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03-11-03 WSMarch 11, 2003 Page 1 MINUTES CITY COUNCIL WORK SESSION -March 11, 2003 A work session of the Hopkins City Council was called to order by Mayor Gene Maxwell at 6:30 p.m. on March 11, 2003, at the City Hall. Council members Brausen, Jensen, Johnson and Rowan were present. City personnel present were: City Manager Mielke, Assistant City Manager Genellie, City Attorney Steiner, City Planner Anderson, and Finance Director Yager. Wireless Telecommunications Facilities Ordinance Ms. Anderson said staff wants to be sure they are proceeding in the direction Council wants with the preliminary draft. As proposed, the ordinance would allow telecommunications towers only in industrial zoning. Antennas would be allowed in all other zones except Rl. She felt the new section on variances was critical, and pointed out building on right-of--way requires "special approval. " Attorney Steiner said his major concern is that the ordinance is not so .strict it keeps telecommunication companies from giving service. There are three major restrictions: antennas and towers prohibited in Rl zones; sizable setbacks for towers; no construction in right-of-ways without special permission. Ms. Jensen asked if there is a way to obtain total radiation readings for all towers, etc. Mr. Brausen says he knows there are "dead zones" for cell phones but is uneasy because Qwest has not shown where the ones their equipment is to correct are located. Mr. Mielke asked about total height for antenna and pole. He also said staff is in the process of getting a technical adviser for Qwest issues. General Consensus: The preliminary draft is good. Total height of antenna and pole needs to be restricted. Definitions of "rnid-rise" and "high-rise" should be added. 2003 Budget Review Mr. Mielke said he hopes to have more specific recommendations next month based on what happens in the state legislature. 2003 needs to be dealt with by cut-backs and transfers from other funds, and then the Council needs to build towards the 2004 budget. If the legislature does not finish a state budget, the governor could unallot monies as he sees fit; this might mean there would be no levy limits. Mayor Maxwell said Mr. Rhodes called and said they are working hard on budget issues. Ms. Yager said it is important to keep reserves at 40 % of tax revenues so that expenses can be met as as they occur. So although the reserve amount is about $3 million, there is really only about $200,000 available to offset revenue loss. Answering Mayor Maxwell, she said special funds balances would affect bonding ratings. She then went over the various special funds. Many of them, such as State Chemical Assessment, Section 8 funding, all the TIF funds, utility funds are not transferrable to general fund expenses. Some, such as the Parking, Depot, Pavilion, Skate Park, Paratransit and Art Center are, in effect, expenses for the city. Those that possibly could have transferrable funds include Economic Development, Real Estate Purchases, House Rehabilitation, and Cable fund. She noted that she and Mr. Mielke had already tentatively halved the money set aside for Equipment replacement, which would mean $250,000 more in the general fund; noting that in future years this would nerd to be re-evaluated and could be only a temporary solution. The equipment plan would need to be carefully looked at in 2004 planning, Discussing the funds, she noted $1 million in the Economic Development fund is readily available. This fund is presently being used for the Art Center mortgage. If transferred the fund would be on a cash flow basis until the Beard Group payment in 2012. Mayor Maxwell asked that the Cornerstone payment at March 11, 2003 Page 2 the end of the year be checked on. The $b1,492 in Real Estate Purchases is available and not presently designated for anything. She is checking further if the Housing Rehabilitation money could be used, but noted it is used much like an endowment to pay for Ms. Elverum's salary, etc. so that expense would then go into the general fund. The Cable Fund will gradually be used up by Art Center expenses and Mr. Genellie noted that in 2012 income figures there will probably change. During discussion Mr. Brausen asked that the Council be updated on the Web site. It was noted the parking ramp and lots cost more in enforcement than they bring in and should be evaluated. The city would be better off if they did not do Art Center programming and simply acted as landlords. Both Mr. Brausen and Ms. Jensen remarked they feel the city should be getting more for its money there. Mr. Mielke then said he sees 2003 as a transition year where the Council needs to just balance the budget based on a $700,000 loss in LGA monies. For 2004 and beyond, there needs to be aself-supporting general fund, with $1.3 million less LGA monies using.the governor's proposal. The "best, middle, worst" budget outlines are based on current staffing. To balance the general fund both cuts and increased revenues are necessary. Ms. Johnson asked for "average salary" figures; Mr. Mielke suggested $50,000. He has asked Mx. Genellie to work on a lay-off package. . General Consensus: The 2003 budget will be the first issue, but will lead into concerns and ideas for 2004 and beyond. Mr. Mielke and Ms. Yager should continue projections for 2004 based on a $1.3 million dollar cut. Proposals need to include budget cuts, personnel cuts and revenue sources. All agreed dialog with community is essential. Mr. Brausen's suggestion to ask former Council members and mayors to come and help "brain storm" met approval. Council is willing to at least look at Ms. Yager's suggestion of selling facilities. The first April work session will be a budget session; the "success is..."meetings need to be postponed. Mr. Mielke will have lists of items to think about for the next work session. Ms. Johnson moved adjournment. Ms. Jensen seconded. Meeting adjourned at 10:45 p.m, Kasey Kester, Secretary ATTEST: Eugene J. M ell, Mayor COUNCIL MEMBERS: