Loading...
HomeMy WebLinkAbout11-29-07 November 29, 2007 Page 1 of 7 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in special session on Thursday, November 29, 2007 at 7:00 PM in the St. Joseph City Hall. Members Present: Mayor AI Rassier, Councilors Renee Symanietz, Dale Wick, Steve Frank, Rick Schultz City Administrator Judy Weyrens City Representatives Present: Police Chief Pete Jansky, Public Works Director Dick Taufen, Finance Director Lori Bartlett Others Present: Jane Reber, Marge Reber, Ken Hiemenz, Mary Ann Graeve, Ellen Wahlstrom, Bob Wahlstrom, Margy Hughes, Mike McDonald Public Comments to the Aqenda: No one present wished to speak. Approve Aaenda: Frank made a motion to approve the agenda; seconded by Symanietz and passed unanimously. Consent Aqenda: Wick made a motion to approve the consent agenda as follows: a. Bills Payable - Approve check numbers 039610 - 039642. b. Special Use Permit - Accept the recommendation of the Planning Commission and issue a Special Use Permit to District 742 for the construction and operation of a wind turbine. The motion was seconded by Symanietz. Discussion: Frank stated that Ordinance 52.9 refers to towers; however, it is not specific to wind turbines. Weyrens stated that while the Ordinance is entitled Telecommunications, the Ordinance applies to all towers, regardless of use. She further stated that when the Ordinance is updated, the name of the Ordinance will be changed making I more name appropriate. The motion passed unanimously. MAYOR REPORTS Fire Board Meetina: Rassier stated that he attended the Fire Board meeting in place of Schultz. He stated that, previously, the Fire Board hired Springsted to prepare an Organization Study. The study was to be completed in August. As of this time the report has not been presented and the Fire Board recommended terminating the Contract with Springsted. The Administrator was asked to gather information on job descriptions and compensation. The Fire Board was focusing on the duties of the Fire Chief, Assistant Chief and Captains. Rassier stated that the Fire Board will report when additional information is available. Frank stated that he is trying to learn more about the Fire Department. He questioned whether or not the department has been having a hard time finding volunteers and how many volunteers they currently have. Weyrens stated that by Ordinance, they are allowed to have 30 volunteers at any given time. Currently, the department is staffed with 29 members and the last opening the City had more applications then positions. She added that the major concern is weekend coverage as more families have weekend homes outside the fire district. COUNCIL REPORTS SYMANIETZ - No Report WICK November 29, 2007 Page 2 of 7 Planninq Commission Update: Wick reported that the Planning Commission previously met to review the Ordinances relating to rentals in the R1 District. He also advised the Council that the next meeting has been moved from December 3rd to December 10th. EDA Update: Wick stated that the EDA met recently to review the draft report for 2007 and the 2008 goals. FRANK Utilitv Rates: Frank requested that staff provide a summary on utility rates and how the user fees are collected. He further stated that it important for residents to see how the fees are calculated and this should be presented on an annual basis. Weyrens stated that when the Council reviews the utility budgets, this information will be presented. ADMINISTRATOR REPORTS Public Works Director Job Description: Recently, Dick Taufen announced that he will be retiring on April 1, 2008. Weyrens provided the Council with a job description for approval. She stated that the proposed wages are comparable to those of the surrounding cities. She also provided the Councilors with two options for the timing of the hiring process. Frank stated that based on the two options, Option A seemed like it would be rushing the process; however, Option B would allow the new employee less time with Taufen for training. Rassierl agreed with Frank that Option B would not allow enough time for training. Wick added that with Option B, the new employee would have less than 30 days before Taufen's retirement. After reviewing the application, Frank questioned why the application did not ask specific questions relating to the position. Weyrens stated that the application used for Department Heads includes an autobiography. The specific questions have been reserved for the interview process. Wick questioned Weyrens as to how the Job Description was drafted. Weyrens stated that she used the job description as presented by Springsted and added a few more supervisory duties and responsibilities. The job description is similar to that used by the area Cities. Rassier questioned whether or not the applicants are required to have a management degree to which Frank stated that they must have a degree or equivalent experience. Symanietz made a motion to use the job description as presented and accept the hiring schedule entitled "a". The motion was seconded by Frank and passed unanimously. Laserfiche Traininq: Weyrens stated that Laserfiche is the electronic filing system being used by the City. Recently, staff went to a training session at which we realized that we are not using the system to its full capacity. Weyrens stated that she would like authorization to send Sarah Bialke to a three day training session in Los Angeles. This training would cost approximately $1400/person with travel expenses and the cost of the training. Detailed program training is only available through the Institute in Los Angeles. Frank made a motion to authorize the expenditure to send Bialke to Laserfiche training in California. The motion was seconded by Symanietz and passed unanimously. Rental issues: Weyrens advised the Council that they began the legal process with the rental on 4th Avenue SE owned by Michael Patenode. She added that the tenants will be vacating the home no later than December 15, 2007. Libertv Point Issues: Weyrens stated that staff is still working on collecting delinquent assessments from the developers of Liberty Pointe. In addition the City has been dealing with resident issues relating to November 29, 2007 Page 3 of 7 snow removal of the private streets. She stated that they will work with Signature Homes to make sure that the streets get plowed as they are private streets and the City does not plow them. Wick made a motion to recess. The motion was seconded by Rassier and passed unanimously. Public HearinQ - Truth & Taxation: Mayor Rassier opened the Truth and Taxation Hearing at 7:00 PM an stated the purpose of the hearing is to present the 2008 Budget. At this meeting the Council cannot adopt a budget as State Law requires jurisdictions to wait three days before approving a budget and levy. Lori Bartlett, Finance Director, approached the Council to give a brief overview of the proposed 2008 Budget. According to Bartlett, the budget process was started in June. Various budget meetings have been held since then and the final budget must be certified to the State no later than December 28, 2007. Bartlett stated that the City is proposing to add three new staff in 2008 to include a part-time police secretary, full-time Community Development Director and a full-time Police Officer to begin in July. She stated that the City will have a decrease in LGA for 2008. The proposed increase in wages/benefits is due to the hiring of the Finance Director and the two new maintenance employees. There is also a proposed increase in Capital Improvement Plan and Fire Protection. Bartlett also provided the Council with a breakdown of the proposed revenues and expenditures for 2008, a levy comparison by year, a property tax history comparison as well as a tax comparison amongst the area cities. Weyrens added that the debt portion of the proposed budget is already predetermined and cannot be reduced. Some of that debt is reimbursed to the City through special assessments and the remaining is through taxation. She stated that the Council is only considering the General Fund portion of the 2008 Proposed Budget at this hearing. Rassier opened the Public Hearing for comment or question from those present. Irma Hoffmann approached the Council with some questing relating to her property taxes. She stated that her property was recently assessed at $43,000 higher than the previous year. Hoffman stated that in a recent conservation with the Stearns County Assessors Office, the land value has been increased as it is developable property. She stated that the empty lot is landlocked and thus cannot be used for anything. Weyrens suggested that she contact Bob Lindvahl at Stearns County as they have been appointed as the assessor for St. Joseph. Hoffmann clarified that she cannot change this amount for 2008, but they may be able to review this for 2009. Jane Reber, 1314 E Minnesota Street, questioned the Council as to why her property tax statement did not show a new tax amount for 2008. Weyrens reviewed Reber's statement and advised her that they stayed the same from 2007 to 2008. Mike McDonald, 213 13th Avenue SE, approached the Council with some concerns regarding the City's Budget. He stated that the taxpayers in St. Joseph pay the highest amount of taxes. He added that, if the budget is approved as presented, St. Joseph would be the second highest in the St. Cloud area behind Waite Park for tax rates. He also stated that the tax rate is lower than expected due to the fact that the School Referendum did not pass. McDonald stated that the general levy is twice as much as it was four years ago. Although the City grew, he stated that it did not grow by that ratio. It was mentioned earlier that the Council cannot change the City's debt at this time; however, McDonald stated that the City should think harder before bonding for so many projects. He stated that he understands that the roads need to be plowed and that requires more staff and that taxpayers accept paying more taxes for more services. He then advised the Council that according to Stearns County, houses in St. Joseph have been undervalued in relation to the surrounding Cities. The market value of his home increased by 16.6% over the past two years. He stated that he submitted a list of 21 questions to the Council with respect to the budget and has not yet heard back from anyone on the Council. According to McDonald, employee health insurance is a big November 29, 2007 Page 4 of 7 portion of the City's Budget. He stated that the City switched to the HSA plan to save money; however, the City then paid the employees' deductibles. He questioned why the City did that. He also questioned the Wellness benefit and the uniform allowances that are provided to the employees. Ellen Wahlstrom, 8th Avenue NE, also approached the Council with some questions relating to the budget. Bartlett mentioned that the City's population doubled over the past four years. Wahlstrom stated in her opinion, the population has not increased in proportion to the City's taxes. She questioned the net tax capacity for 2008, the growth rate percentage for 2007 -2008 as well as whether or not there are any major bond issues planned for 2008. Weyrens stated that the City has approved some large bond issues to include some large levies and increased staff. The maintenance facility was bonded for and levied at 100%. According to Weyrens, the largest component of the bonding is the improvement projects that have been completed over the past three years. There are no new bond issues planned for 2008; however, the Council is considering a replacement for an equipment certificate. Wahlstrom stated that the residents have been hit hard with assessments recently and they are in addition to the property taxes. Margy Hughes, Able Ct. E, questioned the Council with regards to the proposed revenues for 2008. She questioned what would happen if the revenue is not received as budgeted due to less building permits and rental housing licenses. Bartlett advised Hughes that the City was conservative with respect to revenue numbers. The permit/licensing portion of the revenue budget includes all licenseslpermits issued by the City. Hughes questioned how the City will make up for that shortfall. Weyrens stated that the City outsources the building and rental inspection services. She added that we receive more in fees for building services than the costs associated with providing those services. She also added that rental licensing costs are billed per hour and if there are fewer rentals, the costs to provide that service would be less. There were some additional questions with respect to the market value increases and growth rates. Bartlett stated that the tax growth was 20.5%. McDonald questioned how many building permits were issued last year. Weyrens stated that she was not certain as to the actual number of permits for 2007; however, part of the valuation increase is a result of the end of year permits in 2007 that did not make the cut off for the 2008 tax statements. McDonald added that the City will not see this high of a growth rate by 2009. He added that, although this all looks good on paper, the City needs to start cutting costs now to prepare for the decreased growth numbers. Frank stated that, in the past, the State had a program to help higher value property owners have their taxes subsidized. That program; however, is being phased out and those higher value property owners will begin to see large tax increases. Frank stated that, in his opinion, the City's budget meetings should be televised. He added that most of those questions raised by McDonald were addressed at those budget meetings. Staff and Council members tried to answer the following questions as raised by McDonald. · One of the questions raised by McDonald was that of the College of St. Benedict and whether or not they are taxed fairly. According to Frank, the College does not pay any taxes to St. Joseph and the City has no authority to tax them. McDonald disagreed stating that they recently built a new dining facility which will compete with the local businesses. As a result, they should pay a portion of the property taxes. Rassier advised McDonald that, right now, there is nothing that the City can do as it is a legislative issue. Frank stated that there are some issues with the utility bills as well. Weyrens stated that St. Ben's has their own water service; however, in they have pay 45% of the sewer operating costs. The College has asked the City to review this as they feel that the City has grown and that percentage may no longer be proportionate. It was mentioned that the College should pay their fair share for the number of rooms on campus. Frank commented that the City is already beginning to make some changes. November 29, 2007 Page 5 of 7 · Another question raised by McDonald was that of the City's bonding. Rassier stated that there is a need in the City for buildings, infrastructure as well as street improvements. Those improvements are a benefit to the City. · McDonald also questioned the hiring of new employees. Rassier advised him that new employees will benefit the City as well. By adding a Community Development Director, the City hopes to increase its commercial base. Frank stated that the City looks at need rather than fairness when adding new employees. He added they have looked at the workload and found that the Records Specialist is needed as the Police Department is six months behind in data entry. The new Police Officer is needed as the new school will most likely result in an increase in police calls with the addition of the ih and 8th grades. Frank stated that the Community Development Director is needed to increase commercial growth within the City. He stated that the City is already paying a consultant for this type of service, but it would be beneficial for the City to have someone on staff to provide this service. · In his list of questions to the Council, McDonald questioned whether or not the Capital Improvement Plan was previously approved at a prior budget meeting. Weyrens stated that the Capital Improvement Plan was not yet approved. · With respect to the Health Insurance, Weyrens stated that both unions negotiated their contracts in 2006 for the 2007-2008 periods. By switching to the HSA, the City did save some money; however the City had no choice but to pay for the deductibles as they cannot decrease the value of the insurance to the employee during the contract period. She added that the unions will begin negotiating their new contracts in July for the upcoming contract to start in 2009. She also commented on the Wellness Program offered to the employees. She stated that the City receives money from the Insurance Company to provide wellness programs for the employees. That program can be removed, if necessary. Frank stated that by offering those types of programs, insurance companies save money. McDonald; however, stated that it does not add any benefits for taxpayers. Graeve stated that it is a good program for the employees as it creates a sense of well being for the employee. Frank commented that the City needs to compete with the market with regards to benefits and wages. · Another question raised by McDonald was whether or not the City uses the League of Minnesota Cities Salary and Benefit Survey as a tool during the budget process. Weyrens advised McDonald that the City does use that and they also hired an outside consultant to provide that information for the City. · The clothing allowance for staff and council members was another issue addressed by McDonald. Weyrens stated that the clothing allowance was a part of the union contract. Each employee is allotted $175/year for City apparel. The Council was given the clothing allowance to provide them City apparel when attending conferences. · Weyrens also responded to McDonald by stating that the Council salary is linked to staff salary in that they receive the same percentage increase as employees based on the union contracts. This method is used rather than having their wages negotiated after each election. · McDonald also questioned by the line item revenue budget for interest is down in 2008. Weyrens stated that this is done so that the City does not artificially inflate interest. · McDonald questioned why the City structured the parking space lease with the Credit Union without annual payments to the City. The agreement includes a provision whereby each space is charged, but the fee is only collected when or if the City or Credit Union call the first right of refusal on the City property. Rassier stated that it was done this way with the anticipation that the current City Hall facility may not be large enough in the future. At one time, the Credit Union expressed interest in the entire block. November 29, 2007 Page 6 of 7 · McDonald also questioned why the City pays for health club memberships for some of the employees. Weyrens stated that the benefit is part of wage negotiation. · McDonald questioned what account is used when the Council donates money to various charities. Weyrens stated that the City does not donate money to charities. The City supports the RSVP program and is a member of the Initiative Foundation. Dues to the Initiative Foundation are $1,500 per year. Frank stated that the Capital Improvement Plan has not yet been approved. He added that he believes that a sidewalk along 2" Avenue NW should be constructed as it is not a good idea to have people walking on the street. He did state that there are other items that are higher priorities. Rassier stated that the items in the Capital Improvement Plan are items that are suggested by staff and help the City prepare for growth with infrastructure and staff. McDonald stated that he believes that the City's salaries and benefits should be closer to the industry standards. He also added that he is upset about the employee benefits and clothing allowances. Wick advised McDonald that the average tax rate numbers that he presented were incorrect as there is no City that is comparable to the State average. According to the League of Minnesota Cities, each city is put into a different classification and St. Joseph is classified as a moderate growth city. Based on those 59 cities, St. Joseph was 30 in 2006 and 33 in 2007 for tax rate. Wick also added that the area cities are older and have plenty of infrastructures, which St. Joseph does not. Rassier agreed that St. Joseph has struggled with the lack of businesses in St. Joseph and stated that we need to grow the commercial tax base. There being no one further wishing to speak, the public hearing was closed. Frank questioned whether new construction projects will impact the budget. Weyrens stated that they would not. He clarified that the three new employees are already factored into the budget for 2008 as well as the replacement for the Public Works Director who is scheduled to retire in Spring 2008. Frank stated that one of purchasing items he was unaware of is that the Maintenance Department tries to purchase good used equipment from other Cities. This practice saves the City considerable resources while at the same time purchasing quality equipment. McDonald questioned whether or not the Industrial Park located in the St. Joseph Township is included in the Orderly Annexation Agreement between the City and St. Joseph Township. Rassier stated that the Industrial Park is included in the Annexation Agreement and for some of the property owners annexation cannot come fast enough and others do not want to be annexed. Weyrens reported that the City will be updating the mobile radio system in 2008 to the 800 mgHtz system. The Police and Fire Departments have already started the conversion and need to complete the system in 2008. The proposed Capital Improvement Plan includes the purchase. The current purchase price of the radios is approximately $ 50,542 and after November 15 the price will increase to $ 64,974. The purchase includes mobile and portable radios used by the Police, Maintenance and City Staff. Weyrens stated that funds could be advanced through the equipment certificates so that the City can take advantage of the savings. Wick made a motion to authorize the purchase of the 800 mgHtz radios at the above stated estimate. The motion was seconded by Symanietz and passed unanimously. Schultz clarified that nothing has been approved yet for the 2008 budget. Weyrens stated that the public hearing was closed and as such the public testimony portion of budget process is complete. As a result, the Council can act on the budget at the December 13th meeting. Rassier stated that another meeting can be scheduled if the councilors have questions relating to the budget. November 29, 2007 Page 7 of 7 Weyrens clarified that the Capital Improvement Plan is different than the levy and items in the capital improvement plan will not affect the levy. Therefore, the Council will have continued discussion before the CIP is approved. The Council agreed by consensus to move the 2008 Budget to the December 13, 2007 Council meeting. Further, if any Councilor has questions concerning the budget they should contact Weyrens before the meeting. Adiourn: Frank made a motion to adjourn; seconded by Symanietz and passed unanimously. ~~~~-o/~