HomeMy WebLinkAbout2003-10-07 Council Special Meeting MINUTES
OF THE SPECIAL MEETING OF THE
EDINA CITY COUNCIL HELD AT CITY HALL
OCTOBER 7,2003
5:00 P.M.
ROLLCALL Answering rollcall were Members Housh, Hovland, Masica and Mayor
Maetzold. Member Kelly entered the meeting at 5:25 p.m.
Mayor Maetzold stated the purpose of the Special Meeting was to begin the public
hearing process on the preliminary 2004 budget. He reviewed the preliminary schedule
for budget adoption noting the City Council established a maximum levy for the 2004
budget at their September 2, 2003 Council meeting. He added that on December 1, 2003
the Council would conduct a Truth in Taxation hearing before final budget adoption
later in December. Mayor Maetzold stated this meeting would focus first on advisory
boards and commissions' testimony before reviewing the budget in detail.
Manager Hughes explained that nearly all Minnesota cities were affected by the State
Aid Reductions enacted during the past legislative session. He said that state aids for
cities were comprised of Local Government Aid (LGA) and Market Value Homestead
Credit (MVHC). Mr. Hughes pointed out that Edina had not been a recipient of LGA
for many years, but had been receiving MVHC. In 2003, $528,756 of MVHC was
received and it was projected that a like amount was to be received in 2004. Pursuant to
legislation enacted in 2003, Edina not only lost its entire 2003 allocation, but will also
lose the entire 2004 MVHC. Mr. Hughes said that despite this cut, the fiscal impact to
Edina was and will be less than nearly every other city in Minnesota because Edina
receives little state aid relative to its overall budget.
Mr. Hughes explained the City had been subject to state imposed levy limits for several
years. In previous years the levy limit was a function of the prior year's levy adjusted
by household growth, Commercial/Industrial (C/1) growth and an inflationary
adjustment. The 2004 levy limit increases in the City's levy were allowed, but were
minimal due to our "fully developed" situation. The City may not increase its levy due
to inflation or household and C/I growth - we may only increase our levy to recover
60% of the MVHC that will be lost. Therefore, Edina's total 2004 levy (including aids)
will be about $210,000 less than in 2003. When coupled with increases in wages and
other rising costs such as energy and insurance, significant reductions in expenditures
and increases in non-tax revenues were required to provide a balanced budget.
Mr. Hughes stated the 2004 proposed budget reflected a 1.9 percent increase in
expenditures over the 2003 budget. He said included in the expenditures were the debt
service levy for the equipment certificates issued in 2003 and the City hall debt for
bonds issued in 2002. He reviewed the major changes for the 2004 operating budget.
Minutes/Edina City Council/Special Meeting October 7,2003
Mr. Hughes stated the 2004 budget also implemented a number of accounting changes
required by GASB 34. (GASB is an abbreviation for Government Accounting Standards
Board.) Cities will now be required to account and budget for pension, social security
and worker's compensation benefits in a different manner than prior years. Mr.
Hughes said even though the format was different, the totals for the item remained
approximately the same.
Mr. Hughes said the proposed 2004 budget required an increase in Edina's property tax
levy of 1.9 percent with additional funds coming from: 9.87 percent increase in license
and permit revenues, fees and charges, and fines and other intergovernmental aids. He
explained this increase was necessary to offset the loss of MVHC in 2004.
Park Board
George Klus, Chair of the Edina Park Board noted as parks have increased, staff has
been strained. He said being able to hire the maintenance staff to be shared with the
aquatic center would greatly be appreciated. Mr. Klus encouraged the Council to
continue funding the Capital Improvement Plan (CIP). He added the Park Board
intended to solicit private sources of revenue to accomplish goals in neighborhood
parks.
The Council briefly discussed the success of the public/private partnership utilized in
the Fox Meadow Park development and thanked the Park Board for their efforts on
behalf of the City.
Wayne Prozniak, Chair, Edina Human Relations Commission, reviewed the process the
Human Relations Commission used in arriving at their recommendations for Human
Services Funding as follows:
Senior Community Services $26,250
Cornerstone 15,100
VEAP 15,000
Women In Transition 5,200
The Bridge 4,000
Minneapolis Mediation Program 5,000
Ministry for Healing &Wholeness 4,775
Ready For Success 3,000
RPC 22,074
Edina Resource Center 32,400
Mr. Prozniak explained that the 2004 Human Services Funding request was at the same
level as was requested in 2003. He noted some changes in providers had been made.
Sharon Ming, Human Relations Commission member gave a brief update on the status
of the RPC ad hoc committee and the work that has been done during the past year.
She noted they have not spent their 2003 requested dollars, but added that if a suitable
project were chosen they would be the fiscal agent for the project.
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Minutes/Edina City Council/Special Meeting October 7, 2003
The Council raised the question of whether or not the Ministry for Healing and
Wholeness was a duplication of services. Erica Schmiel, Ministry for Healing and
Wholeness, explained they did not duplicate services already in existence, and added
their volunteers form relationships with clients in need of services sometimes making
them able to serve clients who would avoid "Social Services". Ms. Schmiel said they
were able to fill a unique role with their over 200 volunteers and intended to remain
small. She said the Ministry uses the Care Team Model of services organizing the
volunteers to service wherever and however the clients needs dictate. Betsy Flaten,
Human Relations Commissioner, said from personal experience she has referred people
in the community to the Ministry and had very good results.
Hosmer Brown, representing the 50th& France Business Association, asked if there were
any increases in service to the 50th & France service area that resulted in the
Association's increased share of costs. Mr. Hughes explained that the City was
intentionally moving from charging the Association only 20% of the costs of
maintenance in the service area to charging 40% of the cost. He explained that other
public parking lots are wholly supported by their service areas, and the City intended
to continue that trend.
Following the testimony of the Human Relations Commission and the Park Board, the
Council began a review and discussion of the proposed 2004 budget by area and
function, including the following:
General Government Parks
Public Works Central Services
Public Safety Non-Department
During their review of the budget, the Council discussed the following items:
• Reduction in Public Health Services
• GASB 34 Implementation
• Ambulance Revenue
Mayor Maetzold reminded the Council there would be a Truth In Taxation Hearing on
December 1, 2003, and the Council will adopt the 2004 Budget at its regular meeting on
December 16, 2003.
Motion made by Member Housh and seconded by Member Hovland to close the Year
2004 Budget Hearing.
Ayes: Housh, Hovland, Kelly, Masica, Maetzold
Motion carried.
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Minutes/Edina City CounciVSpecial Meeting October 7,2003
There being no further business on the Council Agenda, Mayor Maetzold declared the
meeting adjourned at 6:45 P.M.
City Jerk
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