12/5/2016 - City Council - Regular - Minutes CITY OF SPRING PARK
CITY COUNCIL MINUTES
DECEMBER 512016 — 7:30 PM
SPRING PARK SPRING PARK CITY HALL
On Lake 3finnetonka
1. CALL TO ORDER - The meeting was called to order by Mayor Williamson at 7:30 p.m.
2. ROLL CALL
Council Members Bruce Williamson, Mayor; Shirley Bren; Gary Hughes; Megan Pavot;
Present: and Pamela Horton.
Staff Present: Dan Tolsma, City Administrator; and Nancy Beck, City Attorney.
Others Present: Catherine Kane Palen, Council Member-Elect; and Jerry Rockvam, Mayor-
Elect.
3. INTRODUCTIONS - Mayor Williamson introduced the City Council and staff to the public.
4. PLEDGE OF ALLEGIANCE - Mayor Williamson led the audience in the Pledge of Allegiance.
5. ADOPT AGENDA
M/Hughes, S/Horton to adopt the agenda.
Motion carried 5-0.
6. ADOPT CONSENT AGENDA
a. City Council Regular Meeting Minutes from November 14, 2016
b. City Council Work Session Minutes from November 28, 2016
M/Bren, S/Pavot to approve the Consent Agenda.
Motion carried 5-0.
7. PUBLIC FORUM—None.
8. PRESENTATIONS & GUEST SPEAKERS —None.
9. PETITIONS, REQUESTS & APPLICATIONS —None.
10. ORDINANCES & RESOLUTIONS —Mayor Williamson opened the Truth in Taxation public
hearing regarding the 2017 property tax levy and proposed budget.
Regular Meeting Minutes December 5,2016
City Administrator Tolsma stated that there were no formal communications received from
residents regarding the Truth in Taxation hearing. He added that the notice that residents received
from Hennepin County could be confusing and it leads many people to believe that the valuation of
their properties can be discussed at the Truth in Taxation Hearing.
Jeff Hovelsrud, 3860 Sunset Drive, addressed the Council regarding the valuation of his property.
Mayor Williamson responded that the Truth in Taxation hearing is for residents to address the
Council regarding the proposed tax levy and budget. Residents can address the valuation of their
properties at the Open Book Meeting in April. He encouraged Mr. Hovelsrud to attend the Open
Book Meeting in April to speak with county assessors.
Mayor Williamson closed the Truth in Taxation public hearing.
a. Resolution 16-20: 2017 Property Tax Levy
Mayor Williamson discussed several items related to the proposed tax levy including:
• The General Fund balance;
• Current funds available in the City reserves;
• The City is currently tracking under-budget for 2016;
• Future money the City will be receiving from decertifying TIF District 1-2 in 2016; and
• Payments the City is going to receive for property tax remittance from Hennepin County.
M/Williamson to revise Resolution No. 16-20 to reduce the 2017 Property Tax Levy from 1.9% to
0.9% and to increase the transfer of funds from the Capital Fund to the General Fund bT
ap,.proximately $10,000 to cover the difference.
Council Member Hughes stated he would like to see more documentation regarding the numbers
Mayor Williamson is referencing prior to making a decision.
Mayor Williamson stated that the City has over $4,000,000 in reserves and therefore questioned why
the Council would consider raising the levy at all.
Mayor Williamson withdrew his motion.
Council Member Hughes stated that looking beyond 2017 there are other factors that need to be
considered including the new water filtration system. The system was paid for by a grant but after
next year the City will need to pay the operating costs.
Mayor-Elect Rockvam stated that when figuring out the true of amount of the City's reserves the
bonds need to be subtracted from that amount. Therefore the net result would be closer to an
amount over $1,000,000. The City's net reserves are not over $4,000,000 and the water fund is
losing money.
Mayor Williamson responded that there is $4,000,000 is reserves and those funds are mostly
unrestricted. He further stated that the water fund changes from year to year and the amounts
typically offset.
Regular Meeting Minutes December 5,2016
Council Member-Elect Palen asked if the numbers that Mayor Williamson is referencing were
taking into consideration all of the debt that the City has.
Mayor Williamson stated that documentation would be prepared and distributed for review prior to
the next meeting.
M/Williamson, S/Hughes to move consideration of Resolution No. 16-20 in order to receive
additional documentation and schedule final action on the 2017 property tax levy to the regular City
Council meeting of December 19, 2016.
Motion carried 5-0.
b. Resolution 16-21: 2017 Budget
M/Williamson, S/Horton to move consideration of Resolution No. 16-21 and schedule final action
on the 2017 budget to the regular City Council meeting of December 19, 2016.
Motion carried 5-0.
11. REPORTS OF OFFICERS & COMMITTEES
a. Mayor and Council—Mayor Williamson provided details from a recent meeting with
Jennifer Munt, Metropolitan Council Member—District 3.
Council Member Hughes provided an update from the most recent Lake Minnetonka Conservation
District (LMCD) meeting that included a public hearing regarding proposed dock increases at 5th
Street Ventures. He further stated that the LMCD Board will continue their discussion regarding
this issue at their next meeting.
b. City Administrator
1. Recycling Contract—City Administrator Tolsma presented a summary of the
proposed five-year agreement for residential recycling collection services.
M/Hughes, S/Bren to approve the agreement for residential recycling collection services with
Republic Services, Inc. for January 1, 2017 through December 31, 2021.
Motion carried 5-0.
2. 2017 Staff Wages - City Administrator Tolsma stated that no changes have been
made to the 2017 staff wages that were discussed at the November 28, 2016 City Council Work
Session.
M/Hughes, S/Horton to approve the 2017 Staff Wages as presented.
Motion carried 5-0.
c. City Engineer—No report.
Regular Meeting Minutes December 5, 2016
d. City Planner— No report.
e. City Attorney—No report.
f. Public Works—No report.
12. UPCOMING MEETINGS & TRAINING
a. December 8 —LMCC — 7:00 PM
b. December 13 —Administration Committee — 12:00 PM
c. December 14—Police Commission — 8:00 AM
d. December 14—LMCD — 7:00 PM
e. December 14—Planning Commission—7:00 PM
f. December 19 —Regular Council Meeting— 7:30 PM
13. UNFINISHED BUSINESS —None.
14. NEW BUSINESS & COMMUNICATION
a. Bills & Payroll
M/Bren, S/Pavot to approve the bills &payroll.
Motion carried 5-0.
b. Purchase Order 16-03 —Mayor Williamson and City Administrator Tolsma presented a
summary of the purchase order relating to the audio/visual upgrade of the Council Chambers.
M/Hughes, S/Horton to approve Purchase Order 16-03 relating to the audio/visual upgrades
Council Chambers.
Motion carried 5-0.
15. MISCELLANEOUS (Information Only —None.
16. ADJOURNMENT
M/Hughes, S/Horton to adjourn the City Council Meeting at 8:38 p.m.
Motion carried 5-0.
Date Approved: December 19, 2016
,fit L
T resa Schyma, City Clerk
Dan Tolsma, City Administrator