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Home My WebLink About12-18-1990 Council Budget Hearing Reconvened Minutes40K MINUTES OF THE RECONVENED ORONO 1991 BUDGET HEARING HELD DECEMBER 18, 1990 ATTENDANCE 7:00 P.M. The Council met on the above date with the following members present: Acting Mayor Edward Callahan and Councilmembers J. Diann Goetten and Barbara Peterson. Mayor Grabek and Councilmember Nettles were absent. The following represented the City Staff: City Administrator Mark Bernhardson, Public Works Director John Gerhardson, Finance Director Tom Kuehn, Police Chief Mel Kilbo and Dorothy Hallin, City Clerk. APPROVAL OF MINUTES It was moved by Goetten, seconded by Peterson, to approve the Minutes of the 1991 Budget Public Hearing Meeting held December 3, 1990. Motion, Ayes -3, Nays -0, Motion passed. CONTINUATION OF PUBLIC HEARING Acting Mayor Callahan stated that this was the continuation of the 1991 Budget, continued from December 3, 1990. Stating that the previous meeting had been primarily expressions of the public and Council has now had time to consider the matter. The time has come to vote on this issue. He stated that 0410i +-he public now had an opportunity to express there concerns. Curt Quady, Crystal Bay, ask what changes were made? Acting Mayor Callahan stated he had reviewed the budget as it was presented. "My own view of the budget as it was presented is that it falls into two parts; one that I will call the General Levy and the other what I will call the $140,000 more or less special levy item. I have a definite feeling that the $140,000 portion of the budget, it would be better if in fact we did approve it, in the longterm it would be better for the City and that we will wish we had the money in the General Fund in two or three years, but that is just a general feeling. It may be that there is some reason to give the taxpayer some pause for breath before all the terrible things that are likely to befall him within the next two or three years and so from my own position I would favor strongly recommending and will move the budget without the $140,000 in it. The General Budget, the portion I am recommending, I believe very strongly should be adopted, I have some definite feeling that there may be a shortfall in the funds because a big section of it, not a majority but a definite section of it, incorporates interest on large funds and it was the budget projection on 8% interest rates which appear to be unlikely to be obtained during the coming year. The interest rates have fallen considerably since the budget was made up and also if any of these funds are spent ring the year, no matter what portion of them, a third or two �7irds during the year for city hall it obviously will eliminate the interest portion on those funds as they are spent anyway. Although you cannot measure exactly when and if that will happen, so those are my general feelings. Do other members have any i ORONO BUDGET PUBLIC HEARING MEETING HELD DECEMBER 18, 1990 comments ?" I" Councilmember Peterson stated I agree 100 %. "We have discussed this several times. I think that a couple of years down the road we may wish we had levied this additional $,140,000 but unfortunately we cannot see into the future. I do not have a problem with the amounts that are individually budgeted, but there are a few that when they do come as an individual item I don't feel that I can vote in favor of them. Not to be specific, but there are a few. On the whole I don't have a problem with the budget other than the removal of the $140,000." Councilmember Goetten commented she didn't know how far the City can see into the future and what is going to happen in the City, but because of the forcast in the nation and the State etc. She said "I too feel that raising it by the amount, minus the $140,000, is probably the most I want to do. That keeps some emergency money there in case we need it and I too feel that there are a couple of items that I am not going to vote on when they come up but we have discussed this with the City Administrator and those will be coming up separately in the future and that leaves us with a little bit of a cushion." Acting Mayor Callahan stated he agrees with the expenditures. On the expenditure side of the budget almost every item is going to come up for individual review and there are some that if circumstances change and find we don't need them we will obviously cut them. 1991 BUDGET RESOLUTION #2912 It was moved by Acting Mayor Callahan, seconded by Councilmember Goetten to adopt Resolution #2912, determining the budget with estimated revenue of $3,040,260 and appropriated expenditures of the same amount and further move that the non- profit non - government related organizations will require separate Council approval prior to the expenditure of funds. Motion, Ayes -3, Nays -0, Motion passed. 1991 LEVY RESOLUTION #2913 It was moved by Acting Mayor Callahan, seconded by Councilmember Peterson to adopt Resolution #2913, relating to the Tax Levy Collectible in 1991; General Fund $1,644,831, Special Assessments against City property for the City's share of 1985 sanitary sewer project (G.O. Sewer Imp Bond 1985) $5,910, G.O. Sewer Improvement Bonds 1985 $40,000, G.O. Sewer Improvement Bond 1980 $17,300 and G.O. Sewer, Water, Street Improvement Bond 1982 $5,500 for a total of $1,713,541 and instruct the City Clerk to transmit a certified copy of the resolution to the Hennepin County Auditor. Motion, Ayes -3, Nays -0, Motion passed. Acting Mayor Callahan stated for information to the audience that "Council has cut out the $140,000, but if you look 2 ORONO BUDGET PUBLIC HEARING MEETING HELD DECEMBER 18, 1990 at the budget if City funds are spent to construct a building there will be an expenditure of sufficient capital and there will be a sharp drop in the interest factor in the budget which would suggest that the next budget will not be much happier than this budget. The building problems will be considered as we go along so you will have a chance to express your views on that." Callahan stated that closes the portion of the public hearing on the 1991 budget. John Farnham stated he would like to thank the Council for their sensitivity and responsiveness to the taxpayers that did show up at the last meeting. I think they will appreciate what you have done. ACCEPTANCE OF CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING 1989 FINANCIAL REPORT Acting Mayor Callahan stated that the certificate is for the year 1989, this is the third year in a row in which the City has received this award and it is a credit to our Finance Director and his staff. He noted for the audience that the Financial Report contains substantial information and is not just directly devoted to figures as a whole. It is very interesting and gives a lot of background as to what is going on in the City and what is going on in other places as well. It was moved by Acting Mayor Callahan, seconded by Councilmember Peterson, to congratulate Finance Director Tom Kuehn, other members of the financial staff for their performance and the Auditors for their assistance. Motion, Ayes -3, Nays -0, Motion passed. 1991 COMPENSATION RESOLUTION #2914 Acting Mayor Callahan stated that this item was brought to the Council at their last public Council meeting but was tabled at that time so that it would concurrent with the Budget Hearing. Councilmember Peterson stated she was once again confused by the footnotes. City Administrator stated that in one area this is the last year or very close to it. Peterson stated so everyone basically has gotten 4% except for those with the footnotes. Bernhardson concurred stating this is also part of the cross training of people between utilities and light equipment and this would put them in line by next year. It was moved by Acting Mayor Callahan, seconded by Councilmember Peterson, to adopt Resolution #2914, establishing he salaries for City employees effective January 1, 1991 and etstablish the mileage for the use of private cars on City business at $.26 per mile. Councilmember Peterson asked, "if this is approved is there any chance of changing any of these during the year other than the normal step increases." 3 ORONO BUDGET PUBLIC HEARING MEETING HELD DECEMBER 18, 1990 Bernhardson stated, "Council could amend it either individually or amend the whole schedule as the Council chose." Motion, Ayes - 3, Nays -0, Motion passed. LICENSES It was moved by Acting Mayor Callahan, seconded by Councilmember Peterson, to approve the following licenses: 1991 Off Sale Non - Intoxicating Malt Liquor: 1991 Off and On Sale Non - Intoxicating Malt Liquor: Motion, Ayes -3, Nays -0, Motion passed. O'Sullivans 2420 Shadywood Road Navarre Lanes 3425 Shoreline Drive EXECUTIVE SESSION 7:17 P.M. City Administrator Bernhardson requested the Council hold an Executive Session for the purpose of discussing labor negotiations. ADJOURNMENT 7:26 P.M. It was moved by Councilmember Peterson, seconded by Councilmember Goetten, to adjourn the 1991 Budget Public Hearing Meeting at 7:26 P.114. Motion, Ayes -3, Nays -0. Motion passed. Edward J. Callahan, J . Acting Mayor il 4 C •r Ifto