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HomeMy WebLinkAbout2018 12-03 CCM Special Meeting12/03/18 -1- DRAFT 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 MEETING DECEMBER 3, 2018 CITY HALL – COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center City Council met in Special Meeting called to order by Mayor Tim Willson at 7:00 p.m. 2. ROLL CALL Mayor Tim Willson and Councilmembers Kris Lawrence-Anderson and Dan Ryan. Councilmember April Graves and Marquita Butler were absent and excused. Also present were City Manager Curt Boganey, Finance Director Nate Reinhardt, and Mary Mullen, TimeSaver Off Site Secretarial, Inc. 3. CONSIDERATION OF 2019 BUDGET AND PUBLIC HEARING Finance Director Nate Reinhardt reviewed the City budget process to provide the general public with information on the 2019 proposed budget and tax levy prior to their adoption. He added budget planning include a series of Joint Budget Study Sessions with the City Council and Financial Commission. He noted the strategic priorities of the 2019 Budget include economic stability, redevelopment, and community engagement. Mr. Reinhardt reviewed 2019 the proposed levy in comparison to the Statewide average. He added the comparison is favorable, although the City’s levy is slightly higher than average. He noted the proposed levy is driven by limited growth in non-property tax revenue and an increase in City personnel and infrastructure costs. Mr. Reinhardt stated costs related to Personnel include a 3% base wage increase for all City employees, as well as the addition of staff. He added these additions include an Engineering Technician, Building Inspector, Community Engagement Specialists, as well as a part-time Human Resources Specialist and part-time youth recreational programming staff. Mr. Reinhardt stated Capital Improvement projects identified in the budget include public utilities, street improvements, parks improvements and capital maintenance building improvements. Mr. Reinhardt stated residential property taxes can change based on the value of the property or Brooklyn Center property values, as well as General Fund operational costs. 12/03/18 -2- DRAFT Mr. Boganey stated residential and multi-family apartment values are increasing at almost twice the rate of all other values or uses. Mr. Reinhardt reviewed property tax increases on the City’s median value home, or the home at which 50% of property values are higher and 50% are lower. He added the median home value would see a 4.4% tax increase even if the City Council adopts a zero-increase budget. He noted any questions or comments related to residential property values should be directed to City Staff or the Hennepin County Assessor, Josh Whitney. Mr. Boganey stated the Board of Appeal and Equalization hearing will be held in the spring 2019, at which residents have an opportunity to contest their property values. He added individual property values will not be addressed at tonight’s Budget Hearing. Councilmember Ryan stated the median residential property value of $184,000 represents a 10% increase, or $123 per year, over last year. He added some properties have higher values, including properties on the river or on Twin Lake, as Assessor standards tend to raise those types of property values. Mr. Boganey stated those properties tend to have a higher value because of their location, that is easier to retain and increases at a faster rate than other properties. Councilmember Ryan moved and Councilmember Lawrence-Anderson seconded to open the Public Hearing at 7:24 p.m. Motion passed unanimously. Gary Brown, 7012 Willow Lane, stated his residential property is on the river. He added he sees stores continually closing and commercial property being taken down. He added the Community Development budget has risen over 14%. Mayor Willson stated major commercial development will occur in Brooklyn Center during the next two years on significant pieces of property. Mr. Brown stated he thinks the increase in his property value is reasonable. He added, however, there seems to be very little being done about commercial development in Brooklyn Center. Councilmember Ryan stated he appreciates Mr. Brown’s comments. He added Brooklyn Center’s budget and expenses are like many communities across the Midwest, especially considering the recent recession. He noted he has challenged the City’s Community Development Department to continue to be proactive. Councilmember Ryan stated the City has entered into a preliminary development agreement with Alatus LLC for a $200 million residential project on 35 acres within the City’s Opportunity Site. 12/03/18 -3- DRAFT Scott Terhaar, 7216 Riverdale Road, stated he questions the assessed value of his home. He added he did some research and Brooklyn Center has the highest effective tax rate out of the 40 cities he researched. He noted his property value and taxes have gone up in the past two years, and it is difficult to see residents taking on an increased tax burden. He expressed concern that higher property taxes will decrease the value of his home. Cindy Roberts, 6442 Lee Avenue North, stated her property value increased by 20%, although that increase in value is not realized unless they sell their home. She added there are no increases in wages happening at her home. Tim Haroldson, 1207 72nd Avenue North, stated he loves the fact that his property value increased by 19.7%. He asked why an Engineering Technician is being added to City Staff, as well as a third Building Inspector. He asked why the City needs additional Community Engagement staff. Mayor Willson stated these Engineering Technician and Building Inspector staff are vital positions, and are busy working on various projects. He added the increased Community Engagement staff is part of a recent City-wide initiative to reach out to residents in our diverse community. The goals of this important initiative are an increased sense of community and improved involvement within Brooklyn Center. Mr. Haroldson stated he feels like there is more crime, and he would like to see some focus on issues and projects that are not getting completed. He added he appreciates the hard work of the City Council. He reiterated his concern regarding the staff salaries presented in the 2019 Budget. Mayor Willson recommended that Mr. Haroldson submit an application for the Financial Commission, which currently has two openings. Councilmember Lawrence-Anderson moved and Councilmember Ryan seconded to close the Public Hearing at 7:41 p.m. Motion passed unanimously. Mr. Boganey expressed his appreciation of the resident comments expressed during the public hearing. He added many commercial developments have been approved and are in planning stages, including a new Casey’s Store, and two new sites are under construction: a commercial storage facility and a new hotel next to Embassy Suites. He noted a residential development project with 35 new single-family homes has also been approved and construction is planned for next fall, as well as a multi-family residential development at the Opportunity Site. Mr. Boganey stated Brooklyn Center’s residents will see many new redevelopment projects. He noted Brooklyn Center was one of the metropolitan area communities where, during the 12/03/18 -4- DRAFT recession, property values fell the quickest and deepest. Other second-ring suburbs began to recover their values sooner, but Brooklyn Center is now experiencing an increasingly faster growth rate because of the low cost of quality homes in the area. The demand for commercial as well as residential property in Brooklyn Center is high as developers continue to look for the next best opportunity. Mr. Boganey thanked the residents who came to tonight’s meeting and expressed his confidence and excitement regarding development and growth in Brooklyn Center over the next three years. Councilmember Ryan stated the burden of property taxes falls most heavily on those least able to pay. He added he is retired, on a fixed income, and does not have a pension, and he is averse to raising taxes. He added the City is called upon to provide services to its residents, including community outreach, which is extremely important for communication and community-building. Mayor Willson thanked the residents who came to the meeting and shared their thoughts and comments. 4. CITY MANAGER’S BUDGET TRANSMITTAL LETTER FOR 2019 FISCAL YEAR Councilmember Lawrence-Anderson moved, and Councilmember Ryan seconded to accept the City Manager’s Budget Transmittal Letter for 2019 Fiscal Year. Motion passed unanimously. 5. RESOLUTION NO. 2018-202 APPROVING FINAL TAX CAPACITY LEVIES FOR THE GENERAL FUND AND DEBT SERVICE FUNDS AND MARKET VALUE TAX LEVY FOR THE HOUSING AND REDEVELOPMENT AUTHORITY FOR PROPERTY TAXES PAYABLE IN 2019 Councilmember Ryan moved, and Councilmember Lawrence-Anderson seconded to adopt RESOLUTION NO. 2018-202 approving Final Tax Capacity Levies for the General Fund and Debt Service Funds and Market Value Tax Levy for the Housing and Redevelopment Authority for Property Taxes Payable in 2019. Motion passed unanimously. 6. RESOLUTION NO. 2018-203 ADOPTING THE 2019 ANNUAL CITY BUDGET Councilmember Lawrence-Anderson moved, and Councilmember Ryan seconded to adopt RESOLUTION NO. 2018-203 adopting the 2019 Annual City Budget. Motion passed unanimously. 12/03/18 -5- DRAFT 7. RESOLUTION NO. 2018-204 APPROVING THE 2019-2033 CAPITAL IMPROVEMENT PLAN AND ADOPTING THE 2019 CAPITAL PROGRAM Councilmember Ryan moved, and Councilmember Lawrence-Anderson seconded to adopt RESOLUTION NO. 2018-204 approving the 2019-2033 Capital Improvement Plan and Adopting the 2019 Capital Program. Motion passed unanimously. 8. ADJOURNMENT Councilmember Lawrence-Anderson moved and Councilmember Ryan seconded to close the Special Session at 7:57 p.m. Motion passed unanimously.