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HomeMy WebLinkAboutMinutes - 2013/11/25 (2)PROCEEDINGS OF THE MOUNDS VIEW CITY COUNCIL 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Truth In Taxation Meeting 5 November 25, 2013 6 Mounds View City Hall 7 2401 Highway 10, Mounds View, MN 55112 8 6:00 P.M. 9 10 11 1. MEETING IS CALLED TO ORDER 12 13 2. PLEDGE OF ALLEGIANCE 14 15 3. ROLL CALL: Flaherty, Gunn, Hull, Meehlhause, Mueller. 16 17 NOT PRESENT: None. 18 19 4. APPROVAL OF AGENDA 20 A. Monday, November 25, 2013, City Council Agenda. 21 22 MOTION/SECOND: Mueller/Meehlhause. To Approve the Monday, November 25, 2013, 23 agenda as revised amending the Roll Call. 24 25 Ayes – 5 Nays – 0 Motion carried. 26 27 5. PUBLIC INPUT 28 29 None. 30 31 6. SPECIAL ORDER OF BUSINESS 32 33 None. 34 35 7. COUNCIL BUSINESS 36 A. Truth in Taxation. 37 38 Finance Director Beer indicated this Special meeting fulfilled the City’s statutory need to hold a 39 Truth in Taxation hearing. He reviewed the proposed 2014 budget in detail indicating it was the 40 City’s mission to provide high quality public services at a fiscally responsible rate in a customer 41 friendly manner. General fund expenditures by purpose were reviewed along with expenditures 42 by function. He noted this meeting would allow the public a time to voice concerns on the 43 proposed tax levy noting the final budget would be approved by the Council on December 9, 44 2013. 45 Mounds View City Council November 25, 2013 Truth in Taxation Meeting Page 2 1 Finance Director Beer discussed the general fund operating expenditures by function. He 2 explained TIF District 1 would decertify in 2013. He commented the City would receive 3 $597,000 in LGA Funds from the State in 2014. He reported the City would not be responsible 4 for paying sales tax in 2014. 5 6 Finance Director Beer reviewed the sample home tax impact with the Council noting across all 7 home valuations, there would be a property tax decrease. He then provided a summary of the last 8 five year’s budgets and requested the Council approve the 2014 budget summary with a 3% levy 9 increase proposed for 2014. 10 11 Council Member Hull asked how the LGA funds would be used in 2014. Finance Director Beer 12 suggested the funds be placed in the Special Projects Fund, along with the Vehicle and 13 Equipment Fund. 14 15 Council Member Mueller stated 911 dispatch expenses were on the rise. She questioned if the 16 2014 budget had been adjusted. Finance Director Beer stated this expense was increased 17 $10,000 for 2014. 18 19 Council Member Meehlhause inquired when the 2004 Street Improvement Bonds would be paid 20 off. Finance Director Beer reported the last payment would be made February 1, 2015. 21 22 Mayor Flaherty proposed the LGA funds be earmarked for the Special Projects Fund and the 23 Vehicle and Equipment Fund as proposed by staff. He suggested that one-third be placed in the 24 Special Projects Fund, one-third be placed in the Vehicle and Equipment Fund with the 25 remaining one-third remaining in the General Fund. 26 27 Mayor Flaherty commented the health insurance expense came in $74,000 lower than anticipated 28 by staff. For this reason, he recommended the levy amount be reduced to 1.5%. 29 30 Council Member Gunn suggested the 3% levy increase remain in place to allow for any 31 unforeseen increases in the union contracts. 32 33 Mayor Flaherty reported the 2014 budget already included a 2% cost of living adjustment for 34 union employees. Finance Director Beer stated this was the case, and that anything over and 35 above this amount was not included in the budget. 36 37 Council Member Hull was in favor of a 0% tax levy increase given the fact the City has had a 38 surplus over the past two years. 39 40 Council Member Meehlhause did not want to see the City have to dip into reserves for any 41 reason. He encouraged the Council to consider the amount of working capital required to fund 42 the proposed budget. 43 44 Council Member Mueller reported the City had a pending litigation matter regarding the data 45 Mounds View City Council November 25, 2013 Truth in Taxation Meeting Page 3 privacy situation. She explained this case would impact the City. Finance Director Beer stated 1 this was the case, and that the City’s liability insurance would be increasing. 2 3 Council Member Mueller was in favor of moving forward with the 3% tax levy increase as 4 proposed by staff. She commented that with the proposed budget the majority of homeowners 5 would see a property tax decrease. 6 7 Mayor Flaherty summarized the comments made regarding the 2014 budget. He questioned 8 when the City would have the final numbers from the League of Minnesota Cities for the 9 insurance rates. Finance Director Beer indicated he would come back before the Council in 10 March of 2014 with these numbers. 11 12 Mayor Flaherty asked if the City had any other alternatives to being insured with the League of 13 Minnesota Cities. Finance Director Beer reported there were no reasonable alternatives. 14 15 Mayor Flaherty questioned how the Council wanted to proceed with the proposed tax levy. He 16 supported the levy being reduced to 1.5%. 17 18 Council Member Mueller recommended the levy remain at 3% as this would allow the City to 19 cover the unforeseen expenses of insurance and litigation in 2014. She commented she could 20 perhaps support a 2% levy increase, but not a 1.5%. 21 22 Council Member Gunn asked how the City would cover unforeseen expenses if the State did not 23 provided the promised LGA. 24 25 Mayor Flaherty understood this skepticism; however, he believed the State would provide the 26 LGA in 2014. He requested the Council provide comment on how to proceed with the budget. 27 28 Council Member Gunn supported a 3% levy increase. 29 30 Council Member Meehlhause agreed stating this increase would assist the City in maintaining its 31 financial stability in the long-run. 32 33 Council Member Mueller supported a 2% levy increase. 34 35 Council Member Hull requested a 0% levy increase. 36 37 Mayor Flaherty was willing to compromise and would agree to the 2% levy increase. He 38 questioned if any other Councilmembers could support a 2% increase. 39 40 Council Member Gunn agreed to support the 2% tax levy increase. 41 42 8. Next Council Work Session: Monday, December 2, 2013, at 7:00 p.m. 43 Next Council Meeting: After this Meeting 44 Mounds View City Council November 25, 2013 Truth in Taxation Meeting Page 4 1 9. ADJOURNMENT 2 3 The meeting was adjourned at 6:53 p.m. 4 5 Transcribed by: 6 7 Heidi Guenther 8 TimeSaver Off Site Secretarial, Inc. 9