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City Council Regular Meeting Minutes December 9, 2002 Page 2 V. PUBLIC HEARINGS. 3 A. Truth in Taxation (Resolution 02-072,re: Proposed 2003 City Budgetproperty 4 taxes). 5 6 Mr. Mornson gave a presentation on the City's 2003 Budget. He reviewed the 2003 revenue 7 chart for expenditures and explained why the residents would see a 6% increase from the 8 General Fund Total Expenditures. 9 10 In reviewing the budget, Mr. Mornson stated there would be no new staff positions and the 11 changes in expenditures included a 3.25%increase in union contracts, a 12%increase in health 12 insurance, 800 MHZ Radio's/Communications, legal and prosecution fees, and renovations to 13 the park system. 14 15 Mr. Mornson said the City's average tax increase is about 6.5%, compared to an average 16 statewide tax increase of 15%. He stated that St. Anthony City taxes payable in 2003 is 17 $770.58. 18 19 Mr. Mornson discussed why taxes go up when the levy decreases. He said the taxes received by 20 the City are less than last year,the apartment taxes dropped in 2003, and class rates to 21 apartments changed from 2002 to 2003. He also discussed the tax relief for businesses and said 22 the average tax increase for them will be about 2%. 0 Mr. Mornson explained what residents get for their taxes and reviewed where $430 in taxes per 25 year is going. 26 27 Mayor Hodson opened the public hearing at 7:18p.m. 28 29 Stan Nelson of 3504 Maplewood Drive stated he has a question about the City's capital 30 equipment. Mr. Mornson stated the City has a separate capital equipment account that funds 31 things such as fire trucks and police cars. 32 33 Mr. Nelson asked what the parks budget consists of. Mr. Mornson responded two employees 34 and things such as fertilizer. 35 36 Mr. Nelson stated he was concerned about police department costs and asked how long term 37 retirement needs are funded. He also wanted to make sure there was a line item in the budget 38 regarding retirement costs. Mr. Mornson responded that these costs are included in the budget. 39 40 Mr. Nelson wanted to know how much of the budget was tied up in unfunded mandates. 41 Councilmember Faust stated he is part of the League of Minnesota Cities, which puts together a 42 legislative package, and unfunded mandates are always something that is discussed. 43 44 Mayor Hodson closed the public hearing at 7:26 p.m. 16 Motion by Councilmember Sparks to adopt Resolution 02-072, re: Proposed 2003 City Budget 47 and property taxes.