11-12-03 WS_ November 12, 2003
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MINUTES
CITY COUNCIL WORK SESSION -November 12, 2003
A work session of the Hopkins City Council was called to order by Mayor Gene Maxwell
at 7:30 p.m. on November 12, 2003, at the City Hall. Council members Brausen, Johnson and
Rowan were present. City personnel present were: City Manager Steve Mielke; Facilities Manager
Jay Strachota; Pavilion Manager Don Olson; Public Works Dtrector Steve Stadler, Economic
Director Jim Kerrigan and Finance Director Lori Yager.
Pavilion Locker Room Addition
Mr. Olson said the school district and the hockey programs wants locker rooms. They had
hoped the lockers and the mezzanine could be done together, but found that impossible. He later
added construction trailers had been used for the hockey teams in prior years and this winter they
will use a warming house. He thinks the school hockey would leave if they don't get lockers. The
district is now trying to fmd ways to help Hopkins with it, such as architects, etc., and is helping
work on a financial package including Youth Hockey, the Booster Club, and rental rate changes
(the school would pay an inflated rental rate to add $13,000). Another idea is to sell naming rights.
Mr. Mielke noted that had been used only for HCA. The Jaycees had given $400,000 to build the
Pavilion; that needs to be kept in mind. He later suggested names have time limits. Ms. Johnson
said she feels the Jaycees would be upset if a donation would get the azena named for someone and
their previous gift was ignored, especially as they no longer have money for further donations.
General discussion followed.
General Consensus was that the Pavilion name will not be changed. Naming rights for
interior areas and rooms would be possible, but the Jaycees should be consulted first. Mayor
Maxwell suggested the Jaycees could have the mezzanine named for them. Mr. Olson should
continue with the idea, but keep the Council updated.
Building Facility Charge
Mr. Strachota said the leases for HCA tenants do not prevent a facility charge. For those
events not having tickets, he suggested a CPT surcharge going directly to Hopkins and raising
room rates. Mr. Brausen felt HCA, Inc., should pay a higher rate. Ms. Johnson agreed, but said
the revenue sharing agreement should stay in place in case their income soazs in the future. Mayor
Maxwell felt 25C could be added on children's tickets. Mr. Rowan felt a percentage would be
easier to track than a per ticket fee.
General Consensus was to raise room rates and the tech (CPT) fees. Ticket facility charges
should be 10% (perhaps capped at $2.00 except for children's events it should be 25C. Two
Council members will be appointed to sit in on negotiations with tenants as Mr. Strachota
requested (Mr. Brausen said he would be willing). The new rates will be brought to the Council
for review before implementation.
Budget Review; Utility and Special Revenue Funds
Ms. Yager said special revenue funds are settled. Enterprise funds are still undecided.
November 12, 2003
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Economic Development Funds
Mr. Kerrigan went over the funds in his department. He noted the large salary increase in
Economic Development is due to Steve Stahmer's salary now being totally in this department. The
HRA levy will drop from $106,000 in 2003 to 0 in 2004 to keep taxes as low as possible, but the
HRA levy will be brought back in time . $61,000 will be transferred to HCA from this fund.
PARR transit will get $15,648 from the general fund to cover the second van expense.
Council suggested the Food Shelf be added to the approved list of stops. Parking permit fee
increases will be brought to the Council at the next meeting. Section 8 has grown to 400 units.
Shannon Smith's salary will now be 20% under this. Mr. Mielke asked for documentation on
where the units are located. Mr. Kerrigan said Hopkins is reimbursed $27/person month to help
cover expenses. Mr. Mielke asked if the increased fund balance could become a problem with the
state; Mr. Kerrigan said Met Council contracts for this program; Ms. Yager added a new copier
for $11,600 would be bought. Answering Mayor Maxwell, Mr. Kerrigan said landlords are not
tied to a term when they contraM with Section 8; more always join when rentals have more
vacancies.
He noted TIF district 2-7 for Thermo Tech decertifies in 2004. District 2-11 is unsettled as
it depends on North Annex development. Ms. Yager noted the district for downtown could be
decertified in 2005. There will be 3 decertified in 2005. At present there are 9 districts. She added
the tax reform of 2001 changed TIF districts.
Utility Funds
Mr. Mielke noted the public hearing on franchise fees used $1.50; the Council can lower
this to $1.00. Mayor Maxwell asked about debt service on the facilities. Ms. Yager said in 2003 it
was $540,000; in 2004 and continuing on it will be about $1 million. She added Mr. Stadler had
not had a chance to go over her new budget figures for these funds; she based them on
reorganization plan 3 with highest estimates for the transition period. Mr. Stadler added it does not
include ahalf--time maintenance person. Central Hopkins should be on the radio read meter
system shortly.
Ms. Yager said she is projecting a 15C water charge increase for 2005. A 5 % increase by
Met Council for refuse disposal in 2004 will mean an increased rate in 2006. She did not budget
the brush pick-up fee increase in the budget but the recycling increase is included. The change in
the county grant formula meant a loss of $5,000 for Hopkins. Answering Mayor Maxwell she said
the radio costs in these fund budgets were their share of the 800-trunk system. Storm sewer bonds
were issued this year as there was a deficit, but she is not projecting a rate increase. Mr. Stadler
noted Shady Oak Road construction could have costs for this fund. Ms. Yager summarized that the
only rate increase in 2004 would be the brush pick-up.
Answering Council questions, she said the reduction of the levy by $175,000 would mean a
7.48% gross levy increase, or an $8 per month increase for the average homeowner.
Other
Mr. Mielke announced Jim Lenz had died. Public Works employees are trying to raise
enough money to dedicate a park bench for him.
He continues to receive a-mails from the Presidential neighborhood. Ms. Sanders submitted
a request and has been put on the next Council meeting agenda. Neighbors have been informed.
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Council members commented on employee reactions to the budget.
It was agreed to address budget matters at the next work session on November 25, with
December 1 as a back-up date.
Ms. Johnson moved adjournment. Mr. Brausen seconded. Meeting adjourned at 10:20
p.m.
Kasey Kester, Secretary
ATTEST:
L~
Eugene J. axwell, Mayor
COUNCIL MEMBERS: