The URL can be used to link to this page

Home My WebLink About1981/09/08 - ADMIN - Minutes - City Council - Regular (2)2. 3. _ -.�-.,- Ca 11 ta 0 rde r RoIJ Mtr�uT�s SPECIAL CITY COUMCiI MEETING �UDCET SESSION ST. LOUIS PARK, t1INNESOTA September 8, 19�i • Nayor McQuaid called the meeting to order at 6:05 p.m. The fol 1 owi ng Counti lmer.�bers wer•e present at roll call: Ronald Backes Martha Elstrom Lyle Hanks Keith Meland John Ralles Pny> >; s �1cQuai d Also present were the Citv Manager, the Finance Director and the Assistant Finance Director. � � Councilman P�artin arrived at 6:45 p.m. Ap�roval of Minutes session. The motion passed 6-0. 4. 198?_ Budget Service Funds and the Sewer It was moved by Councilman Ralles, sec- onded by Councilman Hanks, to approve the minutes of the August.28, 1981 budget � Discussion during focused on matters August 2� budqet Utility Fund. Westwooc+ Hills Environmental Education Center the study session unresolved during the session, the Debt It was r�oved by Councilman H�nk�s, seconded by Councilman Elstrorn, second full-time naturalist position be approved effective July 1� The motion passed 6-0. C�uncilnan Ralles believed funds to the tJestwood Hi 11 s Refuse Jtility tl�at the program. The City Manager explained that the Refuse Utility Fund"proposal contains monies for a ten p ercent increase in pay��nts to • • He related that the refushe�on�h�G�°ty�n- Wondlake San�tary Service, In�• ting� dicated a ten ercent increase is nat worth accepact effective Januar� �a would pay for his operatinc� losses in a nev� cont 19�3, that the 1982. School District should contribute more Mavor P�cQuaici suc7. ested that the City not pa� Woodeake n�rcent, but that�t.h� proposed budc�et not be chang the additional ten . r � Ci t,� Counci 1 Sepi.�mber 8, bunqeti Sr�� „ . ,.� ..� 1981 The Ci ty P�an�qer suqc�ested that the Ci ty qi ve LJoodl ake the ten percent increase as a reward for satisfactory service and to defray operating Woodlake figures show a loss of �0.97 per ho��sehold per month, losses. The proposed increase would a defici t of abo��t $100,00� to date �n �d�of the losses: � cov�r ab�ut �0.36 per month per ho�aseho , Councilman Backes asked for clarification of the reasons the Refuse Utility Fund was changed from a special assessment levy to qeneral nroperty taxation. The Finance Director replied that the chanqe was made to increase the budqet base with which to obtain local governr►�ent a i ds anci to shi ft the burden for refuse col 1 ecti on from si nql e-fami 1y Fio��sinc� to all land uses. Currently a$55,000 property pays $9.05 for collection compared to tf�e �48.00 per house ho l d w hic h ha d been c harge d u n d e r t l� e s p e c i a l a s s e s s m� n t l e v y. Counci 1 r�an �1e1 and sai d that the Ci ty coul ci 1 evy a speci al assessment i n 19�2 at �GO per household. He noted that this action would have several advantaqes in contract negotiations with Woodlake as well as placing the City in a t�etter revenue-raising position b_y removinq �600,000 from the gPnera 1 f und. The City Planae�er related his misgivings about this approach because it may cietract from the ir�plementabi 1 ity o� findi nc�s i n the sol id waste study. ��e sugqested that the Council approve the ten percent inc�rease contingent upon Woocilake's implementation of the recommendations of the study. Co��nci lnian Hanks r�oved anci cent increase be qiven to it; otherwise, the monies Councilman Backes stated it r�ight be possible to tended for one yea-r. Councilman Elstrom seconded tha t the ten per- the refuse contr.actor if he wishes to accept should be retained in the Refuse Utility Fund. he was opposed to giving a�qift. He said that qra.nt the increase if the contraGt were also ex- Councilman I�anks r�odified his r�otion so would be approved o� the condition that the contractor to a one-year extension is unwilling to cons�der the extension, to h�m in 1982, that the ten percent increase there be consideration given by of the contract. If the contractor the increase would not be paid Councilman Backes suggested that a ten percent increase als� be approved for 1981. The Finance Oirector noted that there would be a�35,000 fund balance at the end of 1931, Counci lr.►an Nanks wi thdrew hi s rati on. It was r.►ave�i hy Counci lman Nanks, seconded by Counci lman Backe;, Lhat the City �lanaqer neqotiate with the contractor in terms of the eneral dis- c��ssion on the refuse collection issues and Lhat the results of the neg- o�iations be presente� to the Council at its budqet session on SeptemDe►' ��• Councilman Martin arriveil, The motion passed 6-Q-1 (f.ounci lr�an �tarti n ..,�.. - - .- --.-�_ �.. __.�_.._.._,.�.,_.__.�_ � _ .- -. - �- -_._ _ _, . - ?. 7 4 _ ,�-,Fr-r�-+-�-..: -.�- „- -� aDstai ne�i) . � i _,._„ _ . .. .. . .�..+•"`.�" - .r " `��J. �`purlCil c fpt�"her � � . . ...� . r=_.__.. - �_____.__ �.. hudvPt session meetinq 198i i�ebt Service Funds �enera� �hli�ation debt of its S13 million debt limit. Councilman Hanks had questions about the City's debt history and debt limits. The Finance pirector rep�ied that the highest the City has been $10.5 miilion, well short of. Councilnlan Nanks asked when the next bond sale would occur. The Finance flirector believecl that a qeneral obligation bond sale should be issued �fter Jan��ary of 1982 when the market would be r►ore favorable to the City. Staff has discusseci the possibility of issuinq sfaort-term special assessment temporary improvement bonds in order to improve the City's cash flow sii:uation. Ter�pora ry bonds may be issued to be payable within tf�rpe ye�rs. I f they are not pai d i n that peri od of tir�e, addi tional temporary bonds may be issued for no more than three years. Unpaid bond- holciers may rec�uire payment by the City at the maximum legal rate of interest (currently 12 percent) within one year. The Finance Director believed that approximately �4 million in these temporary improvement bonds should be issued by January. ('ounci lman P�el and suclqested the Ci ty by issuing �1.5 million in te�porary in general obligation bonds. hedge the r�arket i nterest rates improvement bonds and $1.5 r�illion The f=inance Dlrector �aid he v�ould �rovide information to the Council on recent bond sales by its September 21 b�adget session. Councilman Meland commented that all cities will be fe�lrorects�duertolnize improvement projects clasely and reduce the number o p J ' nario co�ld result in accelerated urban high interest rates. This sce blight �nd decay. d Water Utility It by on he deferred until �after the re�ular The motion passed 7-0• Sewer U ti 1 i ty have on tf�e average household. charge would rise from �l�•70 customers would be affected bY Co�anci lman Hanks moved increased 12'-- percent ��as moved by Councilman I�ankS seconde Counci lrian El strom, that cii scussi on this section of the proposeci budget Council meetin� of September 8, 19II1. ��ayor f•1cQuaid asken sewer�ch�rqes �ercent increase i The City P1anager res{�on�ied that the er uarter. App��aximately to �13.15 p �I the r�i nir�ur� charge. and Councili;�an Martin as recom»ended. seconded 1 Z'? woul� basic �,00(� tha� sew�'r rates be z . d assurance that the incrc�se �n Counci l�n�n Marti n recei ve ��1�JCC) � ' astewater Contral Can�misso°ers. ��y the 1etropol�tan W en� �ncrease to its cust � � cl�arcics 4�oul d be hy the C� ty s 12-Z perc � the Counci 1 ne�ds ta eX`'�r��1 Councilman Meland statedPtin which t�sers would be ch . use/charge rate structu -275- �evied cove►�ed � rr�gressive �i�Qporti onately . � � Cit� Cauncil Septemher �� budget sessi on n�eeti ng 1981 ,>>or,� f�r i ncreases i n i ncreve��s helieved �hat homeowners h� . hic�h service users. of water and sewer services used. He m�nimal dis,charges in effect subsidized Councilman Back.es asked staff to research ��e $tud�es �nd requests for proposals for rate structu report t� the Council. Councilman Hanks withdrew his motion. on rate and to structures return a Councilman Backes said the Council should consider a motion which auth- orizes � set dollar amount to be raised for the sewer utiiity. Rate structur�e modifications specif�vinq how the fund i ncrease wi 11 be al lo- cated can wait. � Councilman Hanks believed �ha� the Council �ioes,not have sufficient time to make changes in the rate structure for 1982. 5. Adjournment The meeting was adjourned at 7:25 p.m. The next budget session was scheduled for h�lonclay, September 14 at 5 p.m. -- - - -- -�- ------- --- -- --_--- - - 2 7 6 -