HomeMy WebLinkAboutMinutes - 1999/12/06PROCEEDINGS OF THE MOUNDS VIEW CITY COUNCIL
CITY OF MOUNDS VIEW
RAMSEY COUNTY, MINNESOTA
~ , ~ 2 Truth in Taxation Hearing
~~. ~ _, December 6, 1999
'` ~~ ~ ~~ ~~~~ ~ Mounds View City Hall
°'` 1 Highway 10, Mounds View, MN 55112
6:00 P.M.
CALL MEETING TO ORDER
ROLL CALL: Coughlin, Marty, Stigney, and Thomason.
NOT PRESENT: Quick.
1. Presentation of the Proposed Budget for the Year 2000.
Mayor Coughlin opened the Public Hearing at 6:02 p.m.
Finance Director Kessel stated several weeks ago, staff prepared the Mounds View Matters, and
included inserts relating to the City's 2000 Budget. He explained that the following presentation
is an overview of that material, and is similar to the presentation provided two weeks earlier.
Finance Director Kessel stated the City is comprised of several different funds, the main fund
being the General Fund, which is financed through property taxes and pays for the costs of
Administration, Streets and Street Maintenance, Police and Fire Protection, Community
Development, and Parks and Recreation.
Finance Director Kessel explained that the City's Special Revenue Funds dedicate sources of
revenue for a specific expenditure, and these include the Cable Television Fund, Economic
Development Fund, Recycling, Street Lighting, Surface Water and Lakeside Park
Finance Director Kessel explained there are several Debt Service Funds, which relate to the Tax
Increment Districts. He indicated the Capital Projects Fund, which is Municipal Aid for Streets,
provides construction dollars that can be held, and are required to be utilized within five years.
He explained that the Special Projects Fund represents approximately 1.4 million dollars, and the
interest on that amount is utilized to maintain the City streets, and to finance the Vehicle
Equipment Fund.
Finance Director Kessel stated the City has three Enterprise Funds, which operate similarly to a
business, in that the revenues are used to pay the expenses. He stated the Enterprise Funds
include the Water Fund, Wastewater Fund and the Golf Course Fund.
• Finance Director Kessel stated the operations that are financed through property taxes include
•
Mounds View City Council December 6, 1999
Truth in Taxation Hearing Page 2
the General Fund, which is utilized for Police Protection, Snow Removal, Street Maintenance,
Administration, Community Development, which includes Code Enforcement, Parks and
Recreation, and some assistance to the Community Center.
Finance Director Kessel indicated the City has Debt Service on Fire Improvement Bonds, which
were issued in the early 1990's, to construct and maintain several fire stations and pay for capital
equipment.
Finance Director Kessel stated Ramsey County estimates the market value for all property within
the County, and the State of Minnesota determines classifications of property and associated
class rates. He advised that the three major taxing jurisdictions are Ramsey County, the School
District, and the City of Mounds View, and there are seven miscellaneous taxing jurisdictions.
He explained that the taxing jurisdictions determine their needs, and then, based upon the total
market value, a rate is determined. He indicated the average market value of a residential home
in Mounds View in 2000 will be $105,000, which represents a $7,500 increase over the 1999
market value, or 7.7 percent.
Finance Director Kessel explained that the City's preliminary property tax levy was 1,769,652,
which is an increase of $9,290, from 1999, or .5 percent. He stated the preliminary tax rate,
• which is the tax levy divided by the tax capacity, based upon the market value, will decrease by
4.9 percent in 2000, for an average residential house. He pointed out that with the increase in
market value, and the decrease in the City's tax rate, the average home will see an approximate
$12 increase in the City's portion of the property tax, or a 4 percent increase from the previous
year, which is $316.35.
Finance Director Kessel stated the general property tax in 1999 was $1,760,000, and this will
increase approximately .5 percent in 2000, to $1,769,000. He explained that the property taxes
comprise approximately 46 percent of the City's General Fund revenue. He indicated franchise
fees are $195,000, which is approximately five percent of the City's revenue, and license and
permit fees are approximately $119,000, or three percent of the City's total revenues.
Finance Director Kessel stated Inter-governmental revenues, which are State aids, are
$1,325,000, or approximately 35 percent of the City's revenue. He indicated that other
miscellaneous revenues, which include charges for such services as copy fees, represent
approximately $20,000, and fines and forfeitures, the majority of which come through the Police
Department, are approximately $48,000. He noted there are also Other Revenues are $141,000,
and the largest item in this area is interest earnings. He stated transfers from other funds are
$213,000. He stated the total City revenues are $3,832,000, which is a 2 percent increase over
the previous year.
Finance Director Kessel provided the Council with a graph, which further indicated the origin of
the City's revenue sources. He explained that the major sources of revenue are general property
. taxes, at 45 percent, Franchise Fees represent approximately 5 percent, and Inter-governmental
Mounds View City Council December 6, 1999
Truth in Taxation Hearing Page 3
revenues represent 35 percent of the City's revenue. He indicated that license and permit fees
represent 3 percent of the revenues, and miscellaneous revenues comprise the balance.
Finance Director Kessel provided an overview of the General Fund Outlays. He explained that
General Government is approximately $100,090,000, which is very close to that of 1999. He
stated the Public Safety budget $100,619,000, Streets and Highways will increase to $452,000,
and the Parks and Recreation budget increases slightly from 1999, to $437,000.
Finance Director Kessel indicated that the Debt Service for the Fire Bonds have continued to
decrease by approximately $7,000 per year. He explained that those bonds were re-financed two
years earlier, through a joint venture with the cities of Blaine and Spring Lake Park. He stated
the residents pay a percentage of the bond payments, and since the bonds were issued, the
percentage has gone from 25 percent to approximately 17 percent, based upon formulas that are
the average market value of the property, and the number of fire calls. He noted the City of
Mounds View's share has continued to decrease on both of these.
Finance Director Kessel provided the Council with a graph which indicated the 1998 actual,
1999, and 2000 proposed budgets. He stated that most areas of the budget have remained fairly
constant from 1999 to the 2000 Budget.
• Finance Director Kessel stated 28 percent of the City's budget is spent on General Government,
43 percent on Public Safety, 12 percent on Streets and Highways, 11 percent on Parks and
Recreation, 2 percent on Debt Service for the fire bonds, and 4 percent for miscellaneous
expenditures.
Finance Director Kessel stated the Council has directed staff to consider the possibility of
decreasing the street lighting charges. He explained that the 2000 Budget, as prepared, does not
reflect any changes to this fee, however, a proposal to this effect will be brought forward. He
indicated surface water charges, water rates, and wastewater fees are proposed to remain the
same as they were in 1999.
Finance Director Kessel advised that the current franchise fee of 2.5 percent of electric and
natural gas charges will be directed into the General Fund to assist in offsetting some of the costs
for services. He pointed out that several weeks earlier, the Council adopted an ordinance which
increases the franchise fee to 4 percent, with the additional 1.5 percent going toward the Street
Reconstruction Fund, and staff was additionally directed to research means to increase that
percentage.
Finance Director Kessel indicated that $14,000 of the franchise fee collected on the cable service
provided to residents of the City will be utilized in the 2000 Budget to continue to upgrade the
Cable Television System, and to improve the service level to the customers.
•
Mounds View City Council December 6, 1999
Truth in Taxation Hearing Page 4
Finance Director Kessel stated there are no significant changes proposed in the charges or
service levels of Recycling, and Surface Water, and no proposed changes in terms of the service
levels at Lakeside Park.
Finance Director Kessel stated there were no proposed changes in recreational programming
service levels in 2000. He explained that the City will continue to market the Community
Center, with the goal of making it self supporting within the next several years. He indicated
there were no proposed changes to the Economic Development Fund from 1999.
Finance Director Kessel stated the City's liability in terms of the Debt Service to the fires bonds
is decreasing due to fewer fire-calls in Mounds View, as well as the growth in the City of Blaine
and the refinancing of debt. He explained these were being paid for through a special levy to the
property taxes.
Finance Director Kessel indicated that the City is making principal payments on the Tax
Increment bonds, at approximately one million dollars a year, and the bonds will all be paid in
the year 2005. He advised there is approximately 2.3 million dollars net, outstanding in Water
Bonds. He pointed out that one of the bond issues was refinanced in 1996, however, the call date
is not until next year, therefore, next year the City will pay off the original bonds, and continue
. to pay off the remaining debt until the year 2013.
Finance Director Kessel stated there was $3,090,000 debt issued for the golf course in 1999. He
explained that the first principal payment on this amount is due January 1,2000, and the last
payment is due January 1, 2014. He explained that golf course fees will be utilized to pay all
golf course expenses, and staff is currently researching a possible City loan, to be used to correct
some of the construction problems at the golf course. He advised that such a loan would be
repaid to the City with interest.
Finance Director Kessel stated the total preliminary tax rate for Mounds View residents,
including City, County and School District taxes, will decrease by approximately 4 percent in the
year 2000.
2. Questions from the public on the Proposed Year 2000 Budget.
Mayor Coughlin requested Finance Director Kessel provide an overview of the recent
adjustments to the 2000 budget.
Finance Director Kessel stated the following changes were not included in the previous
presentation, however, they have been discussed at previous Council Meetings.
Finance Director Kessel stated the Council has discussed the addition of $5,000 to the General
Fund budget for the purpose of conducting a Community Survey. He indicated at present, there
is nothing in the budget for airport litigation, and staff has set aside $10,000 for this purpose. He
Mounds View City Council December 6, 1999
Truth in Taxation Hearing Page 5
explained that staff was uncertain of the status of this, at this point, and if the Council has any
additional insight to offer in the matter, the amount can be increased or decreased accordingly.
Finance Director Kessel indicated several positions were open when the budget was prepared,
and staff was not aware of what the salary ranges would be, therefore, staff included the
maximum salaries for these positions in the 2000 Budget. He explained that the salary of the
Assistant to the City Administrator is divided between the City Council, the Department of
Elections, City Administrator and Central Services budgets. He stated since the Assistant to the
City Administrator is presently at Step 2, and will not advance to Step 3 until her one-year
anniversary, there is a savings of $6,600, plus $900 in benefits.
Finance Director Kessel stated staff has added Y2K insurance coverage at $3,500 for year 2000,
and this is in the Central Services budget. He indicated the Housing/Code Enforcement
Inspector position has been filled in the Community Development Department, and that position
will start at the Step 1 level He explained that this individual will. be at Step 1 for part of the
year, Step 2 part of the year, and Step 3 for part of the year, and this represents a savings of
$6,452, plus $880 in benefits.
Finance Director Kessel stated several months ago, there was a revision. to the Planning
• Associate salary, which will be a cost of $6,845, plus $940 in benefits. He indicated staff has
received notice from the I-35W Corridor Coalition that the dues paid to them by the City will
increase $1,400 next year.
Finance Director Kessel stated the Police Department has made numerous changes since the
hiring of the new Police Chief, however, the total budget is the same, therefore, there will be no
net impact to the overall budget. He advised that the Parks Department has added a mower, at
$9,500. He explained that this mower will replace an existing mower, therefore, it will be paid
for through the Vehicle Equipment Fund, and the Revenue Section of the budget indicates an
increase in revenues of $9,500 to pay for that. He stated there was no adjustment listed for
uniforms for the Snow and Ice Control Department, and this will cost $25.
Finance Director Kessel stated these changes represent a total General Fund increase of $22,378,
a portion of which will be offset by the $9,500 in revenues from the Vehicle Equipment Fund,
for a net cost of $12,848. He indicated the original budget had revenues over expenses of
$16,000, and a contingency of $48,000. He explained that if they adjust all of these factors to the
Contingency Account, there will be a revised contingency of $51,162.
Finance Director Kessel stated the preliminary Cable Television Fund budget contained $30,000
for capital improvements, which were not identified. He stated these costs have since been
identified, reducing the amount by $11,000.
Finance Director Kessel indicated a vacancy has been filled in the Economic Development
• Department, and there will be a savings of approximately $8,000, and $1,090 in benefits, with
this position. He pointed out there was a transfer out of the Special Projects Fund in the amount
Mounds View City Council December 6, 1999
Truth in Taxation Hearing Page 6
of $100,000, which should have only been $90,000, therefore, there will be a reduction of
$10,000 in this area of the budget.
Finance Director Kessel explained that the Street Lighting rates will be reduced 20 percent,
effective for the January through March billing cycle, and this will reduce revenues by $11,700.
He indicated approximately 4%2 months of seasonal help at $8.00 an hour has been included in
the budget, at $6,400, and approximately $1,080 in benefits, for a total additional outlay in the
Surface Water Fund of $7,480. He stated the Wastewater Underground Inspections Department
will add a flatbed dump truck, for $3,900.
There was no public input.
Mayor Coughlin closed the Public Hearing at 6:17 p.m.
Mayor Coughlin inquired if there were any other items, budget related or otherwise, that the
Council would care to discuss.
Council Member Stigney inquired if all budgets shown on the pie graph were prepared to reflect
the 2.5 franchise fee, or the 4 percent franchise fee that will be effective on January 1, 2000.
• Finance Director Kessel explained the pie graph budgets pertain to the General Fund, which is at
2.5 percent. He stated he did not prepare any of the graphs to reflect the additional 1.5 percent
franchise fee, however, this percentage would not go into the General Fund, but rather into a
separate fund restricted for roads and road maintenance.
Council Member Stigney inquired regarding the specific nature of the additional seasonal help.
Director of Public Works Ulrich explained that the purpose of this is to add more seasonal help
to the work force in the summer, to assist with cleaning of catch basins, catch basin repair, storm
sewer repair, and things of that nature.
Mayor Coughlin inquired if this was to be paid for out of the Surface Water Fund. Director of
Public Works Ulrich stated this was correct.
Mayor Coughlin adjourned the meeting at 6:20 p.m.
Respectfully submitted,
Recorded and transcribed by:
Trish Pearson
Timesaver Off Site Secretarial, Inc.
Mounds View City Council December 13,1999
Regular Meeting Page 2
•
Council Member Marty requested a correction to Page 10, sixth paragraph, first sentence, to
indicate "The Planning Commission, as the City's advisory commission..."
Council Member Marty requested a correction to Page 12, second pazagraph, to omit the second
word "if," and to indicate "Mayor Coughlin inquired if this would be based upon..."
MOTION/SECOND: Marty/Stigney. To accept the November 22, 1999 City Council minutes as
corrected.
Ayes - 4 Nays - 0 Motion carried.
B. Monday, November 22,1999 Public Hearing Minutes
C. Monday December 6,1999 Truth in Taxation Minutes
•
MOTIONlSECO.ND: Marty/Stigney. To accept the November 22, 1999. Public Hearing minutes
and the December 6, .1999 Truth in Taxation minutes as presented.
Ayes - 4 Nays - "0 Motion
carried.
5. SPECIAL ORDER OF BUSINESS
A. Recognition of Kristin Lavine, Mrs. Mounds View.
•
Mayor Coughlin stated it was his pleasure and honor to introduce to the City Mrs. Mounds View,
Kristin Lavine. Mrs. Lavine is an active member in Abiding Savior Lutheran Church, and has
been involved with the Mounds View Community Center Teen Night program, the Festival in
the Park, and a variety of other activities within the community.
Mrs. Mounds View, Kristin Lavine stated she has resided in Mounds View for two and a half
years, and in that time, she has grown very fond of the community. She stated she is a member
of Abiding Savior Lutheran Church, and is involved in the Community Center functions,
including the Teen Night program, which services she is very proud of.
Mrs. Lavine stated is proud to .represent Mounds View. in the Mrs. Minnesota Pageant. She
explained that this .is the premiere pageant in Minnesota, which recognizes marriage and family
values, and requires the contestants to have a platform. She indicated her father has
Huntington's Disease, and therefore, she has chosen this as her platform.. She explained that
Huntington's Disease is a genetic, neurological disorder, affecting 40,000 Americans, and the
children of a parent with this disease. stand a fifty percent chance of contracting it, as well. She
stated it is her belief that there will be a cure for this disorder in the neaz future, and her hope that
this will be the last generation affected by Huntington's Disease.
Mayor Coughlin thanked Mrs. Lavine for her comments and extended his congratulations to her.
He noted that later in the evening, the current Mrs. Minnesota, Dee Henderson would be joining
the meeting, at which time the Council would pause to recognize her.
6. REPORTS