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HomeMy WebLinkAboutMinutes - 2016/12/05PROCEEDINGS OF THE MOUNDS VIEW CITY COUNCIL CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Truth In Taxation Meeting December 5, 2016 Mounds View City Hall 2401 Mounds View Boulevard, Mounds View, MN 55112 6:00 P.M. 1. MEETING IS CALLED TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL: Flaherty, Meehlhause, Hull, Mueller, Gunn. NOT PRESENT: None. 4. APPROVAL OF AGENDA A. Monday, December 5, 2016, City Council Agenda. MOTION/SECOND: Gunn/Mueller. To Approve the Monday, December 5, 2016, agenda as presented. Ayes – 5 Nays – 0 Motion carried. 5. PUBLIC INPUT None. 6. SPECIAL ORDER OF BUSINESS None. 7. COUNCIL BUSINESS A. Truth in Taxation Meeting. Finance Director Beer indicated this Special meeting fulfilled the City’s need to hold a Truth in Taxation Meeting. He reviewed the City’s Mission Statement with the City Council. General fund expenditures by purpose were reviewed along with expenditures by function. He noted this meeting would allow the public a time to voice concerns and noted the final budget would be approved at the December 12th Council Meeting. Finance Director Beer then explained the general fund operating expenditures by function. He Mounds View City Council December 5, 2016 Truth in Taxation Meeting Page 2 noted the 2017 budget did not have a lot of increases. He indicated the General Fund operating budget would increase by 0.65% over 2016. He reviewed how the City received its revenues noting 66% of revenues were received through property taxes. It was noted the City was estimated to receive $671,517 in LGA for 2017. Staff provided further comment on the proposed property tax levy of 3.4% with the Council and indicated that it could be reduced to 1.71%. Finance Director Beer described how the median valued home would be impacted by the proposed levy. He was pleased to report the City’s tax levy per capita was on the low end when compared to neighboring communities. Council Member Mueller questioned when the City would receive its second LGA payment. Finance Director Beer reported the City would receive this payment at the end of December. Council Member Mueller asked if the presented financial report would be available to the public on the City’s website. Finance Director Beer reported this information would be posted on the City’s website and the Truth in Taxation meeting would be available for viewing as well. Mayor Flaherty requested clarification from staff why a 3.4% tax levy was being approved when the operating budget has only increased by 0.65%. Finance Director Beer explained the General Fund had an increase of 0.65% while there was an overall increase in revenues of 1.71%. He added that these percentages also don’t address the increases or decreases the City has in other revenues for 2017. Mayor Flaherty discussed the spending per capita ranking received by the City of Mounds View and commended staff for their efforts. Council Member Meehlhause stated that much of the increase in expenditures incurred by the City were out of the City’s control. These costs were controlled by Roseville IT, Ramsey County Dispatch, consulting staff members, Police and Fire staff, etc. Council Member Gunn added that there were also state mandates that were handed down to the City. Mayor Flaherty recommended the Street Levy go away after the City completed the final portion of the project. Council Member Hull questioned how much the City would be spending on the new Public Works Facility. Finance Director Beer reported the City should plan to spend $425,000 to $450,000 in annual debt service which would be 10-12% of the City’s tax levy. He anticipated this debt would begin in 2018. Council Member Meehlhause recommended the tax levy be set at 1.75%. Council Member Hull reported he supported a levy amount of 1.71%. Council Member Gunn stated she could support either number. Mounds View City Council December 5, 2016 Truth in Taxation Meeting Page 3 Mayor Flaherty recommended the levy be set at 1.71%, but suggested the levy amount be set by Mayor Elect Mueller. Council Member Mueller supported the levy being set at 1.71%. She stated this percentage would allow the City to keep its levy increase below 4%. Finance Director Beer thanked the Council for their input. Finance Director Beer questioned what funds should be set aside for the HRA and EDA levies. He suggested $60,000 be set aside for the EDA and $40,000 for the HRA, which would be a 2.28% tax levy. The Council supported this recommendation. Council Member Gunn requested further information from staff on the difference between the EDA and HRA monies. Finance Director Beer explained EDA funds could be used for small business loans while HRA dollars were housing related. 8. Next Council Work Session: Monday, December 5, 2016, at 7:00 p.m. Next Council Meeting: Monday, December 12, 2016, at 7:00 p.m. 9. ADJOURNMENT The meeting was adjourned at 6:37 p.m. Transcribed by: Heidi Guenther TimeSaver Off Site Secretarial, Inc.