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Box: 19
Folder. CC MINUTES AND AGENDAS 1994
Document: CC MINUTES 11301994
1 CITY OF ST. ANTHONY
•2 CITY COUNCIL TRUTH IN TAXATION HEARING MEETING MINUTES
3 NOVEMBER 30, 1994
4 I. CALL TO ORDER/ROLL CALL.
5 The meeting was called to order at 7:00 P.M. by Mayor Ranallo.
6 II. ROLL CALL.
7 Councilmembers Present: Ranallo, Marks, Enrooth, Wagner, and Fleming.
8 Also Present: Michael Mornson, City Manager; Larry Hamer, Public Works Director; and
9 Roger Larson, Finance Director; Richard Johnson, Fire Chief; Richard Engstrom, Chief of
0 ,Police
11 III. OPEN TRUTH IN TAXATION MEETING.
12 Mayor Ranallo opened the Truth in Taxation Meeting at 7:02 P.M.
13 IV. PRESENTATION OF 1995 BUDGET AND TAX LEVY BY CITY MANAGER AND
14 FINANCE DIRECTOR.
15 Mayor Ranallo reported that the Council has reviewed the St. Anthony 1995 Proposed Budget
16 three times. One draft was done together as a unit. The Councilmembers then met with the
City Manager individually and gave their input. There was an informal meeting held on
8 October 4, 1994, for the residents, to ask questions and express their input. Then the Truth In
19 Taxation public hearing was scheduled for the meeting tonight.
20 City Manager Mornson displayed the St. Anthony Budget Schedule for the 1995 Budget. He
21 highlighted tonight's Public Hearing Date for the proposed budget of November 30, 1994. He
22 stated that the hearing tonight was to go over primarily what the levy will be to support the
23 General Fund Budget. The next meeting will be held on December 14, 1994, at 5:00 P.M. to
24 reconvene the hearing or the date for adoption of the 1995 Tax Levy by resolution. The final
25 date being December 20, 1994, when the City certifies to the County Auditor their final
26 adopted Property Tax Levy. He reported that at the October 4, 1994 Work Session, Council
27 directed staff to adjust funding for 3 programs. They are as follows: 1. Discontinue the
28 National League of Cities Membership in the amount of$850.00; 2. Discontinue the Ramsey
29 County League of Local Government Membership in the amount of$300.00; and, 3. Reduce
30 the contribution to the Northwest Youth and Family Services in the amount of$2500.00. This
31 reflects a total reduction of$3650.00. These funds will be shifted to the contingency fund and
32 part of this money has been discussed to be used to fund St. Anthony's 50th Anniversary
33 Celebration.
34 He stated in regard to the General Fund, the General Fund Revenues for 1995 are
35 $2,812,370.00 and the General Fund Expenses are $2,812,370.00. The 1994 General Fund
Budget was $2,253,800.00 without Falcon Heights and Lauderdale contract expenditures. The
7 1995 General Fund Budget is $2,317,730.00. This is an increase of$63,930.00.
City Council Truth in Taxation Hearing Meeting Minutes
• November 30, 1994
Page 2
1 A St. Anthony resident asked what the annual income to the Police Department will be from
2 Lauderdale.
3 Councilmember Enrooth stated that the General Fund will receive $140,240.00 annually from
4 Lauderdale for Police Department services.
5 Roger Larson, Finance Director, stated that the City of St. Anthony has a balanced budget of
6 $2,812,370.00. He explained where the revenues in the City of St. Anthony come from. He
7 stated that the certified levy makes up a significant portion of the revenue of the City. He then
8 explained the community tax base for the City of St. Anthony. He stated that 71% of St.
9 Anthony's tax base is residential, 14.3% is derived from apartments, 13% is derived from
10 commercial and industrial, and 1.8% is from other sources. He explained that this shows that
11 the residential portion of the tax base in St. Anthony is a significant factor in the overall tax
12 base.
13 Fire Chief Richard Johnson asked how the percentages have changed since the State of
14 Minnesota changed it's formula 5 years ago.
Larson displayed a pie chart which illustrated that this had no effect on residential or
q61 apartments but the reduction in L.G.A. did effect the tax burden. He explained that the State
17 basically changed the tax structure for industry and commercial by gradually decreasing their
18 tax rate in an effort to keep business in Minnesota.
19 Larson explained that based on the current levy proposed to be certified, the tax rate has
20 decreased from 26.442% in 1994 to 25.932% in 1995. He displayed a chart which illustrated
21 what taxpayer's money is used for in the budget with the highest contributions going to the
22 Police Department and the Fire Department.
23 Mayor Ranallo explained that without commercial and industrial developments to increase the
24 tax valuations, there would have to be cutbacks made. He explained that at the current time,
25 two full-time firefighters employed by the City would have to be cut and the calls handled by
26 part-time reserves. He stated that 75%-80% of the fire department's calls are medical and it is
27 crucial to maintain these full-time employees.
28 Fire Chief Johnson indicated that 93% of the fire department's expenses are personnel costs.
29 If any budgets cuts were made, they would involve personnel cuts.
30 Larson explained that there has been no change in the commercial tax capacity. The City's
31 goal for the past two years has been to increase the commercial and industrial tax base. At the
present time, the City of St. Anthony is highly dependent on the residential taxpayer.
Increasing the commercial valuations would decrease the residential tax base.
City Council Truth in Taxation Hearing Meeting Minutes
• November 30, 1994
Page 3
1 Mayaor Ranallo and City Manager Mornson left the meeting at this time to attend a meeting of
2 the Rice Creek Watershed District and Mayor.Pro Tem Wagner conducted the remaining
3 portion of the meeting.
4 Wagner stated that the City has held the budget at a steady rate with only small adjustments for
5 wages and salaries.
6 Enrooth stated that the City had received a letter from resident, Betty Kiminki, indicating her
7 concerns in regards to her property taxes which she feels are steadily increasing. He stated
8 that the letter should be referred to City Manager to respond to the resident. He advised that it
9 -may be wise for her to go before the Board of Review.
10 Larson reported that Larry Miller and Hennepin County would be advised to respond to her
11 concerns.
12 Fleming questioned if Ms. Kiminki was speaking of the City portion of the tax rate. Fleming
13 suggested someone contact her and find out if her concerns laid with the city tax portion and
14 direct her to the right department to have her questions answered.
qtLarson explained that some of the tax statements may be deceiving. He showed an example of
16 a home that had increased in value by $5,000.00. Even though the city tax rate had decreased,
17 the property taxes were higher. The home valuation has a direct impact on the property tax.
18 If the total valuation of the City is increased, it will decrease the impact on individual tax
19 statements. At this time, the City consists of 13% commercial. The goal is to increase this to
20 15-16% and then to stabilize at that point.
21 Wagner commented on the estimated percentage increase in 1995 Minnesota personal income
22 shown on the notice of proposed property taxes for the taxes payable year 1995. He stated
23 that many people are questioning this. This statement of a 4.5% annual growth rate was
24 mandated to be on the property tax notice by the Minnesota Department of Revenue. The
25 Minnesota Department of Revenue stated that because the 4.5% is an aggregate measure of all
26 income received by all state residents, total personal income will increase due to additional
27 factors other than wages, such as growth in employment and overall economic activity.
28 Larson reported that assuming there is no change in valuation of the property, city taxes for
29 the year 1995 have decreased by .5%.
30 Fire Chief Johnson asked how St. Anthony compared to other communities in the metro area.
Larson stated that when comparing, he would look to a city that is similar to St. Anthony. He
4A explained that based on a scale of one to ten, with one being the worst and ten the best, St.
33 Anthony would be a six or a seven. Other communities may be seeing the city portion of their
34 taxes increases. He explained that a large portion of St. Anthony tax rate goes to the school
City Council Truth in Taxation Hearing Meeting Minutes
November 30, 1994
Page 4
1 system. He stated that 50% of every tax dollar goes to the school district, 25% to the County,
2 20% to the City, and the rest going to other taxing jurisdictions.
3 Fleming stated that she would be interested to see a graph which shows how St. Anthony tax
4 rate portion compare to other cities direction of tax dollars.
5 Larson stated that he could provide this data and that St. Anthony would look very favorable.
6
7 V. SET CONTINUATION HEARING FOR WEDNESDAY, DECEMBER 14, 1994 AT 5:00
8 P.M. AT WHICH TIME THE 1995 BUDGET AND TAX LEVY WILL BE ADOPTED.
9 Wagner announced that the hearing will be reconvened on Wednesday, December 14, 1994, at
10 5:00 P.M., at which time the,1995 budget and tax levy will be adopted.
11 VI. CLOSE PUBLIC HEARING.
12 Wagner closed the public hearing at 7:33 P.M.
13 VII. OTHER BUSINESS.
14 Wagner stated that City Manager Mornson had recommended that the funds be moved into the
budget to allow the Police Department to hire staff for the 3 supervisory positions. This will
16 not affect the budget as the funds are being moved from administrative funds for contracts into
17 the police budget.
18 Motion by Marks, second by Fleming to allocate the funds to the Police Budget to allow the
19 Police Department to add three supervisory positions, as it will not increase the budget.
20 Motion-carried unanimously.
21 Wagner announced that the December 6, 1994 work session will be cancelled.
22 Wagner asked that the Pancake Breakfast for city staff be scheduled for December 14, 1994 at
23 7:00 A.M. This is an annual event to thank the city staff. All in attendance were in favor.
24 XI. ADJOURNMENT.
25 Motion by Marks, second by Enrooth to adjourn the meeting at 7:37 P.M.
26 Motion carried unanimously,.
Respectfully submitted,
28 Lorri Kopischke
29 TimeSaver Off Site Secretarial
City Council Truth in Taxation Hearing Meeting Minutes
November 30, 1994
Page 5
1
2 Mayor
3 ATTEST: d ycJ
4 City Clerk