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Home My WebLink About1997 [12] Dec 02 I , Page 3242 i . December 2, 1997 Pursuant to due call and notice thereof the City Council for the City of 81. Joseph met in special session at 7:00 p.m. on Tuesday, December 2, 1997 in City Hall to hold a public hearing on the 1998 budget and property tax levy. MEMBERS PRESENT: . Mayor Kenneth J. Hiemenz; Councilors Bob Loso, Cory Ehlert, Mary Niedenfuer, Ken Twit; Clerk! Administrator Rachel Stapleton. OTHERS PRESENT: Judy Weyrens, Jean Wilsey, Jane Reber, Bud Reber, Steve Streng, Mike McDonald, Mary McDonald, Steve Dehler, Steve Frank. Mayor Hiemenz called the hearing to <>rder at 7:00 p.m. with all-Councilors present. Because the meeting is being videoed for broadcast on the cable access channel, Bob Loso discussed the need for members of the public to step up to the microphone when addressing the Council. Mayor Hiemenz requested those wishing to speak introduce themselves when they step up to the microphone. He then asked Deputy Clerk Judy Weyrens to present information on the budget. Weyrens discussed the budget and levy process, stating the pr<>posed levy increase is $15,877 plus $8,047 to fund the FASTCOP grant, with the debt service levies in addition. Additionally $149,799 will be levied for debt service requirements. Mike McDonald asked if the City budgeted for the F ASTCOP grant. Weyrens responded the City did budget for it, but the grant funding is in declining amounts each year. Therefore, with levy limits, the state allows additional levy to fund the" City's share. Mike McDonald asked how the City's tax capacity rate compares to other Cities rates. Weyrens responded it is about the middle to high end. Bud Reber.mated the Mayor's salary has a large overrun and he has noticed the proposed budget for 199~ includes an increase in both salary and travel & conference. The past Mayor attended only meetings which in his opinion benefited the City. Also he did not ch¡¡rge for many meetings, including the Sununit meetings with the college officials and CORE meetings. Mayor Hiemenz responded the budget expenditures show the last quarter of 1996, and a change has required the inclusion of per diem in the salary amounts as well. The Mayor also stated he only charges for meetings and mileage approved by the Council and does not charge for meetings with City consultants. The issue of salary increases for the Mayor and Council has been discussed with general consensus to leave their salaries at the current level. Loso also reiterareq the year to date salary budget for Mayor and Council appears to be overstated because it includes the last quarter of 1996. Jane Reber discus~ed the Econ0111Îc .Qevelopment Authority budget, salary amount of Director, and balance of thy f~A þ~4get. , Mike McDonald stated the City taxes went up about 13 % and stated it is difficult to see them increase that much without an increase in services. He also questioned what was the amount of employee wage increase. I I I I , , Page 3243, December 2, 1997 I The response was the Police Federation contract requires a 3% wage increase. The non-contract employees wage increase, set by Council, have not yet been established McDonald further discussed the tax base and recommended cutting back on expensesuutil the tax base is increased. Mayor Hiemenz stated the City is working toward increasing the tax base thfough the efforts of the EDA. McDonald also questioned the basis for the surcharges on the water bills. Weyrens discussed the surcharges and designation of each. He also questioned the level of the fund balance. Weyrens stated the City has a reserve balance level to fund about seven months of expenditures. Steve Dehler questioned the specifics ("other factors") on the property tax notice from the County. Steve Frank stated he has never seen a major budget decision at one of these meetings and questioned if St. Joseph supports the Leagne of Minnesota Cities in their position to support abolishing such hearings. Mayor Hiemenz stated the City has not received notice from the League on their position on the future of such hearings, nor has the City addressed the issue. I Frank noted the proposed taxes for St. Joseph went up 13% this year while other entities reduced their tax level. He also discussed the amount of user fees on the water bills. . He further discussed the increase in taxes in comparison to the level of wage and salary increases 'of the general public. He felt the City should question the level of services provided, such as number of police officers needed, and the cost of grant programs to the City. Bud Reber discussed the high level of police calls in St. Joseph in comparison to Cities of like Jane Reber discussed the high level of non -taxable property in the City as well as the services needed and the benefits from such institutions. Mayor Hiemenz stated the Council chose not to accept a grant for an administrative aide for the police department due to the cost to the City. Jane Reber stated property taxes have increased with the costs of the new Fire Station and will keep going up each year as the needs of the City rise. The portion of the health insurance premium (15%) paid by the employees was discussed. Steve Dehler discussed the budget balance that rolls over to the next budget. Capital Outlay budgets not expended are rolled over in order to provide for the capital needs over several years. Dehler would like to see a report on the accumulated rollover balances. I Dehler questioned the maintenance for traffic control devÎces and costs of diverting truck traffic from County roads to City streets. Steve Frank suggested increasing user fees for additional revenue. The response was user fees were reviewed and revised along with the budgeting process. Recreation fees are charged as appropriate. Page 3244 December 2, 1997 Fnmk advised considering leasing patrol cars as a cost saving measure. MeDonald suggested considering smaller patrol cars. He also suggested reducing the budget below the allowed levy liìnit and selling the additional property by the Fire Station. I , Mayor Hiemenz stated the preliminary budget was cut in many areas. Park and recreation budgets were cut considerably. The Polic~ Department works with area agencies as a cooperative effort in policing. Dependability of patrol cars is imperative. Jane Reber asked if employees get an automatic 3% pay increases. The Mayor responded the Police Federation contract provides a 3% wage increase. The non- contract employees wage increase, set by Council, have not yet been established. The CPI has been used in the past. McDonald stated there is very little upward mobility in smaIl Police Depa1tment.s, so wages may not be the only factor in young Officers leaving for larger departments. Bud Reber indicated the work load is higher in St. Joseph also. Delìler discussed the duties of the EDA Director. Mayor Hiemenz outlined the job duties of the ! EDA Director including grant applications. Steve Frank felt Economic Development efforts take 3 to 5 years to see a payoff(in property taxes). McDonald questioned the intent of the unused portions of the Roske Addition. h was his understanding the excess property would be sold. Loso stated the intent of selling the excess Roske property was to defray the cost of the Fire Station. One lot is on the mark~t now. Therewas further discussion of offers for Roske Addition lots that were not on the market. I There was further discussion of the ED A efforts to obtain business and industry, the impact of the colleges on the City, the need for long range planning, improved City buildlings, study of possible use of American Legion Building, need to protect City records. Also discuSsed were future higher health premium costs, dog licenses and enforcement, possible future coopeTative use of facilities with St. Ben's and current contributions from St. Ben's, and local government aid. Twit made a motion to close the hearing; seconded by Loso. Ayes: Hiemenz, Loso, Ehlert, Niedenfuer, Twit. Nays: None. Motion carried. Twit made a motion to consider budget cuts at the December 16 Council meeting with adoption of the 1998 Budget and Levy on December 18; seconded by Ehlert. Ayes: Hiemenz, Loso, Ehlert, Niedenfuer, Twit. Nays: None. Motion carried. Loso made a motion to adjourn at 9:05 p.m.; seconded by Twit. Ayes: ~emenz, Loso, Ehlert.-Niedenfuer, Twit. Nays: None. Motion carried. Ç>~~ Rachel Stapleton Clerk! Administrator I