Loading...
HomeMy WebLinkAbout08-26-91 CITY OF LAKEVILLE SPECIAL COUNCIL MEETING . AUGUST 26, 1991 The meeting was called to order at 7:00 p.m. by Mayor Zaun. Roll call was taken. Present: Councilmembers Sindt, Mulvihill, Harvey and Mayor Zaun. Absent: Councilmember Ruhmann. Also present: J. Walston, City Attorney; B. Erickson, City Administrator; M. Sobota, Community & Economic Development Director; D. Feller, Finance Director; J. Oliver, Assistant City Engineer; D. Morey, Assistant Community & Economic Development Director; D. Gudmundson, Chief of Police; C. Friedges, City Clerk. CONSENT AGENDA 91.178 Motion was made by Harvey, seconded. by Sindt to approve the consent agenda items as follows: a. Approve storm sewer special assessment agreement with Vernon W. and Tonete E. Jensen for property located at 7660 - 202nd Street W. b. Adopt Ordinance No. 447 amending Section 10-4-8(J) of the. City Code concerning park and trail land donations. • c. Approve Resolution No. 91-113 setting uniform attendance requirements for advisory boards, commissions and committees. d. Approve the purchase of a 42-foot bucket truck in the amount of $14,975 from ABM Equipment to be financed from certificates of indebtedness. Roll call was taken on the motion. Ayes, Zaun, Sindt, Mulvihill, Harvey. Councilmember Ruhmann arrived, 7:03 p.m. ITEM 3 Mr. Morey presented the final plat of Cherry Ridge Second, consisting of 23 single. family residential lots on property .zoned R-2. The plat, which is the second and final phase of the Cherry Ridge Estates preliminary. plat, is located east of Highview Avenue and south of 172nd Street. The developer has submitted a grading/tree preservation plan for Lots 11, 12 and 13, Block 2. The staff has compared this- plan with the plan approved for Cherry Ridge First. Fewer trees will be removed to accommodate house construction on Lots 11 and 13 than _was shown on the approved grading plan. A .few more. .CITY OF LAKEVILLE SPECIAL COUNCIL MEETING AUGUST 26, 1991 PAGE 2 trees will be removed on Lot 12 than was shown on the original grading plan. to accommodate a storm sewer catch basin and emergency overflow Swale that will be constructed between Lots 12 and 13. Mr. Morey explained that a path of trees no greater than ten feet in width will be removed to accommodate this catch basin/Swale. The .developer has paid the park and trail. dedication, engineering and administration, traffic control signage and street lighting fees. In addition to the $226,300.30 letter of credit, the developer has placed a $3,000 security for tree preservation on Lots 11, 12 and 13, Block 2, and $5,000 for removal of the dirt stockpile in Blocks 1 and 2, Cherry Ridge. The final plat was reviewed by the Planning Commission, Environmental Affairs and Parks & Recreation Committees and the Dakota County Soil & Water Conservation District. Staff recommends approval In answer to Councilmember Sindt's question, Mr. Erickson stated the developer is proposing to build spec homes on the custom. graded lots (11, 12 and 13, Block 2), with pre-approved housing pads, to avoid reoccurrence of the situation that exists on the custom graded lots in the first adclita.on. Councilmember Harvey asked about the drainage Swale. Mr. Oliver explained that a catch basin will be constructed in the. rear yards for moderate run-off, and an emergency overflow swale will flow toward the street in case the storm sewer freezes or plugs. 91.1?9 Motion was made by Sindt, seconded by Ruhmann to adopt Resolution No. 91-114 approving the final plat and development agreement for Cherry Ridge Second. Roll call was taken on the motion. Ayes, Sndt, Mulvihill, Harvey, Ruhmann, Zaun. ITEMS 4-5 Mr. Feller presented the preliminary 1992 budget and tax levy for the City of Lakeville. He explained that the City .must certify the proposed budget and tax levy to the County Auditor on or before .September 3, 1991. The City Council must also certify the dates it intends to select for public hearings, which must be held before adoption of .the final budget and .tax levy. The City's hearing dates cannot conflict with the hearings being held by the county and/or school districts. Mr. Feller explained that the final certified tax levy cannot exceed the preliminary tax levy. CITY OF LAKEVTLLE SPECIAL COUNCIL MEETING AUGUST 26, 1991 PAGE 3 Mr. Feller explained that the State has historically controlled .property taxes by establishing levy limits. The State .then allocates local government aids (LGA) and homestead and agricultural credit aids (HACA) to minimize the amount of the net tax impact on property owners. In prior years, the City has been able to increase its levy limit base for population, inflation and certain special levies. However, the 1991 legislature adopted the Omnibus .Tax Bill, which allowed for no increase for population or inflation. Special levies for. fire relief pensions were. rolled into the base, which means that the increase in pension fund liabilities has to be paid out. of the existing tax base. The proposed tax levy for 1992 is $5,162,627, a 3.6% increase over 1991. This will translate into a property tax decrease for residential homesteaded property owners in Lakeville. Mr. Feller highlighted the General. Fund revenue and expenditures as follows. REVENUE Yntergovernment Revenue • The City receives state aids and grants for .general fund operating purposes, i.e. police and fire pensions, police officer training, recreation trail maintenance and street maintenance. The City received a mobile home.. park grant in 1991 as a .pro-active approach to providing crime prevention and recreation activities in those housing areas. It is anticipated that Lakeville will .receive a continuation of this grant in 1992. Charges for Services Charges. for services for general government are projected to be $401,901 in 1992. The City is proposing to- .collect a lockout fee from a private contractor who would be dispatched by the Police Department when a resident calls for assistance. Charges for public .works services are anticipated to be $437,328. Street light fees are proposed to be increased from the current rate of $3.73 to $3.95 per residential unit to offset a recently approved electric utility rate increase. Revenue from recreation programs. will increase .from $67,966 in 1991 to $71,760 in 1992. Interest on investments will decrease by approximately $16,000, due to the declining interest rates and general economic condition. Donations totaling $28,000 are expected CITY OF LAKEVILLE SPECIAL COUNCIL MEETING AUGUST 26, 1991 PAGE 4 from Inde endent School Districts 194 and 196 to hel su rt P P PPo the Drug Awareness .Resistance Education (DARE) Program. The 1991 legislature authorized the .school districts to levy a $1 per capita tax for police education programs. The school districts in turn can transfer this money to cities for the DARE programs. Interfund Transfers The Liquor Fund will contribute $103,965 in 1992 to support police department operations. Transfers from the Utility Fund are intended for the purpose of reimbursing the General Fund for administrative support, office space, police department monitoring of the lift station alarms and staff support.. EXPENDITURES Personnel The proposed 1992 budget does not include new permanent staff positions. Lakeville has historically had one of the lowest number. of employees per capita in the State. The City will have 3.5 employees per thousand population in 1992. Because of new IRS regulations, .the cost of FICA for seasonal employees will cost the City an additional $13,62.1 in 1992. Capital Outlay The repayment of debts on certificates of indebtedness is provided by a special ad valorem property tax levy. Certificates of indebtedness allow for repayment over a three to five year period at low interest rates, which minimizes the impact to the taxpayer. Equipment needs for the police, fire, ambulance, streets and parks departments are eligible. General. fund capital outlay .items are generally. those items that are not eligible to be purchased with certificates of indebtedness. Major purchases in 1992 include a pickup truck for the Inspections Department, a copy machine and engineering computer equipment. Commodities and Contractual The City will show no significant increases in commodities or contractual items for 1992. For the past two years, the City has endorsed the concept of privatization,. whereby certain services such as custodial, .,street sweeping and lawn care maintenance. are contracted out. CITY OF LAKEVILLE SPECIAL COUNCIL MEETING AUGUST 26, 1991 PAGE 5 General Government The City Council budget for 1992 includes $15,000 far a .legislative liaison. These funds are intended to further the City's efforts with the State legislature, i.e. levy limits and road access impact fees. Funding is also provided ($5,200) for an update to the Resident Guidebook. As a result of increased population and legislative. redistricting, the City Clerk budget includes $13,750 for 50 additional voting booths and a vote tabulator. Elections funding for 1992 takes into consideration the Presidential Primary, State Primary, and State General Elections. Public Safety There is no additional staffing .proposed for 1992. The Park Ranger program is proposed to be transferred from the Parks Department to the .Police Department in 1992. Volunteer fire pension liabilities increased from $81,252 in 1991 to $140,447 in 1992. As a result, the City will incur an additional $59,195 in expenses with no offsetting revenue source. The Fire. Department part-time Rescue Captain position was eliminated and is proposed to be xeplaced with. • three Lieutenant positions at no increase in cost. The HAZMAT fund was eliminated in anticipation of possible State funding. Public Works Engineering projects for 1992 include preparation of a feasibility report for the downtown storm sewer project, completion of the 175th Street project and extension of utilities along Dodd Boulevard to the new high school. Contractual street sweeping will be expanded to include all streets north of 185th Street. The 1992 sealcoating will be financed through the issuance of a general obligation improvement bond. Parks and Recreation In 1991, the City operated beaches at Lake Marion and Valley Lake Park. However, with the completion of the Judicial Road project .and the reopening of Orchard Lake Beach in 1992, the cost of providing lifeguard services will increase. from $24,141 to $36,446. The Puppet Wagon is included in the 1992 budget contingent upon the receipt of a mobile home .park grant and community donations. • CITY OF LAKEVILLE SPECIAL COUNCIL MEETING AUGUST 26, 1991 PAGE 6 • FUND BALANCE The fund balance of $2,105,700 represents the amount of money required to operate the City during the first six months of the year. The City's most significant revenue sources, taxes and intergovernment revenue, do not .provide appreciable revenue until the second half of the year. The year end fund balance .for 1992. is adequate, but not excessive. The City's ability to adopt a budget for 1992 whereby expenditures exceed revenue is the result of a fund balance carry-over from prior years. This carry-over was built up over a period of .time as a result of building permit revenue and under expenditure of department budgets. SPECIAL REVENUE FONDS The Community Development/Cable TV Fund is used to account for the franchise fees from cable TV operations. This fund is self-supporting. The Drug. Enforcement Fund is used to account for all revenue derived from the sale of assets which are confiscated as a result of drug arrests. The Employee Benefit Fund was created to account for the accrued liability of employee benefits which are attributable to severance pay. The Environmental/Recycling Fund is used to account for all grants and tax revenue which are related to the implementation of recycling activities. There will be a significant decrease in overall grants .available from Dakota County for this fund in 1992. In closing, Mr. Feller stated that current State legislation proposes the removal of levy limits fore taxes payable in 1993; however, the City must be prepared to accept the reality that the legislature will conta.nue some form of levy limitations. Therefore, City staff has abandoned the preparation of a two-year budget until after the 1992 legislature adjourns. Once the results of the 1992 legisiata.ve .session are known, the City can continue to develop along-range financial plan. Mr. Erickson explained that the City staff is becoming more creative in helping balance the budget. However, the City clearly needs a legislative liaison who can keep .the City Council apprised of what. the legislature is doing with .levy limits and to pursue legislative establishment of road impact fees. CITY OF LAKEVILLE SPECIAL COUNCIL MEETING _ AUGUST 26, 1991 PAGE 7 • Mr. Erickson stated the City is proposing a cost of living increase in the three percent range for employees. With the City's rapid growth, .additional police officers, as well. as other. positions, are needed. If the legislature lifts levy limits in the next legislative session, the City Council could add additional personnel at that time. Councilmember Harvey explained that citizens should be aware that although the City's portion of property taxes may decrease in 1992 compared to 1991, the County and/or School District's portion may likely increase. Mr. Feller explained that the Dakota County Auditor is proposing to send out parcel specific notices to all residents in November, prior to the truth-i.n-taxation hearings being held by the School Districts, County and City.. These parcel specific notices would show residents exactly what their 1992 property taxes will be based on the current market .value established for their property as part of the 1991 Board of Review process. These notices would also .show residents exactly what portion of their .property taxes would qo to the various taxing jurisdictions, i.e., City, County and School Districts. • Councilmembers spoke in favor of the two-year budget process and. agreed that the 1992-93 budget process should begin as soon as the next legislative session adjourns. ITEM 6 91.180 Motion was made by Harvey, seconded by Mulvihill. to adopt Resolution No. 91-115 approving the preliminary 1992 Tax Levy. Roll call was taken on the motion. Ayes, Mulvihill, Harvey, Ruhmann, Zaun, Sindt. 91.181 Motion was made by Sindt, seconded by Ruhmann to adopt Resolution No. 91-116 approving the preliminary 1992 General Fund Budget. Roll call was taken on the motion. Ayes, Harvey, Ruhmann, Zaun, Sindt, Mulvihill. Councilmembers discussed the merits of conducting the City's public hearing after the County and School Districts have completed their hearings. CITY OF LAKEVILLE SPECIAL COUNCIL MEETING AUGUST 26, 1991 PAGE 8 91.182 Motion was made by Harvey, seconded by Mulvihill to adopt Resolution No. 91-117 setting the public budget hearing for December 16, 1991, with the continuation hearing, if necessary, on December 17, 1991. Roll call was taken on the motion. Ayes, Ruhmann, Zaun, Sindt, Mulvihill, Harvey. IJNFIlIISHED BIISINESS None. NEW BIISINESS None. Mayor Zaun adjourned the meeting at 8.25 p.m. Respectfully submitted, Charlene Friedges, C Clerk • Dua a Zaun, May...