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HomeMy WebLinkAbout2004 12-06 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 6, 2004 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, Diane Niesen, and Bob Peppe. 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 Maria Rosenbaum. 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 3.18 percent increase of levy for the General Fund Operations and a $310,442 change in Local Government Aid (LGA) that will be lost in 2005. • Operating, debt, Housing and Redevelopment Authority levies, and State Aids that showed contractions of State Aids over time with real estate taxes. • Major budget influences including 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 $3.3 Million in HACA and LGA in 2002 -2005. 12/06/04 -1- • Revenues without debt service showing State Aids that have dramatically decreased and taxes that have increased due to the shift from the State. • General Fund Operating Budget being maintained at 2004 levels with police patrol at full strength; fire operations at current levels; and providing for modest technology funding. • General Fund Operating Revenues with the single largest decease in Intergovernmental Revenues and the largest increase in taxes. • Impact of value change and limited market value from the shift to residential of $31.60 a year; and the impact of levy increase of $50.48 per year on an average median City tax increase. • Residential homestead tax capacity and market value computations with examples of taxes being paid on a $128,400 limited market value home in 2004 and 2005 and the impact on an increased value with taxes on a median limited market value in 2004 and 2005. • River and waterfront influences that reflect slightly higher taxes than typical residential properties. • Tax capacity percentages reflecting the changes from 1996 to 2005 due to the changes made by the Legislature. • Estimated and limited market value comparisons on the median residential home value in Brooklyn Center from 2002 to 2007 assessment years. • General Fund percentages for 2005. • General Fund expenditures indicating changes in growth for public safety and salaries with a 2.06 percent increase for 2005. • Residential property tax components for all four school districts with estimated and limited market value median examples. A motion by Councilmember Lasman, seconded by Councilmember Niesen to open the Public Hearing. Motion passed unanimously. Dan Remiarz, 6201 June Avenue North, addressed the Council to question why the meeting was not televised, to express concern and displeasure about his increasing taxes, and to discuss an article that was published on January 6, 2004, in the Minneapolis Star and Tribune. Mayor Kragness informed that only Regular City Council meetings are televised. 12/06/04 -2- A motion by Councilmember Lasman, seconded by Councilmember Carmody to close the Public Hearing. Motion passed unanimously. Councilmember Niesen asked for clarification on televising meetings and the process of closing or continuing this hearing. Mr. McCauley discussed that the final hearing will be televised at the Regular City Council meeting on December 13, 2004, and that the Council will take action at the Regular City Council meeting on the proposed budget and levy. Sharon Paschke, a resident of Brooklyn Center, addressed the Council to apologize for arriving late, question why there was such an increase in taxes, and to question if the City is making the best use of its money. Councilmember Carmody discussed that the City had made several cuts last year because of revenues cuts without raising taxes and that with the switch of property taxes from commercial to residential properties to ease up tax burdens, the house values have increased. Ms. Paschke questioned how the police and fire building project monies were dealt with when the projects exceed proposed budgets. Mr. McCauley discussed that the projects were budgeted with Capital monies that include monies in the Capital Projects Fund, with proceed of bonds, and that both projects had not exceeded the budgeted funds identified for the projects. Mayor Kragness discussed that at a recent League of Minnesota Cities Conference she heard many stories of other cities and that she believes the City of Brooklyn Center is blessed by many factors even though taxes are a tough burden for everyone. Councilmember Peppe expressed that even with the shifts in market values and State changes, the fact remains, the cost of government has not gone up and City services have been maintained at a level citizens can expect. The City Council and staff have worked hard trying to not cut services and keep the City's infrastructure at the best interest of the City. Mayor Kragness added that the City Manager and City staff has done an excellent job with all the reductions from the State and wished to commend them on their efforts of keeping the level of service to citizens. A motion by Councilmember Carmody, seconded by Councilmember Niesen to re -open the Public Hearing. Motion passed unanimously. Diane and Darryl Sannes, 7006 Willow Lane, addressed the Council to express gratitude to City staff that they believe provide excellent services to residents. Mr. Sannes questioned how the river influence properties are defined. Director of Fiscal and Support Services Dan Jordet informed that he believes the river - influenced properties are approximately one to two blocks of the river. A motion by Councilmember Lasman, seconded by Councilmember Carmody to close the Public Hearing. Motion passed unanimously. 12/06/04 -3- ADJOURNMENT A motion by Councilmember Lasman, seconded by Councilmember Carmody to adjourn the meeting at 7:43 p.m. Motion passed unanimously. *"Ak �—& City Clerk Mayor 12/06/04 -4-