07-24-01 WSJuly 24, 2001
Page 1
MINUTES
CITY C®UNCIL WORD SESSION - 3ULY 24, 2001
A work session of the Hopkins City Council was held at 6:30 p.m. on July 24, 2001, at the
City Hall. Council members present were Mayor Maxwell and Council members Brausen and
Jensen. City personnel present were City Manager Mielke, Finance Director Yager, Public Works
Director Stadler, Police Chief Reid, and Captain James Liddy.
Public Works/Police/Fire Facilities Discussion & Budget/Levy Discussion
Ms. Yager said she would discuss both of these together as the facilities construction would
affect the levy. Current estimates of the total bond issue needed for the facilities construction
would be $11,770,000, based on a $150 per square foot cost. Of the $2,555,000 for the Public
Works addition, $800,000 could be taken from public works funds. There are two major ways to
approach the funding. One is by regular referendum. The other would be by HRA lease revenue
bonds, which would cost the city more and would put a larger burden on the businesses, but would
cost less for homeowners . Later she explained HRA is actually a lease so rating agents give it a
higher risk rate, thus the higher cost in the end.
Part of the problem in discussion is that the effects of the recent legislation have not yet
been fully explained. She later added the state says she will get final figures in September as to
levy limit, final tax capacity, tax increments, etc. While the state granted Hopkins $50,000 in
additional local government aid in replacement of allowing the city to apply a food and beverage
tax, this was directly associated with Art Center operations. Levy limits have been replaced, but
what Hopkins' limit will be is unknown at this time. If the city is allowed to keep its 2000/2001
levy amount, the Art Center will be able to absorbed into the general fund.
Her best estimation at this time is that the removal of the state aid will cost the average
taxpayer approximately $150 more this year just to maintain current services. She showed several
charts of how the new facilities would affect the tax increase. A $12 million bond would cost a
resident with a $130,000 home about $12 more per month, and a business owner of $250,000
commercial property $28 more per month beyond the increase caused by the cutting of state aid.
A HRA lease bond would cost the same homeowner $9 more per month.
Ms. Jensen said her biggest fear is that in the past every time a school referendum has been
paired with another referendum the voters have passed the school's and defeated the other one.
Chief Reid said that waiting a year would cause his department great problems as he must start the
new radio/dispatch systems shortly.
In discussing presenting the issue to the public Ms. Jensen felt the police station would be
the "easiest to sell. " Chief Reid disagreed, saying the fire trucks can't all fit in their building,
that's the easiest to see. Ms. Jensen countered she has heard comments on how wonderful the fire
department is after their open houses. She also said she felt a 3-D model at City Hall would be a
big help. Mr. Brausen said the Citizens' Academy would be a good place to educate the public.
Ms. Yager said the big issue is whether to go general referendum or HRA lease, explaining
later that if the referendum failed HRA lease would be impossible to pursue. She said if the
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Council is fully committed to the need of a new facility, the only way to be sure of getting it is by
the HRA lease. Ms. Jensen said she HRA lease would be her choice as she fears the facilities
would lose on the same ballot with the school. Chief Reid said he felt it would be hard to sell to
the public in the time allowed-pointing out all the time he has explained to the Council, and they
still had questions. Mr. Stadler said he agreed with Ms. Jensen that the facilities would "lose"
against the school referendum. He added he would also like the authority to go ahead with
detailed planning of his site as at this point Public Works is actually losing some space and he
needs to get his staff fully comfortable with the idea. Chief Reid added SEH says that planning
would take about 2 months.
Mr. Brausen said he was uncomfortable with the effect using HRA might have on the marginal
businesses in town, but felt the need was paramount.
Mr. Mielke said he feels the public would make up its mind on the referendum vote before
they could be fully informed of the city's needs. He suggested using HRA lease, and. then
educating the public of the needs. Then during budget discussions, if the public was against the
increased costs caused by the facilities the Council could go to a referendum. By then the public
would have had the big increase due to the cutting of state aid. He felt the fact that HRA lease
would be $3 per month cheaper than the general referendum cost could be a selling point for that
choice with the public, for then it would be "only $9 more a month." He added Ms. Hesch had
communicated to him she was leaning toward HRA. Mayor Maxwell noted that there would be
public flak no matter how they did it, and the Council had to be committed to the idea fully, and
that education before budget hearings would be a necessity. He said if there is a way to get the
bond to under $10 million it would be a lot easier to "sell" to the public. Ms. Jensen suggested
fund. raising might be used, not only for the money it would generate but so that the public would
see citizens working for the facilities.
General Consensus
The HRA lease should be pursued. Public education should be pushed by all three
departments so that when the budget discussions, which will incorporate the HRA lease costs, are
done, the public will be well informed of the dire need for the new facilities. Mr. Stadler was
authorized to go to SEH for more detailed plans, including an analysis of the police remodeling of
the fire department building.
Vision Process
This was postponed until a full Council would be present.
Other
Skate Park Rental
Kathleen Tabor has been approached by a family wanting to rent the skate park for a bar
mitzvah for the last three hours on the Saturday after Labor Day. They would like the caterer to
serve liquor as well as food. The skaters would be entertainers hired for the event. Mr. Genellie
and Ms. Tabor are now putting together guidelines for the August meeting. There was discussion
as to whether liquor should be allowed at all. Mr. Brausen and Ms. Jensen were in favor as they
feel it is not a "teen run" facility but equivalent to the pavilion. Mayor Maxwell said he had
reservations but would not stop the rental.
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General Consensus: The guidelines should be presented, and should be sent to the
Chemical Health Board for their information the Monday before the meeting.
Developer Interviews
Each Council member had been asked for a question to be presented at the interviews. Ms.
Jensen said hers is "Why do you want to build here?" Mr. Brausen said he has two: "What type
of housing are you choosing and why, and will you keep the area's "old world charm"? Are you
willing to upsize (include the Locomen property)?" Mayor Maxwell said his is "Are you just a
developer who will do the job and say "goodbye" or will you stay here in the community?" Mr.
Mielke said Ms. Hesch had left hers with him: "We know how your development will contribute
to the economy of the community, how will it make our community better in other ways?" It was
agreed the questions would be discussed and narrowed during their meal before the interviews.
Mr. Mielke also informed the Council the request for livable community money was denied.
Kirsten is now drafting a letter of protest.
Miscellaneous
Mr. Stadler gave an update on street work and parking lot work.
Ms. Jensen asked that variances philosophy be a future subject.
Ms. Jensen moved adjournment; Mr. Brausen seconded. Meeting adjourned at 9:05 p.m.
Kasey Kester, Secretary
ATTEST:
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Eugene J. Maxwell, Mayor