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PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
September 17, 2007

The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, September 17, 2007 at the hour of 5:30 o’clock p.m. with Mayor Brown presiding. Present at roll call were Council Members Brooks, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; absent: none.

Mayor Brown announced that anyone wishing to speak to any item may do so by being recognized prior to a vote being taken on the matter, and that the meeting is being televised.

Mayor Brown commented on various items during the past week and upcoming events:
Congratulations to the UND football team and Central High School alum Ryan Chappell for his record afternoon and everyone involved with the Potato Bowl; and that he also had the honor to be in the parade with Ali Karpenko and raise awareness on the effort to develop an all access playground in Grand Forks.
This weekend reminded us of the impact the University and especially the students have on this community, they are part of this community and how they help make it a special community that it is.
Tomorrow they kick off the "Just Say Hi" good neighbor program with city council members, Ward 2, Council Member McNamara, President Gershman, Council Member Glassheim are also taking part joining with UND students and other staff to go door to door and encourage people to take time to meet their neighbors. Our Public Information Center has helped with brochures and a joint website with the students that can be accessed from the city website to learn more. The walk starts tomorrow at 5:00 p.m. at the Memorial Union.
The city council and Student Senate will have their first joint meeting of this year this Sunday to discuss issues that affect us all. On Saturday the Students Today Leaders Forever will be doing a service project in the near northside neighborhood area assisting residents with projects around their homes and neighborhoods.
Tomorrow Council Member Glassheim will lead the next Near Northside meeting as part of the Mayor's Urban Neighborhood Initiative and there is a growing level of involvement and action taking place because of the neighbors getting involved in demonstrating great leadership and making their neighborhood strong and a great place to live.
The Tour d' Forks Cancer Awareness Event that was on Sunday in Lincoln Park, several council members were in attendance, and over 300 people attended and over $9,000 was raised for cancer awareness and cancer research.

APPROVE FINAL PLAT; ADOPT ORDINANCE NO. 4204,
TO AMEND THE STREET AND HIGHWAY PLAN TO
INCLUDE PUBLIC R/W SHOWN AS DEDICATED ON
PLAT OF BROWN CORPORATION SECOND ADDITION

An ordinance entitled "An ordinance to amend the Street and Highway Plan of the city of Grand Forks, North Dakota, to include the public rights of way shown as dedicated on the plat of Brown Corporation Second Addition, grand Forks, North Dakota", which ad been introduced and passed on its first reading on August 20, 2007, and upon which public hearing had been scheduled for this evening, was presented and read for consideration on second reading and final passage
The city auditor reported that the required legal notice had been published calling for a public hearing to be held on this matter this evening and further that to date no protests or grievances had been filed with his office.

Mayor Brown opened the public hearing, there were no comments and the public hearing was closed.

The staff report from the Planning and Zoning Commission relating to request from Tim Brown on behalf of Ag Park, LLC, for final approval of the plat of Brown Corporation Second addition (located on the Merrifield Road and South 42nd Street), with recommendation to give final approval to the plat, subject to the conditions shown on or attached to the review copy, and to include final approval of an ordinance amending the street and highway plan..

It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved. Carried 7 votes affirmative.

Upon call for the question of adoption of this ordinance and upon roll call the following voted "aye': Council Members Brooks, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the ordinance adopted.

ADOPT FINAL BUDGET FOR THE CITY OF GRAND
FORKS FOR 2008 AND ANNUAL TAX LEVY

The city auditor reported that a notice calling the attention of the general public to the fact that the final budget of the City of Grand Forks, North Dakota, for the year ending December 31, 2008 had been published as required and public hearing was scheduled for this evening, and presented the final budget for consideration. He reported that there were no comments or grievances filed with his office.

The staff report from the finance and administrative services director, relating to 2008 budget, with recommendation to give final approval of the 2008 budget and Annual Appropriation Bill and Tax Levy Resolution and the Certificate of Levy.

Mayor Brown stated that the budget presented for 2008 is a good solid budget and provides for needed services efficiently and effectively and thanked Mr. Duquette, Mr. Schmisek and other department heads involved in helping us come forward with a responsible budget, this is serving as a foundation for a 6-year plan as they address long term needs and short term concerns in this community, and appreciates all discussion in this public process. He stated there was a general consensus about providing the resources to do our job and a general consensus about planning, but also a consensus that some immediate relief for residents can be achieved without affecting services. He thanked council for their hard work and support and encouraged dialogue tonight and work on a balance between our long term and short term needs, and opened the public hearing.

Council Member Kreun stated this does project a long term plan for us and commended Mayor Brown for trying to accomplish that goal, that they are at a 1.3 mill reduction as result of Council Member Glassheim's motion two weeks ago, that we have large projects coming up and he is concerned about infrastructure of the city, have water plant to work on, storm water retention plan, and many infrastructure consistent problems that we have to solve but we also have to have some relief for our taxpayers as well, and as going through this over the last several weeks that with a 3 mill reduction in your budget can accommodate your goals for the 6-year plan and accommodate the citizens to some relief, and moved a 3 mill reduction with the budget. Council Member Bakken seconded the motion.

Council Member Gershman reported that two weeks ago he made a motion to reduce the mills by 4 and that was defeated and that he supported the Council Member Glassheim's motion for 1.3, and did that out of respect to Mr. Schmisek and the accounting department, Mr. Duquette's staff and the Mayor who worked very hard to put together a thoughtful budget, but that he sees that differently and voted to continue the discussion this week, that they understood that the budget could not go up but could go down, and that there has been a lot of listening to the public this week, and moved to amend budget with a 4.21 mills reduction. Council Member Christensen seconded the motion.

Council Member Christensen stated that they were given some numbers from Mr. Carsen in June as to the total increase in revenue we could expect if mills were 113.55, and that was broken down to new properties and new construction and increase from re-evaluation; the math in new properties and new construction brings in total at 113.55 mills, $518,305; the increase from re-evaluation is $549,456, and several of them said to go with new properties and new construction and put that into the City's budget ($518,305) and try to save the increase in re-evaluation for the citizens and that comes out to 4.21 mills. He stated that he and Council Member McNamara have put together a presentation that they would like to show the staff, the council and citizens why they feel that only using the new properties and new construction can still achieve a 4.21 mill reduction at the city level and that it won't affect the Mayor's proposed budget in any way.

Council Member Christensen handed out copies of their presentation, while Council Member McNamara walked them through the slide presentation and stated this is to illustrate how they can eliminate a property tax increase on existing property in fiscal year 2008.

There was considerable discussion relative to the Mayor's budget, i.e., reserves, projected sales tax, use tax, cash carryover and cash balance in General Fund, and reduction of mills.

Mayor Brown closed the public hearing.

Upon call for the question to amend the annual budget with a decrease in the Mayor's budget of 4.21 mills, and upon roll call vote, the following voted "aye": Council Members Gershman, Christensen, McNamara - 3; voting "nay": Council Members Bakken, Kreun, Brooks, Glassheim - 4. Mayor Brown declared the motion to amend failed.

Upon call for the question to amend the annual budget with a decrease in the Mayor's budget of 3 mills, and upon roll call vote, the following voted "aye": Council Members Christensen, Bakken, Kreun, Brooks, Glassheim, Gershman - 6; voting "nay": Council Member McNamara - 1. Mayor Brown declared the amendment approved.

It was moved by Council Member Kreun and seconded by Council Member Bakken to give final approval of the 2008 budget with an amendment to reduce the mill levy by 3 mills, and adopt the Annual Appropriation Bill and Tax Levy resolution and the Certificate of Levy. Upon roll call the following voted "aye": Council Members Brooks, Glassheim, Gershman, Christensen, Bakken, Kreun - 6; voting "nay": Council Member McNamara - 1. Mayor Brown declared the motion carried and the budget adopted.

Council Member Christensen stated he was informed by the city auditor that in passing this budget that still leaves the capital expenditure items open for debate and there could be on-going conversations concerning those items.

APPROVE REQUEST FROM USA WRESTLING OF NORTH
DAKOTA FOR GAMING SITE AUTHORIZATION

The staff report from the finance department relating to request from USA Wrestling of North Dakota for gaming site authorization at Overtime Bar & Grill, 425 North 42nd Street, with recommendation to approve the request contingent upon review and approval by the city attorney.

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved. Carried 7 votes affirmative.

ADOPT RESOLUTION CREATING SPECIAL ASSESSMENT
DISTRICT, ACCEPT ENGINEER'S REPORT AND ADOPT
RESOLUTION TO PREPARE PLANS AND SPECIFICATIONS
FOR WATERMAIN PROJECT NO. 6192, DISTRICT NO. 298

The staff report from the engineering department relating to creating special assessment district for Project No. 6192, District No. 298, watermain on 2500-2600 blocks of North 43rd Street and 4200 block of 26th Avenue North, with recommendation to create special assessment district, approve engineer's report including estimate of cost, an assessment district map, and direct engineering department to prepare plans and specifications and advertise for construction bids, and that we declare intent to sell bonds to finance these improvements.

Council Member Gershman introduced the following resolution creating the assessment district, which was presented and read: Document No. 9097 - Resolution.

The city auditor presented and read the engineer's report on Watermain Project No. 6192, District No. 298: Document No. 9098 - Report.

Council Member Gershman introduced the following resolution to prepare plans and specifications, which was presented and read: Document No. 9099 - Resolution.

It was moved by Council Member Gershman and seconded by Council Member Brooks that the recommendation be approved and that the resolution creating the special assessment district, the engineer's report and the resolution to prepare plans and specifications for watermain Project No. 6192, District No. 298, be accepted and adopted. Upon roll call the following voted "aye": Council Members Brooks, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the report and resolutions adopted.

ADOPT RESOLUTION APPROVING PLANS AND
SPECIFICATIONS AND ADVERTISEMENT FOR BIDS,
SEWER PROJECT NO. 6150, DISTRICT NO. 456

The city engineer's estimate of total cost of the construction of sanitary sewer for 5500 and 5600 blocks of 1st Avenue North in the amount of $ , was presented and read.
The staff report from the engineering department relating to plans and specifications for Project No. 6150, District No. 456, sanitary sewer for 5500 and 5600 blocks of 1st Avenue North, with recommendation to approve plans and specifications for this construction and further that the city auditor be directed to advertise for bids for the project.

Council Member Gershman introduced the following resolution which was presented and read: Document No. 9100 - Resolution.

It was moved by Council Member Gershman and seconded by Council Member Brooks that the recommendation be approved and that the resolution approving the plans and specifications be adopted. Carried 7 votes affirmative.

APPROVE CHANGE ORDER FOR PROJECT NO. 5986,
POLICE DEPARTMENT IMPOUND LOT IMPROVEMENTS

The staff report from the engineering department relating to change Order No. 2 for Project No. 5986, Police Department Impound Lot Improvements, with recommendation to approve Change Order No. 1 in the amount of $5,679.20.

It was moved by Council Member Gershman and seconded by Council Member Brooks that the recommendation be approved. Carried 7 votes affirmative.

APPROVE ENGINEERING SERVICES AGREEMENT
FOR PROJECT NO. 6144, LIFT STATION No. 187

The staff report from the engineering department relating to request to approve and enter into an engineering services agreement to complete the engineering and design for the replacement of Lift Station No. 187, located in the southwest quadrant of Columbia Road and 32nd Avenue South, Project No. 6144, with recommendation to direct staff to proceed with hiring Webster, Foster & Weston, Inc. to complete the engineering and design of replacement of storm water lift station No. 187 in the estimated amount of $84,597.00

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved. Upon roll call the following voted "aye": Council Members Brooks, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried.

REJECT BIDS FOR PROJECT NO. 5955, LANDFILL
BUILDING RELOCATION, AND AUTHORIZE REBIDDING
PROJECT

The staff report from the engineering department relating to bids for Project No. 5955, Landfill Building Relocation, with recommendation to reject all bids, and to rebid the project.

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved. Carried 7 votes affirmative.


APPROVE CHANGE ORDER FOR PROJECTS NOS. 6133
AND 6134, DISTRICT NO. 93

The staff report from the engineering department relating to Change Order No. 3 for Project No. 6133 and 6134, District No. 93, overlay Sunbeam Addition east of Belmont Road and overlay 62nd Avenue South from Columbia Road to Washington Street and Belmont Road from 62nd Avenue South to Adams Drive, with recommendation to approve Change Order No. 3 in the amount of $41,375.15.

Council Member Brooks stated that he has received several phone calls regarding streets and the work in the flood protection project and some additional streets that people would like done (Cherry Street), and that he would bring this up to the council to see if they would go back and look at that.

Council Member Kreun stated that over the last few years have done in-depth analysis of what these haul roads are and how work should be done, that they have done more than anticipated, that the request should have come at the beginning because the work is about half done and the expenditures are at the limits; however, even if they were going to add some of the haul roads or damaged roads, these wouldn't be next on the list, and would recommend that they do not reopen it. Council Member Brooks moved approval of the recommendation. Council Member Christensen seconded the motion. Upon call for the question and upon voice vote, the motion carried.

Council Member Christensen stated they are going to begin discussion as part of policy on how to begin funding the local streets, that we have a source of revenue to pay for the streets, to pay for bonds and to defer specials; and that Mr. Grasser has been working on that issue for some time.

APPROVE AMENDMENT NO. 1 TO ENGINEERING SERVICES
AGREEMENT FOR PROJECT NO. 6174, DISTRICT NO. 458,
REHABILITATE STORM PUMP STATIONS NOS. 182 AND 188

The staff report from the engineering department relating to Amendment No. 1 to engineering services agreement with Webster, Foster & Weston, Inc. for Project No. 6174, District No. 458, Rehabilitate Storm Pump Stations Nos. 182 and 188, with recommendation to approve Amendment No. 1 for final design, bidding and construction administration services in the amount of $237,792.00.

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved. Upon roll call the following voted "aye": Council Members Brooks, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried.

ADOPT RESOLUTIONS APPROVING PLANS AND
SPECIFICATIONS AND ADVERTISEMENT FOR BIDS,
SEWER PROJECT NOS. 6174.1 AND 6174.2, DISTRICT NO. 458

The city engineer's estimate of total cost of the construction of rehabilitating storm pump stations Nos. 182 and 188 in the amounts of $ and $ , were presented and read.
The staff report from the engineering department relating to plans and specifications for Project No. 6174.1 and 6174.2, District No. 458, Rehabilitate Storm Pump Stations Nos. 182 and 188 (structure modifications bid package), with recommendation to approve plans and specifications for this construction and further that the city auditor be directed to advertise for bids on the project.
Council Member Gershman introduced the following resolutions which were presented and read: Document No. 9101 - Resolution and Document No. 9102 - Resolution.

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved and that the resolutions approving plans and specifications be adopted. Carried 7 votes affirmative.

AUTHORIZE ARCHITECTURAL SERVICES TO OBTAIN
COST ESTIMATES FOR REHAB OF RIVERSIDE POOL

The staff report from the engineering department relating to architectural services to obtain cost estimates for rehabilitation of Riverside Pool, with recommendation to approve use of $13,500 of additional Greenway Betterment Funds to pay for architectural services to obtain cost estimates from local contractors for rehabilitation of Riverside Pool facility.

Dr. John Clayburgh, 1623 Lewis Blvd, stated that Riverside pool is not a neighborhood pool anymore, that they have the greenway used by many people and suggested thinking about this pool as a part of the greenway project, that this pool is an infrastructure we have and is in beautiful shape and is a pool that this community needs. The study that was done indicates that a town of this size needs to have two outdoor swimming pools, and recommends that we protect this investment and suggest that the City keep it simple, don't really need to have a huge investment into it and would like to see the City open and heat the pool, and would encourage council to help this community keep Riverside pool.

Council Member Gershman stated they are asking for this new look at the pool, the original consultant's fee was $34,000 to do this study and those involved said that was too much money and went local and were able to do it for a lot less money to study the pool. He agreed that this is a city-wide pool, not a Riverside neighborhood pool, and if they were to replace an outdoor pool in this community it would cost at the minimum $5.4 to $6 million, and that the key is to open it, heat it, and make it more attractive for people, see what that costs and that is what we are going to study. He moved approval of the
recommendation, Council Member Kreun seconded the motion.

Upon call for the question and upon voice vote, the motion carried 5 votes affirmative; Council Members Brooks and Bakken voted against the motion. Mayor Brown declared the motion carried.

INTRODUCE ORDINANCE AMENDING SECTIONS OF
CITY CODE RELATING TO SANITATION, WATER AND
WASTEWATER USER CHARGES, RATES AND FEES

The staff report from the director of public works relating to FY2008 Sanitation Enterprise Fund rate changes, with recommendation to approve FY 2008 Sanitation Enterprise Fund utility rates effective on the utility bill issued in February 2008 per draft ordinance.

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved. Carried 7 votes affirmative.

Council Member Kreun introduced an ordinance entitled "An ordinance amending sections of the Grand Forks City Code relating to sanitation, water, and wastewater user charges, rates and fees", which was presented, read and passed on its first reading.
SET FEES FOR REMOVAL OF SNOW AND ICE FROM
SIDEWALKS AND APPROACH WALKS

The staff report from the director of public works relating to Public Works Department - resolution re. snow and ice removal from sidewalks (Grand Forks City Code Section 16-0301), with recommendation to approve resolution regarding snow and ice removal from sidewalks and approach walks in the amount of $1.00 per actual linear foot of sidewalk and approach walk removed of snow and ice.

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved. Carried 7 votes affirmative.

APPROVE EXCHANGE OF EQUIPMENT FOR STREET
DEPARTMENT

The staff report from the director of public works relating to Public Works Department, Street Division street sweeper exchange, with recommendation that due to excessive maintenance problems, approve exchanging two city-owned Elgin Eagle street sweepers (Model Years 2005 and 2006) for two new Elgin Pelican street sweepers; and in addition to the exchange the Street Division will pay $50,000 to Sanitation Products, Inc. for the depreciation of the 2005 and 2006 Elgin Eagle street sweepers.

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.

AWARD BID FOR LINCOLN DOG PARK

The staff report from the greenway coordinator relating to Lincoln dog park bid, with recommendation to award the Grand Forks Lincoln dog park bid to FM Fence in the amount of $49,333.60 contingent upon the Park District reimbursing the City $22,333.60, of this amount $2,333.60 of this will come from the Roaming Paws Group through the Park District dog park fund.

After some discussion it was moved by Council Member Gershman and seconded by Council Member Glassheim that this recommendation be approved. Carried 5 votes affirmative; Council Members Brooks and McNamara voted against the motion.

APPROVE RULES FOR PROPOSED DOG PARK

The staff report from the greenway coordinator relating to Lincoln dog park rules, with recommendation to approve the proposed list of dog park rules (rules will be posted for users of the park).

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved. Carried 7 votes affirmative.

APPROVE PARKING LEASE FOR ST. JOHN'S BLOCK

The staff report from the urban development director relating to parking lease for St. John's Block, with recommendation to approve a lease with St. John's Block, LLC (21 spaces).

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved. Carried 7 votes affirmative.

APPROVE REPLAT OF SPECIFIC LOTS IN BLOCK 1,
WALCHESTER PLACE ADDITION

The staff report from the Planning and Zoning Commission relating to request from urban development department on behalf of the City of Grand Forks for final approval of the Replat of Lots 2 through 8 and the north 10 feet of Lot 9, Block 1, Walchester Place Addition to the city of Grand Forks, ND (located in the 1500 block of Walnut Street), with recommendation to give final approval to the replat, subject to the conditions shown on or attached to the review copy.

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved. Carried 7 votes affirmative.

APPROVE REPLAT OF LOT 2, BLOCK 1, AMUNDSON'S
SECOND RESUBDIVISION

The staff report from the Planning and Zoning Commission relating to request from CPS., Ltd. on behalf of Visim LLP for final approval (fast track) of the Replat of Lot 2, Block 1, Amundson's Second Resubdivision to the city of Grand Forks, ND, and also to include a variance from Section 18-0907 (4)(L)(1)c. to allow for a second access (located at 3101 South 42nd Street), with recommendation to give final approval, subject to the conditions shown on or attached to the review copy and also to include a variance from Section 18-0907 (4)(L)(1)c. to allow for a second access.

It was moved buy Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved. Carried 7 votes affirmative.

APPROVE REPLAT OF LOT 1, BLOCK 1, MEADOW
RIDGE FIRST ADDITION

The staff report from the Planning and Zoning Commission relating to request from Widseth, Smith and Nolting and Associates on behalf of Valdak Corporation for final approval (fast track) of the Replat of Lot 1, Block 1, Meadow Ridge First addition to the city of Grand Forks, ND (located at South Washington Street and 47th Avenue South), with recommendation

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved. Carried 7 votes affirmative.

TABLE REQUEST FOR REPLAT OF PROPERTY IN
BLOCK 1, COLUMBIA PARK 27TH ADDITION

The staff report from the Planning and Zoning Commission relating to request from Cheney-Dakota, LLC for final approval (fast track) of the Replat of Block 1 of the Replat of Lot C, Block 1 of the Replat of Lots 1-6, Block 1, Columbia Park 27th Addition to the city of Grand Forks, ND (located at 3901 32nd Avenue South), with recommendation to give final approval to the replat, subject to the conditions shown on or attached to the review copy.

Because of some title issues on the property, it was moved by Council Member Christensen and seconded by Council Member Gershman to table this matter for one month. Carried 7 votes affirmative.

APPROVE 2008 CDBG FUNDING PRIORITIES

The staff report from the urban development director relating to 2008 CDBG funding priorities, with recommendation to, if desired, provide priority for 2008 CDBG "Bricks & Mortar" projects to guide Citizens Advisory Committee in their review and ranking process.

It was moved by Council Member Christensen that we approve the recommended uses with the exception as to the Other Bricks & Mortar and that we reduce that by $183,000, which is the money Mr. Grasser said we need for the repair and renovation of the underpass on Gateway Drive, as that money qualifies as LMI area and would not have to special assess or other funding as this is paid by CDBG funds. Council Member Gershman seconded the motion. Carried 7 votes affirmative.

INFORMATIONAL ITEMS

The Statement of Changes and Cash Balances as of August 31, 2007 was presented and read.

The Portfolio Management Summary as of August 31, 2007, was presented and read.

APPROVE BILL LISTING

Vendor Payment Listing No. 07-18, dated September 14, 2007, totaling $1,231,861.23, was presented and read.

It was moved by Council Member Brooks and seconded by Council Member Bakken that these bills be allowed and that the city auditor be authorized to issue warrants in payment of the same. Upon roll call the following voted "aye": Council Members Brooks, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the bills ordered paid.

COMMENTS BY MAYOR AND COUNCIL

1) Council Member Glassheim commented on our good discussion on the budget, that he wished we would have had this level of discussion three months ago where publicly we could have proposals and claims and have staff present to explain or discuss items, and make our general commitment or decision earlier.

He stated this is how the council has been responsive to citizen concerns, that he thought that new construction plus inflation was fair and understandable but heard from lot of citizens who feel they are hard-pressed by tax increases, not necessarily all the City's making but property tax increases are there, and with the 3 mill reduction the City will have reduced from 135 to 110 the mills since 1991, and that is a 17% reduction in mills in 16 years. The City's portion of your property tax bill went from 27.6 in 1991 to 23% of your bill, and during that time either 14 or 11.5 of those mills were to pay for the dike construction and were not available for capital improvements, salaries or for operating expenses, and we have been running on a lean mixture and thanked the city auditor and staff, and former mayors and councils and current mayor and council for their action. He stated that if people are concerned about their property tax bill, what the City did or what the School did is not very significant, it is $4.50 per $100,000 valuation, not significant and the only way to lower property tax significantly is to elect state representatives, who are committed to paying large percentage of cost of education through sales and income taxes at the state level. There is a $700 million surplus that ended the fiscal biennium in June/July at State level, another $100 million of that could have cut your property tax bill by another 10%. He stated if you care about property tax relief you have to vote against the proposal that will be on the ballot of income tax reduction, if that passes there will be no state property tax relief.

2) Council Member Christensen stated the budget debate was very principled and very professional and thanked everybody for participating and wished we could have had more conversations during the budgeting process, and as a result of this the finance committee is going to be reactivated and going to be more deliberate and address issues; that they are going to ask Mr. Feland or the city auditor to bring forward items dealing with finance; and will discuss the appropriate level of reserves for this city. He stated he looks forward to input from staff and administration as to why that is our policy and if it is a good policy today as opposed to when it was proposed.

3) Council Member Bakken stated that he believes the need for reserves has grown because of the projects we have coming down the road and the cost of the projects have really escalated over the last five years due to economic circumstances worldwide, and that he agrees with Mr. Glassheim that on the State level they need to fund education system off of overall general tax everybody pays for instead of property owners state-wide, is a state issue and hopes they come to some resolution and find some other means to fund it because that is biggest part of our property tax issue.

4) Council Member Kreun asked what is the responsibility of State in funding education. Mr. Glassheim stated that the State is required in the constitution to provide for an equal free public education system; they were not required to pay for the entire thing and can't be constitutional mandate to pay for any certain percentage, that in the 1980's they were paying for 65% and there was something adopted in statute only that a goal was 70% State and 30% local, but since that time it has decreased and believes that now the State is paying 40%-42% or something to that effect, the more the State pays as a percentage of the cost of education, the more equal the education system is. Mr. Kreun stated that very pertinent for us to contact our State legislators to make sure they understand that the change should be made.

5) Council Member Kreun reported that they have safety/service standby committee meeting tomorrow. It was also noted there is a special Planning and Zoning meeting September 19 at 5:30 p.m.

6) Council Member Gershman thanked Mr. Glassheim for his statement, was appropriate, and that this conversation we had this evening is the same conversation going on in every city in North Dakota, we tend to think that this is isolated and that our taxes are high, yes they are, but what we did tonight and what the School District did to some degree mitigated the issue that the County has, and very comfortable with the 3 mill reduction; thanked the mayor, staff, and the council and was very good discussion and was principled, we did well for the city.

ADJOURN

It was moved by Council Member Gershman and seconded by Council Member Brooks that we adjourn. Carried 7 votes affirmative.



Respectfully submitted,



John M. Schmisek
City Auditor

Approved:
__________________________________
Michael R. Brown, Mayor