2009-12-07 CC Minutes Special A� Ib c rtvi llc
Smog TOUM W Is
ALBERTVILLE CITY COUNCIL
DECEMBER 7, 2009
MINUTES
ALBERTVILLE CITY HALL 6:30 PM
PLEDGE OF ALLEGIANCE — CALL TO ORDER
The December 7, 2009 regular City Council meeting was called to order at 6:30 p.m. by Mayor
Klecker.
ROLL CALL
PRESENT: Mayor Ron Klecker, Council members John Vetsch, Dan Wagner, Larry Sorensen,
and Tom Fay
OTHERS PRESENT: City Engineer Adam Nafstad, City Planner Al Brixius, Finance Director
Tina Lannes, City Administrator Larry Kruse.
ABSENT: none
Mayor Klecker called on Finance Director Tina Lannes to make a presentation on the 2010
Budget and proposed Levy.
Finance Director Lannes gave a PowerPoint Presentation showing the following:
■ 2009 Budget was $3,105,896
■ 2010 Preliminary Budget $2,979,997
■ 4.05% budget decrease
■ Levy Increase 4.5% (due to loss of state aid and increased debt service CSAH 19)
Lannes went on to say the City has experienced a number of decreases in revenue as follows:
• Loss of Market Value Credit of $141,000
• Decreased Building Permit Fees of $52,321
• Decreased Administrative fees of $16,378
• Decreased Developer Fees of $35,000
• Decrease in Fire Protection Services Contract Fees of $39,783
• Decrease Interest Earnings $38,000
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City Council Minutes
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Lannes reported the City has used a one time $97,000 of Municipal State Aid for Road to
provide some relief in the City's debt service, as CSAH 19 begins to impact the levy by another
$150,000.
Finance Director Lannes stated the City's fund reserves are below what the State Auditor
Recommends and acknowledged the difficulty in growing those funds during these challenging
times.
City Administrator Kruse stated expenses have been reduced substantially for the past several
years. In 2010 the City's wages are frozen, and some capital maintenance is being postponed.
Although building is down, more attention is now dedicated toward housing maintenance, rental
licensing and code enforcement. Vacant properties in foreclosure need to be managed to make
sure neighborhoods don't deteriorate. Kruse said the Council is aware that the proposed levy is
below what is really needed, but politically, it is the only acceptable option.
Kruse shared information from Wright County showing that residential properties decreased in
value slightly over 10 percent, whereas commercial property only went down a fraction of one
percent. The result you will see is a shift of the cost burden of government from residential to
commercial. Perhaps next year the trend will reverse when there are more commercial sales and
those values adjust.
In summary Kruse stated the General Fund was cut by 4.5% and City's increase is largely due to
loss of revenue including state aid and added debt coming on the City from the CSAH 19
proj ect.
Mayor Klecker opened the Hearing for public comments:
Mike Savitski, owner of commercial property on CSAH 37 spoke to the City Council about how
difficult business was for him. He said that he had four vacancies and knew of others in town
and now an 8.5% increase in his property taxes. Mr. Savitski questioned the City's lack of cuts
and layoffs saying much more could be done.
Bob Fueling, owner of Westside Liquor and renter from Mike Savitski also commented on how
difficult the economy is and the need for restraint in spending and the need to help business.
Steve Holstad, owner of Holstad Barber Shop, rents from Mike Savitski also and commented
that he can not afford an increase in property taxes, as Mr. Savitski passes those cost onto the
renters.
Mayor Klecker thanked those in attendance and assured them that the City has been and will in
the future scrutinize our operations and do what is best for all for the long run.
ADJOURNMENT
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December 7, 2009
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MOTION BY Council member Wagner, seconded by Council member Fay to adjourn the
Monday, December 7, 2009 regular City Council meeting at 6:55 p.m. Motion carried
unanimously.
Larry R. City Administrator (recording secretary)
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