09-13-2016 Work Session HOPKINS CITY COUNCIL
WORK SESSION PROCEEDINGS
SEPTEMBER 13, 2016
CALL TO ORDER
Pursuant to due call and notice t ereof a regular work session of the Hopkins City Council was
held on Tuesday, September 13, 2016 at 6:56 p.m. in the Meeting Room at Hopkins Fire
Department, 101 17th Avenue S s uth, Hopkins.
Mayor Cummings called the me ting to order with Council Member Campbell, Gadd, Halverson
and Kuznia attending. Staff pre•ent included City Manager Mornson, Finance Director Harkess
and Public Works Director Stad -r.
UTILITY RATE ANALYSIS
In addition to City staff, a repre -ntative present for the item was, Stacie Kvilvang of Ehlers Inc.
Ms. Kvilvang gave an overview •f 2016 water and sewer rates, water usage patterns and
proposed water usage tiers. The iers would balance usage revenue and usages by user type so
one type of user is not subsidiz.i g another type of user. Ms. Kvilvang discussed the Water and
Sewer Capital Improvement Pla i, proposed 2017 water and sewer rates and the Water and Sewer
Fund cash balances. Ms. Kvilva i g showed examples of current and proposed utility bills for an
average residential and commer,ial customer as well as utility bills for the Council Members.
Ms. Kvilvang explained that the City should increase utility rates to reflect actual usage and
assist in paying for projects and •perations of the system. Ms. Kvilvang's recommendation for
the Water Fund is to implement . flat fee/rate to pay for base needs of the system, implement a
tiered usage system and annuall increase rates to keep up with capital needs of the system. Ms.
Kvilvang recommended that the City adopt a 2016 increase for the Sewer Fund and annually
increase rates to keep up with ICES increases and capital needs of the system. She also
recommended that the utility rat- study be updated every couple of years.
There was discussion of water U.age and impact to high users. Ms. Kvilvang commented that the
high users would feel an impact Ehlers, Inc. did a report on the impact to the highest commercial
user and can do the same for an commercial properties of concern. Ms. Harkess commented
that the last rate increase was in January 2015 and that operating costs and capital needs are
driving the rate increases. Coun,it commented on the importance of educating the public.
Council would like to review th, top 5 users and impact to them. Staff will gather the
information and update the Co •cil. The Council consensus was to proceed with the new rate
structure.
2017 GENERAL FUND BUDG: T
Finance Director Harkess gave .n overview of the preliminary 2017 General Fund Budget and
levy. The average home market alue has increased to $233,000. The proposed budget would
impact the average home by$117.
There was much discussion abo t educating the public about market value and taxes. Ms.
Harkess asked the Council wha'number they would like to target and explained that Council can
set the preliminary levy and it c: I be reduced but not increased from that number. Council asked
about the percentage of homes .t the medium valued amount. Staff will investigate and update
the Council and will also get da a on how the increase would affect the Council Members homes.
Council consensus was to proce-d with the preliminary levy with efforts to decrease the amount
HOPKINS CITY COUNCIL
WORK SESSION PROCEEDINGS
SEPTEMBER 13, 2016
and find savings.
UPDATES
• Council Member Gadd discussed the Metro Cities Transportation Committee concerns
regarding SWLRT funding, certificates of participation and impacts to communities.
• City Manager Mornson commented about the good meeting for staff and Council regarding
the City's Emergency Operations Plan. Questions should be directed to the City Manager or
Fire Chief Specken.
• City Manager Mornson asked that Council review the 2017 meeting schedule that is
scheduled to be adopted at the October City Council meeting.
• The East-end City of Hopkins sign has been relocated.
• Staff will be meeting with the Hennepin County Health Inspection Department on October 4.
• City Manager Mornson will be attending the League of Minnesota Cities Board Retreat and a
conference.
• Interviews for City Hall staff positions will be scheduled soon.
• Police Chief Reynolds has submitted his resignation with his last day on October 14. Chief
Reynolds will be recognized at the October 4 City Council meeting.
ADJOURNMENT
There being no further business to come before the City Council and upon a motion by Gadd,
second by Campbell, the meeting was unanimously adjourned at 8:14 p.m.
Respectfully Submitted,
Debbie Vold
ATTEST:
/171-47 (k.u14A-40 I
LOYI
Molly Cuikmings, Mayor Amy Domeier, City Clerk