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HomeMy WebLinkAbout1997 12-03 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 3, 1997 CITY HALL 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 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Debra Hilstrom, Kay Lasman, and Robert Peppe. Also present: City Manager Michael J. McCauley, Assistant City Manager Jane Chambers, Finance Director Charlie Hansen, City Assessor Stephen Baker, and Council Secretary LeAnn Larson. PRESENTATION City Manager McCauley explained the purpose of this meeting, that being to give the public an opportunity to make comments and ask questions regarding the proposed levy and budget. By state law, the Council may not take action to adopt the budget at this meeting. The City Manager announced that the final budget would be adopted at the December 15, 1997, Council meeting at City Hall at 7 p.m. A hearing on the budget will be held at that time. City Manager McCauley gave an overview of the 1998 proposed General Fund budget and preliminary levy. In comparison of actual operating budgets from 1997 to 1998, there is a 2.60 percent increase in revenues, including a 2.31 % increase in real estate taxes. With the police and fire bonds, total revenue will increase 8.75 percent (including a total tax levy increase of 14.47 %). Mr. McCauley stated that the Earle Brown Heritage Center projects operating self - sufficiency, the Golf Course projects cash flow of operations in order to retire principal on debt, the Economic Development Authority is moving along on the 53rd Avenue and Linkage Project, and the figures for the liquor stores will need reworking as the year progresses and plans are made to review the recently received study, as well as the dislocation of the Brooklyn Boulevard Liquor Store due to construction of a new fire station. 12!3197 -1- Mr. McCauley noted the shift in tax burden from commercial properties to residential properties. Residential properties are making up a larger percentage of the total tax burden due to changes in state law reducing tax capacity rates for commercial and industrial properties. Mr. McCauley also noted that the impact of the police and fire bonds is levied on market value, instead of tax capacity. PUBLIC INPUT A motion was made by Councilmember Lasman to open the public hearing. The motion was seconded by Councilmember Carmody and passed unanimously. Nancy Carlson, 6024 Aldrich Avenue North, questioned the Administrative Services charge in the budget. The City Manager explained that portions of salaries were allocated to Enterprise Funds for their share of administrative, finance, payroll, and similar costs. Ruth Johnson, 5616 Colfax Avenue North, noted an on -going code enforcement issue of a neighbor. Dan Remiarz, 6201 June Avenue North, asked about the bond issue. The City Manager responded and described the recent bond issue. Councilmember Hilstrom stated she would vote NO on the budget due to several unresolved issues: 1) Health and safety issues involving the wading pool in the Community Center haven't been addressed. 2) The reliance of the police budget on $100,000 from inspection fees generated by Brookdale redevelopment, which may not happen. 3) The Earle Brown Heritage Center lacks a solution to capital improvements required by the structure, parking problems, and a business plan. 4) There is uncertainty concerning the City's liquor stores. 5) There is an increase in the amount budgeted for civic events. 6) The tax increment financing district for Earle Brown Heritage Center is $150,000 short. Councilmember Hilstrom suggested outcome -based funding that the City spend smarter. She stated we need to measure progress through results rather than effort. 12/3/97 -2- A motion was made by Councilmember Carmody to close the public hearing. The motion was seconded by Councilmember Lasman and passed unanimously. ADJOURNMENT A motion by Councilmember Carmody and seconded by Councilmember Lasman to adjourn the meeting at 7:55 p.m. passed unanimously. City Clerk Q Mayor Recorded and transcribed by: LeAnn Larson I 12/3/97 -3-