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12-19-2024HUTCHINSON CITY COUNCIL MEETING MINUTES THURSDAY, DECEMBER 19, 2024 CITY CENTER — COUNCIL CHAMBERS (The City Council is provided background information fog° agenda iten2s in advance by city staff, committees and boards. Many decisions regarding agenda iten2s are based upon this information as well as: City policy and practices, inputfiron2 constituents, and other questions or information that has not yet been presented or discussed regarding an agenda iten2.) 1. CALL MEETING TO ORDER — 5:30 P.M. Mayor Gary Forcier called the meeting to order. Members present were Tim Burley, Dave Sebesta, Pat May and Chad Czmowski. Also present were Matt Jaunich, City Administrator and Marc Sebora, City Attorney. (a) Approve the Council agenda and any agenda additions and/or corrections Motion by Czmowski, second by Burley, to approve the agenda as presented. Motion carried unanimously. 2. INVOCATION — A moment of silence was held. (The invocation is a voluntary expression of the private citizen, to andfor the City Council, and is not intended to affiliate the City Council with, or express the City Council's preferencefor, any religious/spiritual organization. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Resolution No. 15804 — Resolution Accepting $250.00 Donation from Hutchinson Jaycees and $500.00 Donation from Kim Kotzer -State Farm for Fireman's Park Project Motion by Czmowski, second by Sebesta, to approve Resolution No. 15804. Motion carried unanimously. PUBLIC COMMENTS (This is an opportunity fog° members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor if he will be accepting public comments during the agenda item if not a public hearing. Ifyou have a question, concern or comment, please ask to be recognized by the mayor state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, but please refrain fi on2 personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of December 10, 2024 Motion by Burley, second by Sebesta, to approve the minutes as presented. Motion carried unanimously. CONSENT AGENDA (The iten2s listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally iten2s are not discussed) 7. APPROVAL OF CONSENT AGENDA (a) Consideration for Approval of 2025 License Renewals (b) Consideration for Approval of 2025 Invocation Schedule CITY COUNCIL AGENDA December 19, 2024 (c) Appointment of Tom Lambert to Hutchinson Utilities Commission to December 2029 (d) Consideration for Approval of Memorandum of Agreement with MNPEA (Police Officers' Union) (e) Consideration for Approval to Purchase Oddfellows Park Playground Equipment (f) Consideration for Approval of Adoption of Hutchinson Downtown Plan (g) Consideration for Approval of Resolution No. 15802 — Resolution Adopting Findings of Fact and Reasons for Approval of a Final Plat for Danielson Addition With Favorable Planning Commission Recommendation (h) Consideration for Approval of Resolution No. 15803 — Resolution Adopting Findings of Fact and Reasons for Approval of a Lot Split at 305 Adams Street NE With Favorable Planning Commission Recommendation (i) Consideration for Approval of Resolution No. 15816 — Resolution to Dispose of Surplus Property (Creekside Blending Line Equipment) (j) Consideration for Approval of Resolution No. 15817 — Greater Minnesota Transportation Alternatives Grant Support for Grant Application (k) Claims, Appropriations and Contract Payments Motion by Czmowski, second by Sebesta, to approve consent agenda. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. - NONE COMMUNICATIONS, REQUESTS AND PETITIONS (The purpose of this portion of the agenda is to provide the Council with information necessary to craft wise policy. Includes items like monthly or annual reports and coniniunications f on2 other entities.) 8. REVIEW OF COUNCIL MEMBER APPOINTMENTS TO CITY BOARDS AND COMMISSIONS Matt Jaunich, City Administrator, noted that at the organizational meeting set for January 2, 2025, the Council appointments to boards and commissions will be on the agenda. He asked that the Council review the current appointments and voice if any council members would like to make any changes to the boards/commissions that they sit on. All council members expressed they are comfortable with the boards and commissions they serve on. UNFINISHED BUSINESS NEW BUSINESS 2 CITY COUNCIL AGENDA December 19, 2024 9. APPROVE/DENY RESOLUTION NO. 15805 — ADOPTING THE 2025 CITY OF HUTCHINSON FEE SCHEDULE Justin Juergensen, Assistant Finance Director, presented before the Council. Mr. Juergensen stated that some items to note are that there is a 5% increase to the refuse charges, 8% stormwater increase and some miscellaneous fee increases on the Park and Recreation fee schedule. Motion by Burley, second by Sebesta, to approve Resolution No. 15805. Motion carried unanimously. 10. APPROVE/DENY RESOLUTION NO. 15818 - RESOLUTION ADOPTING 2025 COMPENSATION PLAN, POSITION CLASSIFICATION TABLE AND PAY GRID Kellie Wendland, Human Resources Director, presented before the Council. Ms. Wendland explained that the proposed plan includes a few edits from last year's plan, specifically how internal transfers are handled, the definition of an internal transfer, and a slight adjustment to how pay increases are processed for anniversary increases that fall in the middle of a pay period. The proposed plan reflects a pay grid shift of 4% from the 2024 ranges. This market adjustment is recommended per the results of research and discussion conducted by the Wage Committee. The position classification table includes some position reclassifications to a different pay grade and the addition of a Fire Inspector/Firefighter position. Motion by Czmowski, second by Burley, to table this item until action has been taken on Item 14 on the agenda. Motion carried unanimously. Motion by May, second by Czmowski, to approve Resolution No. 15818. Motion carried unanimously. 11. APPROVE/DENY RESOLUTION NO. 15819 - RESOLUTION ADOPTING 2025 SEASONAL/ TEMPORARY/PART-TIME COMPENSATION PLAN, PAY LEVEL TABLE AND PAY SCHEDULE Kellie Wendland, Human Resources Director, presented before the Council. Ms. Wendland noted that the seasonal/temporary/part-time pay scheduled was last updated in 2022. During Wage Committee discussions, it was determined that the Seasonal/Temporary/Part Time pay schedule will typically be increased by half of what the regular pay grid will be adjusted annually. For 2025, this means a 2% shift in this pay schedule. Motion by Czmowski, second by Forcier, to approve Resolution No. 15819. Motion carried unanimously. 12. APPROVE/DENY 2025 ENTERPRISE FUND BUDGETS (a) Resolution No. 15806 — Resolution Approving 2025 Liquor Fund Budget (b) Resolution No. 15807 — Resolution Approving 2025 Water Fund Budget (c) Resolution No. 15808 — Resolution Approving 2025 Wastewater Fund Budget (d) Resolution No. 15809 — Resolution Approving 2025 Stormwater Fund Budget e) Resolution No. 15810 — Resolution Approving 2025 Refuse Fund Budget f) Resolution No. 15811 — Resolution Approving 2025 Compost Fund Budget Andy Reid, Finance Director, presented before the Council. Mr. Reid reviewed the various enterprise fund budgets and noted that some minor changes have been made to the budgets to include employee changes to the City's health and dental plans through open enrollment. In total, these funds will transfer $870,000 of excess profits into the General Fund. Without these transfers, the city tax levy would need to increase by an additional 10% and the median home value would pay an additional $135.00 in city taxes for 2025. Mr. Reid explained that enterprise funds are governmental operations that are financed and operated in a manner similar to private business. One major reporting difference from governmental funds is that each fund's capital assets are depreciated over their useful lives. The depreciation expense on the P&L typically results in a net loss but it is noted that deprecation is a non -cash expense and does not CITY COUNCIL AGENDA December 19, 2024 affect the fund's cash flow. It was noted that the cost of the hard goods pickup program has increased significantly over the years and therefore an increase in the refuse fund accounts for that. Motion by May, second by Czmowski, to approve Resolution No. 15806, 15807, 15808, 15809, 15810 and 15811. Motion carried unanimously. 13. APPROVE/DENY RESOLUTION NO. 15812 — RESOLUTION ADOPTING 2025 GENERAL FUND BUDGET Andy Reid, Finance Director, presented before the Council. Mr. Reid noted that there are two scenarios for the Council to consider in adopting the general fund budget. Scenario 1 includes the new Fire Inspector position with a 3/l/25 start date and sees a general fund tax levy increase of 5.8% which is down from a proposed increase of 8.6% presented in September. Scenario 2 does not include the Fire Inspector position which reduces the tax levy by $93,056 and sees a general fund tax levy increase of 4.4%. Mr. Reid noted that wages and benefits are the most significant when it comes to tax levy increases. Council Member Czmowski recommended leaving the Fire Inspector position in the budget and noted that he is fine with using water/wastewater funds for purchase of the fire ladder truck but reminded the Council that they will have to be okay with bonding for infrastructure improvements for future developments. Mr. Jaunich noted that a decision does not have to be made tonight on specific funding for the ladder truck. A payment will be required in late 2025/early 2026. Undesignated capital improvement funds or water/wastewater funds can be used for that payment. Mayor Forcier commented that he would like to keep the proposed Fire Inspector position in the budget. Motion by May, second by Czmowski, to approve Resolution No. 15812 which includes Scenario 1 with a general fund budget of $15,709,729.00. Motion carried unanimously. 14. APPROVE/DENY RESOLUTION NO. 15813 — RESOLUTION ADOPTING THE 2025 GENERAL FUND AND DEBT SERVICE FINAL TAX LEVIES Andy Reid, Finance Director, presented before the Council. Mr. Reid noted two scenarios are options: Scenario 1 includes debt for the fire ladder truck; Scenario 2 removes the fire ladder truck debt. Mr. Reid spoke about the difference between from borrowing from ourselves, borrowing from a third party or paying cash. Scenario 1 would have a total tax impact of 5.7% and Scenario 2 would have a total tax impact of 4.9%. It was noted that there are enough funds in reserves to make the first payment on the fire ladder truck. Motion by May, second by Czmowski, to approve Resolution No. 15813 which includes Scenario 2 with a tax levy amount of $9,276,413. Motion carried unanimously. 15. APPROVE/DENY RESOLUTION NO. 15814 — RESOLUTION ADOPTING 2025 HRA FINAL TAX LEVY Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the HRA's 2025 statutory levy limit is $287,521, however the HRA Board is requesting a lower levy of $170,000. This levy represents a 3% increase from the 2024 levy of $165,000. Motion by Czmowski, second by Burley, to approve Resolution No. 15814 in a levy amount of $170,000. Motion carried unanimously. 16. APPROVE/DENY RESOLUTION NO. 15815 — RESOLUTION ADOPTING 2025 EDA FINAL TAX LEVY 11 CITY COUNCIL AGENDA December 19, 2024 Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the EDA's 2025 statutory levy limit is $281,771 which is the levy amount the EDA Board is requesting. This levy represents a 3.3% increase over the 2024 levy of $272,842. Motion by Czmowski, second by May, to approve Resolution No. 15815 in a levy amount of $281,771. Motion carried unanimously. 17. APPROVE/DENY FIVE YEAR CAPITAL IMPROVEMENT PLAN Andy Reid, Finance Director, explained that the five-year capital improvement plan forecasts the City's capital expenditures over the next five years by department and potential funding sources. Mr. Reid noted that projects are not approved by being on the CIP and monies are not appropriated for the projects. Purchases over $50,000 require City Council approval which provides the Council an opportunity to discuss the proposed purchase in more detail. The CIP is a fluid document that is updated periodically throughout each year. Some projects get pushed back to later years, some projects drop off and some projects move up in years depending on priorities and opportunities. Mr. Reid noted that the Facilities Committee, Fleet Committee and Resource Allocation Committee are instrumental in continually shaping the priorities of several major components within the CIP. Mr. Reid also reviewed the city plans funded by local government aid which include the Facility Plan, Playground Replacement Plan, Miscellaneous Infrastructure Maintenance Plan and Equipment Replacement Fund along with some undesignated funds in the Capital Projects Fund. Motion by May, second by Czmowski, to approve five-year capital improvement plan. Motion carried unanimously. GOVERNANCE (The purpose of this portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items.) 18. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) City of Hutchinson Financial Report and Investment Report for November 2024 MISCELLANEOUS 19. STAFF UPDATES Matt Jaunich — Mr. Jaunich reminded the Council of the City's holiday hours and the organizational meeting on January 2, 2025. He noted that no snow emergency is being declared tonight but plows will be out cleaning streets. Mr. Jaunich also noted that he wants to have a conversation with the Council in early 2025 regarding the City's compensation plan and how the City pays employees. He also asked the Council to inform him of any changes they would like made to the budget process. 20. COUNCIL/MAYOR UPDATE Council Member Czmowski noted that the Park Elementary ice rink is open. Council Member May provided an update from the Bicycle/Pedestrian Committee which included the purchase of Stryder bikes for students to use. Mayor Forcier asked residents to adopt a fire hydrant and clean out snow from fire CITY COUNCIL AGENDA December 19, 2024 hydrants on their property to aid firefighters. He also requested residents to remove snow from vents and gas meters on their homes. ADJOURNMENT Motion by Czmowski, second by May, to adjourn at 6:40 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator