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HomeMy WebLinkAbout1993 12-15 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 15, 1993 CITY HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in special session and was called to order by Mayor Todd Paulson at 7 p.m. ROLL CALL Mayor Todd Paulson, Councilmembers Celia Scott, Dave Rosene, and Kristen Mann. Councilmember Barb Kalligher was excused from tonight's meeting. Also present were City Manager Gerald Splinter, Finance Director Charlie Hansen, City Assessor Mark Parish, and Council Secretary Kathy Stratton. 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 prior to December 20. The City Manager then reviewed the budget process followed to develop the 1994 Budget. The City Manager presented a report on the proposed 1994 General Fund Budget, pointing out the City's portion 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. 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 12/15/93 - 1 - 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 $21.94 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. The Finance Director explained the State of Minnesota 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. The City Manager concluded the audience members should keep in mind Brooklyn Center only receives nineteen cents of each tax dollar they pay. Councilmember Scott referred to a handout indicating $162,651 in cuts to the budget and asked if now that the amounts to be levied had changed the taxpayers would receive a new statement. The City Manager explained new tax statements would be calculated with the adjustments downward. Mayor Paulson opened the public hearing at 7:18 p.m. and invited comment from the public regarding the proposed 1994 Budget. Mr. Phillip Dahlen, 6518 Willow Lane, spoke in support of the budget, especially the addition of two police officers and the decision to keep the dispatch service in the City. He said this budget would help to protect the area and expressed concern because of his neighborhood being the first one north of Minneapolis. He also expressed concern for Brookdale and said he shops at Northtown Mall instead. Mr. Bill Hannay, 6432 North Willow Lane, asked what is meant by a "typical" home in Brooklyn Center what has happened to the value of homes due to the recent drop in commercial property values. He said in response to the budget cuts to "go for it." The City Manager explained the "typical" home in Brooklyn Center is a 900 to 1,000 square foot rambler with a two -car garage, with an average value of $73,000. He said there has been a steady increase in the value of homes, and the reduction of commercial property value has been due to market conditions affecting all areas, not just Brooklyn Center. 12/15/93 -2- Mr. Elmer Peterson, 5350 Logan Avenue North, asked about an example given in the literature in which $503 is given to Osseo School District. He explained in 1956 he had moved to Brooklyn Center thinking there would only be one school district. He also said he wondered why the homeowners have to make up for revenues lost when property values of commercial property and apartments go down. The City Manager explained there are four School Districts present in Brooklyn Center and used an overhead to explain where the boundaries are for each one. He also explained the $503 for Osseo School District was just used as an example, but there are more homes in the Osseo School District than any other. He said historically there have been shifts in values of residential areas as well as commercial areas and apartments, but the services the City provides remain the same, therefore there are slight shifts in the amounts paid by property owners. Mr. Daniel Remiarz, 6201 June Avenue North, commented there seem to be more vehicles owned by Brooklyn Center than necessary. He asked whether trees are trimmed by the City because he's seen a nice truck that has a bucket for that purpose, but never seen it out in the area. He added maybe the City should contract out for tree trimming. In response, the City Manager explained trees are trimmed frequently, and each homeowner is given notice when that is to happen on their property. He said trees are trimmed in the parks as well and explained the City does save money doing it rather than contracting the service. Councilmember Rosene said he had just received notice that his trees were to be trimmed. Mr. Roger Dusbabek, 5400 Logan Avenue North, complimented the Council about bringing the budget down to the same amount it was last year but asked if there could be even further reductions. Councilmember Rosene explained the list prepared by City staff of items that could be done away with. He said he is personally reluctant to make any further budget cuts because it would mean cuts in important services. Mr. Dusbabek asked who establishes poverty levels and decides which people get tax breaks. In response, the City Manager explained any tax breaks are part of federal programs or are provided by utility companies which are administered separately from what the City does, and the qualifications are set by those organizations. Councilmember Rosene asked if anyone else wished to comment, and no one appeared to do so. Councilmember Scott thanked those present for their interest and input. 12/15/93 -3- RECESS There was a motion by Councilmember Scott and seconded by Councilmember Mann to call recess for the purpose of reconvening in executive session. The motion passed unanimously. The Brooklyn Center City Council recessed at 7:35 p.m. Deputy City Clerk Todd Paulson, Mayor Recorded and transcribed by: Kathy Stratton TimeSaver Off Site Secretarial 12/15/93 -4-