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HomeMy WebLinkAbout1996 12-04 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 N TAXATION BUDGET HEARING DECEMBER 4, 1996 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 7:00 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Debra Hilstrom, and Kristen Mann. Also present: City Manager Michael J. McCauley, Finance Director Charlie Hansen, City Assessor Stephen Baker, and Council Secretary LeAnn Larson. Councilmember Charles F. Nichols, Sr., was absent. PRESENTATION City Manager McCauley explained the purpose of this meeting, that being to give the public an opportunity to give input to the Council on the 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 16, 1996, 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 1997 proposed budget and preliminary levy. The proposed preliminary levy would increase the total real estate taxes levied by the City, EDA, and HRA by slightly less than four percent above the gross levy for 1996. The City Manager outlined the General Fund levy increase of four percent that would generate an additional $247,786 in revenue for the General Fund. This increased levy would be used to fund street projects in 1997 with cash rather than issuing debt. In comparing the 1996 budget to the 1997 budget in the same terms, the proposed 1997 budget represented a decrease in the operating budget. While the proposed 1997 budget is higher than the 1996 budget, the 1997 budget contains $394,197 for construction transfer for street projects and debt service of $251,315. When adjusted for the 12/4/96 -1- construction transfer and the debt service, the 1997 budget is $152,419 lower than the 1996 budget that did not contain those two items. The increase in the levy of four percent was the first increase since the 1995 levy. The final 1996 levy was actually lower than the 1995 levy. The average over the two years 1996 and 1997 was two percent per year for the growth in the levy. While an individual property might have an increase or decrease in their City taxes that was at a higher or lower percentage than four percent due to the state formula applied to determining taxes and tax capacity, the City's income from taxes would only increase by four percent. Debt service requirements will increase in 1997 due to the issuance of special assessment bonds including the City's share for 1996 street projects. City Manager McCauley noted the General Fund Budget for 1997 involves converting to a new system from the multiple departments containing fractional employees to a more unified division format. The City Manager highlighted some specific changes and issues in the draft budget before presenting 1997 proposed taxes as compared to 1996 actual taxes for a given parcel. He discussed the impact of increase valuation on proposed taxes, tax rate calculations, and the shift in percentage of the tax base comprised by commercial properties which decreased from 1996 to 1997 and residential properties which increased from 1996 to 1997. PUBLIC INPUT Mayor Kragness encouraged residents at the meeting to offer input on any issues pertaining to the 1997 City budget. David Mulla, 6732 Willow Lane North, inquired why the proposed tax increase (as reported on his Proposed Property Tax Statement for 1997) for the City portion of his taxes increased more than the increase in value of his home. The City Manager discussed that a one percent increase in value of a home over $72,000 increases tax capacity on that home by two percent. Thus, a 7.9 percent increase in value results in a 15.8 percent increase in tax capacity. Joyce Samuelson, 4207 Lakeside Avenue #229, asked why there was so little difference in the value between her one bedroom townhome versus a neighbor's two bedroom unit. City Assessor Baker will look into this situation. Dan Remiarz, 6201 June Avenue North, inquired about the differences in increases between the other taxing districts (i.e., Hennepin County, the various school districts, etc.) and the increase in the City portion of his tax. Mr. Remiarz also asked about the use of watershed funds. Councilmember Mann responded to these issues. 12/4/96 -2- Bruce Morrow, 7212 Willow Lane North, disagreed with the state's method of valuation (i.e., market value) for his property. City Assessor Baker explained the valuation method presently used by the state. Susan Niemi, 3824 France Place, asked what the Council was doing to attract growth in the commercial sector in order to offset the increase in taxes to residential properties. She especially was concerned about the affect these increases will have on elderly /limited income people and the decreasing value of Brookdale. Mayor Kragness noted that the Council is also concerned about Brookdale and cited the growth of commercial businesses in other areas of Brooklyn Center. Bob Paulson, 7012 France Avenue North, questioned improvements to his property and its relationship to value increases and This Old House exclusions. City Assessor Baker will look into Mr. Paulson's issue. A motion by Councilmember Carmody and seconded by Councilmember Mann to close the hearing passed unanimously. ADJOURNMENT A motion by Councilmember Carmody and seconded by Councilmember Mann to adjourn the meeting at 8:07 p.m. passed unanimously. City Clerk Mayor Recorded and transcribed by: LeAnn Larson I 12/4/96 _;_