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Minutes - 08/17/2010 WSPage 1 MINUTES OF THE CITY COUNCIL WORK SESSION Raspberry Room Tuesday, August 17, 2010 Mayor Maxwell called the meeting to order at 6:00 pm. Present were Mayor Maxwell and Council members Kristi Halverson, Rick Brausen, Cheryl Youakim, Bruce Rowan, Hopkins City Manager Rick Getschow, Building Official Christopher Kearney and Finance Director Christine Harkess. RENTAL LICENSING PROGRAM DISCUSSION: Building Official Kearney is following up at this Council Work Session from a prior Council Work Session where the entire rental licensing program had been discussed. At the previous Work Session staff and Council discussed the effectiveness of the program, the number and types of units that have been inspected, what have been found in the units and the financial feasibility of the program. At that time Council directed staff to look at some fee changes based on the operations of the program. Even though the program is paying for the additional position that was hired in 2007 there are other costs of the program that are not being captured through program revenues. • Building Official Kearney provided a report on potential fee changes and also provided the fee's of the neighboring communities that have a rental licensing program. Changes for fees proposed that would raise the license fee and also would raise inspections beyond the initial rental inspections. Council and staff discussed the proposed fee changes. It was recommended that the license fee begin at the next rental registration cycle be increased from $35.00 per building to $50.00 per building. The per unit fee increase is from $5.00 to $7.50 with a guarantee that the fee's would not be raised for three years after this change. Staff will consult with the Hopkins Apartment Managers Association (HAMA) to receive input on the proposed fee changes. The fee increases would be placed on the September 7th council meeting agenda. 2011 BUDGET: Finance Director Christine Harkess and City Manager Rick Getschow discussed the 2011 preliminary budget and levy that needs to be approved at the September 7th city council meeting. At this time, there is a proposed 2.5 % levy increase which equates to approximate Page 2 2% increase in the overall city budget. Due to the decrease in property values the City tax rate will still increase however, due to the decertification of a TIF district and the use of dollars that were saved in the 2009 budget, the city was able to keep the levy and tax rate lower than what normally would occur with a decrease in property value city wide. Staff also stated that their hope is to reduce the levy further between now and the September Th meeting understanding that it will probably fall somewhere between 2 and 2.5%. Council directed staff to prepare that levy and budget and also be sure to include information about the TIF District decertification and savings on other city capital projects such as the street and utility improvements. Staff will follow-up and place this item on September 7th agenda. With no further business, motion by Brausen, second by Youakim to adjourn at 7:14 p.m. • Rick Getschow, Secretary CITY COUNCIL ATTEST: Eugene J. Maxwell, Mayor