HomeMy WebLinkAbout2016/06/20 - ADMIN - Minutes - City Council - Study Session11ISt. Louis Park OFFICIAL MINUTES
MINNESOTA CITY COUNCIL SPECIAL STUDY SESSION
ST. LOUIS PARK, MINNESOTA
JUNE 20, 2016
The meeting convened at 6:15 p.m.
Councilmembers present: Mayor Jake Spano, Tim Brausen, Steve Hallfin, Gregg Lindberg,
Anne Mavity, Thom Miller, and Susan Sanger.
Staff present: City Manager (Mr. Harmening), Controller (Mr. Simon), Deputy City
Manager/Human Resources Director (Ms. Deno), Communications Specialist (Ms. Pribbenow),
and Recording Secretary (Ms. Wirth).
Guest: David J. Mol, Redpath and Company
Future Agenda Item
Councilmember Mavity referenced a letter received that asked the city to conduct a climate
change study and asked if that person had received a formal response. Mayor Spano stated he did
respond saying the city is in the process of finding a consultant to craft that plan.
1. 2017 Budget
Mr. Harmening reported staff has started 5 -10 -year capital budget planning, and work on the
2017 operating budget will start shortly. He explained this item is being presented tonight in case
there is particular council guidance to department directors in the area of the property tax levy,
targets, or program service changes/additions that staff should research for a future report.
Mr. Simon presented the 2017 budget report and asked whether the council is comfortable with
the budget guidelines. He stated the capital plan budget will be presented later this fall. With
regard to communication, a budget website is available to receive input from residents and the
council, and it is periodically updated. Mr. Simon reviewed the anticipated timeline and asked
for the council's input.
Councilmember Lindberg commented on the funds expended by the city for the Southwest LRT
and asked how much more will be spent. Councilmember Brausen suggested that the city's work
on the project stop when the Met Council says it will not be moving forward. Mayor Spano
agreed that when the Met Council steps away from the project, the city also has to make a
decision.
Councilmember Mavity asked about other options, noting this is the year for the federal
application. She asked if a funding application can be made next year if it doesn't fly this year.
Mr. Harmening explained that deadlines are coming up by the beginning of next year when the
state has to show that all the funding sources have been put into place in order to keep moving
ahead. Councilmember Miller also asked if there is a chance to come back in 2017 and make
application again. Councilmember Hallfrn stated in that case, the city would be at the end of the
line. Mayor Spano stated he does not know the mechanics, but it doesn't feel like the city will
make application again next year unless the fall elections show something different.
Councilmember Brausen agreed the Federal Government will wait to see what happens with the
elections to determine if funding will be revived.
Special Study Session Minutes -2- June 20, 2016
Councilmember Mavity stated with regard to the debt management plan, she would find it
helpful to put future projects in as placeholders. She stated she appreciates the well written staff
report and asked if there have been changes in benefits have been helpful. Ms. Deno stated the
city is not receiving negative feedback on its benefits or compensation package. Recruitment is
going well, and paid parenting leave is appreciated and being used.
Councilmember Mavity asked whether funds are budgeted to implement any of the race and
equity initiatives. Ms. Deno explained a proposal has been received to train staff on a multilevel
system and anticipated using 2016 funding. For 2017 this work should be incorporated in what
we do similar to Vision.
Councilmember Mavity asked about organics and if changes are going to be made to incent more
residents to use this program. Ms. Deno stated staff is looking at incentive -based programs and
that information will be presented during the budget discussions later this fall.
Councilmember Mavity stated she has heard from residents that they want high quality services
so she is comfortable if a levy would be a higher levy amount than average. She stated the
council has discussed a potential community center and asked if there is a method to put money
aside early on as residents have been asking for it.
Councilmember Brausen referenced support for a community center and stated the council has to
be clear that a facilities expansion will also mean maintenance as an on-going and growing
expense. He asked whether facility maintenance should be included as a program so it is listed as
a priority during budget planning.
Councilmember Brausen stated his understanding that property valuations are shifting with
larger increases in multi -family and commercial, and lower increases in single-family properties.
However, higher multi -family taxes are shifted to the renter, which can be a concern. He asked
whether that can be addressed through tax relief at the state level. Mr. Simon agreed that decision
is with the legislature.
Councilmember Brausen supported shifting the cost of organics recycling to all and not only
those who are involved. He felt the separate cost for organics creates a disincentive.
Councilmember Sanger stated she agrees with the importance of sharing organics cost among all
residents and the need to plan for a community center. She suggested a study session discussion
on creating placeholders for future projects, including the community center.
Councilmember Sanger stated concern that some residents have to shovel their sidewalks, or they
are penalized. Some sidewalks are shoveled by the city, and many residents have no sidewalk.
She stated the council has raised the issue of equity and asked what can be done to build in the
cost to provide sidewalk shoveling for all. She noted the city has indicated sidewalks are a
community benefit, so she believes the city should plow them. Councilmember Sanger stated she
found the past staff report not to be complete as it did not include the option to hire part-time
staff to shovel sidewalks; the cost if staff does the work on overtime pay; or the existing cost
incurred for the sidewalks the city does plow. She stated if the council wants to be equitable to
all residents, she would suggest the city plows all walks or no sidewalks, so all are treated the
same.
Special Study Session Minutes -3- June 20, 2016
Councilmember Sanger stated she is more concerned about the quality of services provided than
{ the exact percentage of the increase because she has heard the same feedback mentioned by
Councilmember Mavity that residents want good services.
Councilmember Miller noted the high school uses equity coaches and asked if the council should
consider an equity coach for certain study sessions. He supported looking more closely at
development in Walker and Lake Street area and what it might look like from a city investment
perspective. Councilmember Miller noted the teen center could take a lot of different forms in
how it is handled and financed, so that should be discussed.
Mayor Spano stated he agrees with quality service over a one-half percent increase to the levy.
He noted the tax bill has not been signed and asked about the impact with LGA. Mr. Simon
stated since the budget bill was not signed, staff used a conservative figure without an increase in
LGA.
Mayor Spano agreed that the race and equity work should be factored into the budget. He
supported a discussion on mitigating the long-term water treatment cost of the Riley site and
asked if additional funding is needed for this. Mayor Spano stated that as the new Outdoor
Recreation Center is nearing completion, he'd like staff to address short-term upkeep of the Rec
Center; needed maintenance and upkeep, and what work may be needed on the pool.
Councilmember Lindberg asked staff to provide information on how St. Louis Park compares
and ranks with peer cities in terms of taxes. He supported funding for the Ree Center for
additional maintenance needs and studying the option of how we handle cost sharing for
boulevard trees and would like discussion if the program should shift to be city's full
responsibility.
Councilmember Mavity stated she agreed with the teen center planning and would like to discuss
that topic at the same time there is a discussion about a Community Center. She stated support
for funding for additional sidewalk requests and addressing Connect the Park! locations of
sidewalk and trail disconnects, and how those connections can be completed.
Councilmember Hallfin asked what the city can do to increase funding to assist residents
experiencing rent shortfalls and to continue to help those in naturally occurring affordable
housing. He noted that people asking for funds go to the county first and if turned away, go to
agencies such as STEP. Councilmember Hallfrn stated he does not know where the city's place
would be with rent assistance, but maybe that is an area where the city can help, so he would
support holding a policy discussion on that topic.
Councilmember Sanger stated her reluctance to have the city provide rent assistance as she
believes it would be never ending, and the city should not be in the social service business.
Councilmember Mavity stated she does not consider rent assistance to be social services, noting
the HRA provides rent assistance to 267 families through vouchers plus other assistance.
Mayor Spano stated the council has indicated that support is needed for work to be done when
1 we have the climate action plan. If the city is going to have a plan, we need funds to make the
plan changes.
Councilmember Lindberg stated with naturally occurring affordable housing, he would like a
budget conversation related to assistance with rehab and upkeep for the project in Blackstone. He
Special Study Session Minutes -4- June 20, 2016
stated he would also like more information on the city's benefit package and whether it is
competitive.
2. Comprehensive Annual Financial Report for the Year Ended December 31, 2015
Mr. Simon presented the staff report, noting the city received a clean and unqualified audit
opinion.
David Mol, CPA and partner with Redpath and Company, presented the Comprehensive Annual
Financial Report (CAFR) for the year ending December 31, 2015, and key financial points. He
stated their role is to assure the financial statements are free of misstatements and are reported in
accordance with generally accepted accounting standards. He congratulated the city on receiving
the Government Finance Officers Association's Award for Excellence in Financial Reporting for
the 32nd consecutive year. Mr. Mol stated that in looking at internal controls, they included one
item relating to the requirement to reflect adjustments made in financial statements as a result of
the audit. Mr. Mol reviewed the report on Minnesota legal compliance and explained how those
tests are performed. Their audit revealed no items of noncompliance related to those statutory
standards. Mr. Mol presented the items listed in the report on communications to those charged
with governance relating to changes in accounting standards. He described what is required to be
reported relating to the 2015 implementation of Governmental Accounting Standards Board
Statement No. 68 and the city's share of PERA's net pension liability. He recommended no
change in funding at this point as this is a book entry, and the city is only required by the State to
contribute towards PERA based on wages. He reported they encountered no difficulties in
performing the audit, and there were no disagreements with staff.
Councilmember Mavity asked what peer cities are contributing to PERA. Mr. Mol explained it is
a state pension plan, so all cities pay the same percentage based on wages.
Mr. Mol reviewed a chart depicting the constraints on fund balances; debt service funds
(outstanding bonds); cash available for that debt; and source of repayment. Mr. Simon stated
staff will present more information on this area in the future when we discuss the financial
management plan and long range projections.
Mr. Mol reviewed the status of the water and sewer utilities. Mr. Harmening pointed out those
dollar figures include the amount paid to the Met Council for disposal. Mr. Mol then reviewed
the status of the solid waste utility.
The council discussed what should be included in the public audit presentation at tonight's
council meeting and reached consensus to support a detailed presentation as it supports
transparent government, and the audit is one of the most important things the council oversees.
Communications/Meeting Check -In (Verbal)
None.
The meeting adjourned at 7:23 p.m.
Written Reports provided and documented for recording purposes only
3. City Website Redesign Update
Meliss Kennedy, City Clerk