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City Council

Regular Meeting

Hopkins, MN · July 21, 2020

AgendaMinutes

Minutes

HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS JULY 21, 2020 CALL TO ORDER Pursuant to due call and notice thereof a regular meeting of the Hopkins City Council was held on Tuesday, July 21, 2020 at 7 p. m. in the Council Chambers at City Hall, 1010 1St Street South. Mayor Gadd called the meeting to order with Council Members Beck, Brausen, Halverson and Hunke attending. Others attending included City Manager Mornson, Assistant City Manager Lenz, City Attorney Riggs and Finance Director Bishop. Mayor Gadd provided information on the meeting format and other opening remarks. ADOPT AGENDA Mayor Gadd proposed adding another new business item for an Emergency Ordinance Relating to Face Covering Requirements within Specified Indoors Spaces with the City of Hopkins, Minnesota. Motion by Brausen. Second by Hunke. Motion to Adopt Agenda as modified. Ayes: AII. Nays: None. Motion carried. NEW BUSINESS 111. 1. Finance Update; Bishop Finance Director Bishop provided a presentation on the CARES Act including the guiding principles on eligible expenses and a plan for how Hopkins could utilize the funds. Mayor Gadd requested clarification on the use of the funds and how or when the audit occurs. Mr. Bishop stated that the threshold for an audit is $ 750, 000. Discussion ensued regarding the documentation that will be needed for the audit and other programs available. Mr. Bishop stated that if the City offers any additional programming further Council consideration will be required. Council Member Brausen questioned the next steps. Mr. Bishop stated that the funding will be discussed as part of budget and basis. City Manager Mornson on an as needed stated it was anticipated that the business loan program may be considered as soon as August 4. Mayor Gadd questioned the estimated categories that total more than what was allocated to Hopkins. Mr. Bishop stated staff is reviewing what is exactly eligible for the funding but we are not looking at spending more money than we are receiving. Assistant City Manager Lenz estimated that there will be over $ 1. 5 million but some of the items were in our budget normally so there will be shifting of funds to help with deficit. HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS JULY 21, 2020 Council Member Hunke thanked the staff for working on ways to assist the local businesses. 111. 2. General Fund Budget and Tax Levy; Bishop Finance Director Bishop provided an overview of the 2021 General Fund Budget and Tax Levy. Mr. Bishop noted that an additional request of$ 150, 000 for the COVID- 19 Contingency. The funds could be transferred to any other fund due to the impacts of the pandemic. Council Member Beck questioned the past use of contingency funds. Mr. Bishop stated that in 2018 all of contingency was used but that none was used in 2019. Council Member Beck shared concerns about the increase in the budget given the financial impact to business and residents in the City. Council Member Hunke shared concerns about increasing contingency as well. The capital levy and equipment replacement are the huge increases for 2021 and given the hard times could we pump any purchases down the road. Mr. Bishop shared that staff will review the proposed expenditures. Assistant City Manager Lenz stated is a preliminary budget and levy and it is anticipated that more information about Covid- 19 related expenses will be known before the final budget. She added that there are too many unknowns at this time. Mayor Gadd commented that the revenue is significantly down on the charge for services and other fees due to Covid- 19. Council Member Halverson questioned the increase in equipment purchases. Mr. Bishop stated there was a tax levy plan for 2020 and 2021 for equipment purchases. Staff will review the equipment purchases. Council Member Brausen stated it will take additional discussion to work through the changes. He thanked staff for their extra work and noted that people will have the chance to weigh in on the proposed budget. Mayor Gadd requested that the budget presentation be posted to our website. Finance Director Bishop reviewed the next steps: Virtual Budget Engagement Meeting on 17 from 6 p. m. to 7: 30 p. m.; first review of ERP and CRP and the first review August of Depot, Arts Center & Pavilion budgets of August 18; and the Adoption of Preliminary Budget and Tax Levy on September 15. 111. 3. Emergency Ordinance Relating to Face Covering Requirements within Specified Indoors Spaces with the City of Hopkins, Minnesota; Mornson Mayor Gadd introduced the item by sharing his thoughts on the requirements of face coverings and invited City Manager Mornson to provide details on the proposed emergency ordinance. City Manager Mornson stated that City Council and staff have received comments since the July 14 meeting from businesses and residents requesting the City to implement a HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS J U LY 21, 2020 facial covering policy.The emergency ordinance requires that facial coverings be worn indoors and places of public accommodations. Mr. Mornson summarized the details of the proposed emergency ordinance which will be posted on the City' s website, social media and press releases: customers inside bars and restaurants will be required to wear masks while not actively eating or drinking; customers inside gyms, fitness centers and sports facilities are required to wear masks at all times when customers are indoors and within six feet of others; customers in indoor entertainment facilities must wear a mask when not in their assigned seat or speaking to the audience; and masks will be required in indoor common spaces of multi- family residential, multi- tenant and city buildings. Mr. Mornson stated that include: exceptions Facilities operated by the county, state or federal government or a political subdivision of the state of Minnesota ( other than facilities operated by the city of Hopkins); Personal care services/ salons that already have state face covering requirements; Children five (5) years of age and under; Individuals actively eating or drinking.; Individuals temporarily removing the face covering for identification purposes; Individuals unable to wear a mask due to medical, disability or developmental reasons; Individuals unable to remove their face covering without assistance.; Individuals speaking to someone who is deaf or hard of hearing and requires the mouth to be visible to communicate effectively; Participants in youth sports activities; Places of worship, so long as these establishments have written COVID- 19 Preparedness Plans that are in compliance with State Guidelines; Public and private school facilities, so long as these establishments have written COVID- 19 Preparedness Plans that are in compliance with State Guidelines; Individuals, with approval of the public accommodation, speaking to a group of individuals, or testifying in front of an audience are not required to wear a mask while speaking, as long as the speaker remains six feet or more away from other individuals and other individuals are wearing masks.; Any public safety personnel actively engaged in an emergency response situation.; and Polling locations, no voter may be told to leave the premises for refusal to wear a mask. The City will be purchasing 500 masks with the CARES funds that will be available for residents to pick up at Resource West. The ordinance will go into effect on August 1 and the ordinance will be in effect for 61 days unless Governor Walz enacts an order that will take precedent over the City' s ordinance. City Attorney Riggs commented that ordinance is similar and consistent to what other cities have adopted. Mayor Gadd shared his concerns and conversations about enforcement and access to masks. He requested that staff work with businesses to get them signs for to post consistently throughout Hopkins. Council Member Hunke shared he was happy to see the ordinance. He requested that the website include information about the ordinance and easy to print items for businesses to use. He confirmed with staff that the ordinance could be extended beyond HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS JULY 21, 2020 September if Governor Walz does not have an order in place. City Manager Mornson commented yes. Council Member Beck shared his concerns about the enforcement and requested that the ordinance should instead be a resolution. He felt it would be difficult for the police to enforce the ordinance and shared possible interactions businesses may have with customers. Council Member Halverson commented that people are wearing masks to protect the next person. Council Member Brausen questioned if the City will order more masks when the supply runs out. Assistant City Manager Lenz stated the City will order additional masks. Mayor Gadd shared the two virtual meeting comments submitted: Marti My partner, Bob Grider, and I would like the Council to discuss a mask Priest - mar date in the City of Hopkins. We are both in favor of this. We are aware that large nationwide businesses, such as Target and Walmart, are issuing their own mask orders for in- store shoppers. We also know that our neighbor city, Edina, has a mask mandate and Minneapolis has a mask mandate. If Hopkins Council chooses to enact a mask mandate, our city will show community support with a reasonable public health step to keep Hopkins residents and business owners safe. Bob and I are regular and loyal shoppers at the Hopkins Farmer' s Market, Amy' s Cupcakes, Samba Grocery, Ace Hardware and Pub 819. When we shop in these Hopkins businesses ( whom we love), we mask to keep vendors, staff and employees safe while we are with them. We would like all people in Hopkins to mask, too. Ellie Kretz - As cities around us continue to mandate masks when inside public places, can we in Hopkins do the same? This will help us in three ways 1) keeping business in Hopkins as I, along with others, are traveling out of the city to do shopping to ensure we are in a city that mandates masks, 2) alleviates retail workers from asking people to wear masks, and 3) most importantly, has been proven to reduce the risk of transmission. Mayor Gadd shared that the ordinances allows businesses to ask a person to wear a mask entering their establishment and share the City' s requirement to wear a mask or leave. Similar calls are received by the Police Department. Discussion ensued regarding mask enforcement, business enforcement and businesses that do not want enforce a mask ordinance. Mr. Beck stated the ordinance takes control away from the businesses. Mayor Gadd stated that the ordinance empowers businesses as well. He wants to do what is best for public health and Hopkins. Mr. Beck stated he supports wearing mask but prefers it be a resolution and not an ordinance. Council Members Brausen, Hunke and Halverson stated that it should be ordinance. Motion by Halverson. Second by Hunke. HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS J U LY 21, 2020 Motion to Approve Ordinance 2020 - 1155 Making an Emergency Ordinance Relating to Face Covering Requirements within Specified Indoors Spaces with the City of Hopkins, Minnesota. Ayes: Brausen, Gadd, Halverson, Hunke Nays: Beck. Motion carried. ANNOUNCEMENTS The following announcements were shared: the next regular City Council meeting will be on Tuesday, August 4 at 7 p. m. City Manager Mornson provided commented on staff' s efforts working on the budget, COVID- 19 planning and HREI events. ADJOURNMENT There being no further information to come before the City Council and upon a motion by Brausen, second by Hunke, the meeting was unanimously adjourned at 8: 09 p. m. Respectfully Submitted, Amy Domeier, City Clerk ATTEST: son add, Mayor Amy Do eier, City Clerk

Agenda

HOPKINS CITY COUNCIL AGENDA Tuesday, July 21, 2020 7:00 pm THIS AGENDA IS SUBJECT TO CHANGE UNTIL THE START OF THE CITY COUNCIL MEETING I. CALL TO ORDER II. ADOPT AGENDA III. NEW BUSINESS 1. Finance Update; Bishop 2. 2021 General Fund Budget and Tax Levy; Bishop IV. ANNOUNCEMENTS  Next Regular City Council Meeting: Tuesday, August 4 at 7:00 p.m. V. ADJOURN DUE TO THE COVID-19 HEALTH PANDEMIC, THE CITY COUNCIL’S REGULAR MEETING PLACE IS NOT AVAILABLE TO THE PUBLIC. MEMBERS OF THE PUBLIC WHO DESIRE TO MONITOR THE MEETING REMOTELY OR GIVE INPUT OR TESTIMONY DURING THE MEETING CAN FIND INSTRUCTIONS AT www.hopkinsmn.com/virtualmeetings OR BY CALLING CITY HALL AT 952-548-6302 (DURING NORMAL BUSINESS HOURS 8 AM TO 4:30 PM.) Finance CITY OF HOPKINS Memorandum To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Nick Bishop, Finance Director Date: July 21, 2020 Subject: Finance Update _____________________________________________________________________ On June 25th, Governor Walz announced that local governments will receive $841 million in Coronavirus Aid, Relief, and Economic Security Act (CARES) funds previously received by the state. The funds will be distributed to Cities based on an allocation formula of $75.34 per capita. Hopkins has received $1,485,183 under this formula. A full presentation will be given at the city council meeting. It will include an overview of the CARES Act, the guiding principles on eligible expenditures and a plan for how Hopkins could use the funds. Finance Department CITY OF HOPKINS Memorandum To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Nick Bishop, Finance Director Date: July 21, 2020 Subject: 2021 General Fund Budget and Tax Levy _____________________________________________________________________ PURPOSE To provide input and guidance for the 2021 General Fund budget and Tax Levy INFORMATION 2021 General Fund Budget Staff has been working to put together a 2021 General Fund Budget that meets the needs of the community in uncertain times. The budget being presented includes one new request to increase the contingency budget by $150,000 due to unknown impacts of COVID-19 in 2021. The requested amount is being included in the General Fund, but could be transferred to any other fund with City Council approval. The General Fund budget is balanced. Revenues and expenditures are both set at $16,003,837, a $642,121 or 4.18% increase from 2020. The general fund tax levy needed to support this budget is $13,180,276, a $701,971 or 5.62% increase from 2020. 2021 Tax Levy The 2021 Tax Levy has been prepared based on debt service needs, prior year ERP/CIP documents and initial budgets for special revenue funds. The total tax levy is $18,544,408, this is a $1,014,724 or 5.79% increase from 2020. Based on preliminary tax capacity information, city taxes on a median value home ($291,000) would be $1,929, which is a $102 or 5.59% increase from 2020. FUTURE ACTION A virtual budget engagement meeting will be held on August 17 from 6-7:30 to receive public input on a proposed 2021 budget. Depending on input received at the public session or at this meeting from City Council additional discussions can be scheduled. A preliminary levy must be adopted by September 30th of each year. The preliminary levy is planned to be approved at the September 15th City Council Meeting. The preliminary levy will be the maximum allowable amount for 2021 and can only be reduced. A final levy must be adopted by December 31st of each year at or below the preliminary levy amount. A Truth and Taxation hearing is planned for Monday, November 30th. The final levy can be approved on December 1st or 15th. City of Hopkins DRAFT General Fund Revenue Budget For the Year Ending December 31, 2021 % Increase Department 2020 Budget 2021 Budget (Decrease) Property Taxes 12,564,305 13,265,276 5.58% Intergovernmental Revenue PERA Aid - - Local Government Aid 734,946 734,946 Intergovernmental Revenue - Other 618,000 621,000 Total Intergovernmental Revenue 1,352,946 1,355,946 0.22% Licenses, Permits & Fines Court Fines & Penalties 177,750 176,000 Building Permits & Inspections 461,300 479,300 Inspection Fines & Citations 8,000 6,000 City Clerk - Business Licenses 7,000 7,000 PD - Liquor, Animal Licenses & Penalties 102,300 97,800 Fire - Licenses & Permits 1,100 300 Public Works - Licenses & Permits 19,415 19,415 Planning & Zoning - Licenses & Permits 1,000 1,000 Total Licenses, Permits & Fines 777,865 786,815 1.15% Charges for Service Finance Department 5,500 5,500 Assessing 3,000 3,000 Inspections 105,900 103,900 Police 35,000 35,000 Fire 10,500 10,500 Public Works 4,150 3,150 Activity Center 87,000 67,500 Total Charges for Service 251,050 228,550 -8.96% Miscellaneous Revenue Franchise Fees 296,200 296,200 Miscellaneous 15,250 15,250 Finance Department 1,200 2,000 Police 2,000 500 Fire 3,500 3,500 Public Works 5,300 5,300 Activity Center 32,100 14,500 Community Development 60,000 30,000 Total Miscellaneous 415,550 367,250 -11.62% Total Revenues 15,361,716 16,003,837 4.18% City of Hopkins DRAFT General Fund Revenue Budget For the Year Ending December 31, 2021 % Increase Department 2019 Budget 2020 Budget (Decrease) City Council 97,630 102,095 4.57% Administrative Services 854,893 867,311 1.45% Finance 400,495 426,278 6.44% Legal 175,000 200,000 14.29% Municipal Building 404,014 397,795 -1.54% Assessing 221,835 245,920 10.86% City Clerk 237,513 176,656 -25.62% Inspections 863,296 882,905 2.27% Police 5,977,982 6,248,211 4.52% Fire 1,483,177 1,566,528 5.62% Public Works 3,443,017 3,550,061 3.11% Recreation 285,279 291,339 2.12% Activity Center 497,843 459,235 -7.76% Planning & Zoning 222,382 235,382 5.85% Community Development 108,160 114,921 6.25% Tuition Reimbursement 19,200 19,200 0.00% Contingency 50,000 200,000 300.00% Transfer to Other Funds 20,000 20,000 0.00% Total Expenditures 15,361,716 16,003,837 4.18% City of Hopkins DRAFT 2021 Tax Levy Actual DRAFT % Increase Purpose FY2020 FY2021 (Decrease) General Operations General Fund 12,479,305 13,180,276 5.62% Capital Levy 75,000 175,000 133.33% Arts Center 325,225 331,182 1.83% Pavilion Fund 290,000 340,000 17.24% Equipment Replacement 110,000 250,000 127.27% Total General Operations 13,279,530 14,276,458 7.51% Debt Levy 4,250,154 4,267,950 0.42% Total Levy 17,529,684 18,544,408 5.79%

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