2015-11-02 City Council Minutes WorkshopNlbertvillc
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CITY COUNCIL WORKSHOP
CITY HALL - COUNCIL CHAMBERS
Monday, November 2, 2015
APPROVED MINUTES
1. Call to Order
Mayor Hendrickson called the meeting to order at 8:18 p.m.
Present: Mayor Hendrickson and Council members Hudson, Olson, Sorensen, and Vetsch
Absent: None
Others Present: City Administrator -PWD Adam Nafstad, Finance Director Tina Lannes, City
Attorney Mike Couri, Fire Chief Eric Bullen, City Clerk Kimberly Olson, and Roger Lucy
2. 2016 Budget Discussion
Lannes reported the preliminary budget was set at 4.98% at the September 6, 2015 City Council
meeting. Staff had come in with 3.55% and Council had added approximately $50,000 in
capital.
Sorensen inquired when the notices to taxpayers will be sent out prior to the truth -in- taxation
hearing. Lannes replied it is usually done by Wright County about mid - November.
Council discussed the general fund reserve and what to do with those funds. Lannes reported
that no decisions are needed tonight it just needs to be designated as capital reserve if that's what
Council wishes to use it for.
Vetsch stated that perhaps the Lions could assist with the cost of a City entrance sign.
Hendrickson does not want to see general fund reserves spent on the sign.
Vetsch inquired about an increase in health insurance premiums for 2016. Lannes replied that
since the City is in a cooperative agreement, it will not have a large impact on the budget.
Hudson stated that even though they set the preliminary budget at 4.98 %, he would like to see it
brought back down. Lannes replied that to do so would be to remove the increased capital the
Council previously added. Sorensen would like to keep the levy under 4 %. Lannes responded
that she will remove approximately $35,000 budgeted for economic development and lobbying
and bring back the final levy at 3.98 %. Lannes reminded Council that taxpayers will see the
4.98% on their truth -in- taxation statements as that was what was set for the preliminary budget.
3. Arena Second Sheet Funding Discussion
Nafstad reported that the School District was meeting to determine whether or not it would be a
funding partner and, if so, how they would prefer to finance their share. Nafstad stated that the
School District would like to know what each City is willing to levy for the second sheet of ice.
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Nafstad also stated it would be good for Albertville to determine the amount it is willing to fund
to assist St. Michael with their discussion next week. Nafstad questioned the Council if they
would be willing to fund a third of an $8 million project if the School and St. Michael were
willing to. Nafstad and Lannes reviewed the financial scenarios prepared by Northland. Lannes
stated it would be a one -time increase of approximately 5.1 %. She indicated to Council that
would not include inflation or what it would take to maintain the budget. Hudson questioned if
it would then be close to a double digit levy increase for that one year and Lannes clarified that it
could be. Sorensen inquired about the $1 million the STMA Youth Hockey Association has
pledged and how it would be utilized. Nafstad replied that it could be used to pay the initial
years of debt service or simply to reduce the amount of the bond. Nafstad said he was not sure
when the money from Youth Hockey would be received or if it would be one or multiple
payments.
Hudson stated that he is resistant to levying that much and would need to hear input from the
community. Sorensen stated that he would be interested in pursuing discussion only if the
School Board is a partner. Sorensen also noted that the $8 million scenario does not account for
the $1 million from Youth Hockey.
Nafstad explained that the School financing options include the tax abatement bond option
together with the cities or by voter approved referendum. He said with the referendum option
the School would likely need to take ownership of the second sheet, but thought the three entities
could make this work.
Olson stated that he does not see the second sheet as a benefit to the whole community and it is
not an essential service. He felt the timeline is too fast. Sorensen stated that commercial
properties pay the most in taxes and inquired how the second sheet is a benefit to them.
Hendrickson and Vetsch felt it is important to move forward. Sorensen and Olson stated they are
willing to continue the conversation and are not at a yes or no right now. Hudson stated he needs
convincing in order to levy that amount.
Lannes inquired if the Council would like to keep the 4.98% levy and use the extra $35,000 as
arena capital. She stated that would take down the increase in the one -time levy amount from
5.1 % to 4.1 % if they did so. Council directed staff to keep the levy below 4% this year and keep
it at the 3.98%
4. Adjournment
Motioned by Hendrickson, seconded by Olson, to adjourn the meeting at 9:21 p.m. Ayes:
Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent. Hudson. MOTION
DECLARED CARRIED.
Respectfully submitted,
Kimberly . Olson, City Clerk
City Council Meeting Minutes Page 2
Workshop Meeting of November 2, 2015