HomeMy WebLinkAbout2018/11/05 - ADMIN - Minutes - City Council - Study Session�lf St. Louis Park
MINNESOTA
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The meeting convened at 6:30 p.m.
Official minutes
City council special study session
St. Louis Park, Minnesota
November 5, 2018
Councilmembers present: Mayor Jake Spano, Tim Brausen, Rachel Harris, Anne Mavity, Thom
Miller, and Margaret Rog.
Councilmembers absent: Steve Hallfin
Staff present: City Manager (Mr. Harmening), Engineering Director (Ms. Heiser), Director of
Inspections (Mr. Hoffman), Chief Financial Officer (Mr. Simon), Deputy City Manager/Human
Resources Director (Ms. Deno), Director of Community Development (Ms. Barton), City
Accessor (Mr. Bultema), Finance Manager (Mr. Ebensteiner), Management Assistant (Ms.
Carrillo Perez), and Recording Secretary (Ms. Pappas).
Guest: None
1. 2019 budget
Mr. Simon presented. He asked the council if they desired to set the 2019 final property tax
levy at $33,128,261, an increase of approximately 4.35% over the 2018 final property tax levy.
He also asked the council if they approve of a franchise fee increase in 2019 for pavement
management project funding.
Councilmember Rog asked if the model projecting to 2022 takes into account additional debt.
Mr. Simon stated everything that is known about CIP needs is in the model at this time.
Councilmember Brausen asked if the $60,000 for STEP is incorporated into the budget. Ms.
Deno stated yes, adding these costs will be coming out of the housing rehab fund, not the levy.
Councilmember Miller asked if one full-time person would be added to personnel for Ranked
Choice Voting. Ms. Deno stated yes, adding this person would start on January 1, 2019.
Councilmember Mavity stated in the past, the council had a discretionary fund in order to
respond to issues that arise throughout the year. She noted she wants to be certain the budget
is not so tight, that the council is not able to respond to an issue if it arises. Mr. Simon noted
there is a contingency fund the council can use in those cases.
Councilmember Rog asked for clarification on the 4.35% and if the Walker Lake improvements
are included. Mr. Simon stated those improvements will be completed with franchise fees.
Councilmember Miller stated he would rather see an investment in the future concept of
Walker Lake. Councilmember Miller asked if special service areas use franchise fees. Mr.
Harmening stated no, franchise fees are not used for special service districts and amenities,
adding this would be a new approach in using fees for the streetscape at Walker Lake.
Special study session minutes -2- November 5, 2018
Councilmember Mavity warned this is a big policy change, noting the council must be careful
here.
Mr. Harmening added this is not being considered tonight by the council and the $1.50
franchise fee does not bind the council to enhancements at Walker Lake.
Councilmember Brausen stated he is in favor of the 4.35% levy increase adding this is needed to
maintain the city's infrastructure.
Councilmember Rog stated she still has concerns about impacts, and will continue to study this
over the year, but will stand behind the 4.35% levy increase.
Councilmember Harris stated she is in favor of the 4.35% increase and appreciates the work
staff has done in looking at all expenses.
Councilmember Miller stated he is very happy to see the rate of increase go down; however,
still thinks this is one point too high. He added if the city had not done the ROC, the levy could
be at 3%. He noted the city will also be going into more debt service with the Nature Center,
stating he has concerns here; however, is at the cusp of voting in favor of the 4.35%.
Councilmember Mavity stated she is fully in favor of the 4.35% levy, adding her concern is
whether it is enough. She wants to be forward thinking about projections and is also concerned
about trajectory over time, especially as this will not include other items such as a civic center.
Mayor Spano stated this is the third year in a row the final levy increase has gone down, adding
he is fine with the fee structure. He agreed the extra 50 cent increments is a good idea, and
when it is needed, increases will be mitigated in future years in the Walker Lake area.
It was the consensus of the council to direct staff to move ahead with the 4.35% levy increase
and the $1.50 franchise fee increase.
The meeting adjourned at 7:;4 p.m.
MelissalKennedy, City