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HomeMy WebLinkAbout1989 12-06 CCM Special Session MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL SESSION DECEMBER 6, 1989 CITY HALL CALL TO ORDER The Brooklyn Center City Council met in regular session and was called to order by Mayor Dean Nyquist at 7:01 p.m. ROLL CALL Mayor Dean Nyquist, Councilmembers Celia Scott, Todd Paulson, Jerry Pedlar, and Philip Cohen. Also present were City Manager Gerald Splinter, Finance Director Paul Holmlund, City Assessor Mark Parish, and Administrative Aide Patti Page. The City Manager stated he would first like to review the State law requirements, allow time for Council questions, and then open the public hearing. He noted when the City started the budget process in February, it was operating under one set of regulations and then the State Legislature met and changed the procedures. The Finance Director stated the City of Brooklyn Center was required to wait until all four school districts and Hennepin County held their public hearings before the City could hold its public hearing on the final levy amount. He explained the final levy cannot be greater than what is discussed this evening and pointed out only the City's portion of the taxes are being discussed this evening not the school districts or the County. He then went on to review the entire process for the City Council and members of the audience. Mayor Nyquist opened the meeting for the purpose of a public hearing on the 1990 proposed budget and proposed tax levy. A discussion then ensued regarding who will benefit from the additional school aid and whether it would be in -state or out -state schools. Councilmember Cohen noted there is a tremendous outflow of money leaving the metro area. The City Manager noted there are more legislators out -state than metro area. Mayor Nyquist recognized a gentlemen who stated he sees no mention of the Heritage Center within the budget. He inquired if this is self- supporting. The City Manager noted the Heritage Center is contained within the EDA budget, and it will be self - supporting eventually. Mayor Nyquist recognized a gentlemen who stated he understands the City's need for the additional three percent from the lodging tax because of the tax law changes. He noted, however, the hotels and motels in this area have a competitive edge at this point because they are two to three percent less than everyone else. He noted the lodging establishments would be losing this competitive edge if the three percent is added to the lodging tax. He asked Councilmembers to take a hard look at this so they understand what it will do to the lodging establishments. Mayor Nyquist inquired what the other cities are doing regarding the lodging tax. The City Manager stated Brooklyn Park and Fridley have not made a decision at this time. He stated the cities of Bloomington, Minneapolis, and Duluth have increased their lodging tax to six percent. He noted Brainerd and St. Cloud are at 5 %. 12/6/89 -1- f r I Mayor Nyquist recognized a gentlemen who stated he had some questions regarding the percentage increase for personal services. The City Manager stated salaries will increase approximately 4 -5% even though on paper it looks like more. He noted the addition of three new employees is what is causing the great increase on paper. Mayor Nyquist inquired if there was anyone else present who wished to speak at the public hearing. No one appeared to speak, and he entertained a motion to close the public hearing. There was a motion by Councilmember Scott and seconded by Councilmember Pedlar to close the public hearing. The motion passed unanimously. RECESS The Brooklyn Center City Council recessed at 8:50 p.m. and reconvened at 9:05 p.m. REVIEW Councilmember Paulson inquired what the impact of the additional three percent on the lodging tax will be. The Finance Director stated it is approximately $177,000. Mayor Nyquist inquired if there would be some way of increasing license and permit fees to gain the additional money needed. The City Manager stated the fees were increased recently and this, is reviewed every couple years. The Finance Director stated he would like to caution the Council regarding dipping into the surplus. He stated at this point he does not have any exact figures, but he is sure that the City may get less than anticipated in State aid funds. The City Manager stated he believes the City would be missing an opportunity if they did not increase the lodging tax. He added he does not believe this is going to hurt the tourism and hotel business. Councilmember Cohen stated III he believes the Council should honor their request to review this issue next year, but it should also be explained to them what will happen if the City does not raise the additional money and how it will affect them. Councilmember Paulson inquired what type of funding sources are available if some emergency occurs in the middle of the year. The City Manager stated there is money in the contingency fund and the capital improvements fund. RESOLUTION NO 89 -229 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION TO AUTHORIZE A FINAL TAX LEVY FOR 1990 BUDGET APPROPRIATIONS The motion for the adoption of the foregoing resolution was duly seconded by member Philip Cohen, and the motion passed unanimously. RESOLUTION NO 89 -230 Member Philip Cohen introduced the following resolution and moved its adoption: RESOLUTION TO ADOPT THE 1990 BUDGET The motion for the adoption of the foregoing resolution was duly seconded by member Jerry Pedlar, and the motion passed unanimously. 12/6/89 -2- There was a motion by Councilmember Scott and seconded by Councilmember Pedlar to place a hold on the appropriation for the League of Minnesota Cities' fees. The motion passed unanimously. ADJOURNMENT There was a motion by Councilmember Pedlar and seconded by Councilmember Paulson to adjourn the meeting. The motion passed unanimously. The Brooklyn Center City Council adjourned at 9 :35 p.m. City Clerk May i . I I I i 12/6/89 -3-