City Council Workshop

10801 Town Square Dr. City of Blaine Blaine MN 55449 Anoka County, Minnesota Minutes - Final City Council Workshop *While this is a public meeting where interested persons are welcome to attend, it is a work session for Council and staff to discuss issues before them. It is not for the purpose of receiving public input. Thursday, September 5, 2013 6:30 PM Cloverleaf Farm Room A Meeting Number 13-42 The meeting was called to order by Mayor Ryan at 6:30 p.m. Quorum Present. ALSO PRESENT: Clark Arneson, City Manager; Pat Sweeney, City Attorney; Bryan Schafer, Planning Director; Bob Therres, Public Services Manager; Joe Huss, Finance Director; Ward Brown, Financial Analyst; Chris Olson, Police Chief/Safety Services Manager; Roark Haver, Communications Technician; Jane Cross, City Clerk; and Recording Secretary Linda Dahlquist. Present: 7 - Councilmember Clark, Councilmember Kolb, Councilmember Bourke, Councilmember Herbst, Mayor Ryan, Councilmember Hovland, and Councilmember Swanson NOTICE OF WORKSHOP MEETING 1 WS 13-51 CONSIDERATION OF AN EDA LEVY FOR FY 2014 Sponsors: Huss Attachments: 2014 EDA Budget w-levy.pdf 2014 EDA Levy Impact on GF.pdf 2014 EDA Budget w-o levy.pdf 2014 EDA Levy Impact.pdf Comp Plan & EDA.doc Finance Director Huss stated Minnesota statues require special taxing districts to certify preliminary property tax levies to county auditors by September 15 and the Blaine Economic Development Authority (EDA) functions as a special taxing district and is therefore authorized to levy taxes under state law. He stated that the Finance staff conducted a thorough analysis of the EDA fund and determined that a special tax levy will be necessary in order to allow the EDA to successfully function in 2014. He stated Anoka County’s property valuation numbers which were received today came in lower than the estimated numbers that were projected in June. He stated if the 2013 tax rate City of Blaine Page 1 City Council Workshop Minutes - Final September 5, 2013 is kept for 2014, an $82,000 adjustment will be needed. He stated staff suggested reducing the Pavement Management budget by that amount. He stated the proposed budget for the EDA is short due to an addition of the I35 Coalition. He noted that the revenue sources are dwindling. Councilmember Bourke asked if the bill board rental proceeds go to the EDA fund. Finance Director Huss replied yes. Mayor Ryan commented the EDA needs funding for 2014 by either a levy or by reserve funds. Councilmember Clark arrived at 6:39 p.m. Councilmember Hovland stated he is against a levy for the EDA. Councilmember Bourke asked if the EDA covers administrative costs. Finance Director Huss replied yes approximately 5% of staff time due to the removal of the EDA position. Councilmember Bourke questioned the administrative costs which are covered by the general fund. Finance Director Huss replied the general fund covers EDA expenses. Councilmember Clark asked for examples of the EDA work that is done by staff. Finance Director Huss replied staff time from Planning, City Manager’s office and Community Development. Councilmember Swanson commented the EDA owns a lot of land. Councilmember Bourke asked if any cost for the senior buildings is included in the EDA fund. City Manager replied some funds cover property management costs. Finance Director Huss clarified that no cost for the senior buildings are included in the proposed budget. Those costs are accounted for in a separate senior housing budget. Councilmember Swanson stated there are two issues: How should the EDA be staffed and how to fund the EDA. Councilmember Herbst stated the EDA should continue to fund the I35 Coalition, 3M Tournament and the business appreciation. Councilmember Bourke commented staff salaries should continue to be covered by the general fund. Councilmember Swanson asked if a levy is not passed tonight, does the Council lose the opportunity to levy for 2014. Finance Director Huss replied City of Blaine Page 2 City Council Workshop Minutes - Final September 5, 2013 yes, a levy needs to be set tonight. Councilmember Kolb stated the EDA needs to be funded. She stated the Council needs to agree to fund the EDA. Finance Director Huss stated the proposed levy would be approximately $12 on a home valued at $175,000. Councilmember Swanson suggested funding the EDA with $100,000 for 2014. Mayor Ryan commented this amount of funding will push out hiring. Councilmember Clark stated the Council has three choices: Levy, budget cuts or general fund. Councilmember Herbst suggested using some reserve funds to cover the EDA. Finance Director Huss replied if the EDA does not levy, cuts need to be made to the budget. Councilmember Clark left the meeting at 7:13 p.m. and returned at 7:17 p.m. Councilmember Swanson stated he does not want to reduce the Pavement Management Fund. Councilmember Kolb stated she would agree to $150,000 levy. Councilmember Bourke stated he would agree to $100,000 levy. Discussed 2 WS 13-50 FORMATION OF A COMMUNITY CENTER TASK FORCE Sponsors: Therres Attachments: Community Center Task Force - time line 2.ppt This item was not discussed. ADJOURN The Workshop adjourned at 7:15 p.m. City of Blaine Page 3