08-28-07 WSAugust 28, 2007
Page 1
MINUTES
CITY COUNCIL WORK SESSION -August 28, 2007
A work session of the Hopkins City Council was called to order by Mayor Gene
Maxwell at 6:30 p.m. on August 28, 2007, at~ the Hopkins City Hall. Council members
Rick Brausen, Kristi Halverson, Bruce Rowan and Cheryl Youakim were present. City
personnel present were City Manager Rick Getschow, and Finance Director Christine
Harkess.
2008 Budget
Finance Director Harkess said the Council had given staff the charge to get the
proposed levy under 5%. Driving the budget were proposed salary and benefit increases,
election year costs ($18,500 additional), energy costs -fuel, electricity, and property,
liability, and workers comp insurance. Staff reached the goal by many small cuts, the
largest of which was $10,000 less for part-time salaries. Debt service levies were able to
be adjusted. The result is a general fund expenditure increase of only 3.45%. Other
factors included a lower tax capacity rate and the limited market values coming off. The
end result was that staff was able to reduce the levy rate from 5.95% to 4.74%.
Answering Ms. Youakim, she said Hopkins is required to keep 105% of the debt service
levies on hand. Answering Mr. Brausen, she said that all of Hopkins has been reassessed
by Hennepin County. City Manager Getschow said limited market values are no longer
in effect and value increases may be due more to that than actual assessed values
changes.
Ms. Harkess said she had also been asked to report back on the savings from
employees retirements. There were savings, but only a small amount of that affected the
general fund. The rest of the savings are allocated in other funds.
Answering Mr. I~.owan, she said the accounts where certain line items are put
changes as the program-based budget started a few years ago gets refined. She feels that
that process is largely completed. Answering Mr. Rowan, she said the $39,000 figure
under "Contingency" is an aggregate figure for the whole budget; it will be allocated to
the various departments in the ,final budget. Answering Ms. Youakim, she said the
Fontingency fund covers potential expenses, unexpected items and emergencies. It would
not be able to cover major catastrophes such as a tornado hitting Hopkins. Various
balances earmarked for specific purposes could be drawn on in such a case, but would not
cover the full expenses. He is comfortable with the budget as set out. Staff wanted to get
a solid budget done early so that at the public tax hearing the city would not need to say
the figures mailed to the citizens had changed. Staff feels strongly that the current
proposed budget is largely where the final budget will be. Ms. Youakim mentioned
using DPI and CPI figures in explaining the budget to the public; there was a brief
discussion. Mr. Getschow noted that initiative changes, such as the Art Center and
infrastructure building, are not general fund items and do not affect the levy. Answering
Ms. Youakim, he said there were no cuts planned to the amounts given to various
community services -Sojourner, Family Resources Center and ICA.
Ms. Harkess said next year the franchise fee will be renegotiated. She suggested
the Council may want to consider a percentage rather than a flat fee. The city has
received $280,000 - $285,000 every year so far. Mr. Getschow suggested that income
August 28, 2007
Page 2
might be earmarked for utility and street purposes. Mr. Brausen asked staff check how
well the street work done by utility companies when they are done with a project is
checked to be sure it meets the original street standards.
Ms. Harkess noted the preliminary levy would be set in November and the Truth
in Taxation hearing would be held Monday, December 3, with a possible continuation
date of December 18. General consensus was that the levy of 4.74% would be brought to
the Tuesday Council meeting.
Management Update
City Manager Getschow reported on various organizational management
initiatives that have been undertaken in the past year. Employee Performance Reviews
are now based on new, consistent forms and take place on a regular basis. They now
include 360° feedback (including employee comments on supervisors and comments by
fellow employees). Employee surveys showed employees would like help with
educational expenses. This program was available and has been revitalized as a result.
Orientations were not rated well, so a new program was instituted as a result. Employ
Orientation is now well-organized. He gave Council members a handout. He added
Board and Commission orientation and Council orientation programs have been
implemented. Exit interviews used to be questionnaires sent to ex-employees. Six
months ago he started formal interviews. He gave a sample of the form followed to the
Council. All-employee meetings occur on a quarterly basis. He tries to make them
informational and enjoyable so that they become ateam-building event. Hiring and
selection processes may include panels and multiple interviews. He sits in on some
supervisor interviews and has included staff interviewers.
Ms. Youakim asked about an employee handbook. Mr. Getschow will check into
that. Mr. Brausen commented good exit interviews ensure that if a problem in a
department is causing turnover, the city manager becomes aware of it.
Mr. Getschow discusses employee events such as the picnic, the recognition
luncheon and employee meetings that the Council attends. He asked Council to contact
him if they can think of other things to do. In regard to Council development, he said this
now includes the League of Cities training program and an in-house orientation. He
asked if team building was helpful. What more could he do?
Mayor Maxwell asked for Council comments. He said he likes everything that
has been done. He discussed Council involvement in future department head hiring. Mr.
Brausen added he feels what has been implemented is a big step in the right direction.
Other
Ms. Youakim said asked about the Park Valley neighborhood annual meeting.
She has received an e-mail from a resident about a car parked in front of her home
for 2 months. The resident called the police and was told there is no ordinance on length
of parking, which is not so. She is concerned about consistency of police procedure
when they receive a complaint. Mr. Getschow will follow up.
She said the condition of the concrete alley behind or one block from Valvoline is
down to pebbles. When will it be replaced?
Mr. Brausen asked if the church owned the house for sale on 13th and was told
yes.
..ua~x.,ire;.~~~~zs~+~;.,,~-~.-~a.>~._-~~tr,a:~..._ :n~g~,~ ~ .. _ ~ - - - - - -- ~rs~, ~.n ~, .~, ,.,~ ,~_~...,
August 28, 2007
Page 3
He asked about the Valvoline property, which could sit for a long time. Mr.
Getschow said Ms. Elverum has talked to the owners about it; he will checlc with her and
report back.
Mr. Getschow said there has been a meeting with Elite Development about Block
64. Two other developers are also interested. There also was a meeting of staff and the
Park Plaza owner regarding the purchase agreement. They are open to working with the
city or a developer and extending the agreement through December.
Mayor Maxwell mentioned the meeting with Cargill Wednesday and asked for
ideas. Ms. Youakim suggested discussing a shuttle between Cargill and downtown
Hopkins. Mayor Maxwell said he feels that rather than asking directly for donations
(using the Arts Center as an example), it might be more advisable to ask them to make
contacts for the City with other companies.
On motion by Ms. Youakim and second by Ms. Halverson, the meeting adjourned
at 9:05 p.m. on a vote of 5-0.
Kasey Kester, Secretary
ATTEST:
Eugen . M ell, Mayor
s~uR.k•ka4.'.~5ft>44:"r a.,3*'tw -, cs.r~ . `~.%S3> s ._ _ e,..i ~ - ,. ..- .... _ _ ._ y ~ _ ~ , ,u , ~ . vs ~. ... . /~ r ~
w~ Ul r,