2003-02-28 Friday News
The Friday News
February 28, 2003
EAW Draft
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On February 19, we received the preliminary draft EAW for the Bluffs project prepared by developer Ron
Clark. Staff and the City Attorney reviewed the draft agreement, and are now recommending that the City
hire Barr Engineering to conduct a review of the EAW draft submitted. Minnesota Rules 4410.1400 state that
the City as RGU “shall promptly determine whether the proposer’s submittal is complete.” Although there is
no strict timeline for review, the rules impose a standard of reasonableness to the review period. Representatives
from Barr indicate that if their proposal is approved they could have a preliminary review of the EAW
completed within a two week period (preferably prior to the second Council meeting in March). The City
Council will consider this recommendation at their meeting on Tuesday.
Five finalists chosen for Police Chief interviews
The City narrowed down its pool of 40 applicants for the Police Chief position to five top candidates. Through a
written exercise, the City Council was able to narrow the pool to the following individuals: Tim Brennan, acting
Chief in Mounds View, John Gannaway, Bayport Police Chief, Greg Hestness, Deputy Chief in Minneapolis,
Mark Kempe, St. Paul Sergeant, and Larry Lotzer, a Sergeant in Richfield. The five candidates will undergo a
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two part interview process on Saturday, March 15. They will interview with three members of the Police
Department and then with the City Council. We hope to have a new Police Chief on board in April.
Annual Fire Relief Association Awards Banquet
Last Saturday, the Fire Department held its annual awards banquet at the Bluffs of Mendota. In all, over 100
people attended including the Mayor, Council members and retirees. Mike Maczko was honored for his 20 years
of service to the community. Mike retired in June of 2002. The Relief Association customarily gives the retiree
a gift of a gold ring when they retire. Since Mike does not wear rings he instead opted to have the value of the
ring donated to the Shriners Children Hospital. At the banquet, the firefighters also recognized the importance of
their family and spouses and presented them with gifts as a token of their appreciation. Children and spouses of
the firefighters endure a lot throughout the year and Chief Maczko paid tribute to them for the strength and
support that family provides each and every member. Others Recognized were Jim Kilburg for 20 years of
service; Aaron Coates, Jim Perron and Kevin Perron for 15 years of service; John Boland, Tracy Wilczeck and
rich Burrows for 5 years of service; and new recruit firefighters Michelle Malkes and Richard Griep. The
George Lowe Firefighter of the Year award was given to Captain Jeff Stenhaug. In addition to making all of the
required drills and trainings, Jeff participated in many extra activities contributing almost 500 hours to the
Department. He provides a spark and enthusiasm of a new firefighter recruit and continuously helps to increase
the participation and improve morale of all of the firefighters. The Department was very proud to present the
Firefighter of the Year award to Jeff.
Ballfield Lighting Proposal
Mr. Scott Miller presented a request to the City Council and the Parks and Recreation Commission to consider
installation of sports field lighting systems at Mendakota Park, Civic Center Ball fields, Sibley Varsity ball
fields and the St. Thomas Academy varsity baseball field. After much discussion, the Parks Commission does
not recommend a new bond referendum if lighting of one or two ball fields are the only planned projects. They
would, however, support a citywide bond referendum that would encompass maintenance or enhancement of
facilities throughout the existing trail and park system and construction of new facilities that may include sports
lighting. The Parks commission will be seeking further direction from the City Council on the issue at Tuesday’s
meeting.
Governor’s Budget Proposal
City officials and others who have tried to digest the governor’s budget proposal for aid reductions have been
confronted with a wide array of seemingly contradictory statistics. Depending upon how you measure it, the
governor’s proposal could appear to be either modest or dramatic. In the governor’s budget proposal, he portrays
the cuts as a 5 percent reduction for cities in calendar year 2003 and a 9.5 percent reduction in calendar year
2004. The governor characterized these cuts as reasonable when he recently stated: “If you’re on a city council
or a city manager and you can’t manage a 5-percent reduction in your total revenues without reducing police or
fire services, you should be fired. Elsewhere in his budget, he indicates the cuts are 22 percent of aids and in
other sections the cuts are described as 29 percent, 18.9 percent, and 38.5 percent. So which numbers are
correct? As you might guess, all of the figures are, in their proper context, accurate.
Starting with the governor’s 5 percent and 9.5 percent figures: he compares his proposed cuts to total city
revenues. The problem is that total city revenues include revenues to all governmental funds, including the
general fund, debt service funds, special revenue funds, and capital projects funds. In fact, about the only things
excluded are enterprise fund revenues and proceeds from bond sales. By using such a broad number, the cut
appears to be modest. However, most of the funds outside the general fund are not available for general
government operations nor can they necessarily be reduced to cover state aid reductions. The 22 percent figure
refers to the city and county cuts as a percentage of total property tax aids and credits. This category is
commonly used in state financial reports. However, property tax aids and credits include programs that do not
fund cities or counties. In fact, programs like the circuit breaker, the renters’ refund, and the targeting
program—all programs that provide direct payments to individuals based on their property tax burdens—are
included in this broad category. These latter, direct taxpayer programs are not cut under the governor’s proposal;
therefore, including them results in the appearance of a smaller cut. The 29 percent, 18.9 percent, and 38.5
percent figures all are related to cuts in aids paid only to cities. The total cut over the two-year period is 29
percent of all city aids. All city aids include several specific programs, such as aid to police and fire, Public
Employee Retirement Association (PERA) aid, as well as local government aid (LGA) and market value
homestead credit. The first year cut—for 2003 aids—is actually 18.9 percent, while the second-year permanent
cut is 38.5 percent. The 29 percent is roughly an average of the two annual cuts.
To really make your head spin, here are a few additional statistics: The reduction in LGA and market value
homestead credit for calendar year 2003 is 20.9 percent, while the 2004 calendar year reduction in these
programs is 40.8 percent. City aid cuts for the upcoming biennium represent 17.4 percent of the total permanent
spending reductions included in the governor’s budget solution. In the end, none of these measures accurately
portrays the actual impact of the governor’s proposal on individual city budgets. Perhaps the most accurate way
to analyze the impact is to look at a city’s cut as a percent of its general operating budget; or, the portion of its
budget that includes the spending from which cuts would have to be made. Unfortunately, that data is not
collected on a statewide basis. The House Tax Committee will begin taking testimony on the governor’s budget
proposal, including the proposed cuts to cities, beginning Tuesday, Feb. 25. These statistics will undoubtedly be
a major part of the committee discussion. We will keep you posted on new information as it becomes available
Goal Setting Session
On Tuesday, the City Council met for a six-hour goal setting workshop. Consultant Dennis Cheesborough
moderated the discussion. It was a very productive afternoon and evening. The full written report on the
workshop will be available in about ten days.
Final Thought
“I skate to where I think the puck will be”—Wayne Gretzky
Respectfully Submitted,
Cari Lindberg
Administrator
Attachments: Just the Facts, City Council agenda, Planning Synopsis, Star Tribune article “A dispute with a
view: Pilot Knob,” Pioneer Press article “Five finalists picked in police chief search,” and “State Budget Crisis:
How 2 cities cope,” Southwest Review article “Single family homes to replace Burow farm,” Highland Villager
“Shaughnessy remembered for his friendly face, head for city finance,” Sun Current articles “Approved
skateboard park inching its way to reality,” and “State aid to cities under hot debate,” Irish gazette “Ultan
Duggan: An ethos of service,” AMM News and LMC Friday Fax.