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HomeMy WebLinkAbout11/29/1990 Council Minutes1991 COUNCIL BUDGET PUBLIC HEARING NOVEMBER 29, 1990 Mayor Bisel called a special meeting of the Lino Lakes City Council to order at 6:30 P.M. Council Members present: Neal, Kuether, Reinert and Bohjanen. Council Members absent: none. City Accountant, Paula Schloer; Chief of Police, Dean Campbell; Public Works Director, Don Volk; Administrator, Randy Schumacher and Clerk - Treasurer Marilyn Anderson were also present. The purpose of the special meeting was to conduct the public hearing for the proposed 1991 Budget. Mayor Bisel gave an explanation of how the public hearing would be conducted this evening. He thanked everyone in the audience for attending this hearing. He explained that the legislature had passed a "truth in taxation" bill and this bill requires that a particular advertisement be placed in the local papers. Mayor Bisel also said that since the legislature is responsible for the confusion caused by the newspaper advertisements, he had invited State Senator Dahl and State Representative Quinn to attend this meeting. Senator Dahl did not respond to the invitation and Representative Quinn's office said that the Representative had another event on his calendar for this evening. Mayor Bisel also explained that another public hearing on the 1991 Budget will be held on December 12, 1990 at 6:30 P.M. He noted that the Council will be meeting in a work session and will be taking comments offered this evening into consideration when finalizing the 1991 Budget. No action will be this evening. The purpose this evening to take public testimony and opinion. Mr. Schumacher presented an introduction to "Truth in Taxation ". He also presented the preliminary 1991 Budget by using the overhead projector. Mr. Schumacher explained that the general concept of "Truth in Taxation" is to get the public involved in the budget process of their local city, school district and county. He explained the process by which the City develops a budget for the next calendar year. The process is started as early as June or July. Since the state has not prepared information regarding state aid or other possible revenues, the income portion of the budget is difficult to prepare. The City used a "ballpark" figure to start the budget process. The expense portion of the budget is prepared by individual department heads and given to the Administrator. The Council then considers all of the various department programs and requests and narrows the preliminary expense budget to lessen the increase in property taxes. Mr. Schumacher explained Exhibit C. This exhibit outlines what will be included in the 1990 Certificate of Indebtedness. Exhibit D is a comparison between the 1990 Budget and the proposed 1991 Budget. Mr. Schumacher outlined the major changes in each department budget as follows: 1 1 1 1 1 1991 COUNCIL BUDGET PUBLIC HEARING NOVEMBER 29, 1990 Administration Add financial director. This addition will lessen expenses in the Consultants budget because the City will not have to hire as much consultant time as in the past. This change in Administration has been recommended by the City Auditor. Consultants Consultants costs for construction of a bridge on 24th Avenue. This will be a shared cost because 24th Avenue is a boundary between Lino Lakes and Hugo. Solid Waste Management The state has mandated that the City participate in a recycling program. Certain costs of this program will be reimbursed by Anoka County. Parks Department Paving park trails. The comprehensive park trail plan will allow trails to interlink. The plan dictates that developers will provide and grade the trails. The City will blacktop them. Forestry This area of the budget has grown due to development in the City. There are two programs being considered in this budget. The first program involves boulevard plantings. The second program involves working with Anoka County to purchase a vibratory plow for the control of Oak Wilt. Exhibit E shows the planned revenues for the 1991 Budget. Mr. Schumacher explained that since the state is looking at a fiscal shortfall, the City can almost plan on a cut in the state aid. He noted that the staff will have to see what additional revenue can be obtained. Exhibit F shows what impact the City levy has on'a $68,000.00 home and a $110,000.00 in the Centennial School District. If the current proposed 1991 Budget is adopted, the owner of a $68,000.00 home would see an increase of $33.62 on his property taxes. Mr. Schumacher noted that the State of Minnesota dictates the tax structure and the City can only increase their tax levy by a prescribed formula. Mayor Bisel opened the public hearing at 7:05 P.M. He again noted that the 1991 Budget has not been finalized but is just proposed. This is the time for the public to express their concerns regarding the proposed 1991 Budget. PAGE 2 08 1991 COUNCIL BUDGET PUBLIC HEARING NOVEMBER 29, 1990 Richard Zelinka, 7033 Lakeview Drive asked who prepared Exhibit A (Notice of Proposed Property Tax for 1991). He felt it was a stupid document. Mr. Schumacher explained the form was prepared by Anoka County as required by the State of Minnesota. It was then printed by the City in the local paper. The City cannot change the wording and must print the notice as prepared by the County. Mr. Schumacher explained that he published an article along with this notice telling that the notice was misleading and that the City was not proposing to increase property taxes by 21.8 %. Mr. Zelinka said he expected to see residents at this meeting with shotguns. Mr. Zelinka said he apologized to the Council since they did not prepare the statement. Nick Nagan, 850 Olive Street said he was glad that the City Council published Exhibit D (1991 Adjusted Preliminary Expenditure Summary Worksheet). He noted that the expenses for the Police Department are going up. He said he hoped that two (2) officers would be laid off since Lino Lakes will not be covering the City of Centerville. Mr. Nagan said he felt the budget for Forestry was outrageous as well as the reserve for salary expenses. He felt these areas should be cut and noted that the salaries of the Lino Lakes citizens were not going up as fast as City employees. Council Member Reinert said some areas of Exhibit D need to be clarified. Mr. Nagan said that he felt that some of the salary reserve would not go to current employees but for new employees. Mr. Schumacher explained that since there are two unions representing some City employees, some of the salary reserve is already dedicated to union settlements. He also noted that it is difficult to determine the total salary adjustment for each year. That is why a lump sum is set aside. When all contracts have been negotiated the salary reserve portion of the budget is reduced by the amount of the settlements. Mr. Schumacher also noted that $60,000.00 was put in salary reserve for 1990 salary adjustments. The amount shown on Exhibit D is what is left in the reserve after all salary adjustments were made. Mr. Schumacher addressed the Forestry Department of the 1991 Budget. He noted that people who have trees are concerned about protecting them. He explained that Anoka County has purchased a vibratory plow for the control of Oak Wilt. The City of Lino Lakes participated in the purchase in the amount of $11,775.00. It is hoped that with the use of this plow, Oak Wilt can be eliminated. The City does charge the cost of the use of the plow to the landowner. This charge is shown on the Revenue Budget. When the plow is used, the homeowner is charged for that use and there is no profit or loss for the City. Once the $11,775.00 is recovered, the cost of the use of the plow should be reduced. Mr. Schumacher noted that there has been very limited man hours in the City parks. The 1991 Parks Department budget is looking PAGE 3 1 1 1 1 1 1 1991 COUNCIL BUDGET PUBLIC HEARING NOVEMBER 29, 1990 at more than doubling salaries. This does not mean that the City is hiring any new employees. Employees will be shifted from another department to the Parks Department. Mr. Schumacher explained that it appears that there will be no reduction in the number of police officers in the Police Department. He explained an indepth study was completed several years ago that indicated Lino Lakes did not have enough officers per capita to cover the City. Although the City lost about $88,000.00 in revenue from the City of Centerville, there should not be a reduction in the number of officers in the Police Department. The staff will have to look elsewhere for the revenue to fund the Police Department at its current operating level. Jim Kensy, 7779 Meadowview Trail said he did not care if his neighbors treated their Oak Wilt diseased trees. Mr. Schumacher said the only cost is the Lino Lakes portion of the cost of the vibratory plow in the amount of $11,775.00. There will be charges to the homeowners to cover this cost. Mr. Kensy asked why the City should get involved with eliminating Oak Wilt disease when there are private companies doing the same thing. Mayor Bisel said that this area will be looked at by the Council. Mr. Kensy said he had contacted the city offices and had received a handout. It was outdated. He asked what the citizens are getting for $67,000.00 spent for the Planning Department. Mr. Schumacher explained that this cost includes part -time staff support. Mr. Kensy asked what the City Planner had done to earn this type of salary. Mr. Schumacher explained that he is responsible for the Design Review Board (DRB) and any development for the City. He is also responsible for the Economic Development Committee (EDC) and for promoting economic development in the City. Mr. Kensy asked what is the population of Lino Lakes. Mr. Schumacher explained over 9,000 people. Mr. Kensy said he had called cities of similar size such as Spring Lake Park, Ham Lake, and Arden Hills. None have on staff planners. Mr. Kensy also noted that the City of Blaine which is three (3) times larger than Lino Lakes has a Planning Director and two (2) assistants. Mr. Kensy again asked what Lino Lakes is getting for $67,000.00. Mayor Bisel said he would look into this comment. Council Member Reinert said he would guarantee that this is a concern of his. Mayor Bisel noted that Lino Lakes is growing fast. At one time this year there were thirteen (13) subdivisions on the drawing board. Mr. Kensy addressed the matter of the City Attorney. Mr. Schumacher said that this is one attorney whose expenses are divided into different areas. The area titled "platting attorney" is where expenses are documented for the various PAGE 4 110 1991 COUNCIL BUDGET PUBLIC HEARING NOVEMBER 29, 1990 developers platting land in Lino Lakes. All of these expenses are recouped from the developer. Ed Sekon, 889 Main Street noted that the State is in financial trouble. If there is less income, there should be less spending. He noted that he is paying taxes on a home appraised at $80,000.00 by the City Assessor although the house has been appraised by two (2) different real estate appraisers who indicated that the house is worth little more than $50,000.00. Mayor Bisel told Mr. Sekon to contact the Assessor at the court house on this matter. Mayor Bisel explained that the City is contracting the assessing services from Anoka County. Mr. Sekon said that he had tried to make appointments with the Assessor but he did not come when he had said he would. (Checked with Assessor on this property, the assessed value for pay 1990 was $58,000.00 and for pay 1991, $57,800.00. Assessor also checked his records to see if he had viewed the property personally. He had been to the house and was shown the property. No other attempt has been made to contact him) Bruce Hanson, 6980 Lake Drive (Surfside Seaplane Base) asked if older squad cars are traded in for newer models. It was explained that the purchase price is cash only. Mr. Hanson said the proposed cost for a new copy machine is very large. Mr. Hanson asked where the proposed new finance directors salary is coming from. Mr. Schumacher said from the Administration budget. He explained that consultants such as the auditor and fiscal consultant charge a large amount of money. A financial director could be doing the work in -house and at a savings. Mr. Hanson asked if this is the case, why is the budget for Consultants not going down. Mr. Schumacher explained that there will be a large expense for the replacement of the bridge on 24th Avenue. Council Member Reinert said that it is possible that there will be a reduction in the Consultant budget, however to what extent can better be determined and adjusted next year. Mr. Hanson asked if there will be a charge for the use of the vibratory plow. It was explained that there will be until the Lino Lakes portion of the cost is recouped. Mr. Hanson suggested that the City start an "adopt a boulevard" program. This could reduce some costs in that area. Jeff Stoks, 6624 Pelican Place referred to Exhibit F and asked if this schedule indicated that there would be further reduction of taxes on homes over $110,000.00. Mr. Schumacher explained that there has been no calculation of taxes beyond the $110,000.00 value. Ms. Scholer said she could get this information for Mr. Stoks. She explained how tax capacity is calculated by the County. PAGE 5 1 1 1 1 1 1 1991 COUNCIL BUDGET PUBLIC HEARING NOVEMBER 29, 1990 Mr. Stoks said that he had moved from Circle Pines and was very surprised to see the increase in property taxes. He also noted that it is obvious that there are no commercial or industrial businesses to help the homeowner pay the taxes. It was noted that business may be slow in coming to Lino Lakes and that relief from increased taxes provided by businesses may be some time in the future. Mr. Stoks noted that when he decided to build in Lino Lakes he had called to find out approximately what the taxes would be. He explained that the estimate given to him was much lower than the actual taxes. He felt that the City leaders should take an interest in this matter and if accurate information cannot be obtained from the County the City should supply the information. Mayor Bisel said that this matter would be checked. Council Member Kuether said that the realtor working with the client should also be able to calculate the estimated taxes. Francis Bernier, 1430 Karth Road noted that his area has seen quite a significant increase in property values. He asked how this figures in calculating total property taxes. Mr. Bernier also noted that he has not seen an assessor and nobody has talked to him regarding his property value. Mr. Schumacher explained that as the property value increases there is the possibility that the property taxes will also go up. However, if everyone is increasing at the approximate same rate, the total City value increases which spreads the taxes over a broader base. In this case there should be little increase in taxes. Mr. Schumacher also explained that the County Assessors office was asked to re- evaluate every parcel of land in Lino Lakes. The total City valuation increased significantly. Taxes are now spread more uniformly throughout the City. Mr. Bernier asked if the total City valuation increased over $46,000,000.00, does the City still have to raise additional dollars? Mr. Schumacher explained that the City still cannot levy beyond the limit set by the State. This means that the City can only levy $114,000.00 of new taxes. However, the City must construct a new fire station and have it operation by December 31, 1991. The payment on the bonds for the new fire station will require all of that increase. Mike Lemke, 815 Orange Street asked if the Council will hold another public meeting after they review all of the comments made tonight. Mayor Bisel explained that this public hearing will be continued to Wednesday, December 12, 1990. Mr. Lemke explained that when he moved into his new home on Orange Street there were many poplar trees in the back of his house. The following year was very wet and water backed up to the area where all of these trees were. As a result they all died and nobody cared about them or replanted them. He noted that if residents are have problems with trees dying, that is life and death. PAGE 6 112 113 1991 COUNCIL BUDGET PUBLIC HEARING NOVEMBER 29, 1990 Mr. Stoks asked for more information on the proposed new fire station. Mayor Bisel explained that the City is part of the Centennial Fire District through a Joint Powers Agreement. This agreement requires that Lino Lakes construct an adequate fire station and have it operational by December 3, 1991. Allan Thiemich, 6725 East Shadow Lake Drive noted that none of the new programs are terribly expensive. The added tax burden for a $85,000.00 home is $30.62 for the year. However, he noted that this is just one level of government. The county and school district will add their increase to the $30.62. Furthermore, it appears that the state will need additional money in the coming year so that they may cut back in state aid. This means that the City will need additional money next year to make up for the loss in state aid. Mayor Bisel said that even though the state may make additional cuts in state aid, the City is restricted and cannot raise the tax levy beyond a certain point dictated by the state. Mayor Bisel also noted that as of yet the state is not cutting their spending. The last time state aid to cities was cut, the cut was suppose to be shifted to the school districts. The school districts are now saying that they have not received all of that shift. Where did that state aid go? Mr. Thiemich said that if property taxes increase in the City at the proposed rate of 16 %, he will not be able to afford to live in this City. He asked that the Council keep in mind that other taxing authorities will be increasing their levies. Mayor Bisel said the City is hoping to continue to seek commercial and industrial development to lessen the tax burden to home owners. Mayor Bisel told the audience that allowing the building of less expensive homes generates lesser taxes. His concern is that these less expensive home still generate the same need for schools and other services. At this point the Council is looking at maintaining the current level of services. The Council is asking the citizens; "what level of service do you want ". Council Member Reinert noted that since local government is the closest to residents, these public hearings draw the largest crowds. He noted that the County conducted a hearing on their proposed 1991 Budget. He said he would be interested to know who many county citizens attended. Council Member Reinert noted another large taxing authority is the school districts. He asked that the citizens voice their opinions to both the county and the school districts as well as the state senators and legislators. Council Member Reinert explained that the legislature mandates programs for cities but does not offer any money to fund the programs. He also noted that the members of the Council are tax payers in Lino Lakes as well as the people in the audience. Mr. Lemke said that it appeared that the last election told some PAGE 7 1 1 1 1 1 1 1991 COUNCIL BUDGET PUBLIC HEARING NOVEMBER 29, 1990 legislators and senators that the citizens are not going to put up with them anymore. Council Member Bohjanen noted that although the governor and federal senators were not re- elected, how many state senators and legislators were defeated. Not many. Mr. Lemke said he wished that the citizens could pay Lino Lakes 30% or 40% increases, however the federal government is dumping problems on the state and the state is dumping the responsibilities on the communities. He noted that until the federal government lowers his tax rate he cannot allow the city to take any more of his tax dollars. Mayor Bisel said that if it snows, the residents expect their streets to be plowed using their taxes. Steve Kingdon, 172 Ulmer Drive said that his street has never been snow plowed. He also noted that compared to Roseville, which offers a great deal more in services, Lino Lakes taxes are much higher. He said he moved here because he thought the taxes would be lower. Joel Tagg, 7504 Lake Drive explained that his taxes tripled last year. He has spent the past ten (10) months "playing with political people" trying to find out what can be done about this. The County Attorney has suggested that he get some cattle and file for green acre status. Council Member Kuether noted that Mr. Tagg had been before the Council at the Board of Review on this matter. Mr. Tagg said he pursued the matter through to the County Board of Review and his value was lowered somewhat. Mr. Tagg said he did not feel that triple taxes was justified. He said that he has tightened his belt this past ten (10) months and suggested that the City do the same. Mr. Tagg said that things are tough and businesses are not doing as well. He noted that the City is proposing to purchase a new one (1) ton truck. He said he would like a new one (1) ton as well, but cannot afford it. Ben Benson, 6666 East Shadow Lake Drive noted that the papers are saying that there will be a shortfall in the next biennium. He asked if anyone has contacted the state to determine what this means to the City. Mr. Schumacher said yes, and noted that if all of the state aid were taken from the municipalities, that would mean a $75.00 increase for every home in Lino Lakes. The City has been notified that the 1991 state aid is proposed to be $163,000.00. Mr. Schumacher is looking at more than one half (1/2) of this amount actually being available. Mr. Benson noted the significant increase in the Police Department and Consultants budgets. He also noted that the Centerville Police contract is history. He felt this was sad, $100,000.00 is a significant loss. He felt this is the time to tighten belts before further state aid losses. This would allow PAGE 8 114 115 1991 COUNCIL BUDGET PUBLIC HEARING NOVEMBER 29, 1990 the citizens time to get used to what will happen in 1991. Mayor Bisel said that the state may be looking at the surpluses that many cities have built in the past few years. He noted that Lino Lakes had strengthened reserves as recommended by the City Auditors. Mayor Bisel explained that the loss of the Centerville Police contract is unfortunate. However, he said he did not feel that Lino Lakes could continue to sell their product at a loss. Mr. Benson said that he questioned that the contract was operated at a loss. Mr. Benson asked that the Council look at delaying the capital improvements for one (1) year until the City can find out what is happening at the state and federal level. Mayor Bisel said he did not like to see decreases because at some point their will have to be large expenditures to catch up. Mr. Benson said that he would like the Council to look forward. Jay Brewster, 6591 Hokah Drive expressed concern because the Assessor does not get back to residents. He noted that as taxes are increased, the citizens will hold City staff accountable. Mr. Brewster also said that he would want to see a large decrease in the Consultants budget if a financial director is hired. He explained that if the financial director is hired to cut costs, the public should see cuts in the Consultants budget which are larger that the Financial Directors salary. Mr. Schumacher said that he was not aware that the Assessor was not following through with his calls. He asked that citizens call his office with specific complaints on this matter. Council Member Bohjanen said that it is possible that the Assessor does not get all of his messages. Brad Grove, 1605 Ash Street asked about the expenses planned for paving trails in the Park Department. Mr. Schumacher explained that the trails are existing but are not paved. Mr. Grove said that he recently built a garage and paid a fee for a building permit. He asked where that money goes. Mr. Grove said he had asked the person issuing the permit this question and was told that it was none of his business. Mr. Schumacher said that all money received in payment for permits, licenses, rezoning and other such receipts are listed in the Revenue section of the 1991 Budget under City Services. He noted that this area was increased to reflect the increase in growth of the City. Mr. Grove explained that there has been a battle regarding what police authority is responsible for the Ash Street area. He said that he has not received good responses and follow up in this area. He also noted that he has no other services provided to him from the City. Mr. Schumacher explained that there is fire coverage as well as ambulance coverage for this area. Mr. Grove asked for cable TV service. Mr. Grove noted that there is a game PAGE 9 1 1 1 1 1 1991 COUNCIL BUDGET PUBLIC HEARING NOVEMBER 29, 1990 preserve across the street from him in Ramsey County. He has noted that there has been some earth work in the field across the street and asked if a housing project was slated for that area. The Council was unaware of any improvement in Ramsey County. Mr. Grove asked about the sewer trunk line that was installed south of Lino Lakes along Centerville Road. Mayor Bisel said that the trunk line was oversized to accommodate Lino Lakes. However, it will probably be a long time before there is any Lino Lakes usage. Mr. Kensy told the Council that when they approve a final budget they should remember that Lino Lakes is basically working class people, not affluent people. He noted that in industry, a 4% raise in salary is a very good raise. Mr. Kensy asked Mr. Bisel to give his "gut" feeling as to what is going to happen to property taxes. Mayor Bisel said that the Council is making every attempt to hold taxes to the present level. He said we hear what the citizens are saying and noted that the Council are tax payers too. Mayor Bisel said he could not predict what may happen at any other level of government. Tim Tollefson, 886 Orange Street noted that everyone seems to be stressing city sewer and water services. He asked how much would taxes go up if these services were installed in his area. Mayor Bisel said assuming that these services are installed, the City will bill residents quarterly for usage. However, the City Charter makes it very difficult to extend sewer and water services into an established neighborhood. Residents would have to petition for the services and residents would be notified. The residents who oppose the services could petition against the improvement. At this time the entire area around Orange Street is outside of the MUSA area. The City could not extend services to that area until the MUSA lines are amended. This process takes a considerable amount of time. Mr. Tollefson said he was concerned about how much taxes would go up if sewer and water did come in. Council Member Reinert said that taxes are based upon the value of the property and installation of services would increase the value. There will be assessments for the installation and these assessments would appear on the property taxes. Council Member Reinert said it would be some time before the residents of the Orange Street hear about sewer and water services. Mr. Lemke asked if the meeting for setting the final 1991 budget will be an open meeting. Mayor Bisel said that a date has not been set but it will be at a regular Council meeting. This 1991 Budget hearing will also be continued until December 12, 1990. This is also an open meeting. PAGE 10 116 117 1991 COUNCIL BUDGET PUBLIC HEARING NOVEMBER 29, 1990 Mr. Bruce Hanson asked about the ambulance service to the southeast corner of Lino Lakes. Mr. Schumacher explained that there is a contract and the cost is based upon a formula that included property value, population and other factors. The White Ambulance Service has a faster response time to that area. Mayor Bisel thanked everyone for coming this evening and for the good comments offered to the Council. He also noted that the City is only one tax body and that the residents should also question the other taxing authorities. Mayor Bisel also encouraged the residents to call Senator Dahl and Representative Quinn and discuss state funding. Council Member Bohjanen moved to adjourn at 8:28 P.M. Council Member Kuether seconded the motion. Aye. These minutes were consider, corrected and approved at a regular Council meeting held on December 20, 1990. n G. Anderson, Treasurer PAGE 11 Harold L. Bise Mayor 1