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HomeMy WebLinkAbout12/05/1991 Council Minutes1 1 1 - 206 CITY OF LINO LAKES COUNCIL MINUTES DATE • TIME STARTED : TIME ENDED MEMBERS PRESENT: MEMBERS ABSENT : December 5, 1991 6:30 P.M. 7:27 P.M. Bisel, Bohjanen, Kuether, Neal, Reinert None Staff Members present: City Accountant, Paula Schloer; Financial Director, Mary Vaske; Public Works Director, Don Volk; Chief of Police, Dean Campbell; City Administrator, Randy Schumacher and Clerk - Treasurer Marilyn Anderson. The purpose of the Council meeting is to conduct the 1992 Budget public hearing. Mr. Schumacher explained the public hearing is required by state statutes and will be conducted according to statutory requirements. The purpose of the public hearing is to help property tax payers determine how the cost of operating the City will impact property taxes. Mr. Schumacher used the overhead projector and showed a graph illustrating how each property tax dollar is divided among each taxing authority (city, county, school district and other taxing authorities). Anoka County receives 25 cents, the school district, 50 cents, the City 20 cents and other taxing authorities, .05 cents. Mr. Schumacher also presented information illustrating how the 1992 Budget was formulated. He gave a brief introduction to the Truth and Taxation Law and introduced the City Accountant, Paula Schloer and Financial Director, Mary Vaske. Mr. Schumacher explained the preliminary 1992 Budget and a preliminary 1991 levy, collectable 1992 was presented to Anoka County before September 1, 1991. He noted that the final levy cannot be increased over the figure already given to Anoka County but it can be reduced. The preliminary 1992 Budget can be increased or reduced at this hearing. Anoka County used these two (2) preliminary figures to prepare the Notice of Proposed Property Taxes for 1992 that was sent to each landowner. Mr. Schumacher showed a sample of the notice and explained how the notice is misleading. He explained that the notice will be PAGE 1 20/ 1992 BUDGET PUBLIC HEARING DECEMBER 5, 1991 property specific in 1992 and have more meaning to the landowner. Mr. Schumacher explained several exhibits using the overhead projector. The exhibit showing the proposed property taxes for 1992 for property with market values of $50,000, $75,000, $100,000, $125,000 and $150,000 was discussed. Generally, taxes for 1992 for each of the market values will be slightly reduced. Mr. Schumacher outlined the proposed 1992 General Fund Budget highlighting specific changes in various departments. He also reviewed the preliminary revenue budget explaining that state aid has been cut significantly over the past three (3) years. Mr. Schumacher noted that a balanced budget of $2,541,886.03 is being presented tonight for Council action. Final exhibits outlined how much of each dollar is designated for expenditures in each department and how the City expected to finance the expenditures. Mayor Bisel opened the public hearing at 7:05 P.M. He noted that the Council has agonized over the budget for several months. The process is lengthy and difficult. The Council has discussed areas of the budget that could possibly be reduced and has also looked for additional sources of revenue so that the level of services can be maintained. Mr. Schumacher noted that the current financial climate has made a significant impact of the Five (5) Year Capital Improvement Plan. There have been some cutbacks to keep taxes down and some significant shifting of priorities to keep the Capital Improvement Expenditures at a level amount. Mayor Bisel noted the significant reduction in state aid and the shift in state aid from municipalities to the school districts. He also noted that it appears that not all of the state aid was shifted to school districts and asked where this money went. Mr. Schumacher explained that the municipalities were asked to support a one -half cent raise in the state sales tax. A portion of the increase in sales tax was suppose to be given to the cities to off -set the loss of state aid. Now it appears that the state will be taking some of this money for their own use. This will be a large issue at the upcoming legislative session. Council Member Reinert noted the two large snowfalls this season. He explained that these are expenditures that the city cannot predict but must deal with when it happens. The first snow storm cost the City about $20,000.00. This means that the 1991 Budget has to be revised. Mrs. Alexis Tagg, 7504 Lake Drive asked what would the new Public Works Department employee be doing. Mr. Schumacher explained general maintenance, driving snowplow, maintaining signs, PAGE 2 1 1 1 1 1 1992 BUDGET PUBLIC HEARING DECEMBER 5, 1991 boulevards, streets and other maintenance operations. Mrs. Tagg noted that the 1991 Budget indicates an increase of $55,000.00 and felt that was a large salary for a maintenance employee. Mr. Schumacher explained that $55,000.00 was the total increase for the department. The new employees salary will be about $21,000.00. The remainder of the $55,000.00 will be used for maintaining the streets, increases in fuels and maintenance supplies and for increases in salaries of the current employees. Mrs. Tagg referred to the Revenue Summary Sheet for 1992 and asked for an explanation of the Other State Revenue. Mr. Schumacher explained that all municipalities over 5000 population accumulate state aid for roads which is referred to as MSA or Municipal State Aid. The amount of the MSA varies. In addition, the City is allowed to take a percentage of the MSA to use for street maintenance. The City is anticipating using $80,000.00 in 1992. This has not been done in the past. The staff has been looking for alternative revenue sources and this is one place where funds can be used to help reduce the tax burden. Mrs. Tagg referred to the Notice of Property Taxes for 1992 statement sent to her from Anoka County. She read the percentage of increases for each taxing authority and asked if this means that her taxes will increase a total of 12.5% Mr. Schumacher explained that it did not mean there would be a 12.5% increase in taxes. The statement is very misleading. It means that there will be a 12.5% increase in the tax levy, however, this does not mean an increase in taxes. Mrs. Tagg referred to exhibit Section 4, Page 1, Proposed Property Taxes. She asked if this refers to homestead property only. Mr. Schumacher said yes, commercial and industrial property are valued separately. Debra Cossette, 6857 Black Duck Drive asked for the City tax rate so that she could figure her taxes. Mrs. Schloer used the overhead projector and explained how to determine property taxes for a particular valued home. Mrs. Cossette said that she was told that the taxes would be going down in 1992. However, it does not appear that they will be going down very much. Mrs. Cossette asked if fiscal disparities are still considered in property taxes. Mr. Schumacher said yes and explained that Lino Lakes does very well in this area. However, Centennial School District does not. There were no further questions from the public. Mayor Bisel noted receipt of a letter from Janet Kiobuchar and Jane and Ron Schmid requesting that there be no increase in property taxes. PAGE 3 208 - 20 1992 BUDGET PUBLIC HEARING The public hearing was closed at 7:25 P.M. DECEMBER 5, 1991 Council Member Bohjanen moved to adopt Resolution No. 106 - 91 adopting the final 1992 Annual Operating Budget for the City of Lino Lakes. Council Member Kuether seconded the motion. VOTING ON THE MOTION: Bisel Neal Abstained: None. Bohjanen Reinert El Motion carried unanimously. Kuether Resolution No. 106 - 91 can be found at the end of these minutes. Council Member Kuether moved to adopt Resolution No. 107 - 91 certifying the final 1991 Tax Levy, collectable in 1992. Council Member Bohjanen seconded the motion. VOTING ON THE MOTION: Bisel Neal Abstained: None. Bohjanen Reinert Motion carried unanimously. Kuether Resolution No. 107 - 91 can be found at the end of these minutes. Mayor Bisel asked the public to stay informed regarding the upcoming legislative session and their attempts to balance the state budget. He noted that the legislature should be held accountable as municipalities are and hold their own truth and taxation hearings. Council Member Bohjanen moved to adjourn at 7:27 P.M. Council Member Neal seconded the motion. Aye. These minutes were considered, corrected and approved at a regular Council meeting held on January 27, 1992. a Marily G. Anderson, Vernon F. Reinert, Clerk- reasurer Mayor PAGE 4