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10-13-2020 City Council Work SessionHOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS OCTOBER 13, 2020 CALL TO ORDER Pursuant to due call and notice thereof a regular meeting of the Hopkins City Council was held on Tuesday, October 13, 2020 at 6:30 p.m. in the Council Chambers at City Hall, 1010 1 St Street South. Mayor Gadd called the meeting to order with Council Members Beck, Brausen, Halverson and Hunke attending. Others attending included City Manager Mornson, CIO Hepp, Finance Director Bishop, Director of Public Works Stadler, Chief of Police Johnson, Fire Chief Specken, Recreation Director O'Dea and Director of Planning and Development Elverum. Mayor Gadd provided information on the meeting format and other opening remarks. 2021 — 2025 Capital Improvement 8� Equipment Replacement Plans; Bishop City Manager Mornson provided opening remarks including that Department Directors are available to answer questions via Zoom. The goal is to review both plans and get feedback for the 2021 budget and forecasting for the projects and purchases as part of the 2022 budget. Mr. Mornson also clarified that no new personnel is proposed. He ended by providing history on the Financial Management Plan (FMP) discussion and decisions. CIP Finance Director Bishop stated the CIP is a 5-year plan that is updated annually that is integrated with the Financial Management Plan (FMP). Finance Director Bishop provided an overview of the CIP and fund included in the FMP. Mr. Bishop provided information on the funding sources, projects and payments for Park Dedication. Discussion ensued regarding potential upgrades at Downtown Park. Mr. Bishop noted that $118,000 in project costs would need to be cut to have the fund balance. Director of Public Work Stadler added that the Central Park project has been delayed to 2022 with 2021 being mostly a pause of work in the parks. Mr. Bishop provided information on the capital improvement funds, projects and payments. Council Member Hunke talked about pushing CIP projects back but noted that it could affect the budget in upcoming years. Finance Director Bishop did not think the Hopkins Historical Society was moving out in 2021. Council Members Hunke and Brausen preferred to wait on making doing projects at the Activity Center so a larger project could be completed at once. Mr. Mornson added that with the uncertainty of the pandemic it makes sense to defer the project. Council Member Beck stated that in the CIP the tax levy revenue component is $175,000 so that brings us down to an ending fund balance of $200,000. He questioned if $100,000 could be removed from the tax revenue to end up with $100,000 fund balance. Mr. Bishop responded the option was possible as a policy decision. HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS OCTOBER 13, 2020 Discussion was held about upcoming lighting projects including the use of energy efficient materials. Council Member Hunke questioned the trail improvements. Director of Public Works Stadler stated the trail was part of the Bellgrove residents' request. City Manager Mornson talked about the $650,000 tax levy and other bonds. Further discussion was held on major street projects in 2022. Mr. Stadler explained the upcoming projects in detail. City Council questioned holding off on the road improvements at 6tn and 7t" Avenues South. Mr. Stadler stated the project could be delayed one year. ERP Mayor Gadd stated the priority is to understand what we do, the domino effects and looking ahead to 2022 and 2023. Council Member Beck questioned the levy goal amount noting he preferred to get below 2.82%. Mayor Gadd questioned the City Council on the proposed levy amount. He stated 2.82% is an impact on the residents under the current conditions noting he preferred to focus on the tax amount instead of the percentage. He felt that a 2.82% increase is a good spot to be at right now. Council Member Brausen wanted the levy to be lower than 2.82% knowing that the budgeting discussions will continue throughout the pandemic. He also wants to hear about the tax impacts from businesses. Council Member Hunke supported lowering the levy but was not comfortable at zero due to possible effects in next years. He questioned removing the playground equipment at Central Park and holding off on the Activity Center improvements. Council Member proposed projects by half. Council increase. Halverson questioned the budget impact by removing some of the . Mr. Bishop stated that removing the projects would reduce the levy Members Halverson and Hunke were comfortable with 1.4% levy Council Member Beck questioned lowering some of the tax revenue funds such as reducing the ERP by $100,000. Council Member Hunke was concerned about removing funds for potential purchase of emergency equipment and the what-ifs that are possible in the next year. Council Member Brausen agreed but expressed concerns about what could happen in the next year. Council Member Beck suggested smaller reductions that will eventually add up to larger amounts. Further discussion was held on the pavement management plan, personnel and local government aid. City Manager Mornson stated that five union contracts need to be negotiated this year. We are uncertain of the costs for the contracts at this time. He was looking for the City Council goals on the levy amount for 2021 and questioned if the City Council was looking at 1.4% levy increase. HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS OCTOBER 13, 2020 Mayor Gadd talked about the removal of Central Park play equipment and the Activity Center upgrades. He wanted to have discussions on what 2022 and 2023 may look like and reviewing the funds needed. Council Member Brausen was concerned about the effects of the economy on the residents and businesses. His goal was to get the levy to zero. Council Member Beck suggested getting the budget 1.4% followed by reviewing more line items. He noted that some of the facilities have improvements slated that are not currently open at full capacity. Council Member Brausen concurred. Mayor Gadd cautioned that be reducing the levy to zero may have long term effects on future budgets. Council Member Halverson added that going to zero will not flat line resident taxes. Home values have increased and the school and county levies need to be considered. City Manager Mornson stated that at the November 4 meeting staff will come back with levy reductions options. Further discussion was held on the fund caps and implications from moving or delaying projects and purchase. Mr. Bishop reviewed the next steps in the budget process. OTHER Council Member Brausen thanked the City Hall election staff for their customer service efforts during early voting. Council Member Hunke stated that the 2040 Comprehensive Plan has received their final approval from the Met Council. Staff is looking to bring back to City Council for final approval on November 17. He also provided information on the zoning code updates. ADJOURNMENT There being no further information to come before the City Council and upon a motion by Brausen, second by Hunke, the meeting was unanimously adjourned at 8:08 p.m. Respectfully Submitted, Amy Domeier, City Clerk ATTEST: