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HomeMy WebLinkAbout1992 11-30 CCM Special Session MINUTES OF THE PROCEEDINGS OF THE PUBLIC HEARING ON THE PROPOSED 1993 CITY BUDGET OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL SESSION NOVEMBER 30, 1992 CITY HALL CALL TO ORDER The Brooklyn Center City Council met for a public hearing on the proposed 1993 City budget and was called to order by Mayor Todd Paulson at 7:00 p.m. ROLL CALL Mayor Todd Paulson, Councilmembers Celia Scott, Dave Rosene, Jerry Pedlar, and Philip Cohen. Also present were City Manager Gerald Splinter, Finance Director Paul Holmlund, EDA Coordinator Brad Hoffman, Assistant Finance Director Charlie Hansen, City Assessor Mark Parish and Council Secretary Nancy Berg. Mayor Paulson welcomed the residents to the Truth in Taxation Hearing. The City Manager explained the purpose of the hearing and stated the presentation would last about one -half hour. The Finance Director introduced Barbara Gallo who provided the technology for the presentation. The Finance Director then proceeded to present a summary of the 1993 proposed City budget. Mayor Paulson opened the meeting for the purpose of a public hearing on the proposed 1993 City budget at 7:35 p.m. Tony Kuefler, 5943 Abbott Avenue North, addressed the Council as a representative of the Brooklyn Center Taxpayers Association (BCTA) and as a homeowner. He stated the value of his home increased slightly and his taxes increased by 14.8 percent. Mr. Kuefler stated the citizens get a lot for their money, but he is concerned about the increase especially for those who are retired. Mr. Kuefler stated as a representative of the Board of Directors of the BCTA, he was concerned about the message a 12 to 14 percent increase will send to the legislature -- it might show that the city cannot control its money. He noted the BCTA is very encouraged by the work of the Financial Commission to date. Mr. Kuefler suggested the City implement a program called bench - marking, which is a method of comparison between similar entities. He recommended the City compare itself to the best in their class, 11/30/92 -1- stands ready to offer its services in support of the Financial Commission, Council and City staff. Stan Perry, 3831 Eckberg Drive, stated the market value of his home had decreased and his taxes had gone up. He asked how the taxes are calculated and stated he is retired and can no longer afford to keep his home. The City Manager explained the formula for the taxes, and asked the City Assessor contact Mr. Perry to ensure his tax statement is correct. Lewis Mathews, 5637 Bryant Avenue North, stated the value of his home had decreased by $100, and his taxes increased by $105. Mr. Mathews stated he was very concerned about the school district taxes. The City Manager advised Mr. Mathews to attend the public hearing for his school district in order to voice his concerns. Mr. Mathews asked the Council to take a good look at the 15% increase especially for people who are retired or on a fixed income. Councilmember Rosene assured Mr. Mathews that the money paid for school district taxes goes to the school district that his children attend. Mayor Paulson stated the Council must take into account all the taxes, not just the City taxes -- the Council must look at it all as a whole. Councilmember Rosene explained when looking closely at the proposed budget, there are steps staff has taken to assure the taxes will not always go up. He further explained the phasing out of borrowing for the purchase of equipment, and the City will cease to use money from the reserve fund. Councilmember Rosene stated through the EDA levy, the Council hopes to increase property values by removing blighted properties. Mr. Mathews asked if after 1993, the taxes will stabilize. Councilmember Rosene answered he hoped this would be the case. He reminded Mr. Mathews the 14.7 percent increase is not just City taxes, but also includes the school district and the County. Nancy Carlson, 6024 Aldrich Avenue North, introduced herself as a concerned citizen. She stated the election this year was the lowest including such things as name - calling. Ms. Carlson stated the BCTA has control of the City Council, and named Councilmembers Scott, Cohen and Pedlar, and the City Manager as members of the BCTA. Ms. Carlson stated her biggest concern was with the Earle Brown Heritage Center. Ms. Carlson read the salaries of the employees of the Earle Brown Heritage Center stating all of the salaries were out of line. She asked the Council how they can justify paying these salaries on a project that does not make any money. Ms. Carlson asked the Council to get a City Manager who will trim the fat. She also asked the Council to justify the need for so much management. Ms. Carlson disagreed with the City's proposal to survey local businesses arguing the City should join the Chamber of Commerce instead. Ms. Carlson called for more police protection and code enforcement. She asked the Council to clean up the slum landlords and slum homeowners. Ms. Carlson stated crime is out of control in Brooklyn Center. 11/30/92 -2- Councilmember Pedlar agreed Ms. Carlson raised some valid questions. He asked the City Manager to provide answers to Ms. Carlson. Mayor Paulson asked Ms. Carlson to provide the City Manager with a list of her questions, and also asked staff to respond to Ms. Carlson's concerns. Councilmember Cohen asked Ms. Carlson to explain why she thought crime was out of control. Ms. Carlson answered she had witnessed crime openly in Brookdale Shopping Center. She further stated there were the murders in Brooklyn Park, campaign signs were destroyed, gas ciphening in the neighborhood, and pan - handling. Councilmember Cohen answered the murders in Brooklyn Park were allegedly committed by a person the criminal justice system put back on the street, not someone from the community. He explained many incidents in our community are committed by people put back on the street, and no matter how many police officers we have, we cannot control all the criminals put back on the street. He stated crime is not something to be scared of in Brooklyn Center, but we must be concerned. Mayor Paulson asked that the discussion be contained to the budget issue. Councilmember Scott asked the City Manager to explain the financial situation of the Earle Brown Heritage Center. The City Manager answered the original purpose of the Earle Brown Heritage Center was to preserve the historic buildings. He explained the Earle Brown Heritage Center was recommended by the Citizen's Committee and the committee stated it would be in the red for three to five years, and the Heritage Center is right on schedule and staff believes it will be in the "black" within five years Noah Bridges, 6712 Emerson Avenue North, stated the salaries for the sales people is out of line at the Heritage Center. He further stated the Council was going to drop the canine unit, but yet continues to fund the Heritage Center. He advised putting more money into the police department and teen programs. Mr. Bridges stated he does not mind tax increases, but he does mind loss of services. The City Manager explained the City cannot transfer funds from the EDA (Heritage Center) or the HRA to the police department. Councilmember Cohen explained when the Earle Brown Heritage Center proposal was brought before the Council, there were public hearings held and it was clearly stated it would take five years to bring the Heritage Center into the black. He further explained the Heritage Center is not operated by general funds, but by tax increment. The City Manager also explained the salaries as quoted include all benefits including Workman's Compensation, not just the salary. 11/30/92 -3- I i Ron Christensen, 6101 June Avenue North, pointed out that Ms. Carlson seemed to be making a political statement. He explained the Earle Brown Heritage Center was developed to be a benefit to the City. Sylvester Thielman, 5325 France Avenue North, asked what the salary increase for employees will be this year. The City Manager answered the City is in salary negotiations right now, the ballpark figure would be under 3 percent. Mr. Thielman asked what it costs every month to pay City employees who are retired. The City Manager answered the retired employees are paid by PERA, and the City's portion is 4.48 percent of the employee's salary. The Director of Finance explained how PERA, a state pension system, works. Mr. Thielman asked if an employee receives pay for all sick days upon retirement. The City Manager answered yes, approximately one -third of available sick time. Lorraine Gilligan, 6900 Dallas Road, stated the percent of her tax increase was too high. She explained her taxes increased by 26.7 percent and the market value of her home increased by $5,000. The Director of Finance recommended she talk to the City Assessor. Ms. Gilligan stated the percentage is really high compared to the increase received by the people. She recommended the City learn to live with less. Ms. Gilligan expressed concern about the slum apartments, and asked the Council to aid the homeowners who live on the river next to these slum apartments. The City Manager explained one of the apartments is in the process of being purchased by the EDA and is scheduled for demolition sometime in the next two years. He further stated the City is currently working on reducing the number of apartment units by 10 percent, but is unsure how this would be financed. Perry Nordquist, 1707 Woodpine Lane, suggested hiring a property manager for the Earle Brown Heritage Center. Mr. Nordquist asked if the interest rates were low when the Financial Commission recommended paying cash for major purchases. The Finance Director answered the interest rates were not much higher at that time, and the Financial Commission thought borrowing was just not good business. Councilmember Cohen explained in three years the City had to pay $300,000 in interest. He stated by borrowing the money, the City would be putting the burden of repayment on the children of Brooklyn Center. The Finance Director explained the City is on a schedule for capital outlay purchase that is somewhat constant, not a large amount in one year. The City Manager explained the City maintains major equipment for as long as it is economical. Lee Snapko, 6931 West Palmer Lake Drive, stated it was not a good fiscal policy to allow an increase in the budget during a tight economy - the economy does not warrant an increase. He asked if the final budget will be submitted the end of this month. The Finance Director answered yes, the Council will adopt a budget either tonight, or on December 10. The City must certify the levy on December 28, 1992. 11/30/92 4- Mr. Snapko stated it is too late now to change the budget, and asked why weren't the citizens notified earlier. The Finance Director explained the Council adopted a preliminary budget in August and it was published. I Councilmember Pedlar agreed with Mr. Snapko's statements. He stated the Financial Commission was directed to look at the City's spending and to make recommendations. I Councilmember Pedlar stated his concern was with salaries. He explained the City has mortgaged h a the future of g g Brooklyn Center by going into the fund balance, and this can no longer happen. Councilmember Pedlar expressed his concern for senior citizens and for those on fixed incomes. He stated the City can no longer dip into its "savings account" to fund day -to -day operations. He also stated the Council wants to keep spending down in Brooklyn Center. Councilmember Pedlar agreed the City must be lean and mean, but there are services the citizens have come to expect. He recommended the citizens become more involved, come to more Council meetings because what the citizens have to say s v ery rY important to the Council. Mayor Paulson compared the budget to purchasing a new car. He stated that many people do not have the money to purchase new cars or to have savings accounts. He agreed the Council needs the input from the citizens to keep the Council from raising taxes more than is necessary. Mayor Paulson encouraged staff and Council to find new ways to earn income for the City, and new ways to deliver services. Diane Lerbs, 5107 E. Twin Lake Boulevard, stated it was her opinion the Mayor allowed political grandstanding to occur by allowing Ms. Carlson to attack members of the City Council, City Manager and members of the BCTA. Ms. Lerbs stated a person cannot just criticize, a person must investigate the facts. Ms. Lerbs also stated it was unacceptable of the Mayor to request an increase in salary, and to request a communications coordinator to help further his political career. She encouraged all the citizens present this evening to do as much as they can to gain knowledge, to get the facts, and to work together. She asked that the hearing be .restricted to only budget matters, not political matters. Ms. Lerbs thanked the Council for organizing commissions geographically, and volunteered to join CEAP or any other commission. Mayor Paulson stated he felt very strongly that he must allow citizens the right to speak, and would never use his chair to silence people. Mayor Paulson stated Ms. Lerbs had in the past slurred himself, his wife and his child. Ms. Lerbs denied this, and asked what exactly the Mayor thought she had done. The Mayor answered this public hearing is about the proposed budget, and encouraged everyone to move on with the budget. John Moore, 6606 Ewing Avenue, stated he was against the 14 percent tax increase, and a salary increase of 3 percent is unacceptable. Councilmember Rosene explained to Mr. Moore the taxes in Brooklyn Center were previously too low, the Cit p y was using funds from areas it should not have been to keep 11/30/92 -5- taxes low. He noted the City was borrowing from the general fund, so the tax rates were artificially low. He explained the Council is allowing the tax rates to raise to their natural level, by not borrowing funds or using the general funds. Councilmember Rosene also stated the citizens have been stating loudly and clearly they want blighted properties taken care of, and this is the reason for the EDA levy. Peter Dragieff, 6431 Emerson Avenue North, stated the 14.7 percent increase is ridiculous. Rodney Mattinen, 5948 Vincent Avenue North, stated no government should be allowed to raise taxes over the rate of inflation. Mr. Mattinen agreed the crime in Brooklyn Park is unacceptable. Councilmember Rosene explained the legislature restructured the property tax system, and in many cases this meant an increase in taxes. He stated the proposed budget is less for 1993 than it was for 1992. Ron Christensen stated the people here have all witnessed an increase in taxes, and he asked if any property owners received a decrease in taxes. The City Manager answered some non - homestead properties, small businesses and higher value homes received a decrease in taxes. The City Assessor explained that people on fixed incomes can apply to the State of Minnesota for a property tax refund. Joe Ohman, 5804 Pearson Drive, stated he is a member of the 5th District of the American Legion, and when their budget was $4,000 in the red, the members willingly reduced that number to within $500. Ms. Gilligan asked the Council to take another look at the budget. Councilmember Pedlar reiterated a large part of the budget increase is due to the EDA levy, which is an attempt to purchase blighted properties, for the good of all property owners in Brooklyn Center. Councilmember Pedlar asked Ms. Gilligan if she would support the EDA levy. She answered yes, but there are other places were the budget could be cut. Irving Koponen, 6707 Dupont, complimented Brooklyn Center on doing a good job trying to control the blighted homes and apartments. Mr. Koponen expressed disappointment that the Mayor did not limit the discussions to the budget. Councilmember Rosene stated as long as blighted properties are a problem in the community, the Council will consider the EDA levy a very high priority. Barbara Sorg, 6117 Camden, stated $183,000 for the EDA levy is very high. Councilmember Cohen stated there are 80 to 90 homes that are in a blighted state, and it takes about $50,000 to remove a blighted property. He further explained the City would like to remove 11/30/92 -6- Councilmember Rosene stated as long as blighted properties are a problem in the community, the Council will consider the EDA levy a very high priority. Barbara Sorg, 6117 Camden, stated $183,000 for the EDA le vy very g is ve high. Councilmember Cohen stated there are 80 to 90 homes that are in a blighted state, and it takes about $50,000 to remove a blighted property. He further explained the City would like to remove 5 to 10 properties per year using a variety of funds. He warned the City must act on this before it becomes an epidemic, as is the problem in Minneapolis. Councilmember Rosene explained the City just recently purchased the property at 6637 Humboldt, and hopes to purchase the property at 67th and Humboldt. The City must have the EDA funds to accomplish this. Councilmember Scott informed the public the salaries in question are very often union salaries, therefore the Council cannot control. She also explained the City has been responsible for many state mandated programs in the last two years. Councilmember Scott stated each department was cut by 10 percent, and the City has combined services with other communities to cut expenses. Councilmember Rosene added the State is now imposing the sales tax on cities amounting to another $100,000. Councilmember Pedlar stated it was clear to him the citizens understood and accept the EDA levy, but also the City needs to operate differently. Councilmember Pedlar recommended the City investigate the use of bench - marking. He stated he felt strongly that the City has too many levels of management. There was a motion by Councilmember Rosene and seconded by Councilmember Pedlar directing staff and the Financial Commission to explore the possibility of including bench- marking in the fiscal policies. Mayor Paulson agreed the Council should look at salaries and the levels of management. Councilmember Cohen stated the report on bench - marking will not be available this year. Councilmember Rosene agreed, and stated it was his intent to receive such a report at the end of the first quarter of 1993. Councilmember Cohen stated to decrease the budget anymore, would mean cuts in personnel and in services. He did not feel he could support cutting taxes which affect services. He stated the Financial Commission has done an excellent job of prioritizing, and if the Council does cut budgets, it must look at the prioritization process. The motion passed unanimously. There was a motion by Councilmember Pedlar and seconded by Councilmember Cohen to continue the public hearing to December 10, 1992 at 7 p.m. The motion passed unanimously- 11/30/92 -7- I Mayor Paulson thanked everyone for attending the public hearing. ADJOURNMENT The public hearing on the Proposed 1993 City Budget adjourned at 10:35 p.m. Todd Paulson, Mayor Recorded and transcribed by: Nancy Berg Northern Counties Secretarial Service 11/30/92 -8-