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HomeMy WebLinkAbout02 21 12 City Council minutes 4646 Dakota Street SE Prior Lake, MN 55372 REGULAR CITY COUNCIL MEETING MINUTES February 21 , 201 2 CALL TO ORDER The meeting was called to order at 7 :00 p.m. Present were Mayor Myser, Council members Erickson, He d- berg , Keeney and Soukup , City Manager Boyles, City Attor ney Pace , City Engi neer / In s pections Director Poppler, Community and Development Director Rogness, Planner Matzke, Public Works/Natural R e- sources Director Gehler, Facilities / Fleet / Natural Resources Manager Friedges, Fire Chief Hartman, P o- lice Chief O’Rourke, Assistant City Manage r Kansier, Assistant City Manager Meyer , and Administrative Assi s tant Green. PUBLIC FORUM The Public Forum is intended to afford the public an opportunity to address concerns to the City Council. The Public Forum will be no longer than 30 minutes in l ength and each presenter will have no more than ten (10) minutes to speak. Topics of discussion are restricted to City governmental topics rather than pr i- vate or political agendas. Topics may be addressed at the Public Forum that are on the agenda except those topics that have been or are the subject of a scheduled public hearing or public information hearing before the City Council, the Economic Development Authority (EDA), Planning Commission, or any other City Advisory Committee. The City Council may discuss but will not take formal action on Public Forum presentations. Matters that are the subject of pending litigation are not appropriate for the Forum. Comments: No person stepped forward to speak. APPROVA L OF AGENDA MOTION BY ERICKSON, S ECOND BY HEDBERG TO APPROVE THE AGEND A AS PRESENTED . VOTE: Ayes by Myser, Erickson , Hedberg , Keeney and Soukup . The motion carried. APPROVAL OF MEETING MINUTES MOTION BY HEDBERG, S ECOND BY KEENEY TO APPROVE THE MINUTES OF THE FEBRUARY 6 , 2012 MEETING AS PR E SENTED. VOTE: Ayes by Erickson, Hedberg , Keeney and Soukup . Mayor Myser abstained due to h is absence at the meeting. The motion carried. CONSENT AGENDA City Manager Boyles reviewed the items on the consent agenda . A. Consider Approval of Invoices to be Paid B. Consider Approval of Building Inspections Report C. Consider Approval of Animal Control Services Report D. Consider Approval of Fire Department Report E. Consider Approval of Police Department Report F . Consider Approval of December 2011 and January 2012 Treasurer’s Report G. Consider Approval of 2011 4 Quarter Investment Report th H. Consider Approval of Resolution 12 - 017 A uthorizing a Temporary On - Sale Liquor License for the Church of St. Michael Phone 952.447. 9800 / Fax 952.44 7 . 4245 / www.cityofpriorlake.com C ouncilmember Erickson requested that item 5E , Consider Approval of Police Department Report , be removed from the Consent Agenda for discussion. MOTION BY KEENEY, SECOND BY ERICKSON TO APPROVE THE CONSENT AGENDA AS MOD I- FIED. VOTE: Ayes by Myser, Erickson , Hedberg, Keeney and Soukup. The motion carried. Erickson: Noted that the Police Department report is new. Asked if the reported activity separate s calls by location. O’Rourke : R esponded that in 2011 there were more than 10,400 calls with approximat ely 1,500 on tribal land. Noted it is possible to break out such information, but it is not recommended. Myser : Asked how the report might evolve over time to compare year over year statistics . O’Rourke : Replied that future reports are planned to have t hat comparison as well as narrative for such things as high profile cases. Erickson : Commented that he queried about segmenting reporting from SMSC locations because of pr o- posals from the State and ramifications that implementations of such proposals m ay have on the nu m ber of calls received from SMSC and subsequent impacts on the City. O’Rourke : Affirmed that if alcohol is added to the venue at SMSC, it will require more police presence. Described the current level of calls and the response to them b y either the SMSC liaison officer or the eve n ing squads. Hedberg : Cited statistics from the report. Asked what types of incidents are not reported as separate items. O’Rourke : Replied that would include t hings such as theft cases, misdemeanor assaults, child neglect cases and narcotics. Hedberg : Believes the report should include information that is meaningful for the public and that would include drugs and narcotics incidents. Keeney : W ould be interested in trending information such as an unusual spike or improvement in an y- thing. Things of general public interest could be added to the narrative. O’Rourke : Related a recent incident of broadcasting information to the residents about a burglary su s pect stating that the most important thing that r esidents can do is call and report suspicious activ i ties. MOTION BY ERICKSON, SECONDED BY HEDBERG TO APPROVE THE POLICE DEPARTMENT R E- PORT. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. PRESENTATION Community Safety Advisory Committee Annual Report Community Safety Advisory Committee Chair Pat Dougherty provided the Committee’s annual report to the Council. He r eviewed the history of the establishment of the committee . Noted that this year’s activ i- ties included co nducting a survey to learn the current resident health and safety related concerns . Stated that they have identified issues of domestic violence, protecting children – bullying, substance abuse pr e- vention, traffic/driving safety and residential and proper ty crimes. He identified the C ommittee’s reco m- mended objective for each issue as well as a timeline for accomplishing the objective. Stated that the Committee has d iscussed ways to invite a student to become a member of the committee. Comments: Keeney : Thanked members for their time in service on the Committee, stating they are a very dedicated and active group wanting to implement activities and the findings of the survey. Asked Council to take 2 02 21 2012 City Council Minutes some of this input, incorporate it into policy and ask s taff to implement it. Noted that traffic safety is a co n- cern ex pressed in the C ommittee’s sur vey as well as the R esident S urvey and that is an area where the City can provide emphasis. Believes the involvement of students into local government is a wonde rful o p- portunity and supports obje c tives for youth involvement. Erickson : Commented on Dougherty’s involvement on the Committee. Noted that the Resident Survey recently undertaken reflect s that residents feel safe in Prior Lake. Soukup : A sked how anti - bullying is being promoted. Doughtery : Replied that programs such as NetSmartz and Train the Trainer are some of the ways the Committee is supporting the efforts of the school district. Hedberg : Stated he is the current liaison to the C ommittee and also served on the or iginal T ask F orce. Noted that m ost of the existing committee members served on that task force and n amed the current C ommittee members thank ing them for their service . They are an active group and have made a big i m- pact on communi ty. St ated that the Council charged the group with community safety and the focus of the group has remained on that. Myser: Concurred with previous remarks and thanked the C ommittee for its work. Believes its objectives are on track. PUBLIC HEARING No pub lic hearing was scheduled. OLD BUSINESS Consider Approval of the 2010 – 2011 Variance Report Planner Matzke provided an overview of when variances can be granted and the process used to apply for and grant them. Provided statistics on applications gra nted and denied , and comparisons to the kind and number of variance requests from previous years. Noting a correlation to building permits and variances, stated that, generally, variance requests are made for approximately 5 - 6% of new construction activi ty. Comments: Hedberg : Asked if the criteria for granting variances have changed following the change in legislative la n- guage from “ hardship ” to “ practical difficulty ” regarding eligibility for a variance. Matzke : Replied there are six categories of evaluation for granting variances and now legislative statute defines “ practical difficulty .” City Code h as changed slightly so that if a developer cannot meet zoning or code because of some unique challenge, a variance can be considered. Commented that the m ajority of variance requests in 2011 were straightfo r ward and reasonable. Hedberg : Commented that the Council wants consistent policy to guide how land is developed. The pra c- tical difficulty criteria will be watched carefully to see how the Planni ng Commission and staff deal with the v a riances. Soukup : A sked if it is usual to have more than one variance request ed when an application is submitted. Matzke : Replied that it is common to have multiple requests on small lots and particularly with odd shaped lakeshore lots. Some may be denied while others approved. Erickson : Stated that many of the applications in 2011 had to do with the Bluffs of Candy Cove which supports the belief that many of the variances brought forward are to work with small lots around the lake. Matzke : Concurred there are many uniquely shaped lots due to the shoreline itself. Some interesting ord i- nance has been developed to try to deal with such lots and that is what the variance option is for. Noted there are usually s even or eight new homes constructed on the lake in any given year with one or two of them having variances granted. Keeney : Asked if it can be expected to have the City become more and more compliant with fewer var i- ances requested. 3 02 21 2012 City Council Minutes Matzke : Replied that the lake properties were platted over a century ago with irregular shapes and sizes. There is practical difficulty in constructing a house on an area intended for a cabin. Noted that granting a variance is not a bad thing – it is just a process to go thr ough and only means the lot has unique fe a tures. Keeney : Commented that it is not practically possible to force people to buy two lots and the best way to go forward is to make good decisions about environmental awareness . Noted there are not many appe als , which reflects that staff and the Planning Commission are b eing reasonable about the applic a tions. Pace : Added that e ven though there is a lot of record, a lot must still meet certain requirements to be buildable. MOTION BY HEDBERG, SECOND BY KEENE Y TO APPROVE THE 2010 - 2011 VARIANCE SUMMARY REPORT VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. NEW BUSINESS Consider Approval of a Resolution Approving the Final Plat and Development Contract for Jeffers Pond 5th Addi tion. Planner Matzke displayed the site of the development project and provided a brief review of the overall Je f fers Pond PUD. Reviewed the development contract. Comments: Keeney : Asked if the development contract includes any covenants that involve t he City’s enforc e ment. Pace : Replied that the City is never involved in enforcing homeowner association covenants. Hedberg : Commented that grading for Point Pass is already underway and queried when the d eveloper get s permission to start grading. Matzke : Replied that the p reliminary plat was for the entire area while the platting for lots was in two se g- ments. Grading for the entire area was approved with the preliminary plat which allows the developer to complete the grading work when the equipment is o n site rather than bringing it in twice. Hedberg : Commented that there are already ten to twelve homes under construction in the first phase and he is d elighted to approve the second phase. Will support. Myser : Noted that the documents refer to “substa ntial” compliance and asked what is different from the first approval. Matzke : Replied that a prelim inary plat approve s lot sizes, setbacks, etc. ; and the final plat has constru c- tion layout a s well as the minor calculations for street design and final det ails. If the final plat was not in substantial compliance, we would ask the developer to redesign or amend their preliminary plat. Pace : Added that “substantial compliance” is a legal standard that a developer is entitled to final plat a p- proval if they a re in substantial compliance. Myser : Invited developer Mark Sonstegard of Ryland Homes to the podium and asked if, from a develo p- er’s point of view, there is any City process that could be improved. Sonstegard : Replied that anything that moves developme nt f orward is helpful. In this case the project had stalled and the staff was helpful in the replatting process and the Planning Commission and Council provi d- ed good direction about what they wanted . MOTION BY HEDBERG, SECOND BY SOUKUP TO APPROVE RESOL UTION 12 - 018 APPROVING THE FINAL PLAT OF JEFFERS POND 5 ADDITION AND DEVELOPMENT CONTRACT AND SETTING TH FORTH CONDITIONS TO BE MET PRIOR TO R E LEASE OF THE FINAL PLAT. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. 4 02 21 2012 City Council Minutes Cons ider Approval of a Resolution Updating the 2030 Vision and Strategic Plan Assistant City Manager Kansier reviewed the historical perspective for developing the 2030 Vision and Strategic Plan and commented that the most recent visioning process used the Imp lication Wheel. Stated the o bjectives of this Vision and Strategic Plan update was to refine the vision , develop manageable goals and develop priorities for the goals. Reviewed the proposed document. Introduced Jim Schreier , facilit a- tor of the Implicati on Wheel . Comments: Soukup : Commented on the process and the resulting reduction of number of goals. Asked Schr eier to speak about the process. Schreier : Stated that the changes repr esented make the plan more clear. Added that fewer and sma r ter goals will make them easier to accomplish. Reviewed the complexities of a municipal organization and how using the Implications Wheel allowed intense involvement in discussion to evaluate implications of a c- tions. Every p articipant ’s voice was heard. Hedberg : A sked how this output compares with outputs of other organizations. Schreier : Overall, the City’s output can be rated a solid “ A. ” This project was s imilar to other projects in the clarification of objectives and setting priorities , but it was differe nt in integrat ing the package to look at all of the changes and then creating a unique vision built on the mission. The vision page is a unique do c- ument to Prior Lake and it is very unusual to have that piece. The final piece was the focused , hard work o f staff in narrowing the goals down to a reasonable amount and making them measur a ble and prioritized. Hedberg : C ommented that he has been in volved in updating the Vision for the third time. Believes that a strategic plan is essential to guide the City and he feels good about this update because it recognizes that it is the same City as reflected in the earlier documents. Largely the vision continues to be the same, but is now more r e fined. Keeney : This process takes the hundreds of implications of a community that is made up of many pieces and parts interacting in complicated ways. It is much to go through and the document is aimed at what the City can do , as well as being the keeper of the identity of the City. The vision integrates the businesse s that will come, the developers that will come, and the people who will come into the City . B elieves this is an accurate reflection of what people want and how it will happen. It d id not radically change what the f u- ture will become, but rather does a be tter job of writing it down. Erickson : Complimented the people who came to the meetings to work on the Vision and Strategic Plan. People who show up make the decisions. We packaged their thoughts into the Vision. Will support. Myser : Commented that the biggest thing that struck him was the Implications Wheel. This is a valuable tool for homeowners, businesses, etc. to think through all of the implications to learn consequences. Asked what Schreier does with organiz a tions to help them infuse the proces s into habit. Sc hreier : Replied that when people have experienced the process, it tends to fundamentally change the way they think about anything and people begin to ask the implications of an issue. Noted there is now a certified Impl i cations Wheel faci litator on staff so this can be an ongoing process for the City. Myser : Stated he is impressed with the changes that were made to refine the vision and to reduce and pr i- oritize the goals. Commented that the City always has limited resources and time so having goals prior i- tized helps to provide focus for making change. Thanked residents and staff for their help. MOTION BY SOUKUP, SECOND BY HEDBERG TO APPROVE RESOLUTION 12 - 019 ADOPTING THE UPDATED 2030 VISION AND STRATEGIC PLAN. VOTE: Ayes by Myser, E rickson, Hedberg, Keeney and Soukup. The motion carried. Consider Approval of a Resolution Authorizing the Mayor to Execute a Memorandum of Unde r- standing with the Shakopee Mdewakanton Sioux Community, Shakopee and Scott County 5 02 21 2012 City Council Minutes City Manager Boyles commen ted that there is a positive tradition between these four entities of working together for a better set of governments and quality of life. All four entities reviewed the proposed mem o- randum of understanding and had opportunity to provide input. This pr ovides a mechanism to address i n- stances of difficulty in resolving any conflicts. Allows for the development of an Intergovernmental Work Group (IWG) made up of two appointees from each entity. Reviewed the proposed MOU. Suggested to p- ics the IWG might b e addressing. Comments: Hedberg: Stated these entities have had a productive, cooperative relationship for a long time ; but this could be a profound shift in the ongoing relationship between the governmental bodies in northern Scott County. This signa ls willingness and creates a forum for dialogue and collaboration. Noted that o ther tribal entities have figured out this type of thing with other local government units in other parts of the country , but he t hinks this is not a common thing. Will suppor t and hope it signals a new era of collabor a tion. Soukup : Concur with Hedberg ’s comments. Most important thing is having positive relationship s and partnerships with neighbors that help all of us get to common goals. Believes having a document that ev e- ry one agrees upon sets the stage for ongoing collaboration. Suggested waiting to make appointments to dete r mine whether they should be elected or staff. Erickson : Commented that the Council j ust approved the Vision and Strategic Plan and this is a part o f that vision that allows us to look into the future together. The City has had great relationship with the tribe, but mistakes have been made. Complimented the SMSC for stepping up with the lease of land to be used for a park and ride off CR 21. Believ es staff should be appointed to the IWG it at least during its initial stages. Keeney : Stated the obligation put on each entity is to appoint two people to show up and talk to the other entities. Believes the i ssues to be address ed will be at the policy - making, elected official level , and staff would need to be there to facilitate. T he process to make appointment s is not addressed in the MOU. Myser : Stated there is a strong history of working closely with other organizations through SCALE to i m- prove the way we govern and share resources. Noted that SMSC is a member of SCALE, but there are unique aspects to relationship s between SMSC, Scott County , Shakopee and Prior Lake . Support s this first step in improving and strengthening the working relationships . Believes staff could start working with the IWG, but an e lected official should be a representative because of the responsibility in representing po l- icy aspects. Would not want to wait too long to have an elected official participating. Suggested the IWG think about how they will report back to their respective ent i ty. Erickson : Concurred that eventually an electe d official should be appointed. Recommended that City Manager Boyles be appointed and at a later time, a member of the Council should be i n volved. Hedberg : Suggested there be parallel appointments from the different entities. Key staff members such as City Manager Boyles and Tribal Administrator Rudnicki should keep a dialogue going to get a consensus of the entities and who they want to have appointment ed . Believes there should be consistent appoin t- ments across the enti ties and at some level elected officials should be involved. Myser : Concurred the appointees should be equal across organiza tions and of enough status to discuss policy issues. Keeney : Concurred City Manager Boyles would be one appointee and also a council member could be appointed in the manner that they are appointed to other organization s . Would be good to state to the group that we are willing to appoint an electe d member, and it could be placed on the agenda of a future meeting to make appointments to give staff time to learn how other entities want to handle appoin t ments. Erickson : Commented on the importance of the Council appointee to represent the entire Coun cil rather than his/her personal perspective. 6 02 21 2012 City Council Minutes A motion was made by Keened to execute the memorandum of understanding as presented, appoint City Manager Boyles and direct staff to place the second appointment on an agenda for a future meeting and bring bac k a recommendation. Myser : Asked Boyles if he is aware how the other entities are moving forward . Boyles : Shakopee and Scott County were asking similar questions about whom to appoint, and the SMSC perspective is to have two staff members and a Tribal Council member with the potential of having any two of the three present at meetings. Myser : Suggested holding off on appointments and let Boyles work with the other entities to learn what will work for everyone. Hedberg : Commented that Keeney made a mo tion and he would second the motion to appoint the City Manager and directing him to work with the other bodies and come back with a recommendation. Keeney : Queried whether Myser wishes to amend the motion to not appoint the City Manager. Myser : Proposed a friendly amendment to approve just the MOU, allow the group to discuss appointees and come back with a recommendation. Supports the importance of the City Manager level staff of each entity to be appointed, it seems early to do so. Pace: Suggested de leting item number three from the resolution. The motion was withdrawn and a further MOTION WAS MADE BY KEENEY, SECOND ED BY HEDBERG TO APPROVE RESOLUTION 12 - 020 AUTHORIZING THE MAYOR TO EXECUTE A MEMORANDUM OF UNDERSTANDING (MOU) WITH THE SHAKOPEE MDEWA KANTON SIOUX COMMUNITY (SMSC), THE CITY OF SHAKOPEE AND SCOTT COUNTY; A ND VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Consider Approval of a Resolution Adopting Amendments to the 2012 Prior Lake General Fund and Econ omic Development Authority Budgets and Rescinding the Transfer of Funds from the Econo m- ic Development Federal and Minnesota Revolving Loan Funds to the Economic Development A u- thority Special Rev e nue Fund Finance Director Erickson described the funding need ed by the EDA and stated that the EDA has a p- proved a budget amendment. Community and Economic Development Director Rogness stated that the funds from the Minnesota Department of Employment and Economic Development loaned to EM Pro d- ucts in 1995 and NBC Pro ducts in 1998 are required to remain in dedicated City funds , so the monies pr e- viously transferred from those accounts to the EDA budget must be rescinded. Comments: Hedberg : Recognize d the need to establish funding for the EDA , which could b e done by levying , tran s- fers, etc. and recommendations will be brought to the Council during the 2013 budget planning. Stated the EDA has moved forward on initiatives of exploring a fiber optic infrastructure in City and a contract has been e x ecuted to work with an expert on that. Commented that the contract is the main reason for a need to amend the EDA budget at this time . Soukup : Queried where funding is expected to come from. J. Erickson : Replied that transfer ring from the General Fund is considered short t erm and suggested there may be an EDA tax levy. Soukup : Commented that this is necessary for the City to prosper and grow as many people work from home or have their own businesses . Support s the amended bud g et. W. Erickson: Noted that other financial ne eds have been identified to host the Venture Fair as well as for membership in the NBIA. Rogness : Replied that the Venture Fair was initiated during discussions of angel funding . The Fair is scheduled for May and is targeted to investors and start - up b usinesses. Believes the benefit of the Fair will 7 02 21 2012 City Council Minutes be in evaluating whether there are angel investment opportunities in the City. The m embership in the NBIA has been important as the broadband initiative moves forward. A subcommittee is working on it, but has not yet moved to the point of a recommendation to the EDA. W. Erickson: Stated he does not favor the incubator concept. Believes the City has served as an incub a- tor site for years and when businesses grow larger, they move out. Agree d with the fi ber optic initiative . Will support the budget amendment , but has concerns about some of the dire c tions. Hedberg : Commented that he has heard the incubator concern before and share s it. Believes having the environment to grow business is important, but t he City also needs plans to retain them. Precursor plans to the 2013 budget will include discussion about developing existing commercial properties, learning whether there is a good inventory of availability, etc. Myser : Added that the EDA is also d evel oping a plan to look at incubators that have a public benefit. Keeney : Spoke of the restrictions on the loan funds that will be returned to dedicated City funds and su g- gested it be loaned out for low - cost economic development loans. Asked about the ap pointment of a new EDA member. Hedberg : Replied that he notified the Mayor and City Manager of Hitchcock’s resignation to initiate the process of recruitment for a new member. Boyles : Added that Hitchcock resigned for personal reasons and reviewed the process outlined in the b y- laws for appointing a new member . Myser : Commented that the EDA is very early in the process of developing a business plan and it will be brought to the Council prior to any request for permanent fun d ing. Hedberg : Concurred a nd added that a central reason it is taking longer than originally planned was due to lack of resources. Noted that Rogness and his staff have taken on an integral role. MOTION BY SOUKUP, SECOND BY KEENEY TO APPROVE RESOLUTION 12 - 021 ADOPTING AN AMENDM ENT TO THE 2012 PRIOR LAKE GENERAL FUND AND ECONOMIC DEVELOPMENT A U- THORITY BUDGETS AND RESCINDING THE TRANSFER OF FUNDS FROM THE ECONOMIC DEVE L- OPMENT FEDERAL AND MINNESOTA REVOLVING LOAN FUNDS TO THE ECONOMIC DEVELO P- MENT AUTHORITY SPECIAL REVENUE FUND. VOT E: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Consider Approval of Preliminary 4 Quarter 2011 Financial Reports th Finance Director Erickson provided preliminary summary fourth quarter fund reports. Revenue and e x- penditure variances to budget are anticipated to result in a $659,000 increase to the General Fund reserve. Comments: Keeney : Queried whether the Central Garage line item is over because of the heavy snow season last year. J. Erickson: Affirmed. Keeney : Comme nted that we are probably way under on those catego ries this year due to little snow at the end of 2011 and beginning of 2012. Noted that this highlights the weather - related issues that can occu r in that category. Asked if the monies collected for taxes reflect market va l ue declines . J. Erickson: Replied that we budget for the full amount of the levy, but not for delinquent ta x es. Keeney : Believes it nets out in the long run and undue attention should not be exercised for that amount. Erickson : Note d that the City buys fuel wholesale and ask how much is typically saved by doing so. J. Erickson : Replied the wholesale price is 20 to 30 cents per gallon below retail price. The fuel costs will need to be watched cl osely as it puts pressure on the rest of the budget. If there is a significant i n crease in fuel price s , a budget amendment will be brought to the Council. Erickson : Noted the City has reduced prosecution costs compared to some other cities due to the SCALE joint prosecution association. 8 02 21 2012 City Council Minutes So ukup : Queried about the building permit revenue. J. Erickson: Replied that variance is based on the difference between 60 budgeted permits and more than 100 received. That budget was increased to 85 permits for 2012. Soukup : Asked if the City contract service revenue line is in the 2012 budget. J. Erickson: Replied that it is not, nor does it include the expenses. Anticipates bringing a budget amendment to the Council in April that will reflect the anticipated expenses and revenues associated with suc h things as the degradation study , Music Fest, soccer, striping, etc. Soukup : Asked when the audit report is expected. J. Erickson: M id - May. Hedberg : Clari fied the amount anticipated when the tax levy was approved. J. Erickson: Replied that the Coun cil adopted a budget that used $ 7 3 5,000 of fund balance reserves. Now, we anticipate adding $ 659,000 with the 2011 financials resulting in a reduced fund balance in 2012 . Hedberg : This would bring us close to what was projected in December. Cautioned th e Council to wait for information to make decisions on the levy because the City, for a variety of reasons, is likely to experience ups and downs in the final balances that don’t occur until May. Myser : Commented that he sees the g oal as do ing a bette r job on estimates and then deal ing with the vagaries as they occur. Staff has demonstrated that they can hold the budget. Keeney : Noted that l ast minute variations were primarily in property tax collections. Believes that budge t- ing for collections a t 9 6 - 97% without budgeting for delinquent collection s builds in 3 - 4% of ove r - c ollections compared to actual expenditures. Hedberg : Reiterated that revenues are turning out to be the projection provided in December. Believes a change in tax levy was made b ased on an erroneous projection. Keeney : Uncollected taxes will eventually be collected. That variation is not a reason to say we made a mistake in reducing the levy. J. Erickson: Commented that the bad debt, or uncollectables, is also not budgeted. T he tax collectables are budgeted 100%. Keeney : Concurred that, in some sense, the variations are immaterial to the process. Myser : Believes the delinquent collections should be budgeted for better understan d ing. J. Erickson: Agreed that can be look ed at as an option in the budget process. Noted that the market va l- ue homestead credit aid is now gone and will remove a layer of complexity. Noted that the c ollection rate for delinquent payments varies from year to year. MOTION BY HEDBERG, SECOND BY KEE NEY TO ACCEPT THE DECEMBER 31, 2011 FINANCIAL REPORT AS SUBMITTED. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. OTHER BUSINESS Community Events Erickson: Offered condolences to the Peterson family who lost their daug hter in a car accident. EXECUTIVE SESSION MOTION BY KEENEY, SECONDED BY SOUKUP TO RECESS THE MEETING IN ORDER FOR THE COUNCIL TO GO INTO AN EXECUTIVE SESSION IN ORDER TO DISCUSS LABOR NEGOTIATION STRATEGY. VOTE: Ayes by Myser, Erickson, Hedberg, Keene y and Soukup. The motion carried. The meeting recess ed at 9:48 pm . The meeting reconvened the meeting at 10:58 p.m. 9 02 21 2012 City Council Minutes ADJOURNMENT With no further comments from Council members, a motion to adjourn was made b y Soukup and secon d ed by Keeney. With all in favor, the meeting adjourned at 11:01 p.m. ___ _______________________________ ________________________________ Frank Boyles, City Manager Charlotte Green, Admin. Assistant 10 02 21 2012 City Council Minutes