HomeMy WebLinkAbout2016/11/07 - ADMIN - Minutes - City Council - Study Session11ISt. Louis Park OFFICIAL MINUTES
M I N N E S 0 T A CITY COUNCIL SPECIAL STUDY SESSION
ST. LOUIS PARK, MINNESOTA
NOVEMBER 7, 2016
The meeting convened at 6:27 p.m
Councilmembers present: Mayor Jake Spano (arrived at 7:00 p.m.), Tim Brausen, Steve Hallfin,
Gregg Lindberg, Anne Mavity, Thom Miller, and Susan Sanger.
Councilmembers absent: None.
Staff present: Chief Financial Officer (Mr. Simon), Deputy City Manager/Human Resources
Director (Ms. Deno), and Recording Secretary (Ms. Pappas).
Guest: None
1. 2017 Budget Update
Mr. Simon updated the council on the tax levy. He noted that in September the council approved
a preliminary property tax levy increase of 6.5%. Subsequent to that action, the city was awarded
the SAFER Grant. Staff incorporated the grant funds into the budget to offset the cost of two
full-time firefighter positions. Additionally, staff adjusted the employer contribution for health
insurance to reflect the two-year contract that was negotiated and moved the annual STEP grant
to the Housing Rehab Fund. These actions resulted a levy reduction to approximately 5.35%.
Mr. Simon noted that the boulevard tree removal costs are currently split 50/50 with the home
owner, and it would cost an additional $65,000/year if the city were to pay 100% of the tree
removal costs. This amount would need to be added to the 2017 budget as it is not included in
the updated levy numbers. Further, adding this additional amount would bring the total levy
increase to approximately 5.58%.
Mr. Simon stated that if Emerald Ash Borer arrives in St. Louis Park, the cost of removal could
go from $130,000/year, using the 100% funding model, to approximately $400,000, at least for a
period of time.
Ms. Deno noted that Race and Equity funding has been identified under council programs in a
levy line item in the amount of $134,000. Any council program funds unspent from 2016 will be
assigned as fund balance and used in 2017 for Race and Equity, Outreach, and Climate Action
Plan initiatives.
Mr. Brausen stated he is in favor of the city paying for 100% of tree removal as the trees in the
boulevard belong to the city. He noted the city must be consistent in its position, noting the costs
will be high if Emerald Ash Borer arrives.
Councilmember Sanger agreed with Councilmember Brausen. Councilmember Miller also
agreed.
Councilmember Mavity added that if the council approves this, then it cannot be taken away
later. She added currently the city has a good tree removal partnership with residents and should
hold tight with cost-sharing.
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Mayor Pro Tem Hallfin stated that back when the budget was getting tight, Local Government
Aid was taken away. However, he added that in the past, the city used to cover 100% of tree
removal. He stated he supports the city doing this again.
Councilmember Mavity stated she recalled this and asked if the split might be 75/25, instead of
50/50. She also asked who decides when a tree comes down. Ms. Deno stated the city controls it,
marks the tree, and takes it down. The city will barter with the homeowner; however, if it's
Emerald Ash or Dutch Elm, the city takes the tree down.
Councilmember Lindberg stated one thing about the current levy and fee structure is that the
bulk of it falls in the average value homes. He added he would like to be cautious and not put
added burden on average value homeowners.
Councilmember Mavity added she is worried about future years, especially with Emerald Ash
Borer.
Councilmember Lindberg stated that it is a 5.35% vs. 5.5% increase, which is approximately a
$2 increase to the average home value.
Councilmember Mavity noted again if the city moves to covering tree removal at 100%, she is
not as concerned this year but is more concerned about future years. She added her preference is
to create a cushion with the overall levy so as to have funds available if needed.
It was the consensus of the council to have the city cover the cost of boulevard tree removal at
100% for the 2017 budget.
Councilmember Mavity asked if the city's grant to STEP has parameters. Mayor Pro Tem
Hallfin stated last year the grant was for housing.
Councilmember Brausen asked if the Housing Rehabilitation Fund comes from developer fees,
and if so, noted he appreciates this. Mr. Simon confirmed this is the case.
Councilmember Sanger agreed with Councilmember Mavity's comments about having the levy
capacity in case of an emergency or in the case of other constraints on the budget.
Councilmember Sanger added with regard to the Friends of the Arts, she questions the city
doubling its payment to them unless there is something they are doing differently this year. She
prefers additional funding to go for particular programming so the council could address that.
Ms. Deno stated that staff can provide information to the council on where the additional funding
would go related to the Friends of Arts.
Councilmember Brausen added he is in favor of increasing the funding for the arts, noting by
supporting this, it makes a statement that this work matters to the city.
Councilmember Sanger agreed their work does matter; however, she is not sure the funding
should be doubled.
Councilmember Mavity stated it is important to support the Friends of the Arts (FOTA),
especially now that a full-time person has been hired as executive director. She added the city
needs to make an investment in FOTA and help to provide base funding to allow the group to
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survive. She added the group adds value, and she doesn't want them faltering during this
transition. Councilmember Mavity also noted the council can double their support for 2017 and
then re-evaluate next year.
Councilmember Miller agreed with doubling the amount and would like to see the group's plan
for 2017.
Councilmember Lindberg agreed with the conversation, but also agreed with Councilmember
Sanger, noting that in comparison with the council's contributions to STEP, the FOTA
contribution should be reviewed. He added the council's contribution is only one way to look at
how we contribute to the arts.
Mayor Pro Tem Hallfin cautioned the council to look at each area on its own merits and not try
to pit one area against another.
Councilmember Miller also pointed out that raising the levy at this point is concerning,
especially since the directors have already come forward with their numbers for 2017.
It was the consensus of the council to double the Friends of the Arts funding to $40,000, which is
funded out of the Development Fund. Ms. Deno added she will provide the Friends of the Arts
budget to the council as background information.
Mayor Spann arrived at 7 p.m.
Councilmember Sanger stated the council should have a discussion about what kind of support
should be given to non -profits in the community. Mayor Pro Tem Hallfin added this might be a
good topic for the upcoming council retreat or a study session.
Mayor Spano noted the line item related to race and equity funding is listed under council
programs.
Councilmember Brausen asked about the climate action plan and if there will be different funds
used for solar panels. Ms. Deno stated staff is looking at the capital program or solid waste fund
for solar panels.
Councilmember Brausen stated last year's budget had a slightly higher levy, with funds going
into affordable housing. Councilmember Lindberg asked what is being done with those funds.
Ms. Deno stated this is being parked in other funds, as it has not been used. She added that the
council can discuss what to do, adding this would be a policy issue.
Councilmember Mavity suggested the 5.8% levy for 2017. The council members agreed. Ms.
Deno noted extra funds can be added to the council programs line item.
Councilmember Sanger asked about the change in life insurance benefits for city employees. Ms.
Deno explained there are differences for exempt vs. non-exempt employee's benefits. Life
insurance and short-term disability are included. She stated the city received a favorable bid for
life insurance, adding they will come to council with a policy discussion at a later date.
The meeting adjourned at 7:10 p.m
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Written Reports provided and documented for recording purposes only:
2. Fastpitch Softball Task Force for
Melis a Kenned , City Clerk