5.a2 Draft minutes 12-5-18 Work Session
December 5, 2018
The City Council conducted a Work Session on the above date. Mayor Maefsky called the
meeting to order at 6:30 p.m. The following were present: Council members Bob Hegland, Steve
Kronmiller, Chris Ness, Jim Schneider and Mayor Christine Maefsky. Staff members present:
City Administrator Neil Soltis, Fire Chief Mike Hinz and Deputy Clerk Brenda Eklund.
APPROVAL OF THE AGENDA
Ness, seconded by Kronmiller, moved to approve the agenda as presented. The motion
carried 5-0.
TRUTH IN TAXATION PUBLIC HEARING ON 2019 BUDGET AND TAX LEVY
A public hearing was held for the purpose of gathering public comments on the City’s 2019
budget and the property taxes needed to pay for the budgeted expenditures. In September, the
Council set a maximum levy increase of 2.48% for 2019, or $2,318,380. Council may lower the
levy at final adoption, but cannot increase it. Administrator Soltis described the changes
assumed for the general fund and capital funds for the next year. Levies for the Local Road
Improvement Funds are lowered while the Debt Service Fund is increased to pay for the 2018
Road Improvement Project, with minimal effect to the total levy. Soltis stated that this puts the
City in very good shape with miles of reconstructed roads.
New in 2018 was the special revenue fund called the Cable Television Fund. This holds the
cable franchise and PEG fees collected upon the departure of the City from the Forest Lake
Cable Commission in the second half of 2018. The PEG revenues must be used for equipment
purchases to provide public access according to the cable franchise agreements. Funds of $8,000
are earmarked for audio improvements in the Council chambers.
Soltis described other capital projects planned in 2019, such as LED lighting improvements at
the fire station, wetland restoration at Lilleskogen, and funding engineering costs in preparation
of a 2020 road project. Replacement of the 2008 Ford F-350 is the only equipment replacement
proposed out of the Equipment Replacement Fund. Fire Chief Hinz reported that the primary
jaws of life equipment recently broke down during a training exercise and is in need of
replacement because parts to repair it are no longer available. Soltis proposed that funds of
$30,000 be included in the 2019 capital budget for this equipment. Hinz agreed that a
replacement can be purchased in early 2019.
Soltis provided graphs showing Scandia’s tax rate lowered by 5.6% in 2019, placing the city in
the middle of all Washington County communities at 33.11%.
Mayor Maefsky opened the hearing at 7:07 p.m.
Janie O’Connor explained that she frequently cannot hear what is being discussed and voted on
during meetings, and asked that adding microphones to the meeting room be part of the 2019
budget.
There were no other public comments and Mayor Maefsky closed the hearing at 7:09 p.m.
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Soltis explained that the Cable TV Fund has dedicated PEG fee revenue as the source of funding
audio improvements, and this is in the 2019 budget based on previous estimates of $8,000.
Council discussed the budget in more detail later in the meeting.
DISCUSSION ON ELECTRICAL INSPECTION FEES
Administrator Soltis presented a proposal from Electrical Inspector Joseph Wheaton for an
increase to current electrical permit fees. Fees are currently based on the state schedule, which
has not been adjusted for 12 years. An electrical fee comparison to surrounding communities
was prepared, showing new house fees of $175 (Scandia at $135) and trip fees of $40 (Scandia at
$35). Soltis stated that this inflationary bump could be included in an updated fee ordinance for
consideration at a future meeting.
Council member Ness stated that $50 proposed as a minimum is too high as compared to other
cities, and he would like to see this set at $40; he is satisfied with all the other proposed rates.
Council members Schneider and Hegland agreed that the increases appear fair and minimal.
Council was in consensus to update the fee schedule with these proposed rates, with a minimum
fee of $40.
DISCUSSION ON PROVIDING SUBSIDIES FOR SKATING PROGRAMS
Mayor Maefsky said she would like to implement lowered registration fees for all recreation
programs to those in financial need. She cited that 19% of students attending Scandia
Elementary qualify for the free lunch program, and may be getting shut out of participating in
Scandia’s recreation programming for winter and summer activities. With the potential of
adding senior programming, she said it would be prudent to look into a policy and that there are
models out there to base this on. Maefsky added that it’s important to offer this as it says
something about the community as caring for their citizens.
Council members Schneider and Kronmiller said they would be open to looking at this, but
questioned how income eligibility would be determined by staff. Administrator Soltis explained
that families could provide the school district’s pre-qualification determination for the free or
reduced rate lunch program, but was unsure of a way to determine this for senior income levels.
Staff will research this conceptual rate structure for future discussion.
2019 OPERATING AND CAPITAL BUDGET
Administrator Soltis presented the budgets for the general funds by department, the EDA and
Cable TV special funds, debt service, capital and sewer funds for 2019. Building permit revenue
exceeded projections in 2018 due to last year’s storm events. Soltis explained that projections
for next year will be reduced to a more typical year, basing it on 2016 permit revenue.
Council member Ness asked what it would take to lower the city’s levy to 0%, stating that taxes
will go up for those in the Forest Lake School District due to a bond approval being added to
property owner’s taxes starting next year. Council member Kronmiller agreed that excess
revenue from 2018 should go towards setting a flat levy. Soltis explained that the unassigned
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fund balance at the end of 2018 is projected to be $1,538,849, of which approximately $60,500
could go towards reducing the General Fund levy so that the total levy remains unchanged from
last year’s amount of $2,575,872. The excess above the target fund balance of 50%-65% of the
general operating fund could be transferred to the capital improvement fund for future projects;
approximately $635,000 (50%) or $381,000 (65%).
Council was in consensus to set a 0% levy and transfer the excess over 65% of the general
operating budget to the Capital Improvement Fund. Soltis noted the addition of $30,000 to the
Equipment Replacement Fund for the fire department’s jaws of life replacement in 2019. The
final budget will be presented for adoption at the December 18, 2018 Council meeting.
DISCUSSION ON CLASSIFICATION AND COMPENSATION STUDY
Administrator Soltis presented the proposal from Springsted to prepare updated job descriptions
and a compensation plan at a fee of $4,900. Soltis explained that development of the 2017 pay
equity report concluded that descriptions and pay scales have not been updated for many years.
It is common for job analysis to be done every 5 years so that job duties are matched to proper
point values. Soltis recommended having an outside firm that specializes in human resources
complete the study to allow for a fair and objective review. Soltis noted that no other proposals
were received, and the City’s legal firm did not have the staffing.
Council member Hegland asked if the League could assist with this instead. Soltis explained that
specialized job duties differ in each community and job analysis must be based on what people
do and not job titles. Springsted proposes in-depth work on the study to evaluate, assign points
and relate to comparable cities. Soltis noted that there are funds in the budget to begin this year.
Kronmiller, seconded by Hegland, moved to approve hiring Springsted to conduct a
classification and compensation study at a fee of $4,900. The motion carried 5-0.
DISCUSSION ON AMENDMENT TO RIGHT-OF-WAY ORDINANCE NO. 197
Administrator Soltis presented amendments to the right-of-way ordinance for compliance to the
FCC’s ruling on small cell wireless and for the addition of an unopened streets policy. The
League provided a memo on action that cities need to take to comply with the new FCC rules to
address the timing of permits, size and aesthetic requirements which go into effect on January 1st.
In October, the Council reviewed a policy for platted but unopened road right-of-ways. The
Council asked for clarification to address the City’s liability related to personal use of public
property. The City Attorney advised that this be addressed by ordinance instead of a policy. The
language was included as Article Five in the draft ordinance. The City will not maintain those
unopened roads being used as driveways, and removes any liability arising from use of the
easements or unopened street.
Council was in agreement to schedule adoption of an amended right-of-way ordinance for the
December 18th Council meeting.
DISCUSSION ON UPDATE TO THE PENALTY ORDINANCE NO. 72
Ordinance #72 was approved by the Town Board in 2001, establishing the penalty for
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misdemeanor violations of town ordinances. City Prosecutor Welsh advised amending the
ordinance to establish a penalty for petty misdemeanors as cited in the dog and right-of-way
ordinances.
Administrator Soltis introduced a draft ordinance that sets the penalty of a petty misdemeanor at
the maximum amount allowed by the State ($300), continues the penalty of $1,000 for a
misdemeanor and repeals Ordinance No. 72.
Council was in consensus to schedule adoption of the ordinance at the December 18th Council
meeting.
DISCUSSION ON UPDATE TO THE 201 SEWER ORDINANCE NO. 189
The Wastewater Committee recommended establishing a penalty for tampering and misuse of
the 201 Community Sewer Treatment System that causes extra expenses to the City. The
Committee suggested offenders be billed up to double the actual costs so as to penalize
undesirable actions.
Administrator Soltis presented the amended ordinance with updated language to Section 8 and
Section 10 establishing the violations for this disturbance to the system occurring on the user’s
property. Soltis noted that the burden to the property owner could include the full cost of repairs
including cost of employee time, vehicle, and an administrative fee. The new ordinance would
repeal number 189.
Council was in agreement to schedule adoption of the ordinance as presented for the December
18th Council meeting.
DISCUSSION ON ADMINISTRATIVE CITATION ORDINANCE
Over several work sessions, the Council discussed the establishment of an administrative citation
process for issues such as junked cars, exterior storage, parking and other nuisances as an
alternative to a court process to reconcile the violations. Administrator Soltis worked with legal
counsel to draft an ordinance establishing this citation process that could be issued by the
Sheriff’s Department or a designee such as a Building Inspector. As requested by the Council, a
notice for an order to correct the violation may be the first step, with exceptions as provided for
in Section 4. The ordinance establishes the procedures for payment of fines, request and
procedures for a hearing, and recovery of civil penalties.
Council member Kronmiller stated that this process is better than going through the criminal
court system. Soltis agreed that this will be a more efficient and timely procedure to obtain
compliance.
Council was in agreement to move the ordinance forward for adoption at the December 18th
Council meeting.
FUTURE WORK SESSIONS
Topics to be covered at the next Work Session will include further discussion on establishing a
policy on financial assistance for recreation programs.
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ADJOURNMENT
Ness, seconded by Hegland, moved to adjourn the meeting. The motion carried 5-0.
The meeting adjourned at 8:05 p.m.
Respectfully submitted,
Brenda Eklund
Deputy Clerk