IV.1. Minutes of the May 19, 2020 City Council Regular Meeting ProceedingsHOPKINS CITY COUNCIL
REGULAR MEETING PROCEEDINGS
MAY 19, 2020
CALL TO ORDER
Pursuant to due call and notice the regular meeting of the Hopkins City Council was
held by conference call through GoToMeeting pursuant to Minnesota Statue 13D.021 in
response to the COVID-19 emergency on Tuesday, May 19 at 7:00 p.m.
Mayor Gadd called the meeting to order and conducted roll call of City Council
participating in the meeting. Council Members present included Beck, Brausen,
Halverson and Hunke. Others attending included City Manager Mornson, City Clerk
Domeier, Assistant City Manager Lenz, Finance Director Bishop and Director of
Planning and Development Elverum.
Mayor Gadd provided information on the meeting format and other opening remarks.
ADOPT AGENDA
Motion by Halverson. Second by Brausen.
Motion to Adopt Agenda.
Ayes: Beck, Hunke, Brausen, Halverson, Gadd.
Nays: None. Motion carried.
CONSENT AGENDA
Motion by Halverson. Second by Brausen.
Motion to Approve the Consent Agenda.
1. Minutes of the May 5, 2020 City Council Regular Meeting Proceedings
2. Amendment to the 2020 City Council Meeting Schedule; Domeier
3. Second Reading of Ordinance 2020-1148; Domeier
4. Second Reading of Ordinance 2020-1152; Lindahl
5. Resolution Cancelling Collection of Special Assessment on one parcel of
Levy No. 20406; Bishop
6. Resolution Approving Adjustment of Special Assessment on one parcel of
Levy No. 20406; Bishop
Ayes: Beck, Hunke, Brausen, Halverson, Gadd.
Nays: None. Motion carried.
NEW BUSINESS
VII.1. Award the Sale of $8,585,000 General Obligation Bonds, Series 2020A;
Bishop
Finance Director Bishop introduced the item for Council Report 2020-035 where bonds
will be used to fund three projects: a portion of the 2020/2021 street improvement
project, mill and overlay in the Central Business District and purchase of equipment.
Stacie Kvilvang of Ehlers and Associates provided a summary of the bonding process
and rating call. The City’s AA+ rating was upheld due to strong management with
strong financial policies and practices, adequate budgetary performance with ope rating
results that are good, very strong budget flexibility and strong liquidity.
HOPKINS CITY COUNCIL
REGULAR MEETING PROCEEDINGS
MAY 19, 2020
Mayor Gadd commented on the bond rating, pointing out the very strong management
with our financials. He provided information on the comments given regarding the
strong management.
Motion by Hunke. Second by Halverson.
Motion to adopt Resolution 2020-028 awarding the sale of General Obligation
Bonds, Series 2020A, in the original aggregate principal amount of $8,585,000,
fixing their form and specifications, directing their execution and delivery, and
providing for their payment.
Ayes: Beck, Hunke, Brausen, Halverson Gadd.
Nays: None. Motion carried.
VII.2. First Quarter Financial Report; Bishop
Finance Director Bishop provided a presentation on the first quarter financial results,
2020 budget projections after COVID-19, and the results of the 2021 Budget Survey.
2020 First Quarter Financial Report
Mr. Bishop provided information on general fund revenues and expenditures; special
revenue funds revenues, expenditures and financial position; and enterprise fund
revenues, expenses and financial position.
Council Member Beck commented on the depreciation chart. Mr. Bishop noted it was
three months of depreciation.
2020 Budget Projections after COVID-19
Mr. Bishop provided information on the 2020 budget projections; revenue assumptions;
minor and major impacts to the general fund revenue; expenditures; and revenue and
expenditures for the Art Center, Pavilion, Depot and Utility Funds.
Council Member Hunke questioned if the Depot have they reduced their hours to save
money. He also asked if staff has looked into the effects of the light rail construction
and how that will affect them. Mr. Bishop stated that staff reduces their winter hours as
part of the 2020 budget. Staff did budget for a sizeable decrease to their coffee budget
due to the light rail construction. He stated that most the budget reductions are
happening right now. The reduced hours are in connection to buildings being closed,
frozen training and traveling expenditures, etc. being implemented right now.
City Manager Mornson thanked staff for working on this since March 13. All
departments have put effort into finding the $500,000 in budget reductions. He added
that staff would go to another layer of budget cuts if needed. We are not counting on
federal or state money but people are working behind the scenes.
Mayor Gadd commented on staff moving to work from home scenario referring to the
projects funded for digitizing and scanning of files and upgrades to technology.
Investments early on have allowed us to move to a work from home environment and
continue operations inexpensively.
HOPKINS CITY COUNCIL
REGULAR MEETING PROCEEDINGS
MAY 19, 2020
Mayor Gadd also commented on the Center for the Arts noting that some concerts have
been rescheduled and that revenue going forward may be dependent on the group size
limitations. Council Member Brausen questioned conversation with the Center for the
Arts tenants. Mr. Bishop stated that that the school district has indicated they will
continue their lease there and at the Pavilion. He will get back to the City Council on
the lease with Stages.
Mayor Gadd asked when the next budget update will be provided. Mr. Bishop plans to
provide a monthly update going forward. Mayor Gadd thanked the City Manager and
staff for reviewing their budgets and operations noting he understands the difficulty.
Results of 2021 Budget Survey
Mr. Bishop provided an overview of the budget survey responses. Mayor Gadd thanked
everyone that completed the survey.
Next Steps
Mr. Bishop stated that staff will begin preparing the 2021 Budget. Mayor Gadd noted
that the effects of COVID-19 will play a part in the 2021 budget process. Council
Member Hunke questioned what other budget outreach measures will be taken to
include residents on the process. Mr. Gadd stated that a plan was in place for public
engagement and education as well as resident feedback sessions but with the physical
distancing and technology issues will play a factor in the planning.
Mr. Mornson stated that staff will be addressing on how to engage with the public. The
next hearing was set for August. We are uncertain of the group limits and the potential
of using Zoom meetings. The process is uncertain at this time. Council Member
Brausen mentioned that last year transparency was an issue and moving forward we
need to move forward making sure all are heard. An option would be to meet in smaller
groups.
ANNOUNCEMENTS
City Manager Mornson provided an update on the COVID-19 planning within the City.
He highlighted the positive and pragmatic measures that have been taken by staff
including the budget reductions, facility closures and reopening plans, public safety and
employee health, City Hall operations including appointments, changing council
meetings back to normal with public participating virtually, possible refunds for liquor
license fees, business outreach, recreation changes, and shared how proud he was of
all City employees for their efforts and the positive feedback from residents.
Mr. Mornson also provided an update on Sarah Foster’s request for chickens. Staff will
work on going through the ordinance process working with Ms. Foster and bring back to
the Council later this summer. While a petition was submitted to go through the Charter
process, Ms. Foster will work with staff instead of using that process. There are
concerns about allowing for comments during the process. Staff will continue
conversations with Ms. Foster and work with the City Attorney on the proposed
ordinance. Mayor Gadd thanked Mr. Mornson for working with Ms. Foster.
HOPKINS CITY COUNCIL
REGULAR MEETING PROCEEDINGS
MAY 19, 2020
Council Member Halverson announced that the WCCO morning show will be
highlighting downtown Hopkins on May 20.
The next City Council meeting will be held on Tuesday, June 2 at 7 p.m.
ADJOURNMENT
Motion by Rick. Second by Beck.
Motion to adjourn.
Ayes: All.
Nays: None. Motion carried.
The meeting was adjourned at 8:14 p.m.
Respectfully Submitted,
Amy Domeier City Clerk
ATTEST:
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Jason Gadd, Mayor
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Amy Domeier, City Clerk