Loading...
06 20 23 Work Session MinutesCity Council Work Session June 20, 2023 Page 1 City of New Hope 4401 Xylon Avenue North New Hope, Minnesota 55428 City Council Minutes Work Session Meeting June 20, 2023 Northwood Conference Room CALL TO ORDER The New Hope City Council met in work session pursuant to due call and notice thereof; Mayor Hemken called the meeting to order at 6:30 p.m. ROLL CALL Council present: Council absent: Kathi Hemken, Mayor John Elder, Council Member Andy Hoffe, Council Member Michael Isenberg, Council Member Jonathan London, Council Member Staff present: Reece Bertholf, City Manager Erin Enstad, Abdo Vicki Holthaus, Abdo (virtual) Tim Hoyt, Director of Police Rich Johnson, Director of HR/Admin. Services Valerie Leone, City Clerk Stacy Woods, City Attorney DIALOGUE WITH PERSONNEL BOARD Item 11.1 Mayor Hemken introduced for discussion item 11.1, Dialogue between City Council and Personnel Board. Mr. Rich Johnson, director of HR/admin. services. introduced Tony Brown and Wendy Brostrom, commissioners of the Personnel Board. He stated Eric Galstad was unable to attend the meeting. Mr. Johnson reported the last dialogue was held in November of 2021. Since that time the Personnel Board has assisted with 13 job recruitments and reviewed 11 job descriptions. He explained the city is nearly fully staffed. Mr. Tony Brown and Ms. Wendy Brostrom shared their backgrounds and expressed their views regarding the job market. It was noted the city has a good reputation which draws quality candidates. Ms. Brostrom stated employers must keep people engaged and maintain open dialogue with employees. Discussion ensued regarding the city’s culture and leadership. Council thanked the Personnel Board for their expertise. 2022 ANNUAL COMPREHENSIVE FINANCIAL REPORT Item 11.2 Mayor Hemken introduced for discussion item 11.2, Review 2022 Annual Comprehensive Financial Report (ACFR) with Abdo. Mr. Reece Bertholf, city manager, explained that Erin Enstad of Abdo is present to review the audit with Council and Vicki Holthaus of Abdo is available virtually for questions as well. City Council Work Session June 20, 2023 Page 2 Ms. Erin Enstad, Abdo, provided financial highlights of the 2022 audit: • The assets of the city exceeded its liabilities by $100,927,731 at the close of the year, of which $30,306,053 (unrestricted net position) may be used to meet the city’s ongoing obligations to citizens and creditors. • Combined ending fund balances were $31,403,877, an increase of $1,349,091 compared to prior year. Approximately 18.3 percent of this total amount is available for spending at the city’s discretion. • Unassigned fund balance of the General Fund was $7,655,481 or 44 percent of total General Fund 2022 expenditures and transfers out. The city’s policy is to maintain a 42 percent reserve. • The city’s total bonded debt decreased by $3,522,412 (7.2 percent) during the current fiscal year. • The city implemented Governmental Accounting Standards Board (GASB) Statement No. 87, Leases, in fiscal 2022. Ms. Enstad reported on the financial position of the general fund and noted the fund balance decrease was mainly due to transfers to finance capital improvements (transfer of ARPA funds to the public works CIP for the phase 2 expansion). She reported the Council approved unbudgeted transfers of $500,000 into the General Fund for Emerald Ash Borer abatement program and $1,142,382 out of fund balance accumulated in 2021 to internally finance capital improvements. Ms. Enstad reported the total net position of the enterprise funds (sewer, water, storm water, street lighting, golf course, ice arena) was $31,949,744, an increase of $2,389,438. She reviewed the individual accounts. Ms. Enstad stated the audit will be presented at the next council meeting for formal acceptance. Mayor Hemken noted the city may receive higher local government aid in 2023 compared to prior years. Council thanked Ms. Enstad for the presentation. 2024 BUDGET Item 11.3 Mayor Hemken introduced for discussion item 11.3, Preliminary Discussion on 2024 Budget. Mr. Reece Bertholf, city manager, stated there are 19 goals/priorities that were prepared by staff. He asked Council to advise him of any additions or modifications. He stated staff is also seeking feedback from Council on the proposed budget and timeline. Ms. Enstad reviewed the proposed goals and priorities, budget schedule, local government aid projection of $1,306,156, central garage funding, administrative transfers, IT charges, election cost increase, council salaries, employee compensation and insurance, park and street infrastructure levies, the EDA and HRA levies, and debt service levies. She indicated no new positions are planned for 2024. Ms. Enstad City Council Work Session June 20, 2023 Page 3 explained the public works facility expansion (phase 2) is part of the city’s long-range financial plan. Ms. Enstad indicated three scenarios have been provided showing the preliminary city levy: 1) 5% general fund levy increase would result in a 3.82% increase of the property tax levy; 2) 7% general fund levy increase would result in a 5.09% property tax levy increase; and 3) 5% general fund levy increase and the addition of $100,000 capital funds for fire, swimming pool, and city hall would result in a 5.40% property tax levy increase. She stated for scenario 1 and scenario 2, a $300,000 transfer could be made from the general fund for the CIP for fire, pool, and city hall. She explained that she along with the directors and the city manager will be reviewing the proposed budgets in detail during July and August. Ms. Enstad reviewed the budget timeline and asked Council their opinion on holding the budget hearing on November 27 at 6:30 p.m. prior to the regular council meeting (two weeks prior to the budget adoption meeting). She noted in prior years the budget hearing was held on the first Monday in December (one week prior to the budget adoption meeting). Council expressed support for holding the budget meeting on November 27. Council thanked Ms. Enstad and staff for the budget information. VEHICLE LEASE Item 11.4 Mayor Hemken introduced for discussion item 11.4, Discuss the leasing of an unmarked vehicle through Enterprise Fleet Management. Mr. Tim Hoyt, police chief, explained at the March 20 work session, due to market conditions, staff was authorized to order vehicles planned for replacement through year 2024 per the CIP (with ratification by Council at a later date). He stated this spring the Northwest Metro Drug Task Force dissolved. Other task force opportunities are being explored with the county. Director Hoyt stated the city is able to assume the lease of the vehicle that was driven by the city’s investigator who was assigned to the task force. The vehicle is a 2022 Volkswagen Tiguan. The city will save approximately $5,000 in ancillary equipment set-up and installation costs as the vehicle is already equipped as an unmarked vehicle. The monthly lease price is $480.67 ($5,768 annually), and the lease cost would be funded through the central garage vehicle replacement fund. He requested permission to add the vehicle to the city’s fleet. Council expressed support and directed staff to place the item on the June 26 agenda for formal approval. RESOLUTION CALLING FOR CLOSED MEETING Item 11.5 Mayor Hemken introduced for discussion item 11.5, Resolution calling for a closed meeting of the New Hope City Council authorized by Minn. Stat. §13D.05, Subd. 3(b) to discuss and consider litigation defense and settlement strategies with Ashton Homes, LLC. City Council Work Session June 20, 2023 Page 4 RESOLUTION 2023-82 Item 11.5 Council Member Elder introduced the following resolution and moved its adoption: “RESOLUTION CALLING FOR A CLOSED MEETING OF THE NEW HOPE CITY COUNCIL AUTHORIZED BY MINN. STAT. §13D.05, SUBD. 3(B) TO DISCUSS AND CONSIDER LITIGATION DEFENSE AND SETTLEMENT STRATEGIES.” The motion for the adoption of the foregoing resolution was seconded by Council Member Isenberg, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Isenberg; and the following voted against the same: None; Abstained: None; Absent: London; whereupon the resolution was declared duly passed and adopted, signed by the mayor which was attested to by the city clerk. ADJOURNMENT The meeting was adjourned at 7:51 p.m. as there was no further business to come before the Council at its work session. Respectfully submitted, Valerie Leone, City Clerk