City Council

ANDOVER CITY COUNCIL WORKSHOP MEETING – NOVEMBER 27, 2018 MINUTES The Workshop Meeting of the Andover City Council was called to order by Mayor Julie Trude, November 27, 2018, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present: Mike Knight, Sheri Bukkila, Valerie Holthus and James Goodrich Councilmember absent: None Also present: City Administrator, Jim Dickinson Community Development Director, Joe Janish Director of Public Works/City Engineer, David Berkowitz Others COMPREHENSIVE PLAN UPDATE DISCUSSION Mayor Trude stated tonight’s City Council Workshop includes a review of the City’s Comprehensive Plan, and there are no public hearings on the agenda. She noted the newly- elected City Councilmember was in the audience and has expressed an interest in being included in a review of this issue and discussion. She requested that some of the issues related to the Comprehensive Plan be held over to the City Council’s January 2019 Workshop. Mr. Dickinson stated the Comprehensive Plan Open House is scheduled for February 2019. Mr. Janish stated the Comprehensive Plan document is used by Community Development to guide community planning decisions. He added the proposed Comprehensive Plan meets the minimum requirements of the Metropolitan Council and requested the City Council’s review of proposed changes. Mr. Janish stated the first chapter of the Comprehensive Plan provides an overview of the community and the Metropolitan Council’s growth forecasts for Andover. He added City Staff recommends moving forward with these forecasts. He noted the Land Use Plan describes growth management strategies for future development and includes planning designations based on density provided by the Metropolitan Council for the City of Andover: Emerging Suburban Edge, Rural Residential and Diversified Rural. Andover City Council Workshop Meeting Minutes – November 27, 2018 Page 2 Mr. Dickinson stated the Diversified Rural zone is related to the Comprehensive Plan amendment for Rural Reserve. He added the planning designations have some flexibility. Mayor Trude requested clarification regarding the Rural Residential zone, and whether it is the fringe area of the Rural Reserve. Mr. Janish stated the Rural Residential Reserve was added in the Comprehensive Plan amendment in 2017. He added this is classified by the Metropolitan Council as Diversified Rural and encompasses the entire Rural Reserve area. Mr. Janish reviewed amendments to the Comprehensive Plan land use plan: updated urban/rural forecasts, an Engineering Department review of transportation analysis zones; net buildable acreage, as well as wetland and flood plain inventory. He added a sewer staging plan is also included as well as Metropolitan Council forecasts. He noted the Housing section includes age of housing stock and number of units constructed in each category. Mr. Janish stated the Metropolitan Council has assigned Andover a specific share of low- and moderate-income housing as well as an Area Median Income (AMI), through 2040. He added the AMI is determined Housing and Urban Development (HUD), and housing costs are going up. He noted, for a 4-person household, 80% of the AMI is just over $72,000. Mr. Janish stated the Metropolitan Council required a Solar Suitability map, showing potential sites for solar projects within the community. He added this area is located north of Andover Station. Mr. Janish requested City Council consideration of maximum Planned Unit Development (PUD) density, which allows developers to deviate from Code minimums or standards, provided there is a public benefit. He added the high-density Urban Residential area has a maximum of 14.4 units per acre. He noted there has been discussion at the City Council regarding increasing the number of allowable units, due to the high cost of development. Mayor Trude stated the City Council/Economic Development Authority (EDA) had decided against it. Councilmember Bukkila stated she is concerned with quality rather than density. Mayor Trude stated 14.4 units per acre is higher than Arbor Oaks. Mr. Dickinson stated the density at Arbor Oaks was spread over the entire acreage of the Grey Oaks PUD. He added Arbor Oaks is close to 24 units per acre, broken down by that specific parcel. He added it evened out as townhomes and single-family detached homes were included in the development. Mr. Janish stated it has been discussed at the City Staff level that it is difficult to assess as it depends upon any given proposed project. Andover City Council Workshop Meeting Minutes – November 27, 2018 Page 3 Mayor Trude agreed, adding green space and parking requirements also play a factor. Mr. Janish stated other issues affect density, such as floor area ratios and impervious surface requirements. Councilmember Goodrich stated he would support increasing the units per acre for the higher density PUDs as it would allow for some flexibility for developers, making projects more financially feasible. He added they would go through the process anyway, and 16 units may allow for more flexibility. Councilmember Trude stated Code amendments would still be required as the Comprehensive Plan will become the new standard. Mr. Janish stated City Staff proposes an increase particularly for redevelopment, which would still go through the Planned Unit Development (PUD) process, and the applicant would be required to determine public benefit. Councilmember Knight asked how public benefit is defined. Mr. Janish stated there are a series of questions outlined in the City Code asked of the applicant through the public hearing process to determine public benefit. Councilmember Holthus stated she has always thought that a PUD should be examined on a case-by-case basis, as there are many different factors that can affect a development’s benefit to the community. Councilmember Bukkila stated multi-family apartment complexes will allow greater flexibility in terms of land use. She asked whether it is important to weight areas of greater density toward County roads to prevent influx into residential areas. She added she would not support a smaller single-family development neighborhood, unless it is a townhome concept. Mr. Janish stated high density Urban Residential, M2, is best suited for areas near shopping, transit, and public spaces. He added the City’s current zoning includes the area near Arbor Oaks on Hanson Boulevard NW; Bunker Lake Boulevard and 138th Avenue NW; and Bunker Lake Boulevard and County Road 7. He noted the EDA discussed redevelopment at these areas. Mr. Janish stated a developer could present a proposal for a higher density and ask for a Comprehensive Plan amendment. He added, however, this would mean a delay for the developer in moving the project forward. Mayor Trude expressed concern that if the units per acre is increased, there will be requests for high density development, and they would not require anything more than a public hearing at the Planning and Zoning Commission. Mr. Janish stated 14.4 units per acre refers to redevelopment only. He added, through the PUD process, each individual PUD request can be analyzed for public benefit. He added City Code Andover City Council Workshop Meeting Minutes – November 27, 2018 Page 4 specifies that the City Council is the authority on whether a project provides enough public benefit. Councilmember Bukkila asked where 14.4 units per acre came from. Mr. Janish stated this calculation was used in the previous Comprehensive Plan. He added 14.4 units per acre was deemed appropriate and accurate within the land mass that was available for development within the City of Andover. He added City Staff proposed the lowest possible number. Mayor Trude asked whether the Comprehensive Plan amendment process would take longer than the PUD process. Mr. Janish stated the PUD process typically takes a little longer. Mayor Trude stated public input is required through both the PUD process and a Comprehensive Plan amendment. She added it would be possible for a developer to do a big development project if the Comprehensive Plan is changed. She added if it is not changed, then community input will be a required part of the approval process. Councilmember Holthus stated the PUD process still requires a public hearing. Councilmember Bukkila stated a project could be denied if it does not fit with the existing neighborhood. Mr. Dickinson stated if a development project meets community goals that could be considered a public benefit - for instance, if there was a significant lack of senior housing. Mr. Dickinson stated maximum density in the Comprehensive Plan gives developers an expectation of the type of project that will be acceptable, and it gives the community an idea of what they can expect. He added the Metropolitan Council will generally not have a problem with exceeding maximum density in the Comprehensive Plan as long as there is sewer capacity. He noted, however, the challenge may come from the public, who would have a basis to say the City is not in compliance with the Comprehensive Plan by exceeding specified density. Mr. Dickinson stated the Arbor Oaks project is approximately 2.9 acres. Mayor Trude stated parking is not an issue as many of the residents do not drive. Mr. Dickinson agreed, adding the units are smaller. Councilmember Holthus asked whether City Staff is aware of the maximum PUD density in Ramsey and Coon Rapids. Mr. Dickinson stated he is unsure although some metro area cities are drastically increasing their maximum densities. He added he does not think that would happen in Andover. Andover City Council Workshop Meeting Minutes – November 27, 2018 Page 5 Mr. Janish stated the City of Shakopee recently went to 39 units per acre on some of their projects. Councilmember Bukkila requested clarification on Arbor Oaks’ density and size. Mr. Dickinson stated the site is approximately 24 units per acre, but the density is spread over the entire Grey Oaks area. He added the development is 3 acres with 72 total units. Councilmember Bukkila stated she could envision a similar development on Bunker Lake Boulevard, but she would not support a Comprehensive Plan amendment to make it happen. She asked whether a PUD would be an alternative solution. Mr. Janish stated a redevelopment in that area would require the acquisition and consolidation of property on Bunker Lake Boulevard that is owned by multiple different entities. He added there would be restrictions. Mr. Dickinson stated the City participates in the Metropolitan Council’s Plat Monitoring Program, which tracks density and development in various metropolitan area cities. He added a PUD that is significantly above 12 units per acre will raise the City’s Plat Monitoring score. Mr. Dickinson stated the City Council should consider what they would like to see in the community. He added City Staff can provide examples and computations based on real life examples in other communities. Councilmember Goodrich asked whether this is for redevelopment only. He asked whether City Code would have to be changed, and whether the flexibility of the PUD would be compromised. Mr. Janish stated City Staff will review the City Code after the Comprehensive Plan is adopted. He added recommendations for code amendments will be reviewed by the Planning and Zoning Commission and City Council and then incorporated into the City Code document. He noted Code changes provide guidance for developers in terms of what the City Council wants and expects. Mr. Janish stated the PUD process requires a sketch plan as part of any redevelopment proposal. He added a public hearing would be held before the Planning and Zoning Commission, and residents are notified. He noted public comments and the Planning and Zoning Commission’s recommendation are reviewed by the City Council, and the developer receives the City Council’s feedback and comment. Mayor Trude stated this issue should be postponed until the January 2019 Workshop Meeting. She added a high-density, four-story development would be a big change for Andover and they had already told a developer that would not be acceptable here. She noted in place of current, Andover City Council Workshop Meeting Minutes – November 27, 2018 Page 6 outdated and poorly maintained quad rentals on Bunker Lake Boulevard the City Council had expressed interest in creating a new rental housing area, but she would not support increasing density beyond what the Met Council required. Councilmember Holthus stated a new rental housing area may be appropriate in the City. Councilmember Bukkila stated she would support keeping high density rental development out of residential subdivisions. Mayor Trude stated some Councilmembers do not want to go beyond the Metropolitan Council’s recommended density minimums. She added higher density merits more public discussion. She noted a four-story rental development with underground parking would not go over well in Andover. Councilmember Bukkila stated the City Council has not seen any market rate rental housing concepts yet, and already decided against a Tax Increment Financing (TIF) District for one proposal. She added there could be a hardship at some point due to allowing larger lots, that will need to be compensated for elsewhere. Councilmember Goodrich stated some areas will not get developed at all if the City is too restrictive. He added developers will be wary that it is difficult to obtain approval in Andover. Mayor Trude asked whether this needs to be addressed now, or when it becomes an issue. She added there is vacant land at Bunker Lake Boulevard and County Road 7 that could be developed at a higher density. She stressed the importance of public discussion. Councilmember Knight stated the increasing number of seniors is creating a different landscape for senior housing. Mayor Trude stated Councilmembers should keep an eye out for buildings or developments in other communities that they feel would fit in Andover and provide location information to City Staff. Councilmember Bukkila stated developers are not interested in market rate apartments in Andover. Mr. Dickinson agreed, adding the costs of land and construction are prohibitive. Mayor Trude stated townhome projects have served the community well in Andover, and they fit the zoning areas for density. Mr. Dickinson stated townhomes are generally owner-occupied units, while apartment complexes are rentals. Andover City Council Workshop Meeting Minutes – November 27, 2018 Page 7 Mayor Trude stated cooperative residential buildings are another model that can be successful, as they are open to any age and costs are shared. She added redevelopment can open the door to rezoning. She noted she would rather not change City Code for one area. Councilmember Bukkila stated she would like to see a better visual from the developer. Mr. Dickinson stated that any change to the City’s zoning or Comprehensive Plan will require a majority 4/5 vote. Mayor Trude stated there will be similar issues in the Rural Residential Reserve (RRR). Mr. Janish stated the Comprehensive Plan specifies that residential property in the RRR zone cannot exceed .4 units per acre. He requested the City Council’s comment and feedback on whether this should include Planned Unit Development (PUD) density flexibility, or whether to allow for .5 units per acre, and if so, show public benefit. Mayor Trude stated there will be a planning case before the City Council on December 4, 2018, and the issue of whether to go with higher density is not resolved. She added she would like a little more time to review that issue. Councilmember Goodrich stated .5 units per acre might be acceptable depending upon the benefits, but it will change the neighborhood character. Councilmember Bukkila stated the Rural Reserve area should remain at a minimum of 2.5 units per acre. Councilmembers Holthus and Knight agreed. Mr. Janish stated the City Council can review this issue as part of a workshop in January 2019. Mayor Trude agreed, adding the new City Councilmember can be involved in the discussion. Mr. Janish stated the Comprehensive Plan should not be amended if an applicant comes forward and wishes to deviate from the maximum PUD. Mayor Trude stated there is language related to previous PUD’s that should not be included. She added she can provide that information to City Staff. Mayor Trude stated available space for commercial development is a zoning issue in Andover. She added that should be included in the Comprehensive Plan. Mr. Janish stated there would be repercussions for the City and its residents if residentially zoned property is converted to commercial or industrial use. Andover City Council Workshop Meeting Minutes – November 27, 2018 Page 8 Mayor Trude stated areas along arterial and main roadways could be considered for mixed use, or areas that are under-utilized where there has been some redevelopment. She added some flexibility could be added into the Comprehensive Plan for this type of development. Mr. Janish stated the City Council could review Land Use in January 2019 to have more time for evaluation and additional conversation. Mayor Trude asked whether more flexibility could also be built into the Rural Reserve, as the City moves forward with the Comprehensive Plan. She asked whether sewer will go through that area. Mr. Janish stated utilities will be a consideration for that area if land values are high. He added there is currently some discussion with property owners in the Rural Reserve Residential zone, which can be serviced on one pipe. Mr. Dickinson stated the high cost of the sewer pipe is currently prohibitive for developers. He added development would ideally start from the north, which is a gamble from a community development standpoint. He noted it may be premature to change the zoning for this area to Urban Low Density, and there is potential for a developer to complete mass grading and eliminate the flood plain. Mr. Janish stated Chapter 3, Transportation Plan, relates to roadways, transit, access, trails, and potential road funding sources; and Chapter 4, referred to as “All Things Water”, includes a comprehensive water system plan, surface water management plan, and local water supply plan. He added the 2018 Park Dedication Fee Study was incorporated using information from Chapter 5, Parks and Open Space. He noted this chapter includes information on parks and recreation facilities, as well as tools and techniques to build the system and establish site selection criteria. Mayor Trude stated some areas can be left as “open space” designation, rather than “natural preserve”. She referred to the Petersen Farm, and other plats that will be coming forward in 2019. She added that will make it more accurate. Mr. Janish stated City Staff is required by the Metropolitan Council to include additional information in Chapter 6, the Implementation Plan. He added this will help identify and determine impacts or departures from regional plans and policies. He noted zoning districts; housing plan maps, and individual sewage treatment systems (ISTS) were added to Chapter 6. Mayor Trude stated preservation of natural resources is a goal in our community that has been overlooked and could be added to Goals and Objectives. Mr. Janish agreed to discuss this with City Staff. Andover City Council Workshop Meeting Minutes – November 27, 2018 Page 9 Councilmember Holthus asked whether the City’s projected population of 41,900 by 2040 will influence the Rural Reserve development. Mr. Janish stated a Comprehensive Plan amendment would be required to include the Rural Reserve development in that projection. He added population projections are based on historical data. Mayor Trude requested clarification on the sewer staging, which indicates when sewer is extended to allow for development, graphics, and whether there have been changes. Mr. Janish stated sewer staging and housing staging look very similar. He added there have been minimal changes as the recession drastically changed community development, and the Metropolitan Council recognizes this. Mr. Berkowitz stated the City of Andover bases its water connections on actual gallons per day rather than the Metropolitan Council’s suggested average of 274 gallons per day. He added Andover does not have infiltration and inflow but must be cognizant of its aging system. Mayor Trude asked whether the pipe can be ready and available if the land is developed at a faster pace than expected. Mr. Janish stated the Metropolitan Council understands that City’s plans are based on historical data and often it is City Staff’s best guess as to where development might occur. Councilmember Knight asked whether environmental issues will play a part. Mr. Dickinson confirmed this, adding environmental regulations are getting more restrictive, especially as they relate to invasive species and storm water. Mayor Trude stated the City Council can discuss the Comprehensive Plan further when the new City Councilmember becomes involved. She added staff may have more information to guide discussions on density for the area zoned for multi-family housing. Mr. Berkowitz stated Rural Reserve area is included on the Metropolitan Urban Service Area (MUSA) Map and has a connection allocation with no restrictions. He added two projects will balance out the system – the Yellow Pine lift station and a future lift station that will tie in to the Hanson Boulevard forced main. Mayor Trude asked whether the water table is addressed in the Comprehensive Plan. Mr. Berkowitz stated it is the responsibility of a developer who comes forward with a master plan. He added the sewer goes right to the trunk line, so the master plan is critical in terms of timing and funding. Mr. Berkowitz stated there are a few areas with potential for redevelopment, and City Staff must determine how many connections will be needed. Andover City Council Workshop Meeting Minutes – November 27, 2018 Page 10 Councilmember Holthus asked whether City Staff meets regularly with Metropolitan Council representatives. Mr. Janish stated City Planner Stephanie Hanson has been fulfilling this role. He added it is a good working relationship. Councilmember Holthus asked whether any transit alternatives or public transportation alternatives have been discussed. Mr. Dickinson stated the City of Andover would need to opt into the transit district. He added the Metropolitan Council recommends that all communities should have 3 units per acre average throughout the community. He noted City Staff have been monitoring plats for 12 to 13 years, and the City of Andover averages close to 3 units per acre. City Staff have been engaged in discussions with the Metropolitan Council on this issue. Mayor Trude commended City Staff for their hard work on this issue. She added this is one of the City Council’s most important projects of 2018. Councilmember Holthus expressed her thanks to City Staff for their hard work. RECESS AND RECONVENE Mayor Trude recessed the meeting at 7:40 p.m. The meeting was reconvened at 7:45 p.m. UPDATE/DISCUSS POTENTIAL CITY CAMPUS MASTER PLAN PROJECTS PUBLIC WORKS Mr. Berkowitz stated the architect is finalizing plans for the new Public Works facility, which will be presented to the City Council at their December 4, 2018 meeting. He added a pre-bid meeting on December 19th will be held at City Hall. He noted minor amendments can be made without the plan returning for City Council review. Mr. Berkowitz stated bids are set to open on January 22, 2019 at 1:00 p.m., with construction award in February 2019 and groundbreaking in the spring. He added the facility will be complete by fall 2019, and open during the winter months. Mr. Berkowitz stated the Veterans Memorial Boulevard Project will follow the same time frame and will include construction of a trail along the south side of the Memorial from Nightingale Street NW to Tower Drive NW. Mr. Dickinson stated City Staff plans to provide monthly updates on the Campus Master Plan project. He added City Staff is currently working on project financing and preparing for the bond rating review with Standard & Poors, with a bond issuance and sale before the December 18, 2018 City Council meeting. Andover City Council Workshop Meeting Minutes – November 27, 2018 Page 11 Mr. Berkowitz stated City Staff researched the possibility of using granite facing for the Veterans Memorial retaining wall, but both granite and engraving were cost prohibitively. He added City Staff still intends to pursue the engraved wall plaques but hopes the Memorial will be constructed and open soon, while formalizing the Memorial plaque policy over the next few years. He noted a sample granite plaque has been ordered for the City Council’s review and consideration. Mayor Trude asked whether only residents of Andover would be eligible for inclusion on the Memorial Wall. Mr. Berkowitz stated that is an issue for City Council discussion, and the policy that will need to be reviewed. COMMUNITY CENTER Mr. Dickinson stated City Staff has been working on Community Center renovation details and cost estimates, including plumbing, glazing, electrical fixtures, landscaping, irrigation, and parking areas. He added the total square footage has been reduced and more efficient construction methods sought, including matching rather than replacing building materials and relocating HVAC units to reduce ductwork length. He noted 292 Design Group has prepared a new set of cost reduction estimates that RJM is in the process of reviewing, and data should be available by the end of this week. Mr. Dickinson stated it is hoped that project costs will be available in time for the public information meetings on Wednesday, December 12, 2018 at the YMCA/Community Center and Monday, December 17, 2018 at Andover City Hall. The schedule for both dates is as follows: 5:30-6:30 p.m. – Open House; 6:00-6:30 p.m. – Presentation; and 6:30-7:30 p.m. – Q&A. Mr. Dickinson stated this information was mailed on a postcard to every property owner in the City of Andover. He added the December 12th session will end promptly at 7:30 p.m. due to a subsequent rental of the Community Center space. Mr. Dickinson stated it may be known by the Open House dates whether the budget of $16.8 million can be met. He added contingencies and alternatives are being sought that will close some of the gaps. He noted it is not cost effective to move the restrooms on the field house side, so that was removed from the plans. Mayor Trude asked how City Staff determines whether the estimates are accurate. Mr. Dickinson stated the architect’s drawings are presented to bidders by RJM Construction, and mock bids are submitted to identify what contractors perceive as the value of the project. Andover City Council Workshop Meeting Minutes – November 27, 2018 Page 12 Mayor Trude asked whether City Staff has received feedback from contractors on the availability of materials. Mr. Dickinson stated RJM Construction is gathering that information. He added 292 Design Group and RJM Construction have a history of working together. REFERENDUM DISCUSSION Mayor Trude stated Councilmember Bukkila requested this topic be discussed and asked for her input. Councilmember Bukkila stated the City Council has never had a discussion at which a majority of Councilmembers agreed on a referendum. She added it is important to have actual dollar amounts, as the project has been planned in vague terms. She noted the City Council has not attempted to engage the community on tax impacts. Councilmember Bukkila stated she has received negative feedback from residents. She added, in her opinion, it is difficult to get a feeling about whether residents are ready to pay for this amenity, and she supports a resident survey or referendum to determine whether there is support for the project. She added many residents have large road assessments, concerns with water rates as well as the School District levy, and they do not want higher taxes. Mayor Trude stated a recent notice for meetings regarding the project was sent to every property within the City of Andover. She added there have been indications of public sentiment that the City Council is moving in the right direction. She noted there will be a new City Councilmember starting in a few weeks. Councilmember Goodrich stated he feels strongly that a referendum on the project is the right thing to do. He added a referendum would allow voters to determine whether the project is of value to them. Mayor Trude stated the City can offer indoor recreation and activities that are beneficial for the health and social life of the City’s residents of all ages because of its partnership with the YMCA. She added she does not anticipate a change in the decision made by the City Council on October 9, 2018, to move forward with the project. Councilmember Bukkila stated, at the very minimum, she would like to see a community survey. Mayor Trude stated postcards regarding the project were mailed to every property in the City of Andover. She added articles have been published in the newsletter, and the City Council hosted a booth at Fun Fest. She noted the project has been covered in the local paper and the Minneapolis Star-Tribune. Mayor Trude stated she does not believe there is any further burden on the City Council at this time to pursue a referendum. Andover City Council Workshop Meeting Minutes – November 27, 2018 Page 13 UPDATE ON COMMUNITY GARDENS ON GRACE LUTHERAN CHURCH PROPERTY Mr. Dickinson stated a site owned by Grace Lutheran Church is currently being used for the Community Gardens. He added this space is located on Nightingale Street NW, across from the Public Works expansion project area. Councilmember Bukkila left Council Chambers at 8:19 p.m. Mr. Dickinson stated Grace Lutheran Church has indicated 2019 will be the last year for the community gardens on the site. The church is looking to remove all encumbrances on the property as they pursue their long-term goals for the property. He noted the Church is currently in transition with an interim pastor and undergoing a facilities evaluation process. Mr. Dickinson stated Grace Lutheran Church representatives will be approaching the City Council soon to discuss their on-site temporary classrooms, and their current Interim Use Plan (IUP) which is in effect until the end of 2019. He added the IUP can be evaluated and possibly extended by the Council. Mayor Trude stated the Community Gardens project could wait a year due to the changes that Grace Lutheran Church is undergoing. She added another location might also be found during that time. Mr. Dickinson agreed. Councilmember Knight stated the Community Gardens are well-liked and should be continued. Councilmembers Holthus and Goodrich agreed. 2019 BUDGET DEVELOPMENT Mr. Dickinson stated the City of Andover has one of the lowest city tax rates in Anoka County. He added only 4 communities have a lower tax rate than Andover: Linwood, Nowthen, Ham Lake, and Oak Grove. Mayor Trude stated the decision to rely on income sources other than building permit revenues allowed the City to reduce expenditures and maintain the operating budget at adequate service levels. Mr. Dickinson agreed. Mr. Dickinson stated the City of Andover has an AA+ bond rating, which is appropriate for a community like Andover. He added more advanced suburbs might obtain a AAA rating. The City of Andover has exceeded budgetary performance expectations since 2013, and he noted the fund balance is an integral part of preparing the budget on an annual basis. Andover City Council Workshop Meeting Minutes – November 27, 2018 Page 14 Councilmember Holthus asked whether there is a preferred range for the fund balance, as it always varies a bit. Mr. Dickinson stated at least 50% of the next year’s budget is recommended to be maintained as the fund balance. Mayor Trude requested clarification regarding use by other cities of franchise fees to supplement tax revenues. Mr. Dickinson stated the City of Andover does not have utility franchise fees, which would easily provide additional revenue. Mr. Dickinson stated he will present the 2019 Budget at the City Council’s December 4, 2018 Regular Meeting. Mayor Trude extended her thanks and congratulations to Mr. Dickinson and the Finance Department on a job well done. Councilmember Bukkila returned to the Council Chambers at 8:45 p.m. Councilmember Knight thanked Mr. Dickinson for his hard work on the 2019 Budget. Councilmember Goodrich requested clarification on the time frame. Mr. Dickinson stated the 2019 Budget and Tax Levy will be presented at the City Council’s December 4, 2018 Regular Meeting, which will include a public hearing. He added the 2019 Budget could be brought back to the City Council on December 18, 2018 for City Council approval or could be approved on December 4th if there are no outstanding questions. 2019 PROPERTY TAX LEVY FINAL REVIEW BEFORE PUBLIC HEARING Mr. Dickinson reviewed the 2019 proposed property tax levy. He added back in September the City expected a 2.7% tax rate increase, although it was unclear how fiscal disparities would affect the City of Andover. He noted the tax rate increase is around 1.7%. Mr. Dickinson stated in 2018 City Staff anticipated and budgeted for 50 new homes, but 54 new homes were built to date. 2018 BUDGET PROGRESS REPORTS Mr. Dickinson stated all is as expected. 2018 CITY INVESTMENTS REVIEW Mr. Dickinson indicated all investments are in-line with the investment policy. CLOSED SESSION Mayor Trude stated the City Council would recess to a Closed Session to review the City Andover City Council Workshop Meeting Minutes – November 27, 2018 Page 15 Administrator’s Performance Appraisal for 2018. The City Council recessed to Closed Session at 8:47 p.m. and returned to the Work Session at 9:08 p.m. ADJOURNMENT Motion by Councilmember Bukkila, Seconded by Councilmember Holthus, to adjourn. Motion carried unanimously. The meeting adjourned at 9:10 p.m. Respectfully submitted, Mary Mullen, Recording Secretary