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HomeMy WebLinkAbout11-27-17CITY OF LAKEVILLE CITY COUNCIL WORK SESSION MINUTES November 27, 2017 1. Mayor Anderson called the meeting to order at 6:01 p.m. in the Lake Marion Conference Room. After a moment of silence, the Pledge of Allegiance to the flag was given. Members present: Mayor Anderson, Council Members Davis, LaBeau, Hellier, and Wheeler Members absent: None Staff present: Justin Miller, City Administrator; Allyn Kuennen, Assistant City Administrator; Daryl Morey, Planning Director; Jerilyn Erickson, Finance Director; Chris Petree, Public Works Director; Tamara Wallace, Deputy City Clerk 2. Citizen Comments There were no citizen comments regarding non -agenda items. 3. Comprehensive Plan - Goals and Policies Mr. Licht of The Planning Company and Mr. Morey provided an update on the 2018 Comprehensive Plan, which included an overview of the goals and policies. Rather than remaining a specific chapter within the plan, the goals and policies are now incorporated in the relevant sections throughout the document, which allows for a better understanding of the plan objectives and a guide for future decision making. The revised draft includes more streamlined language, as well as feedback from the Planning Commission following their November 16 work session meeting. The Council reviewed the goals and policies by sections which included natural resources, growth management, land use, and transportation; and made suggestions on alternative language and initiatives to further highlight in the plan. 4. Utility Rate Study Update The City is currently working with Northland Public Finance on conducting a Utility Rate Study (URS) to examine user charges, and create a foundation for financial planning for the Water and Sanitary Sewer Utilities. Northland provided the Council with an update on the progress, which included: objectives of the utility rate study, work performed to date, preliminary findings and recommendations, and next steps in the process of financial planning for the Utilities. The study seeks to provide a computer model that can be used to analyze financial implications for future scenarios, review existing plans/ projections, collect/ analyze customer usage from LOGIS, inform City on best practices, and prepare a written report of findings. Initial work has City Council Work Session Minutes, November 27, 2017 Page 2 primarily focused on preparing the planning model and creating financial projections for the Sewer and Water Funds. Following any further analysis required as a result of this meeting, Northland will work to finalize and deliver the computer model and written report to staff. This process will provide a better framework for more in-depth discussions on the financial planning factors to consider for the Water and Sewer Utilities, such as growth assumptions, distribution of costs, policy considerations, and the trunk fund. The Council clarified how this URS compared to those conducted by other cities, discussed some possible water use incentives that could be implemented in the future, and would like the Finance Advisory Committee to review the findings before the final recommendation is brought to Council. 5. Transportation Update Mr. Petree provided a transportation update that included the following construction projects: County Road 50 which is now open for the season until spring, miscellaneous projects throughout the City to include trail reclamation work, punch list items for the street reconstruction projects, next steps for Holyoke Avenue, public hearings conducted for Kenrick Avenue and the 2018 street reconstruction project, and neighborhood meetings scheduled for future County projects. Break from 7:12 p.m. - 7:17p.m. 6. Final 2018 Tax Levy/ Budget Review Ms. Erickson provided an overview of the revised 2018 proposed General Fund budget, and the property tax levy to support general services. The new plan reduces the property tax increase from 5.9% to 4.95%, maintains a fund balance ratio at 44.5% which is in the middle of the required range of 40-50%, and maintains personnel changes included in the preliminary budget. The proposed tax levy would result in an estimated increase of $35 on the median valued home. Ms. Erickson also outlined how the tax levy was ultimately reduced, and some of the challenges staff would need to address in 2019 to include: the impact on the debt service levies, personnel transition costs for new staff, and potential adjustments to salt inventory based on using existing supply for this season but needing to replenish it to normal budget levels next year. The Council thanked staff for their work in reducing the preliminary tax increase, and finding spending cuts in the budget where possible. City Council Work Session Minutes, November 27, 2017 Page 3 7. 2018 Fee Schedule Ms. Erickson outlined the 2018 recommended fee schedule as part of the annual budget review process, which included: the proposed fee schedule changes and explanations, as well as a memo regarding the 2018 proposed utility fund rates. As required by State Statute, a public hearing will be held on December 4, 2017 which will allow the community to provide feedback and input about the proposed fee schedule. All feedback provided by the public and Council on December 4, 2017 will be integrated into the proposed 2018 changes, and will be incorporated into the City Code with an effective date of January 1, 2018 unless otherwise noted. The Council went through each section of the fee schedule, clarified specific line items, and talked extensively about both the food truck and park dedication fees. The Council discussed the food truck ordinance and whether to keep it restricted to the downtown district only, the possibility of implementing an annual fee, and revisiting the inspection frequency requirements to obtain a permit. Ultimately, the Council decided to leave the current fees in place, and not to adopt the ordinance to city parks at this time. The Council will plan to revisit this ordinance next year once they have obtained more feedback on the process from vendors and staff. The Council reviewed the proposed park dedication fee changes which included an increase of 7.9% based on the percentage the fees were not increased in 2016, and the current market value of land. They discussed the increase with varying concerns, which included questions about the current formula used to set the park dedication fees, and how the land value was determined. The Council directed staff to increase the park dedication fee by 5% at this time (equal to the increase in 2018 land values), and will plan a closer review of the park dedication fee formula at a future work session meeting. 8. Legislative Priorities Mr. Kuennen presented the draft 2018 Legislative Priorities, a document intended to communicate the City's legislative position on a variety of issues pertaining to transportation, local control/ municipal revenue and taxation, economic development, and housing. This document also includes an appendix listing other initiatives of concern/ priority for the City. In preparation for the 2018 Minnesota State Legislature which will soon be underway, the Council reviewed and refined the priorities in the document, and presented those additions and corrections to staff. The Council will look to finalize the legislative priorities during a December 11 joint work session meeting held with local and state legislators. Adoption of those priorities would take place at the December 18 City Council meeting. City Council Work Session Minutes, November 27, 2017 Page 4 9. 10. Committee/ City Administrator Updates Council Member Hellier attended the personnel committee meeting, and reminded the Council of the upcoming deadline for the City Administrator's review. Council Member Davis reported that the Fire Relief Committee will move to a quarterly meeting versus a monthly meeting as indicated in the bylaws. City Administrator Justin Miller mentioned the tree lighting ceremony that will be held at Pioneer Plaza on Tuesday, November 29 at 6 p.m. Mr. Miller will also be attending the Arenas board meeting on Wednesday, November 29 which will focus on recent discussions to enter into a Joint Powers Agreement extension with the Lakeville Hockey Association. Mayor Anderson mentioned the upcoming Council Retreat that will be held on Saturday, January 13, 2018 from 10 a.m. - 2 p.m. to discuss Council goals and objectives for the upcoming year. The Mayor also attended the Regional Mayor's meeting where they discussed tax legislation. Adjourn The meeting adjourned at 8:56 p.m. Respe�- ully's itte , Tam** Wallace, Deputy City Clerk -SSW--- Douglas'i��Anderson, Mayor