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HomeMy WebLinkAbout2001/12/03 - ADMIN - Minutes - City Council - Regular CITY OF OFFICIAL MINUTES ST LOUIS CITY COUNCIL MEETING PARK ST. LOUIS PARK, MINNESOTA December 3, 2001 1. Call to Order Mayor Jacobs called the meeting to order at 7:31 p.m. The following Councilmembers were present at roll call: Jim Bnmeyer, Ron Latz, Chris Nelson, Susan Sanger, Sue Santa, Robert Young, and Mayor Jeff Jacobs. Also present weie the City Manager (Mr. Meyer); City Attorney (Mr. Scott); Police Chief (Mr Luse), Director of Finance (Ms McGann); City Assessor(Mr. Stepnick), Director of Pal ks and Recreation (Ms Walsh); City Clerk (Ms Reichert), and Recording Secretary (Ms. Samson) 2. Presentations 2a. Departing Employee Recognition Presentation for Rob Molstad, Patrick Collins, Richard Johansen, Daniel Morgan, Harlan (Jim) Hildebrandt, and Brent Polivany. Mayor Jacobs presented departing employee recognition presentations for Rob Molstad, Hai Ian (Jim) Hildebrandt, Richard Johansen, Brent Polivany, Patrick Collins, and Daniel Moigan Police Chief John Luse participated in the presentations. 3. Approval of Minutes 3a. City Council Minutes of November 19, 2001 The minutes were appioved as presented. 3b. Special Meeting Minutes of November 19, 2001 The minutes were appioved as presented. 3c. Special Meeting Minutes of November 13, 2001 The minutes were appioved as presented. 3d. Study Session Minutes of November 13, 2001 The minutes were approved as presented with the following changes: Councilmember Sanger asked that the notes from the discussion about property at Club Road 7e modified to include her comments about the need to protect the existing wetlands on tit_ propeity Add to Page 12, Item 3, regal ding property on Club Road, Paragraph 6. Council Meeting Minutes -2- December 3, 2001 Councilmember Sanger suggested that there was no consensus regarding the proposed siting for the WMEP school as indicated on Page 13, paragraph beginning "Council discussed possible sites" and ending "They felt that the Eliot site was a good choice " She thought it would be appropriate to say, "Some members felt that the Eliot site was a good choice " 4. Approval of Agenda and Consent Items NOTE. Consent items aie those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desiied by either a Councilmember or a member of the audience, that item may be moved to an al.piopriate section of the regular agenda for discussion. 4a. Approval of Agenda It was moved by Counci:lmeniber Sanger, seconded by Councilmember Santa, to approve the agenda. The motion passed 7-0. 4b. Approval of Consent Items It wa;'moved by Councilmember Santa, seconded by Councilmember Sanger, to approve the folloivuig Consent Agenda Items The motion passed 7-0. '1. Adopt Resolution No. 01-136 which makes minor revisions to the official Sidewalk and Trail Systems and designates Exhibit A as the official Trail and Sidewalk Map of the City. 2 Adopt Resolution No. 01-137 that declares the petition adequate for the purposes of preparing a formal City Engineer's Report on the feasibility and costs associated with a proposed alley improvement project in the 4000 block between Toledo and Utica Avenues. 3 Approve Resolution No. 01-138 completed work by Veit & Company transporting granular fill to Oak Park Village and authorizing final payment. 4. Approve Resolution No. 01-139 to accept recognition for Patrick Collins, Resolution No. 01-140 for Richard Johansen, Resolution No. 01-141 for Daniel Morgan, Resolution No. 01-142 for Harlan (Jim) Hildebrandt, and Resolution No. 01-143 for Brent Polivany. 5 Accept the following reports for filing. a Planni:ig Commission Minutes of November 7, 2001 b. Housing Authority Minutes of October 10, 2001 c Human Rights Commis .ion Minutes of October 17, 2001 d. Vendor Claims Council Meeting Minut.:s -3- December 3, 2001 5. Public Hearings 5a. Public Hearing on the 2002 Proposed Budget and Tax Levy Cha!lie Meyer, City Manager, Jean McGann, Finance Director, and Bruce Stepnick, City Assessor, piesented backgiound information on the 2002 proposed budget and associated tax levies. Mr Meyei said, when Council considered the preliminary adoption of the levy in Sei>tember of 2001, the City had been in a rather unusual position of having little information. The lack of information was due to significant changes to the property tax lawc of Minnesota and, as of September, 2001, it was difficult to make definitive statements about the future. One of the most significant property tax law changes was that the State legislature decided the State should pick up the costs of operating schools, and school operating costs should not be costs borne by local property taxpayers except through spc.,ial referendum levies t'lat communities may autonomously pursue. One way for the State to pay for school opeiating costs is to shift tax burdens to cities; additionally, a local aid category was eliminated, in the case of St. Louis Park, the eliminated local aid category amounts to $3,000,000 per yeas. When the legislature took its action, the City anticipated the $3,000,000 would be levied against City property taxes—and that was the case. Mr. Meyer continued The legislatuie sets yearly levy limits, and the 2001 levy limit for St. Louis Park is 29%--approximately 21% of the levy increase acknowledges the shitt in State aid, i e , the shifting of a school property tax to a City property tax. The legislature's premise for the shift is that local services such as police, fire, and public works are tailored to their locality and are more appropriately paid for by local property taxes, and schools should be more uniform throughout the State, therefore, schools should be funded by the State Mr. Meyer stated it is not necessarily bad, but it is significant, to shift local property taxes from the school to the City, especially when the increase in the local property tax levy is so large. Ms McGann and Mr Stepnick spoke on legislative changes, market trends, community impacts on residential and commercial properties, St. Louis Paik's proposal for a levy increase, and how the levy increase impacts the 2002 budget. Ms McGann sa d the Homestead and Agricultural Credit Aid ("HACA"), a State aid credit, has been elimin,ited; for St Louis Park, HACA amounted to approximately$3,000,000. The distribution of local government aid has changed significantly; for St. Louis Park. the icuuction in this category is $50,000, however, some communities are receiving substantial mei eases in local government aid The new State property tax does not benefit St. Louis Pai k Mr. Stepnick said classification rates, and its subsequent shift of tax burdens, have changed this year. He said, for 2002 the maximum property tax refund will be $1,450 compared to $440 in 2001; and the income eligibility fol a piopcity tax refund increased fiom $62,000 in 2001 to $77,500 in 2002. Ms McGann said there is a 29% increase in the general operating levy, and 21% of that is due to the elimination of State aid, therefore, there is a net levy increase of 3%. A final budget will be presented to the Council on December 17, 2001. Mayor Jacobs opened the public hearing. Council Meeting Minutes -4- December 3, 2001 The following St. Louis Park residents asked questions and/or made statements about the proposed budget and tax levy: Mr. William Magdziarz-Rainey, 8610 West 34th Street; Mr. Jon Swanson, 2901 Nevada Ave. So.; Mr. Earl Erickson, 2216 Jersey Ave. So.; Mr. Mark Shit ley, 2840 Vernon Ave. So.; and Mr Nachbor, 2410 Gettysburg Ave. So. Mr Meyer said the City does not plan to use the General Fund reserves to reduce the property tax levy, the surplus is used for cash flow purposes. According to Mr. Meyer, theie are two issues pertaining to the 2002 budgetary spending compared to the 2001 budgetary spending the City's increase in its budget, and the changes made at the Federal and State levels, which consequently reflect on St. Louis Park. Mayor Jacobs closed the public hearing. He said no action will be taken on the budget tonight, formal action will be taken on December 17th. Councilmember Latz is frustrated about the fallout from the legislative changes. He said St. Louis Park derives its income from property taxes, and the State fully expected local government to have to impose higher taxes to make up for the changes and shifting of the tax burden. Councilmember Nelson said the State does not reciprocate in-kind to St. Louis Park in that more taxes are taken out than are returned. He prefers property taxes raised in St. Louis Park remain in St Louis Park as opposed to having those dollars sent somewhere else in the State. Councilmember Sanger asked, What is the proposed overall percentage increase in actual spending by the City/ Ms McGann responded the net impact is approximately 8%. Councilmember Sanger said the sources of the funding are what has changed so dramatically and not the City's expenditures. Councilmember Brimeyer said, given the legislative tax changes, St. Louis Park took a $3,000,000 hit, and 2002 will be a devastating year for State funding. Mayor Jacobs said, essentially, $3,000,000 of St. Louis Park's budget was, in one fell swoop, taken away. Consequently, there are two choices: shift St. Louis Park's revenue source or determine how to cut $3,000,000 out of the 2002 budget. Such a cut would be inappropriate, and it appears to Mayor Jacobs the question to ask is: Do you perceive value for what you are paying? Mayor Jacobs perceives the payment of taxes to the City to be one of the best values in town. He added: Government does not become more expensive because of what it costs, it becomes more expensive because of what it does. Councilmember Young said the Council is constantly being asked to do more, and St. Louis Park residents are requesting City improvements to boost their quality of life. Councilmember Nelson asked Ms. McGann two questions for the December 17th meeting: Question 1 City spendi,ig has increased 8%, however, it appears the General Fund revenue has risen by 5%, which suggests a spend down of a surplus somewhere because the City is spending more than it is taking in and the City must balance, is that the case? Question 2. How does the spending rnciease of 8% breakdown? Council Meeting Mini.tes -5- December 3, 2001 Councilmember .3anta said the requests for services provided by the City are increasing yearly, and the C Juncil is very conscientious of its expenditures. Mayor Jacobs re,ninded everyone that no formal action will be taken tonight, the action date will be December 171h, and that meeting is open to the public. 6. Requests, Petiticas, and Communications from the Public --None 7. Resolutions, Oruinances, Motions 7a. Oak Park Village area building architect selection. Cindy Walsh, Director of Parks and Recreation, reported a correction saying the selection is for the architect t'nd not the building. Ms. Walsh stated this contract is separate from the park itself, and v ill begin about one or two months after park construction due to the design nomenclature S ie said the building is expected to be completed by May 2003, and available for use in late August or early September 2003. Councilmember Nelson asked if landscaping and irrigation will be included for the rest of the park and Ms Walsh said yes to both, and its cost is included in the CIP amount for the master park des ;n Councilmember Nelson also asked if the City is bonding for this, and Mr. Meyei said .he payment will come from the 1999 General Operating bonds; the 1999 bond will cover 'II CIP projects in the 1999-2002 timeframe. Councilmember Brimcyer suggested anyone wishing to see the St. Louis Park debt schedule may do so. It was moved by Councilmember Santa, seconded by Councilmember Bruneyer, to authorize execution of an agreement for professional design and architectural services with Bentz/Thompson/Rrctow, Inc. in an amount not to exceed$450,000. The motion passed 7-0 7b. 1st Reading of the ordinance adopting the 2002 Code of Ordinances for the City of St. Louis Park. City Clerk, Cindy Reichert, reported the arrival of the 2002 Code of Ordinances for the City of Si Louis Park, which incorporates amendments made subsequent to the most recent adoption date of 1976 The Code of Ordinances will be available on the Internet, the City's website, and City's servers The first update will take place two months after adoption. Anything passed since June 18, 200luntil adoption is continued in full force and effect through a provision of adopting ordnance and these ordinances will be incorporated with the first update. Publishing will take place immediately after approval of the second reading The Code will be in effect 15 dad s after publication and that date will be January 2, 2002. Copies will be distributed to Cit' departments Hennepin County Court, and City attorneys. Municipal Code Council Meeting Minutes -6- December 3, 2001 Corporation will provide updates to St. Louis Park in paper and electronic form, maintain the website, and offer supplement services to those who wish to purchase certain chapters or provisions of the Code in paper or electronic form. Councilmember Latz reported two corrections to the Code of Ordinances: Section 4, Line 3, insert guilty of immediately following "Pursuance thereof shall be". Three lines following that, the line beginning with the word "offense", Councilmember Latz recommends that in the subclause, in the middle of the line "unless another penalty is expressly provided", begin the sentence with that, insert a comma after"provided", and continue with "penalty provided by this section (delete the comma) shall apply to the amendment code of any section". It was moved by Coancnlnnember Latz, seconded by Councilmember Nelson, to approve first reading of the adopting ordinance and set second reading for December 17, 2001, the ordinance with the amendments as proposed. The motion passed 7-0. S. Boards and Committees--None 9. Communications From Councilmember Brimeyer—Councilmember Brimeyer said he attended the League's legislative conference on November 23`d, and received information on the tax changes He has asked the City Manager to copy and distribute that information to the Mayor and Council. 10. Adjournment Mayor Jacobs adjourned the meeting at 9:14 p.m. y Clerk ayor •