HomeMy WebLinkAbout1993 12-08 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 8, 1993
CITY HALL COUNCIL CHAMBERS
CALL TO ORDER
The Brooklyn Center City Council met in special session and was called to order by Acting
Mayor pro tem Celia Scott at 7:05 p.m.
ROLL CALL
Councilmembers Celia Scott, Barb Kalligher and Kristen Mann. Mayor Paulson arrived at
7:07 p.m. Councilmember Dave Rosene was excused from tonight's meeting. Also present
were City Manager Gerald Splinter, Finance Director Charlie Hansen, City Assessor Mark
Parish, and Council Secretary Carla Wirth.
PRESENTATION - 1994 PROPOSED BUDGET
The City Manager explained the purpose for the meeting tonight is to meet the State's
requirement for a Truth -In- Taxation public hearing required to be held by every
governmental unit. He added the Council will be soliciting public comment on the 1994
Budget tonight but cannot, by State law, take action on the budget at tonight's meeting.
Council is required to take action on the budget no later than to December 20. The City
Manager then reviewed the budget process followed to develop the 1994 Budget.
Mayor Paulson arrived at 7:07 p.m.
The City Manager presented a report on the proposed 1994 General Fund Budget, pointing
out the City's portion of property taxes is approximately 19 percent with approximately 49
percent going to the Osseo School District, 27 percent to Hennepin County, and the
remaining five percent divided among special districts including the Metro Mosquito Control,
Metropolitan Council, Metropolitan Council Solid Waste Bonds, Metro Transit, Hennepin
Parks and the Park Museum. He pointed out the City's tax portion on a typical $73,000
home is $205 which would be allocated for Public Safety, Public Works, Recreation, General
Government and Economic Development. He added the 1994 Budget maintains current
service levels and provides for the addition of two more Police Officers. He concluded his
report by stating the proposed 1994 Budget has been adjusted downward resulting in no
increase in expenditures for 1994.
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The Finance Director reviewed the proposed 1994 Budget figures including percentages
expended for Personal Services (salaries and wages, pensions, benefits), number of full -time
and part -time employees, private contractors, and total expenditures. He stated even though
there is no increase in budget expenditures, residents may experience an increase in taxes
due to a tax base decline of commercial and apartment properties. He explained the loss
in market value of commercial and apartment properties has resulted in a shifting of the tax
burden over to residential (single family) property. A homestead residence valued at
$73,000 would experience a $10.24 or 5.6% increase due to the tax base decline.
The Finance Director stated the City has also experienced a loss in other revenue sources
such as fines and forfeitures, business licenses, lodging taxes, and recreation fees. A
homestead residence valued at $73,000 would experience a $11.70 or 6.4% increase due to
the loss of these revenues. He reported the City does not receive all of the taxes levied
because of appeals to the tax court. Therefore, the Budget anticipates 2% of property taxes
will be uncollectible. All of these factors together result in this typical $73,000 home
experiencing a $21.94, or 12% increase in City taxes for 1994.
The Finance Director explained the State of Minnesota Commission on Reform and
Efficiency taxes for 1994 evaluated how cities budget funds and established basic spending
levels for all cities. According to these standards, Brooklyn Center's spending is 9% below
the basic spending level established by the State.
Mayor Paulson opened the public hearing at 7:20 p.m. and invited comment from the public
regarding the proposed 1994 Budget.
Daniel Remiarz, 6201 June Avenue North, expressed concern his water utility bill increased
14% last year and 12.3% this year. He commented he stopped by the City garage one
afternoon and found only one employee present. He suggested the City use a contractor
for this type of work. He stated he is on a fixed income and is concerned with paying a
17.8% increase. He questioned the cost for adding two police officers.
In response, the City Manager explained the water and sewer rates do not relate to tax but
relate to cost. With regard to the City garage, he stated employees are working out in the
field during the day and not expected to be present at the garage. He reviewed the
proposed improvements to the garage which are needed to meet State requirements for
safety standards and increased storage needs. He pointed out the City has used contractors
for some Public Works duties such as sealcoating which reduced the number of employees.
He explained the salary cost for two police officers is $90,000 and the remainder of the
increase covers inflation on equipment, materials, supplies, and utility costs.
Steven Slobodnik, 2719 - 64th Avenue North, commented his 34 year old house has
decreased $10,000 in value and yet his taxes continue to increase. He stated his water is
rusty and not agreeable to drink because of the smell and taste. He is a senior citizen and
is concerned about the cost to repair /replace the City's water system. He questioned why
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the City's revenue from penalties and fines is reduced since it appears the court house is
very busy. He also uestioned whether the City charges an additional 6.5% for lodging.
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The City Manager stated the City has had a 6.0% tax on lodging for five to six years but the
revenue from this source has dropped off because of reduced activity at the Park Inn. With
regard to Court activity, he explained people are now choosing jailtime rather than paying
fines, which results in the City having to pay for their housing while also losing revenue from
fines /penalties.
Bob Peppe, 6713 Toledo Avenue North, expressed concern with the way money is proposed
to be allocated. He asserted diverting 10% funding away from economical development will
result in increased incidents of crime. He also felt funds should not be diverted from the
recreation program which will impact Brooklyn Center's youth. He suggested the Council
divert funds into economic development to build up the City's infrastructure.
The City Manager explained the reason economic development is dropping is not because
of a decrease in activity, but because of the loss of commercial and industrial value. He
explained there have not really been any program cuts, but the Contingency Fund has been
reduced from $20,000 to $10,000. He further explained how the reduction in the recreation
budget relates to revenue generated by the water slide, and there is no actual impact to
recreational programs.
Perry Nordquist, 1707 Woodbine Lane, stated his taxes increased 17.8% last year and 22.5%
this year and asked if this is the result of an error. He stated his intention to bring the
matter before Hennepin County. The City Manager suggested he address these concerns
with the City Assessor who was in attendance.
Anthony Kuefler, 5943 Abbot Avenue North, stated he is speaking as both a resident and
member of the Board of Directors of the Brooklyn Center Taxpayer's Association. He
stated his taxes have increased 36.8% over the last two years and he has made no
improvements except to maintain his property. He asserted this huge increase is out of line
in today's economy of unemployment and fixed incomes. He stated the Council by- passed
$1.3 million by not transferring dispatching to Hennepin County and plans to add two Police
officers which he felt treated the symptom rather than the problem which is the leniency of
the court system. He pointed out Brooklyn Center's ranking for public safety expenditures
is very high compared to other communities. He then reviewed the average 1991 per capita
expenditures for cities which was prepared by the Minnesota State Auditor as well as a
comparison of staffing, receipt of State Aid, and levy limits. He stated his opinion Brooklyn
Center's figures appear to be out of balance and something needs to be done in 1994, not
in 1995. He added the Brooklyn Center Taxpayer's Association would like to extend their
help and make themselves available to staff.
The City Manager stated he would like to review these figures with Mr. Kuefler and discuss
comparisons used. He explained the data for public spending levels established by the State
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indicates Brooklyn Center is 9% below. He added Brooklyn Center has a larger commercial
and industrial area than some communities which the C.O.R.E Study takes into
consideration.
Councilmember Scott commented on the impact to residential properties which resulted
when the State shifted the burden from commercial and industrial properties. The Finance
Director agreed and explained over the years the State has made a number of changes which
affect the tax burden allocated to residential property.
Ron Christensen, 6101 June Avenue North, stated he has lived in Brooklyn Center over
thirty years and understands the funding impact of the State's revisions. He pointed out the
State had nothing to do with the Council decision to not go with the Hennepin County
Dispatching system which would have saved $130,000 per year or $1.3 million over ten years.
He added the State also did not tell the Council to hire two more Police officers. He stated
his opinion these were both irresponsible decisions.
Nancy Carlson, 6024 Aldrich Avenue, stated safety is the most important factor in Brooklyn
Center and residents need police officers. She stated her support of the Council's decision
to retain a dispatching system and added it was a wise choice.
Don Escher, Financial Commission Chairperson, thanked the Council for the opportunity
to work together to develop the proposed 1994 Budget. He reviewed the budget process
stating the Financial Commission supports the proposed budget on a split vote (four in favor
two abstentions and one against). On behalf of the Commission he suggested the Council
reconsider the capital expenditure items which were eliminated from the budget. He pointed
out while cutting them resolves the 1994 budget, next year's budget will include on -going
staffing costs for the additional Police officers and the equipment needs will still exist. He
stated the Financial Commission is on record for approving the budget reductions but
recommends the Council consider only one additional Police officer.
The City Manager explained some recurring items can be purchased from other funds. He
added the Disaster Recovery System can be purchased in two stages or perhaps it should be
addressed in 1996 as a total program. He reviewed the proposed reductions.
Mayor Paulson stated he would like the Financial Commission, Council, and staff to look
at reorganizing and restructuring City staff. He suggested the Financial Commission could
be advocates to review potential cost savings.
Rod Snyder, 6408 Willow Lane, stated his concern his property taxes continue to increase.
He encouraged the Council to be responsive to residents on fixed incomes by making the
most frugal and wisest expenditures of tax dollars as is possible. He also encouraged them
to take leadership in assuring Brooklyn Center remains a community where residents want
to live by addressing the challenges facing the City including public safety and crime. He
asserted two more police officers will not resolve a societal problem but felt the Council
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does need to address problems with crime. He stated his concern regarding property values
to assure that Brooklyn Center homes remain saleable.
Milo Carlson, 5830 Drew Avenue, stated he has lived in Brooklyn Center for 36 years and
paid taxes to construct two new high schools plus many other improvements. He explained
he now wants to retire but is facing a 16% increase in taxes this year and is concerned about
increases he will see next year and in the future. He encouraged the Council to find ways
to cut spending to keep taxes down and to set an upper limit.
Mayor Paulson asked if anyone else would like to provide input. No one appeared to do
SO.
Councilmember Mann stated she has received phone calls from several residents who were
unable to attend tonight's meeting. She suggested the public hearing be continued to
December 15, 1993, to allow another opportunity for residents to provide input.
There was a motion by Councilmember Mann and seconded by Councilmember Kalligher
to continue the public hearing on the proposed 1994 City Budget to 7 p.m. on Wednesday,
December 15, 1993. The motion passed unanimously.
The City Manager informed the Council they will need to take final action on the 1994
Budget at their December 20 meeting.
Mayor Paulson commented he voted against the 1993 Budget but feels the budget proposed
for 1994 is different. He stated this year the Council listened to resident's input and concern
regarding safety and security and chose to address these issues by looking at the dispatch
system and adding two Police officers. He pointed out there is no increase to expenses in
1994 which not too many units of government have been able to accomplish. He added he
hopes residents understand why there may still be an increase in their taxes, because the
Legislature revised the property tax system which places more burden on residential
properties.
ADJOURNMENT
There was a motion by Councilmember Mann and seconded by Councilmember Kalligher
to adjourn the meeting. The motion passed unanimously. The Brooklyn Center City
Council adjourned at 9:12 p.m.
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Deputy City Clerk Todd Paulson, Mayor
Recorded and transcribed by:
Carla Wirth
TimeSaver Off Site Secretarial
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