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HomeMy WebLinkAboutMinutes - 1993/12/08PROCEEDINGS OF THE CITY COUNCIL CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Budget Hearing December 8, 1993 Mounds View City Hall 2401 Hwy. 10, Mounds View, MN 55112 CALL TO ORDER Mayor Linke opened the Truth In Taxation Public Hearing at 7:04 p.m. on Wednesday, December 8, 1993. PLEDGE OF ALLEGIANCE ROLL CALL • MEMBERS PRESENT: Mayor Linke, Councilmembers Trude, Wuori, Blanchard and Quick. MEMBERS ABSENT: None ALSO PRESENT: Samantha Orduno, City Administrator; Mary Saarion, Director of Parks, Recreation and Forestry; Paul Harrington, City Planner; Mike Ulrich, Public Works Supervisor; Tim Cruikshank, Assistant to the City Administrator; Don Brager, Finance Director- Treasurer Samantha Orduno, City Administrator, delivered a brief presentation on the budget process. Don Brager, Finance Director-Treasurer, presented an overview of the 1994 proposed budget. The Budget Video was shown to the public. Jerry Linke, Mayor, explained the process regarding property taxation. Duane McCarty, 8060 Long Lake Road, suggested that a rate setting committee be established on behalf of the Contract cities. An unidentified person commented that according to the handout it appeared to him that people were moved around and financing was juggled. • Mounds View City Council ~ Page Two Regular Meeting December 8, 1993 Bill Werner asked if the City would be reimbursed the $50,000 for the start-up of the golf course. Mayor Linke responded that a portion of that money would go back into the General Fund. Mayor Linked thanked Steve Larson for putting together and handing out a flyer which encouraged persons to attend the Truth In Taxation hearing. Councilmember Trude stated that because she was the newest person on the City Council that she asked a lot of questions and spent a lot of time with the City Administrator, the Finance Director and staff and that they were more than willing to answer any and all questions that she had. Councilmember Trude commented that she had made copies of the proposed budget and had given them to a few friends who have financial backgrounds and they indicated to her that this was a good budget. Councilmember Trude also stated that being a Councilmember and working on the budget, 9 drafts, is much more difficult than it seemed when she was sitting in the audience. Trude commented that she tried to find places to cut or shave and couldn't really find any way to reduce it. Councilmember Trude stated that her taxes will go up 42~ or $137. Trude stated that if nothing is done, house values will decline. Residents of the City would not be happy if they were not able to sell their homes because of declining property values. Councilmember Trude also gave her overall impression of the staff at City Hall. Trude stated that staff is a group of hard workers and that there is no place to shift things around. Trude stated. that staff is here many times night after night working and they don't use their vacation or comp. time. The City cannot continue to keep working staff this hard without a large turnover. Councilmember Trude stated she had tried to find ways to lower taxes. Trude stated if services were cut and one needed a building permit, staff couldn't take care of you for a week or two because of backlog from previous weeks. Trude stated that she grew up in a small town. Her father was the Mayor and proprietor of the town general store. The town didn't grow and he sold and moved out of town. The stores and even municipal liquor died. The library closed. The Public School closed, houses stood empty and this City was on a major highway. This small town didn't do anything and that is why the town didn't prosper. The. town is still there, but now it's practically impossible to sell a home in that town and house values have plummeted. Councilmember Trude stated that a Housing In' Development Coordinator are needed in Mounds for those persons would be higher later, but run. The City needs to maintain the housing investment of nearly every resident is their tern and an Economic View and that the price tag will save money in the long values since the major home. Mounds View City Council Page Three Regular Meeting December 8, 1993 Councilmember Wuori stated that she agreed with Councilmember Trude and stated that something had to be done or Mounds View could become a second ring suburban ghetto. Wuori stated that there are some older businesses in the community that need improvement and there is help for them. The people currently on staff don't have the time nor the expertise to deal with these problems. Wuori stated that the City of Mounds View has to plan for the future and that costs money. Councilmember Quick stated that through the budgeting process, a number of items were cut from the budget. One of those items was a police officer. The City Council felt that the City could get by another year without hiring a police officer because a Economic Development Coordinator and a Housing Intern were needed more for housing inspections. Councilmember Quick asked residents to take a look at the home on 5200 Edgewood. There are bullet holes in front of the home. The people can't afford to sell the house because of the bullet holes. If the City doesn't invest money in the City, property values will drop.. Councilmember Blanchard stated that at the Focus 2000 meetings it was stressed that the City of Mounds View must upgrade their infrastructure. The City has tried to get along with staff doing the work. An Economic Development Coordinator would find out what work has to~be done and find out what our residents and commercial problems are--what the needs are-- • who needs help. Councilmember Blanchard stated that the City is trying to be proactive and that is why additional staff is being added. Jerry Linke, Mayor, and Samantha Orduno, City Administrator, outlined the contents of the Long Term Financial ,Plan and what role it plays in the budget process. Leon Burton, 2550 Ridge Lane, asked if the Long Term Financial Plan, which is a five year plan, shows an inflation rate for the next five years. Duane McCarty reported the capital improvement numbers listed in the Plan for the next five years. Orduno explained that the Long Term Financial Plan is a capital improvement plan and a service plan. Orduno invited Mr. Burton to look through all the. drafts that had been prepared of the Long Term Financial Plan. Duane McCarty, 8060 Long Lake Road, stated that he is pleased with the quality of the budget process and the information provided on the budget in the November/December issue of the City Newsletter. McCarty stated that the-City should be eligible to receive state and federal grants to help the City. • Mayor Linke thanked Mr. McCarty for his questions and suggestions at the past budget hearings and that is why the budget material was placed in the City Newsletter. Mounds View City Council Page Four Regular Meeting December 8, 1993 • McCarty stated that the numbers given out by the City regarding HACA and local government aids were incorrect according to the information that he had received from the State's Department of Revenue. Finance Director Brager stated that the City's 1992 HACA amounts included homestead credits and equalization aid. Also, regarding local government aid the Council had certified to receive a certain amount of aid from the Department of Revenue and the 1993 budget included an amount which was less than state certification. Duane McCarty .stated that it would be helpful to the community to add a schedule of TIF accounts to the budget process. Brager stated that regarding the Surface Water Management Project, engineering helped develop the Plan and the CIP and had taken into consideration the development time and schedule of projects. In looking over the Street Light Utility, the Council was prompted to reduce the fees. Brager stated that when one is presenting budget information it is hard to tell if one if presenting too much or too little. Brager encouraged residents to get information from the City if they have questions. Duane McCarty stated that the general public does not have the complete view of fund balances on top of this year's levy. David Legget - 8271 Sunnyside Road, stated that his property tax for Mounds View increased 37~ and wanted to know if these amounts were spread equally in the community. Mr. Leggett stated that his house value had not gone up and he had not received any raise this year. Mayor Linke stated that the figures received earlier may drop some in February. Mounds View has one of the lowest rates for cities of our size in the state. Mr. Leggett stated that the City levy has major control and that the increases are hard on people, but he feels the City Council is doing a good job. Friederich Gastreich, 5030 Bona Road, stated that he is a 7 1/2 year resident of the City and since he moved to Mounds View from Kansas, his taxes have gone up 100. Mr. Gastreich stated that he is happy here but not happy with his taxes. His taxes went up 34.9 this year for Mounds View. The dollar amount and percentage amount were the highest for the City of Mounds View. Mounds View City Council Page Five Regular Meeting December 8, 1993 Gastereich stated that he has had no pay increase for the past five years and that this past year he was forced into early retirement. Mr. Gastereich suggested that the Council dispense with the tunnel vision. Mr. Gastereich also stated that the $50,000 used for the golf course should come back to the City in the form of a loan to be paid back. Orduno stated that this money was coming out of the collected franchise fees, that it was not a loan. John Heron, 2109 Hillview Road, stated that the interest-rates have come down and this drives up property taxes. Heron stated that this means that rental fees will go up and because many are on fixed incomes they will move. Mr. Heron asked at what point do the increases stop. Mayor Linke explained that the City is looking at a Housing Intern and a Economic Development Coordinator to help increase the quality of life in town. Mr. Heron stated that values will drop again, business values have dropped and rents-will have to go up to compensate. • Torrie Johnson, 7730 Long .Lake Road, asked how the City is doing on actual 1993 budget expenditures vs. what was budgeted for 1993. Mayor Linke stated that revenues are down, i.e., the franchise fee isn't what was projected. Orduno stated that the City will have to pay $26,000 to Superfund as the City has been sued by East Bethel. Torrie Johnson asked if there was a guideline .that delegated what percentage of the salaries goes to total budget. Mayor Linke stated that it was based on 49 FTE's for 1994. Out of the 49 employees, 18 of those are from the Police Department and 50~ is taken by them and what is left over is spread out among the remaining 30+. The City is out of compliance with regards to pay equity and that could cause loss of state aid. Orduno stated that City employees are paid on internal comparisons not market values. Bruce Gehring, 2522 Ridge Lane, asked if the City is getting more money that it is putting in to fiscal disparities. Orduno stated that the City is still on the winning end. Orduno stated that the out-state cities receive more state aid. • • Mounds View City Council Page Six Regular Meeting December 8, 1993 Mayor Linke stated that the only control cities have is by lobbying. Orduno stated that the new formula created by the League of Minnesota Cities helped the City of Mounds View and allowed them to receive $17K more. Mayor Linke stated that next Wednesday is the Annual Christmas get together at the Ramsey County League of Local Government. Linke stated that he has been nominated for Vice President of this group. Councilmember Trude stated that the new Intern and Economic Development Coordinator should be good at grant writing and could bring more money to the City. Mayor Linke stated that the CDBG grant is what put in the new entry way. Steve Larson, 2917 County Road H, stated that he felt that the City Council is honestly trying to do a good job and is looking to make this town better. Mr. Larson was concerned with the fact that can the City afford the vision. Mr. Larson stated that he felt that no matter what was said the City Council is saying this is the budget and this is the way it is going to be adopted. Mr. Larson asked if the numbers couldn't be brought together. Mr. Larson stated that he had brought in a signed petition to cut the budget. One reason people moved here is because the City had a low tax base or tax rate. The vision is more than what a city of 13,000 people can afford. Mr. Larson pleaded with the Council to reconsider the budget. Barb Haake, 3024 County Road I, stated that she had just attended the Rice Creek Watershed budget hearing. There have been some rumblings in the past regarding the addition on City hall, golf course, salaries, paying staff so much, that taxes should stop. Ms. Haake stated that she appreciated the efforts of our Council. This budget has to be submitted by December 28 and, therefore, this is a.done deal. Some things need to be held down, things have to stop somewhere. Perhaps .stop the hiring of staff, maybe that can be a start. Councilmember Trude stated that. she is frustrated with the impacts made on the City by the State and County governments. Staff spends a great deal of time on paperwork for state and federal requirements. Mr. Bruce Zakseski, 8425 Fairchild, stated that many people work late in all business arenas and have given up vacation. This could be equated to business as well.- Mr. Zasewski stated that if he had realized that there was going to be a 41~ increase on his taxes he would have attended all the budget hearings. Mr. Zasewski stated that the residents don't know what is going on until the Truth In Taxation Meeting. • Mounds View City Council Page Seven Regular Meeting December 8, 1993 Mayor Linke stated that the purpose of the FOCUS 2000 program is to help advise the Council as to how to proceed. Marilyn Fauchald, 8270 Red Oak Drive, stated that she was concerned about Focus 2000. She stated that she was asked to fill out a wish list as to where they would like to see the City in the year 2000. Ms. Fauchald commended the Council on their fiscal responsibility. Taxes have more than doubled in ten years. Mounds View is first government body that the people can touch and that is why this City Council is taking the brunt of the property tax issue. Ms. Fauchald asked the City Council to hear all the citizens wishes, but try not to fill all of them. On January 19 the Focus 2000 study group will present-their preliminary report. Councilmember Trude explained that part of the problem is the type of government we have. The City Administrator has to spend many hours researching and informing the Councilmembers on issues that require their vote before action can be taken. Steve Larson stated that the City must give up perks to receive benefits on property taxes. • Carolyn Crowl Breitbach, 8330 Pleasant View Drive, stated that she had worked for the county, state and the federal government. Breitbach stated that when one is budgeting at home one knows the funds have to come from someplace. Usually, this means a loan not a pay increase to cover it. The City has to live within its budget and make it happen. If there is no money left over after the house payment and electric then there is nothing to spend. Breitbach commended Council and stated that she had enjoyed tonight's meeting. She has been a Mounds View resident for 15 years. Brian Sjoberg stated that he has a business in Mounds View and has also received a property tax increase that he is not happy with. Mr. Sjoberg attended the meeting to thank this Council, Mary Saarion, Samantha Orduno and the staff for giving their pledge of support to his company. Dynex was awarded the County contract for household hazardous waste. This company is a great benefit to the environment and will, maybe in time, help to increase the tax base and hopefully, someday help with a tax decrease. Bill Frits, 8072 Long Lake Road, stated that the Council has forgot one thing regarding the property taxes and that is one's ability to pay. The ability to pay is disappearing from Mounds View. Frits stated that Mounds View has the .highest AFDC families outside of St. Paul and county of Ramsey. 40~ of Mounds View's population lives in apartments or mobile • homes, some of which are paid for by welfare. The City can't afford these increases. Mr. Frits stated that he has had a 30~ increase in his hospitalization insurance, but his social security benefits didn't Mounds View City Council Page Eight Regular Meeting December 8, 1993 increase. Mr. Frets asked how many more increases can he take on social security. Mr. Bill Werner, 2765 Sherwood Road, stated that the Council is doing what the people want them to do. This is apparent because of the number of persons attending this hearing. The people are letting the Council get away with increasing. the taxes. Representative Geri Evans apologized for leaving the meeting but had to attend the New Brighton Budget Hearing. Evans stated that when residents receive their new statements in February, if their overall increase is over 12~ or $300 they should apply fora refund under the State's program. Evans also stated that after attending three school district hearings and two City budget hearings, she is hearing similar information. It is apparent that the legislature has a responsibility to reform the property tax system. Evans stated that property taxes are. relied on too heavily to fund the education system. Samantha Orduno stated that she is proud of the residents in attendance at this budget hearing. The budget calendar will be sent out to each person. Orduno urged all residents to get involved earlier and not to wait until the budget hearing to get involved with the budget. All residents are encouraged to attend .the meetings and help the City decide • what directions to take. Dan Nelson, 2902 Ardan, stated the budget could be picked apart all night. Nelson stated that he felt the Council did a fine job in keeping the increase to 5.6$. Nelson encouraged others to get involved in Gity issues such as FOCUS 2000 and participate in the advisory commissions. Nelson stated that the Council cannot hear the residents if they don't get involved. Duane McCarty informed the public that the net tax levy is 22.98 Bill Frets stated that many of the persons sitting in this room have never attended a Council meeting. Frets stated that there is a Council meeting scheduled a week from tonight. Frets encouraged these people to attend the Council meeting and be informed as to what the Council is doing. Chuck Miller, 2408 Laporte, stated that the FOCUS 2000 program was terrific. Mr. Miller wanted to know if this program had any impact on the budget. Mr. Miller also had concerns about the residents' ability to pay higher taxes. Ruth White, 2917 County Road I, stated that the Council is a bunch of spend thrifts. White stated that her taxes went up 42~ for the City of Mounds View and there was no change in .her valuation. There is a $200 difference from the City portion to the County. White encouraged persons • to remember how to vote at the next election. Mounds View City Council Regular Meeting Page Nine December 8, 1993 ADJOURNMENT Mayor Linke closed the meeting at 11:35 p.m. Respectfully s i , ~> G~~_ Miche Severson Recor ing Secretary •