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HomeMy WebLinkAbout1994 12-07 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 7, 1994 CITY HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in special session and was called to order by Acting Mayor protem Celia Scott at 7:02 p.m. ROLL CALL Councilmembers Celia Scott and Kristen Mann. Also present were City Manager Gerald Splinter, Finance Director Charlie Hansen, and Council Secretary Barbara Collman. Councilmembers Dave Rosene and Barb Kalligher were excused from tonight's meeting. Mayor Todd Paulson arrived at 7:25 p.m. TRUTH -IN- TAXATION HEARING The City Manager explained the purpose of the hearing was the presentation of the 1995 proposed budget for public comment. The hearing is mandated by State law and public notices were served in advance. The hearing will be continued December 14, 1994. The City Council is prohibited from acting on the budget at the hearing sessions, but must act by December 20, 1994. The City Manager outlined the process by which the budget has been brought to this point. The steps toward establishment of the budget began in April 1994. The preliminary budget was adopted September 12, 1994. The City Manager noted the reason for the variation in tax bills on homes of identical value is their relationship to four separate school districts -- District 286 in the southeast area, District 281 in the southwest area, District 279 in the northwest area, and District 11 in the northeast area. The typical value of a home in Brooklyn Center is $73,000. The typical tax is $1,118, which is allocated as: $562 to the school district, $278 to Hennepin County, $227 to the City of Brooklyn Center, and $51 to separate service districts. 12/7/94 - 1 - I The amount of tax to the City of Brooklyn Center amounts to $.20 per tax dollar. The city services purchased with that allocation are: public safety, public works, recreation, general government, economic development, and debt retirement. The Finance Director presented the proposed 1995 budget for the City of Brooklyn Center and purposes for the tax increase. The budget allows for a 5.1 percent increase in spending. The property tax increase is due to budget growth, stagnant other revenues, and tax base decline. Budget growth is specifically attributable to equipment replacement and purchase, inflation, additional personnel, mobile data terminals, and a levy increase for debt service on bonds. The City Manager noted the City receives only $.20 of every tax dollar, amounting to $19.00 per month for City services per household. There were no questions from the Council. The public was invited to participate in the hearing with questions and comments. Muriel Karlsgett, a resident of over 40 years, asked a question regarding recreation fees. She inquired why the fees are so high and how much the recreation programs and facilities are actually used by residents of Brooklyn Center. She asked whether non - resident users of the recreation facilities could be charged. The City Manager answered that almost all direct costs of the recreation program are recovered by fees and some are subsidized. He offered to provide, by mail, a breakdown of percentages of fees. In the future, there is a plan to also allocate the indirect costs. Non- residents are charged higher fees. Ms. Karlsgett asked what is being done to recover amounts outstanding in uncollected taxes. The City Manager noted the reason for raising taxes two to three percent is some businesses have appealed tax assessments and been given abatements. A few years is needed before a property gets to forfeiture. The county is vigorously opposing the appeals which lead to this situation. Councilmember Scott noted the county and school districts are adversely affected by the uncollected tax situation. Mayor Paulson arrived at 7:25 p.m. Dan Remiarz, 6201 June Avenue North, a resident of over 31 years, addressed the Council. He questioned the percentage of 10.96, believing it should have been rounded to 11 percent. The Finance Director noted he had chosen to use decimals rather than rounding the figure. 12/7/94 -2- Mr. Remiarz asked what the impact of the lawsuit involving the City Manager and the Chief of Police was on the budget. The City Manager explained the matter was handled through the insurance company and there was no impact to the 1995 budget. Mr. Remiara stated the city employees should be notified that he will be carrying video cameras. He also expressed the belief the police union holds too much power, resulting in 10.4 weeks off work per year. He was appalled at City employees receiving sick leave of one day per month, cumulative. He asked the Council to take action and suggested a professional negotiator be hired to handle contracts with the union. It was noted the hearing would be continued on December 14, 1994, and City Staff and Councilmembers would be available to the public following tonight's session. ADJOURNMENT There was a motion by Councilmember Mann and seconded by Councilmember Scott to adjourn the meeting. The motion passed unanimously. The Brooklyn Center City Council adjourned at 7:29 p.m. f1 Deputy City Clerk Todd Paulson, Mayor Recorded and transcribed by: Barbara Collman TimeSaver Off Site Secretarial 12/7/94 -3-