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City Council Minutes 10-26-1998 SpecialMINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL Monday, October 26, 1998 - 5:30 p.m. Members Present: Bill Fair, Clint Herbst, Brian Stumpf, Roger Carlson, Bruce Thielen Members Absent: None A special meeting of the City Council was held for the purpose of discussing the 1999 municipal budget and tax levy. City Administrator Rick Wolfsteller reported that at the second budget workshop, the Council reviewed $117,682 in reductions to the non-debt portion of the levy, bringing the new levy total to $4,584,725. After discussion, staff was directed to look for additional budget cuts that would further reduce the budget by $67,000. To arrive at the $67,000 reduction, budget items totaling $35,000 were eliminated or delayed, and $32,000 was eliminated from the tax levy requirement but proposed to remain in the budget by utilizing general and tree fund reserves. The additional reductions result in a 4.3% increase in the non-debt portion of the levy over 1998, for a 19991evy total of $4,617,725. The City Administrator also noted that a few items continue to remain unfunded in economic development such as the $16,750 increase requested by the Monticello Community Partners (MCP), $200,000 in matching grant funds for a scattered housing program, and $35,000 for acquisition of downtown/riverfront land. In addition, the City's matching contribution with the IRA for future industrial park land was reduced to $25,000, leaving $50,000 unfunded. Library remodeling and repairs were also discussed, and it was noted that the current budget included only $20,000 for window replacement/repair; however, additional repairs are needed but are unfunded at this time. It was suggested that a feasibility study be completed, including input from the :Library Board, regarding repairs and space needs for the library, which could be funded through reserves. Librarian Marge Bauer also distributed information regarding class action lawsuits throughout the country relating to synthetic styrofaam stucco material failures similar to the product believed to have been used on the library exterior, which could possibly result in some recourse for the City through the manufacturer. Council continued discussions regarding the $50,000 reduction made for purchase of industrial park land, and the City Administrator noted that it was also unlikely that the HRA would be able to contribute its match of $75,000 due to a tight budget and previous commitments. HRA member Darrin Lahr Hated that although the HRA has been trying to purchase riverfront property as it becomes available in order to avoid additional relocation cast, it was the opinion of the HRA that industrial land is the first priority. After further discussion, it was suggested that the amount budgeted far industrial land remain at $25,000 and possibly use reserves for additional funding if necessary. Page 1 Special Cauncil Minutes - 10/26/98 Mayor Fair also requested that the Council discuss the MCF's request for an additional $7,250 for a total of $42,500. Councilmember Stumpf noted that Council's original agreement was a match of funds up to $35,000, which he felt was a reasonable contribution. Councilmember Herbst requested that the MCP submit a breakdown of the source oftheir donations. MCP Project Manager Rita Ulrich responded that she did not have that information with her; however, she felt that the list was sensitive infarmation and should not be made public. Councilmember Herbst noted that it wouldn't have to be made available to the public; however, he felt that Council should have an idea of the source of the MCP's matching funds. It was the consensus of Council to make na changes to the l 999 budget as proposed by the City Administrator, which would amount to a 4.3% increase in the non-debt portion of the levy. In addition, it was the consensus of Council to authorize completion of a feasibility study far repairs and space needs of the library to be funded through reserves. 2. Chuck Keyes of PSG, the company contracted to manage the wastewater treatment plant facility, reported that the 1998 Annual Evaluation and Planning System process For the wastewater treatment plant was complete. After reviewing the evaluation, the MPCA submitted a report to the City far Council review. Mr. Keyes reviewed each section of the MPCA report and requested that the Council certify that the report was discussed. After review of the report, Mayor Fair noted that he would submit the required certification to the MPCA that the wastewater treatment plant evaluation report had been reviewed by Cauncil. There being no further business, the meeting was adjourned. 'L.i , Kare Doty Deputy City Clerk Page 2