The Hampton City Council met on Tuesday, March 9, 2021 at the Hampton City Hall for a public hearing and the regular scheduled meeting. Present were Mayor John Knetter; Council Members Cindy Flodeen, Anthony Verch, and Kati Evertz-Garcia. Council Member David Luhring was absent. Also present was Chris Meyer, City Treasurer; Cory Bienfang with Bolton and Menk; and Kathy Youngquist with Cassia.
Public Hearing Called to Order – The purpose of the public hearing was to consider the City adopting a housing program to finance, in part, the New Harmony Care Center Project by the issuance of tax-exempt revenue notes or other obligations by the City and one or more other governmental issuers. Mayor Knetter opened the public hearing at 7:00 p.m. There was no public comment. Motion by Verch seconded by Evertz-Garcia to approve the issuance of tax-exempt revenue notes or other obligations by the City for the New Harmony Care Center Project. All voted in favor. None opposed. Motion passed 4:0.
Adjournment – Motion by Verch seconded by Evertz-Garcia to close the public hearing. All voted in favor. None opposed. Motion passed 4:0. The public hearing closed at 7:01 p.m.
Regular Meeting called to Order - Mayor Knetter called the Regular Scheduled Meeting to order at 7:01 p.m. Present were Mayor John Knetter; Council Members Cindy Flodeen, Anthony Verch, and Kati Evertz-Garcia.
Disclosure of Interest – Mayor Knetter indicated that a member of the Fire Department Relief Association was present and had asked to be added to the agenda but, because Knetter is a member of the Fire Department, he stated that he would not be voting on the matter and would not participate in the discussion.
Addition of Fire Department Relief Association to the Agenda – Motion by Evertz-Garcia seconded by Verch to add the Fire Department Relief Association to the agenda under new business. All voted in favor, with Knetter abstaining from voting. None opposed. Motion passed 3:0.
Addition of August City Council Meeting Change of Date to the Agenda – Motion by Evertz-Garcia seconded by Flodeen to add August 2021 City Council meeting change of date to the agenda under new business. All voted in favor. None opposed. Motion passed 4:0.
Approval of February 9, 2021 Regular Scheduled Meeting Minutes – Motion by Evertz-Garcia seconded by Verch to approve the February 9, 2021 Regular Scheduled Meeting Minutes. All voted in favor. None opposed. Motion passed 4:0.
Approval of Disbursements – Motion by Verch seconded by Flodeen to approve the March disbursements. All voted in favor. None opposed. Motion passed 4:0.
Public Comment – None.
Petitions, Requests, and Communications – Chris Meyer, City Treasurer, stated that he had submitted the City’s year-end 2020 Financial Statements (FS) to Council Members, and informed Council Members that the Office of the State Auditor requires that cities file their annual Financial Statements, along with a Financial Reporting Form, within 90 days of the end of the calendar year. The FS consist of eight schedules, which is unchanged from the 2019 Financial Statements. Meyer outlined a few financial highlights from 2020, including a large cash balance of over $1 million as of the end of the year. The main reasons for the large cash balance are 1) setting aside funding for bond payments of over $200,000 to be paid in January, 2) payment of the second half of taxes by Dakota County in October and December in the amount of over $150,000, and 3) because interest rates in the Insured Cash Sweeps accounts have been better than CD investments, funds in 2020 have been maintained in the ICS accounts, rather than investing in Certificates of Deposit.
Meyer mentioned that another highlight of 2020 is that the Water Fund had a profit, which is a direct result of raising the water rates at the beginning of 2020. Additionally, there were no large repair bills in 2020 for things such as water main breaks. Depreciation on fixed assets in the Water Fund totaled around $57,000, which also brings the net income of the Water Fund down each year. The Sewer Fund had a good year in 2020, with an operating income of over $52,000, which is directly related to the sewage dumping revenue.
Meyer reported that the City still has three bond series which are outstanding, with a debt balance of $3,380,000. His next step is to submit the Annual Financial Reporting Form to the Office of the State Auditor by March 31st, along with the Financial Statements. After that, the Financial Statements will be published in the newspaper.
The next item commented on by Meyer is the 2019 and 2020 internal audit. He provided an overview of the process. Because of the pandemic, the 2019 internal audit was not done, so both the 2019 and 2020 audits need to be performed this year. Knetter asked for volunteers from the Council to do the internal audits. Verch stated that he would volunteer and suggested that, because Luhring and he were supposed to have worked on the 2019 audit, that Luhring should work on the 2019 and 2020 internal audits.
Ordinances and Resolutions – Resolution 2021-03 calling for the approval of the issuance and sale of a senior housing and healthcare revenue note, Series 2021A, and authorizing the execution of documents relating thereto (New Harmony Project). Knetter asked for a motion to approve Resolution 2021-03. Motion was made by Verch seconded by Flodeen to approve Resolution 2021-03. All voted in favor. None opposed. Motion passed 4:0.
Water / Sewer Report – Knetter stated that Marlin Reinardy, Water and Sewer Superintendent, is still in Arizona. He reported that there had been a water main break in Belle Court, and provided details of the incident.
Park Report – Verch reported that there isn’t much going on in the parks right now because of wet and muddy conditions. He will monitor over the next few weeks and determine if there are any needs for new wood chips or other materials in the parks. He also mentioned that he has a plan for weed control that will, hopefully, allow him to stay ahead of weeds spreading.
Street Report – Knetter stated that the only thing to report is that a couple of water caps had popped out, and asked Council members if they had any other street issues. Council members stated that, in Luhring’s email regarding his absence from the meeting, he remarked that there was nothing to report on streets.
Old Business – COVID-19 update. Knetter provided a brief overview on where the City stands as far as following the Governor’s orders. He also referred to the Council’s wishes at the beginning of the pandemic to keep the office doors locked for staff safety. Discussion ensued regarding the doors being locked and safety measures that have been put in place. It is the consensus of Council members to leave it up to the discretion of the Clerk as to whether or not doors will be locked during regular business hours.
Economic Development Authority (EDA) – Knetter referred to the next agenda item, which is a request to purchase City land by one of the City’s residents. He also mentioned the previous request at the January 12th Council meeting by Gene and Scott Dohmen, which also asked for the purchase of City land. Knetter stated that he had researched with the League of Minnesota Cities and the City’s attorney about the issue. He learned that, because the property is a tax-forfeited property, there are some additional things that need to be done in order to sell the parcel, one of which is to establish an Economic Development Authority. He further stated that establishing an EDA would require a public hearing, possibly as early as April, and would like to get that scheduled. Discussion ensued regarding zoning of the properties and lot conditions. Knetter asked for a motion to schedule a public hearing prior to next month’s City Councilmeeting. Motion was made by Evertz-Garcia seconded by Verch to schedule a public hearing, for the purpose of establishing an Economic Development Authority for the City, at 6:45 p.m. on April 13, 2021. All voted in favor. None opposed. Motion passed 4:0.
Purchase of City Land-Jed O’Connor of Autocare Solutions – No action will be taken on this item at this time. The establishment of the City’s Economic Development Authority must first take place.
Request to Pursue Service Provider for Digitizing Hampton Code of Ordinances – Knetter referenced the need to have the City’s Code of Ordinances and policy information on a reference tool that is more user friendly than the books and CD’s currently being utilized. Discussion. Knetter stated that a motion is not needed at this time, that he wanted to put the idea out there for Councilors to consider. He plans to research various service providers and told Councilors that they can do the same if they are interested.
Fire Department Relief Association – Reed Kusir was in attendance as the representative of the Fire Department Relief Association. He informed Councilors that, at their business meeting last week, there was discussion about raising the pension contribution per year of service from $1,850 to $2,000. Discussion ensued regarding when this amount was last raised, that these are 100% volunteer positions, and the importance of the Relief Association to the City. Motion was made by Evertz-Garcia seconded by Verch to raise the pension contribution from $1,850 to $2,000 per year of service. All voted in favor, with Knetter abstaining from voting. None opposed. Motion passed 3:0.
August City Council Meeting Change of Date – Knetter asked for a motion to change the August City Council meeting date from the 2nd to the 3rd Tuesday of the month. Motion was made by Flodeen seconded by Verch to change the August meeting date from the 10th to the 17th of the month. All voted in favor. None opposed. Motion passed 4:0.
Adjournment - Motion by Verch seconded by Evertz-Garcia to adjourn the meeting. All voted in favor. None opposed. Motion passed 4:0. The meeting adjourned at 7:30 p.m.
Respectfully submitted, Judy O’Brien