1996-10-15MINUTES-COMMITTEE OF THE WHOLE-OCTOBER 15, 1996
The meeting was called to order at 7:30 p.m. Members present: Mayor Bob Polston;
Councilmembers: Ahrens, Hanus, Jensen and Jessen. Also present: Gino Businaro, Finance Director
and Ed Shukle, City Manager.
Proposed 1997 Budget
Ed Shukle, City Manager, indicated that the City Council had set this issue on the Committee of the
Whole agenda for purposes of reviewing it in greater detail prior to the public hearing set for
December 4, 1996.
He asked the City Council if they were interested in going over the budget in detail by every
department or if they had some other concerns related to the proposed budget to discuss.
Mayor Polston indicated that he was interested in seeing no increase in the property tax levy. Rather,
he would like to see the City levy the same amount for 1997 as they had levied for 1996. He did not
seem interested in going department by department or line by line over the budget. The City
Manager explained that the danger in not increasing the tax levy as proposed (2.65%), was that in
a few years (3-4), the City Council at that time may find themselves having to increase the levy
greater than the normal inflation type increase. Other members of the Council expressed the same
concern about setting up future councils with difficult economic decisions.
Other discussion focused on capital outlay, use of Fund #30 or the Capital Improvement Fund for
capital outlay, recycling and water and sewer issues. Following this discussion, the City Council
consensus was to direct staff to prepare the revised numbers based upon a zero increase in the tax
levy for 1997 and levying the same amount in taxes as it had for 1996. The Council also stated that
they had no problem with the proposed Uniform Building Code (UBC) fee schedule which would
replace the 1988 schedule the City is currently using. By doing so, the City may realize $110,000
in revenues for building permits. In addition, the Council consensus was to reduce the general fund
balance to assist in making up the difference that would not be realized through a zero increase in
property taxes. By taking such action, the City Council would be bringing the fund balance
percentage closer to 35% versus 36% to 37% where the budget had proposed the fund balance would
be based upon the proposed expenditures and revenues. From an auditor's point of view, 35% is an
adequate level to be at for a city the size of Mound.
The Council asked the staff to bring the revised numbers back to the November Committee of the
Whole for review and discussion.
Committee of the Whole Minutes of October 15, 1996
Page 2
Community Center
Mayor Polston indicated to the Council that he and the City Manager met with School Officials
regarding possible city involvement in the development of a Community Center. Mayor Polston
indicated that it looked like it would be difficult to participate either individually with the School
District or with area cities because of the complexity of funding.
City Manager Ed Shukle indicated that the School Board did take action this past Monday to
"mothball" the existing community center and build a building adjacent to the Shirley Hills
Elementary School. This action was primarily based upon the fact that the School Board did not
want to use approximately $700,000 of its $1.9 million tax levy to pay for the demolition of the
existing community center. In addition, the School Board must move forward before March, 1997
to expend the original $1.9 million levied or face redistributing it back to the taxpayers.
Both Mayor Polston and City Manager Shukle stated that the School had been contacted by a
developer who may possibly be interested in purchasing the existing Community Center property.
Very little information was available on this and the School District was not able to share much as
to who the developer was or what development could be located on the site. The Council speculated
on the possibility that a Tax Increment Financing project could be set up to assist this prospective
developer which would remove an eyesore from downtown and would bring economic growth to
the City.
Skating Rink
The Council briefly discussed the proposed skating rink at the Community Center site. They
reviewed their action from the October 8 meeting relating to a joint powers agreement that they
directed the City staff to work on with the School District and the Hockey Association.
Upcoming Meeting with the Minnehaha Creek Watershed District
The Council discussed the agenda for the upcoming meeting with the Watershed District. They
stressed the importance of not making the meeting controversial or adversarial. The Mayor indicated
that he was going to introduce the meeting as a public meeting and not a public hearing. He wanted
to keep the discussion at the table between the Council and the MCWD Board of Managers. The
Council consensus was that this was a good approach to try to establish with the MCWD the
importance of this project to the city and to recognize the Watershed District's role in the process.
By bringing both interests together, hopefully, a project will result that will be beneficial to all
concemed.
Other Business.
The Council did discuss the calls being received regarding no cleanup day this fall. Councilmember
Commlttee of the Whole Minutes of October 15, 1996
Page 3
Ahrens was very emphatic regarding the need to continue cleanup days in 1997. Council consensus
was that in whatever way possible, cleanup days should be held in 1997. Staff will continue to work
on this and will bring back revised numbers for the Recycling Budget at the next Committee of the
Whole Meeting.
It was noted that the next meeting of the Committee of the Whole is scheduled for November 19,
1996, 7:30 p.m.
Upon motion by Jensen, seconded by Polston and carried unanimously, the meeting was adjourned
at 10:08 p.m.
Respectfully submitted,
City Manager