovernmental Revenue 4,621,610 -6.4% •Charges for Service 7,791,940 +4.1% •Fines and Penalties 133,350 +6.9% •Miscellaneous 5.010.560 + .3% Totals $27,266,410 +2.1% Mayor Bastian noted that assuming building permits will equal the average of 1994 to 1996 maybe optimistic as those were three good building years. The Mayor questioned what the budget impact would be if those levels are not reached. Mr. McGuire explained that many revenue sources are tied somewhat to expenditures, so if revenues were down expenditures would also be down. However, a revenue shortfall would occur and would have to be covered in other ways. Mr. Faust noted that those revenue sources make up only a small portion of the total revenues for the city. Councihnember Rossbach asked how the percentage increases are determined, in particular the increase in ambulance service. Mr. McGuire said that the increases are set using the average of the previous three years. Mr. Faust noted that state law limits the amount that ambulance rates maybe increased and explained that the city has typically set ambulance rates based on the rates charged by other area providers. Mr. McGuire reported that the 1998 Budget was developed using the following expenditure assumptions: 1. Personnel costs will increase by 6.9 percent due to cost of living salary adjustments, step increases within pay ranges and the addition of three new full- time positions; 2. Expenditures for materials and supplies will be 6.8 percent greater; 3. Contractual services costs will be 8.0 percent higher in 1998 due to costs for the municipal fire department that were not included in the 1997 budget and an increase in the sewage treatment costs; Council/Manager Workshop September 2, 1997 _ page 4 4. Capital outlay and depreciation expenditures are expected to be 19.8 percent less than 1997 due to lower expenditures in the Capital Improvement Budget; 5. Expenditures for debt service will be 87.7 percent more in 1998 due to a large amount of bonds being called and paid prior to their maturity dates; 6. Other charges will be 11.9 percent less than 1997 due to a decrease in the size of the General Fund contingency account. Mayor Bastian asked if any Minnesota cities charge for fire or police calls. Mr. McGuire reported that given the already high level of property taxes, it seemed unlikely that cities could charge additional amounts for fire or police calls. As an example, Mr. McGuire pointed to the Maplewood Police Officer stationed at Maplewood Mall at no additional charge to the Mall. Given the number of calls at the Mall, it makes sense to maintain an officer at the Mall. Proposed expenditures for City operations were summarized as follows: •Community Development $1,102,090 +7.6% •General Government 13,110,560 +42.3% •Finance 593,530 +9.6 •Fire 1,540,970 +5.3% •Police 4,849,430 +13.9 •Public Works 8,382,620 -3.0% •Parks and Recreation 3 87 5.570 -16.0% Totals $33,364,770 +12.5% Mayor Bastian questioned whether the city could charge for transportation costs when the Police Department transports prisoners to Saint Paul. The Mayor compared the possible transportation fee to the booking fee already charged to prisoners. Mr. McGuire said staff would look into the possibility. Councihnember Carlson asked about joint dispatching with Ramsey County. Mr. McGuire reported that additional discussions will be scheduled before the end of the year. Mayor Bastian asked about the possibility of moving pet licensing out of city hall. Mr. Faust reported that the animal licensing revenue for the city is about $14,000. Mr. McGuire said it would be possible to license vets to do pet licensing, and discussion ensued about the problems that could arise. Mr. McGuire said that staff would look into the possibility. Council/Manager Workshop September 2, 1997 page 5 Mr. Faust reported that the Community Center Operations Fund anticipates a increase in revenues up to $1,508,800 million while expenses are expected to increase to $1,594,840. The resulting operating loss of $86,040 would achieve the goal as part of the five year plan which includes in 1998 a net operating loss of less than $100,000. Mr. McGuire told the Council that the levy limit will not allow the city to comply with a state mandated Storm Water Management Study that would cost $80,000. Mr. McGuire questioned the necessity of the mandate, as a similar study has been done in recent years. Mayor Bastian pointed out that a new comprehensive land use plan must be approved by the Met Council in 1998. The Mayor asked if the stormwater management plan was part of the comprehensive plan, and also asked whether the city will have a complete comprehensive land use plan if the stotmwater plan is not done. Mr. McGuire said he would ask Public Works Director Haider to put together a short summary on the stormwater management plan and the comprehensive land use plan before the budget hearing. Mr. Faust reported that capital improvements for 1998 will total $3,461,000. The improvements are the first improvements in a five year plan. Mayor Bastian questioned the benefits of road overlays as opposed to seal coating and discussed a possible balance between the two. Councihnember Rossbach reported that the cost of NEST will increase dramatically in coming years. Councilmember Rossbach said that contract costs are increasing and NEST will eventually not be able to use their surplusto reduce the costs to participating cities. Mayor Bastian asked if the recent economic improvements in the city would help improve the city's bond rating. Mr. Faust said Maplewood's AA rating is relatively high for cities across the nation. Mr. McGuire said the city last requested a rate increase four years ago, and that staff would look into scheduling another presentation before the appropriate bond houses. F. Ambulance Rates for 1998 Mr. Faust recommended that ambulance rates be increased effective January 1, 1998 to provide the anticipated revenue in the 1998 Budget. Mr. Faust reported that as ambulance rates have increased over the past several years, the property tax subsidy for paramedic services has decreased by .9 percent. Mr. Faust also reported that hi preparing the 1998 Budget, the rates charged by other providers in the area was taken into consideration. Councilmember Carlson moved approval of the proposed ambulance rate increase. Councilmember Koppen seconded the motion. Council/Manager Workshop September 2, 1997 page 6 Ayes: Allenspach; Bastian; Carlson; Koppen. Nays: Rossbach G. Ordinance to Set 1998 Sewer Rates (first reading] Mr. Faust reported that in order to provide the revenues anticipated in the 1998 budget and to finance the 1998 operating expenses of the Sanitary Sewer Fund, sewer billing rates must be increased by 4.2 percent, effective January 1, 1998 Mr. Faust pointed out that approximately 75 percent of the operating expenses are for the sewage treatment costs which the city cannot control. Councilmember Carlson moved the first readine to increase sewer billing rates effective January 1. 1998. Councihnember Koppen seconded the motion. Ayes: All. H. Adoption of Proposed Property Tax Levy Payable in 1998 Mr. Faust reported that state law requires cities to certify their proposed properly tax levies to the county auditor by September 15. The proposed tax levy cannot be increased after approval. Mr. Faust recommended the Council approve a proposed tax levy for 1997 payable in 1998 in the amount of $8,987,721 less $1,560,008 for HACA. Councilmember Koppen moved and Councilmember Carlson seconded the proposal. Ayes: All I. Selection of Dates for Public Hearings on Proposed 1998 Budget Mr. Faust reported that state law requires cities to certify to the county the dates it has selected for its 1998 budget heazing and continuation heazing by September 15. Because the hearings must beheld between November 29 and December 20 but may not conflict with the hearings for Ramsey County, the three school districts in Maplewood, or any metro special taxing districts, Mr. Faust presented the Council with a list of possible dates. Because the Council had a number of questions regarding possible scheduling conflicts, the item was moved to New Business for the September 8 Council meeting. J. OtherBusiness Jl. Lowlands Counci]/Manager Workshop September 2, 1997 page 7 Councilmember Rossbach relayed a resident concern about excessive amounts of water in low-lying areas in the city that are not served by storm sewers. Mr. McGuire said he would ask Public Works Director Haider to report to the Council at an upcoming Workshop regarding the extent of the problem throughout the city and what might be done to correct the problem. K. Adjournment Mavor Bastian moved to adjourn the meeting at 7:17 p.m. Councihnember Carlson seconded the motion. Ayes: All