HomeMy WebLinkAbout11.30.93 Special Council Minutes
L' u.~)
- .:10
MINUTES
COUNCIL MEETING
SPECIAL
II TRUTH IN TAXATION"
NOVEMBER 30, 1993
1. Acting Mayor Orr called the meeting to order at 7:00 P.M..
Members Present: Ristow, Orr, Rotty, Galler.
Members Absent: Kuchera.
Also Present: Administrator Thompson, Finance Director Henneke.
2. The purpose of the meeting was to conduct the annual Truth in
Taxation meeting.
3. Finance Director Henneke presented an overview of the budget,
noting:
A. HACA is frozen at 1993 levels despite increased growth.
B. City grew by 4.77% from 1992 to 1993 with an estimated growth
of 3.7% in 1994.
C. Budgets are not just numbers, but a matter of choices.
D. State and Federal mandates.
E. New positions:
1. Police Liaison - funded by grant - 75%; School District -
16.5%; City - 8.5%.
2. Full Time Police Officer
3. Civil Engineer/Maintenance Worker (optional)
4. Parkkeeper.
F. Breakdown of expenditures.
G. Employees by classification.
H. Reducing new employees would reduce levy 7.1%.
I. Benefits equal 28.1% of salaries.
J. Independent Contractors:
1. Malloy, Karnowski - Auditors - $18,000.
2. Dave Harmeyer - Legal - $38,000.
3. Greg Goldsworthy - Animal Control - $2,700
4. Labor Relations Association - $18,000
K. Per capita tax capacity - lowest in County - due to 40% of the
tax capacity is tax exempt.
L. Per capita tax levy.
M. Tax comparisons on a median priced home.
N. Breakdown of where property taxes go. (City, School District,
County, miscellaneous)
o. Breakdown of General Fund revenues.
P. Notification that Local Government Trust Fund has a shortfall
which could impact 1994 aids.
Q. Solid Waste - survey will be presented to Council on
December 6, 1993.
R. Sewer Fund - storms caused huge increase in MWCC sewer bill -
may need adjustment of approximately 15%.
4. Mayor Kuchera arrived at 7:30 P.M..
194council Minutes - 11/30/93 - Page 2 - Special
5. Questions:
Bill Fitch: (Commended Finance Director for
excellent presentation.) How many
additional households are projected?
Adm. Thompson:
90 - 100 per year.
Bill Fitch:
Civil Engineer - $5,000 in additional
revenues or over and above costs?
Fin. Dir. Henneke:
$5,000 in additional revenue.
Bill Fitch:
Meter reader?
Fin. Dir. Henneke:
The Water Board hired the position.
It is a separate budget.
Bill Fitch:
There was $40,000 in the building
fund. Is this still intact?
Fin. Dir. Henneke:
Yes. Some money was used for City
Hall renovation. The same amount
will be budgeted this year.
Bill Fitch: In relation to other cities our size,
we are the 8th highest spenders. Why
does the HRA cost so much? We need more businesses, not homes.
Adm. Thompson: It is hard to compare numbers due to
different accounting systems. It's
easy to put a spin or read things into the figures.
Cm. Rotty:
Would you feel better if we spent
less on economic development?
Cm. Galler:
could not be financed.
to offer TIF in order to
The HRA would like to see the TIF
laws changed so that new development
But until the law is changed, the HRA has
compete.
Henry Iwerks:
What does HACA stand for?
Fin. Dir. Henneke:
Homestead Agricultural Credit Aid.
Henry Iwerks:
What is the difference between
General Government and
Administration?
Fin. Dir. Henneke:
Administration offers staff support
services, General Government is a
for expenditures that benefit all departments, for
legal fees.
catchall
example,
Council Minutes - 11/30/93 - Page 3 - Special
195
Henry Iwerks:
I don't understand State "trust
fund" .
Fin. Dir. Henneke: It was created by the State to
provide a stable revenue base. It
was part of the 1/2 cent sales tax increase.
Henry Iwerks: It was my understanding that the City
going to get out of solid waste by
July, 1993 if the weight based system failed?
Cm. Galler:
We agreed to reevaluate at that time.
We looked at it and decided to survey
the citizens.
Henry Iwerks:
Some of us took a long time to study
this issue. Isn't the Council
listening to us?
Cm. Orr:
We want to hear from a larger group
of people before making a decision.
Cm. Rotty:
We had a split Council.
Henry Iwerks:
The City has always resisted going
out of the business.
Mayor Kuchera:
I'm in favor of going out of the
business.
(A lengthy discussion followed.)
when it is due.
I have been labeled a complainer. I
do complain, but I also give credit
(Gave examples, as follows:
Henry Iwerks:
a. Dave Dahl killed a rumor at his church council regarding City
sewer pumping;
b. Ben Klotz did a very good job at Clean Up Day;
c. Mayor should be commended for attracting Lexington Standard to
town;
d. Councilmember Galler did a good job at the Regional Airport
meeting;
e. He had given Wayne Henneke a list of questions yesterday, and
by this afternoon Wayne had most of the answers in writing;
Mr. Iwerks questioned the gift certificates to the Mall of America.
Cm. Orr:
That was never even given a
consideration by the Council.
196
Council Minutes - 11/30/93 - Page 4 - Special
Henry Iwerks: I am mad about taxes. Mine went up
16.4%. Casey's development would
have generated several thousand dollars in taxes. The Planner and
two Planning Commission members were opposed to the project. Jerry
Luetzow wanted to sell his business and was being hassled by the
Planning Commission. This creates a negative image.
Cm. Rotty: I disagree. We asked Mr. Luetzow to
come to a regular meeting, but he
chose to come without being on the agenda.
Cm. Orr:
It's healthy to have diversity of
opinion on the Council and staff.
Henry Iwerks: City income in 1986 was $1,354,534
and expenses were $1,296,615. In
1992 it was $2,439,910 and expenses were $2,091,957. City vehicles
are provided for certain employees. The City should look at paying
employees to drive their own vehicles. I also question additional
employees.
Cm. Galler:
Hiring employees is looked at very
long and hard.
Henry Iwerks:
I've brought up insurance several
times. Why not bid out insurance?
Cm. Orr: Apple Valley put their insurance out
for bids and the LMCIT came in much
lower. There is no reason to believe that Farmington would get
different results.
Henry Iwerks:
Why not get bids?
Cm. Rotty:
We are looking at health insurance.
Fin. Dir. Henneke:
We also get a return on our premiums
each year.
Henry Iwerks: In 1986, Employee Services were
$716,153, in 1992 they were
$1,409,356; (Cites similar comparisons in Solid Waste). Regarding
the annexation legal fees, the only people that win are the
lawyers.
Bill Fitch:
The "request" versus the "proposed"
budget, which is being approved?
Adm. Thompson:
"Proposed" .
Bill Fitch:
The major tax increase was due to
debt levy. What is the Council doing
about it?
197
Council Minutes - 11/30/93 - Page 5 - Special
Adm. Thompson:
(Explained the 5 and 10 year CIP.)
Henry Iwerks:
Are you being consistent with Pine
Knoll?
Adm. Thompson:
Yes.
(A lengthy discussion on assessments followed.)
Finance Director Henneke stated the hearing can be continued until
December 15th, the budget could be adopted tonight, or adopted on
December 6th or December 20th.
Ken Hanson:
I would recommend it be continued
until December 15th so I can review
the budget.
Cm. Orr:
I hope you can have it reviewed by
Monday night.
Ken Hanson:
The d~bt load is a concern. The City
might lose its Baal rating.
Cm. Orr:
It is a concern, but our Financial
Advisor keeps us informed as to its
condition.
Cm. Rotty:
I would like to see the CIP adopted
soon.
MOTION by Galler, second by Orr to close the hearing. APIF, MOTION
CARRIED.
6. MOTION by Galler, second by Ristow to adjourn at 9:30 P.M..
APIF, MOTION CARRIED.
Respectfully submitted,
Larry Thompson
City Administrator
/o{/6/8