City Council Minutes 08-26-2002 SpecialMINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Monday August 26, 2002 - 5 p.m.
Members Present: Roger Belsaas, Roger Carlson, Brian Stumpf and Bruce Thielen.
Members Absent: Clint Herbst
1. Call the meeting to order.
Mayor Belsaas called the meeting to order at 5 p.m. Staff present included: Rick Wolfsteller, City
Administrator; Jeff O'Neill, Deputy City Administrator; John Simola, Public Works Director; Adam
Hawkinson, Park Superintendent, 011ie Koropchak, Economic Development Director; and Kitty
Baltos, Community Center Director.
2. Review of Preliminary 2003 Budget and Tax Levy.
City Administrator, Rick Wolfsteller reviewed the preliminary 2003 budget with Council and staff.
He noted that based on levy limits, it was the maximum budget amount allowed. The preliminary
budget does include $500,000 for the street reconstruction fiend and $88,000 in the capital outlay
fund. The proposed levy is $97,000 more than last years levy. Rick Wolfsteller also noted that to
the maximum levy amount the City can add the levy necessary for covering the City's bond debt.
The City's levy amount needed for the bond debt is down over $200,000 from last year because of
some bonds being paid off and some bond issues being refinanced. However, Rick Wolfstelle
stated that in the near future the City will be looking at issuing bonds to finance projects such as the
CSAR 75 project, 7t" Street extension, etc. He estimated the bond issue to be approximately
$2,500,000. In discussing the bond issue with Mark Ruff of Ehlers & Associates, Mark Ruff noted
that the City could structure the bond issue so that it would start in 2004 or the City could use an
estimate and start it in 2003. If the bond levy was added to the 2003 budget the overall levy
increase would be closer to 4% instead of 1.5%. The City's budget could go to $6,800,000 if this
bond levy is added. The financial consultant thought that since the City's increase was estimated at
1.49% for 2003 it might be easier to add the bond debt levy with this budget. The general feeling of
the Council was to include the bond debt levy for the proposed bond sale as part of the 2003
budget.
The Council discussed the street core construction project and the extension of 7th Street as well as
other street projects such as the interchange. It was noted that the interchange project has been
pushed back to the year 2007-2008. However, there is nothing in the proposed 2003 budget that
covers these projects.
Rick Wolfsteller stated that the tax capacity rates for the various types of property are not being
changed. Although the City didn't have exact figures it was felt there would be an increase in value
from 4%-8%. It was pointed out that the school district will be coming back with a referendum but
it was uncertain how that would impact the City.
Special Meeting Minutes - 8/26/02
Rick Wolfsteller summarized some of the changes in the general fund budget. These include a 4%
increase in the hourly rate for police protection in addition to adding 4 more hours a day in
coverage. It is the goal to get to 48 hours of coverage a day. The addition of these four hours
should bring the City to 44 hours a day.
Bruce Thielen asked about the aerial mapping of the City which is estimated at $17,000. He
believed the County had done this just a year ago and asked if this is something that would be
available to the City through the County. Rick Wolfsteller stated he would look into this.
Bruce Thielen also questioned the increases in the Street Department budget and asked how many
miles of streets the City maintains. John Simola stated that there is approximately 34 miles of streets
that are being maintained. Currently there are four employees in the Street Department and a
mechanic. Bruce Thielen indicated that Coon Rapids had 260 miles of street and 12 employees.
He questioned whether there was need for another employee or if it was more an issue of how work
was being done. John Simola stated that the mechanic is also working on the cracksealing crew
and added that until the street core reconstruction project is done the Street Department staff will
continue to see much of their time spent in patching, cracksealing, etc. The Council discussed
various options such as contracting some of the work out or going with more overtime with the
Council preference being to contract the work out if feasible. John Simola also pointed out that the
maintenance of the additional sidewalks and pathways adds to the work load of the staff. Rick
Wolfsteller said that even if work was contracted out the City would still need to budget for the
contract work.
The vehicles requested were also discussed. John Simola stated that some of the vehicles in use are
88' or 89' models and are in need of replacement. When equipment gets to that age there is usually
higher maintenance expense and he felt with purchasing under the state contract the City was able to
get good prices on new vehicles. There was discussion on how the existing vehicles are used and
where the departments are short as far as equipment. Adam Hawkinson added that with some
equipment it is also a safety issue as the older models do not have all the needed safety features .
Also with some of the streets and pathways being narrow it makes it difficult to use the City's
present equipment. The Council discussed leasing equipment or contracting work out as alternatives
to the purchase of additional equipment and requested that the Public Works Department check out
costs for leasing a loader. The Council also felt a vehicle replacement schedule should be utilized so
that vehicles are replaced in a timely manner. By contracting out the work or leasing equipment the
City may find it could save some funds. John Simola will check into the options discussed.
The Council discussed the Park Department budget and noted some of the same issues with
vehicles. Adam Hawkinson explained what vehicles were being requested and how they would be
used by the department. Adam Hawkinson stated that by having more versatile, multi -use
equipment it would make for more efficiency within the department. Brian Stumpf asked about
land for future athletic complex. Adam Hawkinson stated they have four different associations using
the fields and there is a demand for more fields. The Parks Commission was looking down the
road to develop more fields to meet the need.
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Special Meeting Minutes - 8/26/02
Brian Stumpf questioned the amount under the OAA and it was felt it should be left there. It is
anticipated that even though the hearing before the judge is scheduled in September it is unlikely the
City would get the ruling prior to setting the 2003 budget.
John Simla stated that the Riverside Cemetery is barely meeting expenses based on the grave sales
and other fees collected. It is at the point where the cemetery is no longer being self sufficient.
Bruce Thielen suggested looking at the fencing at the cemetery and John Simla felt the some paving
work needs to be done in the area as well. Temporary solutions to extend the life of the fence until
such time as it could be replaced were discussed.
The Council discussed the proposed outlays for the Community Center. Kitty Baltos reviewed the
equipment and capital outlays being requested. Rick Wolfsteller noted that there were no funds set
aside for building replacement items such as carpeting, etc. Last year $12,000 was budgeted and
for 2003 Kitty Baltos would like to see $30,000 set aside. Rick Wolfsteller pointed out that
because the City is at the maximum levy limit they couldn't just add the $30,000 but would have to
take from someplace else instead. Also discussed were parking needs for the MCC. Brian Stumpf
did not feel additional parking was required because the parking in the back is not being utilized. It
was suggested that at year end any surplus within the budget should be brought up to the Council
and they could make a determination where the surplus funds could be utilized.
{ The Council briefly discussed the land exchange for the library site. Bruce Thielen questioned
whether a referendum would be needed to fund the library expansion. An architect is currently
working on a feasibility study for the library space. The expansion of the motor vehicle building was
also discussed. The City are looking to take 600-700 feet of the clothing part of the building for
expansion needs.
Rick Wolfsteller discussed the reserve funds and their uses. He noted that while there is
$1,000,000 in the capital outlay fund, $600,000 is committed which leaves for $400,000 available
for use for items such as the library expansion. He also pointed out that a certain level of reserves
in the general fund is needed for operating capital plus 10-15% for contingencies but anything in
excess could be use for other purposes. The Council asked whether any of the equipment
purchases could be funded from utility fund reserves. For example if vehicle was used 20% of the
time by the sewer department then 20% of the cost of the vehicle could be taken from the sewer
fund reserves.
The Council felt that the City should levy the maximum allowed and to add to the 2003 levy for the
proposed bond sale to the 2003 budget. The adoption of the preliminary budget and tax levy
would take place at the September 9, 2002 meeting.
Mayor Belsaas closed the meeting at 6:45 p.m.
Recording Secretary