Budget Worksession, City Council Meeting & Special Assessment Public Hearing

It was a busy afternoon at City Hall with a Budget Worksession, City Council Meeting and Special Assessment Public Hearing. Present for these meetings were Mayor Sue Hakes, Councilors Kay Costello, Tim Kennedy and Jan Sivertson. Councilor Bill Lenz was absent. Also present were Mike Roth, Kim Dunsmoor. Attorney Brandon Fitzsimmons of Flaherty & Hood participated in both the City Council Meeting and Special Assessment Public Hearing.

Budget Worksession

Council met to continue its work on the 2010 Budget by reviewing the City Hall General Fund Expenditures, Cable TV Fund and the Debt Service Fund. City department heads continue to prepare their 2010 budget requests and will meet with the Council Friday August 28 at 9 AM. The Preliminary Levy for the City will be set on September 9.

City Council Meeting

Open Forum
Nobody from the public spoke at the Open Forum.

Payments Approved
Council reviewed the Grand Marais Fire Relief Association's Lump Sum Pension Plan Report for Year 2009. Relief Association investments have gone down approximately 20% requiring the City of Grand Marais to make a contribution of $8529 in 2010.

Redstone Construction Pay Estimate #6 and (2) Minor Extra Work Orders were approved by the Council for the 2008 City of Grand Marais Street and Utility Project.

The Safety Management Program contract with Minnesota Municipal Utilities Association and the annual payment terms of $12,400 were approved.

One-Percent Local Option Sales Tax
Council discussed the current status of the 1% Local Option Sales Tax. Jan Sivertson reported that she has assembled a preliminary team to begin the work of educating the public about the Sales Tax. The team will include an advocate of each of the (7) proposed projects: Danna MacKenzie, Buck Benson, Diane Booth, Mark Sandbo, D.C. Olsen, Linda Chappell. The voter referendum is scheduled for November 3, 2009.

Council & Staff Reports
Councilors Jan Sivertson and Tim Kennedy reported on the EDA regarding the Cedar Grove Business Park. Currently the EDA is struggling to determine asking prices for the individual lots, recognizing that lots are different sizes with different topography and visibility and should be priced accordingly. The pressure is on to sell lots to repay the $1.63M bond due in January 2010. The EDA and the City are meeting with their bond counsel Friday to discuss options.

Mike Roth gave an update on the Rec Park Master Plan. The graphic designer is incorporating the wetland delineation into the Park Map. The Master Plan recommended by the Park Board will be delivered to the City Council in September. Mike Roth also acknowledged the new city entrance signs provided by the Scenic Byways organization.

Special Assessment Public Hearing at 5:00 PM

The Council held a Public Hearing for the Special Assessments for the improvements done on 1st, 2nd, 3rd, and 6th Avenues, as well as 4th Avenue between the Gunflint Trail and 11th Street. Approximately (10) residents expressed concerns, asked clarifying questions and offered constructive or positive feedback. The assessments for the 1-2-3-6 Avenue projects were adjusted downward due the subtraction of the cost for sidewalks on 1st Avenue. City Staff will be available to answer specific questions about individual property owner payments and possible deferment options for those who qualify. Council voted 4-0 to pass a resolution to adopt the proposed/adjusted assessment.

Mark Your Calendars
Thur August 27 4:00 PM Joint City/County/School/Tribe Meeting At City Hall
Fri August 28 9:30 AM City Budget Worksession
Fri August 28 1:00 PM Ehlers Bond Counsel Meeting (EDA and City)
Wed September 9 3:30 PM Worksession--Preliminary Levy
Wed Septmeber 9 4:30 PM City Council Meeting
Wed September 30 4:30 PM City Council Meeting