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HomeMy WebLinkAbout2005 12-05 CCM Truth In Taxation Budget Hearing MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA TRUTH IN TAXATION BUDGET HEARING DECEMBER 5, 2005 CITY HALL - COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met for the Truth in Taxation Budget Hearing and was called to order by Mayor Myrna Kragness at 7:00 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Kay Lasman, and Mary O'Connor. Also present: City Manager Michael McCauley, Assistant City Manager/Director of Operations Curt Boganey, Fiscal and Support Services Director Dan Jordet, and Deputy City Clerk Camille Yungerberg. Councilmember Diane Niesen was absent and excused. PRESENTATION ON PROPOSED GENERAL FUND TAX LEVY AND GENERAL FUND BUDGET City Manager Michael McCauley explained the purpose of this meeting was to discuss the increase in property taxes and the purposes for which taxes were being raised and to provide the public an opportunity to give input on the proposed budget, ask questions, and receive answers on the proposed budget and levy. By State Law, the City Council may not take action to adopt the budget at a meeting at which it takes public input. Mr. McCauley presented a PowerPoint presentation and provided an overview of the proposed increase in property taxes and the specific purpose for which property tax revenues are being increased. During the presentation the following were summarized: • Property tax levy for all sources reflects a 2.72% increase of levy for the General Fund Operations. • Major budget influences including 2005 -2009 increased pension costs, increase of $133,000 in State Aid for 2006, loss of $1.68 Million in State Aid for 2004; loss of an additional $335,000 in State Aid for 2005; and the loss of $3.2+ Million in HACA and LGA in 2002- 2006. • General Fund Operating Budget being maintained at 2004 levels with police patrol at full strength; fire operations at current levels plus full time clerical support; and providing for modest technology funding. 12/05/05 -1- Mayor Kragness inquired as to the number of homes still receiving the Limited Market Value benefit. Mr. McCauley explained that most homes are receiving the Limited Market Value benefit, which is determined by the State of Minnesota. Councilmember Carmody moved, and Councilmember Lasman seconded to open the Public Hearing. Motion passed unanimously. Richard Johnson, 6431 Toledo Avenue North, stated the Limited Market Value explanation was vague. Assistant City Manager /Director of Operations Curt Boganey responded the State of Minnesota establishes the maximum amount of increase. He explained that if the value of the home actually increases faster than the limit established by the State of Minnesota, then the taxable value is stopped at the rate of increase. Dan Remiarz, 6201 June Avenue North, distributed a spreadsheet outlining City Taxes in comparison to County Taxes of several neighboring cities and stated concern for future increases. Nancy Carlson, 6024 Aldrich Avenue North, discussed Tax Increment Financing, stated dissatisfaction with the amount of taxes paid by residential verses commercial, handling of taxes for Earle Brown Farm, and lack of funding to the School Districts. Jeff Lewis 5732 Knox Avenue North, stated the 17% increase on his property taxes is high compared to other communities. Mr. McCauley responded by explaining possible reasons for the increase. Richard Johnson, 6431 Toledo Avenue North, inquired about who decided to put the weight of taxes on residential properties instead of commercial properties. Mayor Kragness responded the weight distribution is determined by the Legislature. Councilmember Lasman moved, and Councilmember Carmody seconded to close the Public Hearing. Motion passed unanimously. ADJOURNMENT Councilmember Carmody moved, and Councilmember Lasman seconded to adjourn the meeting at 8:11 P.M. Motion passed unanimously. 4� City Clerk MayoQ 12/05/05 -2-