HomeMy WebLinkAboutCCMin_06Dec04Special Meeting of the City Council
December 4, 2006 Truth-in-Taxation Hearing
7:00 p.m., City Hall
Members present: Mayor Gehrz, Council members Harris and Lindstrom, Administrator Miller, Assistant City Administrator/Deputy Clerk Kreuser, and Finance Director Olson. Members absent:
Council members Kuettel and Talbot.
Mayor Gehrz called the meeting to order at 7:00 p.m.
Public Hearing:
The first item on the agenda was the truth-in-taxation public hearing. Administrator Miller began the item by stating the council would not take action on the item, but would take comments
from the public and then approve the budget at the December 13 meeting. Miller reported Falcon Heights is one of the lowest taxed cities in Ramsey County, with a rate of 18.6%. He
said this was a function of increased property values and mindful taxing and spending. Falcon Heights is 96th out of 113 in the lowest taxed cities. After going over the past trends,
he said the year 2007 budget proposes a 3.5% tax increase in addition to a reserve transfer of just over $161,000 into the general fund. He reported that 40.3% of the properties in
Falcon Heights would see an increase of $100 or less in their total tax bills in 2007, while 19.2% would see between $101-$200; 27.2% would see between $201-$300; 8.9% would see between
$301-$400; 3.0% would see between $401-$500; and 1.4% would see an increase of more than $500. Next Miller went over the comparison between 2006 and 2007 tax years and where the increases
were. Using the median value of a home in Falcon Heights as an example ($269,000 for 2007), the tax on this property would increase by $112. The County is attributable to the bulk
of the increase, with $94, and the City is responsible for roughly $22 of the increase. Other taxing jurisdictions either lowered their tax or it remained the same. After explaining
Falcon Heights has among the lowest taxes in the County, he moved on to say the general fund is made up of 60% property tax revenues, with intergovernmental, fines, charges for service,
and licenses and permits rounding out the list. Next, he explained where the tax dollars were allocated once they reach the City: the general fund makes up 43% of expenditures, 27%
capital projects, enterprise and debt service funds at 17% and 10% respectively, and special revenue funds with 3% of expenditure. He stated the main change in the 2007 levy is due
to the police contract increase by roughly $29,000, increased utility costs, and health insurance costs. On the revenue side, roughly $30,000 was gained in LGA compared to 2006, and
the council will propose a fee change in building permits in 2007. He showed graphs on expenditures by department next, with public safety attributable to 44% of the expenditures for
2007, followed by general government with 35%, and parks/public works with 20%. He announced that other taxing jurisdictions would be holding their TNT hearings later in the month.
Council member Lindstrom stated there were numerous hours spent on the budget. He asked how one could explain how taxes are set to a 10th grader. Miller replied that cities and counties
turn in the amount they want to collect from taxpayers. Smart people determine the tax rate and then calculate taxes based on property values.
Mayor Gehrz stated the total increase is about $30,000 for 2007, which would be the total tax bill from TIES if they were taxable. Finance Director Olson stated the revenue from the
TIES property would be equal to $35,000. Mayor Gehrz opened the public hearing.
Susan Harding, 2189 Folwell, asked why TIES did not pay taxes. Mayor Gehrz answered that TIES agreed to a payment in lieu of taxes since they said the property was being used for tax-exempt
purposes. They have since stopped the payment in lieu of taxes, and the City has no legal grounds to force it. The County determines what uses qualify as exempt from taxes, and the
TIES property qualifies.
Council member Lindstrom asked Administrator Miller if he could identify an expense the City has that would equal TIES tax payment. Miller replied that would cover the ¾ time parks
and public works employee’s wages, or, would reduce the tax rate impact.
Mayor Gehrz closed the public hearing.
Policy Agenda:
Approval of Tim Pittman as Parks and Public Works Director
Administrator Miller stated that in total, the City received close to 40 applications, and a staff panel of Miller, Stacey Kreuser, Deb Jones, Roland Olson, and Lisa Abernathy interviewed
five candidates. After these initial interviews, Mayor Gehrz, Deb Bloom, and Miller conducted a second interview with Pittman. Miller said that Pittman was employed with the City of
Mounds View for the past 24 years. Over this time, he worked his way up from utility laborer and mechanic to his current position of public works supervisor.
Pittman said he was looking forward to working with Falcon Heights, and with his years of experience, he will bring diverse connections with other cities. He said he would do the best
job he can.
Council member Harris said she loved seeing on his resume how he started from the ground level and worked his way up.
Council member Lindstrom moved to approve Tim Pittman as the Parks and Public Works Director. The motion passed unanimously.
Mayor Jeffrey Dains and Council member Karen Doherty of Lauderdale stopped in to the meeting. Mayor Dains said he wanted to bring Lauderdale’s newest councilor into a meeting to “see
how it was done.”
Information/Announcements:
Council member Lindstrom said the first meeting of the Community Garden Steering Committee would be held January 8 at 7:00 p.m. All are welcome.
Mayor Gehrz stated the $5800 grant was not reflected in the budget, but Roland will add it into the special revenue fund. She said she attending the ribbon cutting at Awad Eye Clinic,
and encouraged residents to see the lovely changes to the building. She reminded council members she needed to have their liaison preferences and performance review input soon.
Administrator Miller said the workshop regularly scheduled for December 6 was canceled.
Mayor Gehrz adjourned the meeting at 7:30 p.m.
Respectfully submitted,
Stacey Kreuser
Assistant City Administrator/Deputy Clerk