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HomeMy WebLinkAbout20150608 CCM WSROSEMOUNT CITY COUNCIL WORK SESSION PROCEEDINGS JUNE 8, 2015 CALL TO ORDER Pursuant to due call and notice thereof a work session of the Rosemount City Council was held on Monday, June 8, 2015 beginning at 6:30 p.m. in the Council Chambers at City Hall, 2875 145th Street West, Rosemount. Mayor Droste called the meeting to order at 6:30 with council members Weisensel, DeBettignies, Demuth, and Nelson in attendance. Staff members in attendance included City Administrator Johnson, Community Development Director Lindquist, Director of Public Works Brotzler, Assistant City Engineer Olson, Finance Director May, Chief of Police Scott, Fire Chief Schroeder, Parks & Recreation Director Schultz and City Clerk Hadler. A number of community members were also in attendance. DISCUSSION 2.A. 2016 Draft Budget City Administrator Johnson gave an overview of the 2016 Draft Budget. He explained the process of the development of the budget. He stated that the process during the summer usually concentrates on the operating budget, in order to develop the maximum levy in time for the deadline in September. Mr. Johnson explained that staff has been in discussion with some of the recreational groups. Mayor Droste opened the floor for comments to citizens in attendance. Craig Nelson, of Rosemount Area Hockey Association (RAHA), stated they attended this evening because there is no money in the budget for new indoor activities. Mr. Nelson quoted the Morris Leatherman survey results, noting the responses to the questions of support for multi-use facility. Mr. Nelson explained they are working on a financial model that will show positive cash flow in the first year. He gave an overview of some of the numbers of that model. Mayor Droste stated the difficulty in interpreting the Morris survey results and the likelihood that it could be misinterpreted. Craig Nelson stated that the facility that they are proposing should not require a tax increase. Council member Demuth asked Finance Director May whether he had seen the RAHA model yet. He stated he has seen a preliminary model, but not the final. Dan Schultz stated staff is doing research in other communities. Council member Nelson stated that a referendum would not necessarily be needed. He inquired about the deadline for the referendum. City Clerk Hadler stated the notice to the Auditor would be August 21st, but there are earlier deadlines that the school district might be affected by. Council member Nelson inquired of Finance Director May whether the current ice arena produces revenue. Mr. May stated the original plan for the arena was to have it cover the expenses and debt, but that didn’t work right away. The city had to pay off the debt, which was done approximately in 2010. He gave an overview of the financial history of the current arena and the current financial strategy for capital improvements. He stated that despite the debt on the facility being paid off, the city still subsidizes the building in maintenance costs. 6.b. ROSEMOUNT CITY COUNCIL WORK SESSION PROCEEDINGS JUNE 8, 2015 Mayor Droste inquired if the subsidy would increase in the next 10 years. Mr. May responded that current projections do not show that an increase will be needed in the near future. The head hockey coach from Rosemount High School spoke about the early hockey practices that are necessary to get all of the kids rink time. He expressed concerns about the locker room facilities. Another gentleman in the audience representing the girls’ hockey program also discussed the locker room facilities. Mayor Droste inquired how it was possible for Apple Valley can serve two high school programs. Mr. Craig Nelson of RAHA explained their programs are much smaller than Rosemount’s. Audience members explained that the Rosemount program pulls from other communities. Mr. May explained the difficulty in counting on revenue, as ice arenas typically are not profitable. The city may not be able to issue the debt with a revenue bond. An audience member inquired how other sports are being subsidized compared to hockey. Mr. May explained why the ice arena is treated as an enterprise fund and how enterprise funds are supposed to run. Mr. May explained that the city does not track specific revenues and expenses of other city sports amenities. Mayor Droste explained that the construction of many of those amenities was paid for by the developer. Council member DeBettignies stated he didn’t believe anyone is against a second sheet of ice. He stated the important points are what it’s going to cost and how to make it happen. Mayor Droste urged City Administrator Johnson and Park and Rec Director Schultz to communicate additional information to the athletic groups about the financial tools of the City. Council members and community members discussed the difficulties of building a second rink. Mayor Droste closed the public comment session and the audience dispersed. Staff and Council continued the 2016 Draft Budget discussion. City Administrator Johnson gave an overview of the draft budget. Currently the proposed property tax levy increase is 2.64%. Last year this number was higher at this time and the actual levy increase ended up being much lower. The City is expecting revenue increases from permits and the tax base is expected to go up 6.84%. There are no state tax levy limits for 2016. Mr. Johnson highlighted some of the items that were increased and why. Mr. Johnson stated that there was one new position proposed, a human resources coordinator, freeing up Assistant City Administrator Foster to develop other human resources programs, as well as making a couple of other higher level employees more efficient. Mayor Droste inquired about our structure compared with other cities and Assistant City Administrator Foster responded. Mr. Johnson continued the budget discussion, stating that community development would have an increase in wages to cover a part-time staff person. Mr. Johnson discussed a couple items that were not funded, such as the parking lot behind city hall. Mr. Johnson discussed the potential for a new Patrol Sergeant position. Council member Demuth inquired about the rule of thumb for officers per 1000 population. Mitch stated there is no rule of thumb, and that it ROSEMOUNT CITY COUNCIL WORK SESSION PROCEEDINGS JUNE 8, 2015 depends significantly on the city and demographics. Mayor Droste inquired about the significantly higher number of police calls as compared to Farmington and asked staff to develop data that explains this. Mr. Johnson inquired whether Council would like to budget for a survey. Mayor Droste stated he would definitely like to see it on the budget. Council member Weisensel stated he did not want to see the survey next year. Finance Director May recommended using money out of the Council contingency budget if they decided to do the survey next year. Mr. Johnson noted the development of the program budget and asked Council to review it in the coming weeks and give input as necessary. He cautioned that this is a very rough draft. Council members inquired about some of the items. Council member Weisensel suggested that a column be added to the document that explains the item. Mayor Droste inquired about a 10 year report about levy increases as compared to population, housing growth and other measures. Mr. Johnson invited council members to make comments or ask questions. 2.B. 132nd Street Improvement Project Assistant City Engineer Phil Olson gave a summary of the 132nd Street Improvement Project and gave an overview of the plans for the project, including street, water and sewer. Council member Nelson inquired about the difference in cost for a stoplight and a roundabout. Mr. Olson stated the cost of a signal would be about $400,000 and roundabout would be approximately $700,000. Mr. Olson stated the city’s cost for the project would be $125,000 for the road, with additional costs for the water and sewer. Mayor Droste inquired how the city would charge additional users in the future. Mr. Olson stated they would have area charges. Council members and staff discussed the implications of the project for the city and residents. The preliminary plat for the development project will be on the next meeting agenda. 2.C. Dakota County Draft 2016 – 2020 Capital Improvement Program Public Works Director Brotzler gave an overview of the letter to Dakota County regarding their capital improvement program. He discussed various parts of the program. He stated that the 42/52 project did get federal funding. Council members and staff discussed specifics of the County’s program and generally approved of the draft letter. 2.D. Vermillion River Watershed Update Public Works Director Brotzler gave an overview of communications with the Vermillion River Watershed District staff. The District is asking for the city to partially fund a study. District staff is working to develop a Joint Powers Agreement that will be presented to Council at a later date. ROSEMOUNT CITY COUNCIL WORK SESSION PROCEEDINGS JUNE 8, 2015 Mayor Droste thanked Mr. Brotzler for his work and professionalism. Mr. Brotzler responded that he has appreciated the opportunities he’s had in the City. City Administrator Johnson stated that Mr. Brotzler’s party is the 17th of June. 2.E. Liquor Code Update City Clerk Hadler gave an overview of the Liquor Code Draft Update. Changes include bringing it in-line with state statute and added appropriate licenses to allow on and off-sale at breweries and micro-distilleries. Council members inquired about how to get press coverage of the new code allowing breweries. UPDATES 3.A. Utility Commission Vacancy Mr. Johnson inquired how Council would like to proceed. Council suggested staff contact a former applicant to see if he was still interested. 3.B. Replacement of iPads Mr. Johnson gave an overview of quotes and benefits of regarding the replacement of the Council iPads. Council discussed the expense and other options. Due to ease of maintenance and updates and potential developing security issues, the Council directed staff to proceed with replacement. 3.C. Potential Music Festival at High School City Clerk Hadler gave a synopsis an inquiry regarding a music/activity festival at the high school. The event would be a fundraiser for the Class of 2016 Senior Party. Council members and staff expressed a number of concerns with the event based on the number of people attending and the potential for noise complaints. 3.D. Potential Development Mr. Brotzler presented an update on a potential residential development on property that is currently zoned commercial and inquired if the city would entertain the draft development. Weisensel would like to see what the difference in tax revenue would be. Council members were generally indifferent or supportive. Council member Nelson would prefer commercial. COUNCIL UPDATES Council member Demuth gave an update regarding the council booth at Leprechaun Days. City Administrator Johnson inquired about a special work session in July to discuss the recreational facility issues. Council members discussed dates and decided Thursday, July 9th, at 6:30 pm. Council member Nelson inquired about an interactive calendar for upcoming community events. ROSEMOUNT CITY COUNCIL WORK SESSION PROCEEDINGS JUNE 8, 2015 Mayor Droste suggested council members visit the Augustana sales display for The Rosemount at Steeple Center development. Mayor Droste stated the CDA had listed the grants that were awarded this year and that Rosemount did not receive one. He inquired what grants we should be applying for. There being no further business to come before the City Council and upon a motion by Droste, second by Demuth, the meeting was unanimously adjourned at 10:27 p.m. Respectfully Submitted, Clarissa Hadler, City Clerk