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Home My WebLink About09-15-14CITY OF LAKEVILLE CITY COUNCIL MEETING MINUTES September 15, 2014 Mayor Little called the meeting to order at 7:00 p.m. in the Council Chambers at City Hall. The pledge of allegiance to the flag was given. Members Present: Mayor Little, Council Members Davis, Anderson, Swecker and LaBeau Staff Present: Allyn Kuennen, Interim City Administrator; Roger Knutson, City Attorney, Jeff Long, Police Chief, Chris Petree, Public Works Director; David Olson, Community & Economic Development Director; Dennis Feller, Finance Director; Brett Altergott, Parks and Recreation Director; Daryl Morey, Planning Director; Charlene Friedges, City Clerk 3. Citizen Comments None 4. Additional Agenda Information None 5. Presentations/Introductions Shayne Ratcliff provided an overview of Lakeville Arenas, highlighting the variety of events and activities taking place at Ames Arena and Hasse Arena. He announced that Ames Arena will celebrate its 201 Anniversary on October 19, 2014. Jay Young, representing Lakeville Rotary, presented donations to the City of Lakeville as follows: $3,400 to the Lakeville Heritage Center, $750 to the Lakeville Area Arts Center and $22,000 for the King Park playground. Mr. Altergott presented the August Parks & Recreation Department monthly report. Chief Long presented the August Police Department monthly report. 6. Consent Agenda Motion was made by Davis, seconded by Swecker to approve the consent agenda items as follows: a. Claims for payment b. Minutes of the September 2, 2014 City Council meeting City Council Meeting Minutes, September 15, 2014 c. Minutes of the August 25, 2014 City Council work session d. Resolution No. 14-76 calling a public hearing on certification of delinquent utility accounts e. Set a special Council meeting -September 22, 2014 - 5:30 p.m. f. Set a special Council work session - September 29, 2014 - 5:30 p.m. g. Lakeville Convention and Visitor's Bureau 2015 Budget h. Agreement with JMS Auctions for an on-line City auction i. Stone Ridge South development contract assignment j. Enclave at St. Frances Woods development contract amendment k. Resolution No. 14-77 approving the Silvarum final plat and Resolution No. 14-78 vacating right of way 1. Resolution No. 14-79 approving an off-site gambling permit for Lakeville Lions Page 2 m. Joint Powers Agreement with Dakota County and Professional Services Agreement with Hoisington Koegler Group, Inc. for an economic development and preliminary design study along Kenwood Trail from Dodd Boulevard to Ipava Avenue n. Final acceptance of public utilities in Rose Creek o. Agreement with Metropolitan Council for volunteer lake monitoring program p. Agreements with Ted Manderfeld, New Folk Booking and Michael Bateson for performances at the Lakeville Area Arts Center q. Findings of fact and conditional use permit to allow a private community recreation building and outdoor swimming pool in the Summerlyn single family residential development City Council Meeting Minutes, September 15, 2014 Page 3 r. Findings of fact and conditional use permit to allow minor auto repair; findings of fact and interim use permit to allow accessory outdoor storage, 20725 Howland Avenue s. Resolution No. 14-80 authorizing the sale of vehicles t. Resolution No. 14-81 accepting bids and awarding contract to W.L. Hall Company for the Heritage Center skylight replacement Voice vote was taken on the motion. Ayes - unanimous 7. Preliminary 2015 Property Tax Levy Finance Director Dennis Feller presented the preliminary 2015 property tax levy as directed by the City Council at its September 11 work session. The proposed 2015 property tax levy is $24,959,186, which represents a 5.5% increase over 2014. Mr. Feller explained the impact this tax levy would have on residential property, which is dependent upon on property value and percentage of property value increase over the prior year. The proposed tax levy would result in an estimated $35 increase on the median value ($245,100) home. Mr. Feller stated the 2015 budget proposes an increase in operations and infrastructure, with an annual increase over the next seven years for street construction. However, the City's rapid growth, combined with an expiring TIF district, will result in a net levy increase of 2%. He explained the tax base shift, pointing out that if the market value of a residential property increases, that property is going to pay a greater share of the tax levy. Mr. Feller further explained that state statute has granted a property tax credit (market value exclusion) for property valued lower than $414,000. However, when the value increases, the credit is lost and the property pays a greater percentage of taxes. He pointed out that commercial and industrial property, because their values are not increasing, will see a 2% to 3% reduction in city property taxes. Mayor Little invited citizen comments. Kristoffer Pierson, 17048 Glenwood Avenue, urged the City Council to invest in the City's public safety, streets, parks and trails. He stated he supports Mayor Little's budget proposal, as it reflects a compromise between the City Council's proposed budget and the budget proposed by City staff. He further stated he feels the City Council's proposed budget does not address the City's debt issue. City Council Meeting Minutes, September 15, 2014 Page 4 Harley Horsager,17141 Jaybell Court, stated he is impressed with Steve Michaud Park and how much it is used by Lakeville residents and people from other communities. Howard Schneider, 19634 Jersey Avenue, spoke regarding parks, trails and open space and their positive impact on property values. He noted residential survey results, which rated parks and trails very highly. He further stated the City needs to increase the use of parks through education and outreach. Roger Jacobson, 17332 Ipswich Way, stated he also supports Lakeville parks and the mayor's proposed budget. Council Member Anderson expressed concern with the perception that the proposed budget will result in cuts to City facilities or services. He pointed out that the budget is based on certain assumptions, such as health care costs, fees and revenue sources. He clarified that the 2015 budget proposes an increase; however, the amount of that increase is yet to be determined. Mr. Feller provided information related to the payment of debt. He explained that the City's share of debt issued for street reconstruction is typically paid over a 10 year period through property taxes. Because the City Council has decided to accelerate the street reconstruction program, that debt will be retired over a 12-14 year period in order to mitigate the tax impact. If the City Council chose to levy funds to pay off the existing debt, the most prudent option would be to reduce the amount of debt issued each year. Council Member Davis stated the Council still has an opportunity to look at the revenue side of the budget. Unexpended funds from the current budget may also be a factor in determining the final 2015 budget. He stated he supports the 5.5% increase as a starting point. Council Member Swecker stated she also supports the 5.5% increase, which represents a compromise. She supports collaborative partnerships and seeking additional collaborative opportunities. Council Member LaBeau stated the Council needs to prioritize its spending and take into account which facilities and programs are utilized the most. She pointed out that some residents cannot afford an increase in taxes. She suggested utilizing the City's tax increment financing funds to pay for road improvements. City Council Meeting Minutes, September 15, 2014 Page 5 Mayor Little stated he does not support the proposed tax levy, as it does not represent an actual detailed budget. Given the substantial likelihood of personnel, infrastructure and new program requests, this proposed budget will not support those additional costs. There are a number of set legal, contractual and inflation -related costs that will force program, service or maintenance cuts either in 2015 or in future years. He then presented his proposed budget and highlighted the differences between what staff has presented and what he is proposing. It was pointed out that the Council, at this time, is being asked to adopt a preliminary tax levy and not the final line item budget. Motion was made by Anderson, seconded by Swecker to approve Resolution No. 14-82 approving the preliminary 2015 property tax levy in the amount of $24,959,186. Roll call was taken on the motion. Ayes - Davis, Swecker, Anderson, LaBeau Nay - Little Motion was made by Davis, seconded by Swecker to set the budget public hearing to be held on December 1, 2014, at 7:00 p.m. Roll call was taken on the motion. Ayes - Little, Swecker, Anderson, LaBeau, Davis Unfinished Business None New Business None Announcements: Next regular Council meeting - October 6, 2014 Mayor Little adjourned the meeting at 8:48 p.m. Respectfully submitted, Charlene Friedges, City Cf Matt Little, Mayor