HomeMy WebLinkAbout11.30.92 Special Council Minutes
253.
MINUTES
COUNCIL MEETING
SPECIAL
TRUTH IN TAXATION
NOVEMBER 30, 1992
1. Acting Mayor Galler called the meeting to order at 7:00 P.M..
Members Present: Mayer, Orr, Rotty, Galler.
Members Absent: Kuchera.
Also Present: Administrator Thompson. (Four citizens, one reporter, Councilmember
Elect Ristow, and Department Heads were in attendance.)
2. The purpose of the meeting was to hold the annual Truth in Taxation hearing.
Administrator Thompson presented an overview of the budget process, noting that
while the budget could be considered a controlling tool, it should also be viewed
as a planning document and one of choices. Finance Director Henneke presented the
City's Organizational Chart. Administrative Assistant Karen Finstuen, Public Works
Director Tom Kaldunski, and Parks and Recreation Director Jim Bell presented an
overview of the staffing and functions of their respective departments.
3. Finance Director Henneke presented an overview of the operating budget, noting:
a. The breakdown of the General Fund Budget Expenditures.
b. The breakdown of the General Fund Budget Revenues.
c. Intergovernmental Revenue trends including the State Local Government and Trust
Fund.
d. Comparison of Dakota County Property Taxes.
e. Analysis of levy increase.
4. The following comments were made:
Gil Gilbertson:
Is the space needs fund proper when existing tax payers
will fund future projects? Also could you explain fiscal
disparities?
Adm. Thompson:
It is a complicated formula whereby commercial tax base
and revenue within the metro area is shared.
Cm. Galler: The City has not had much success passing referendums and
it is hoped that the fund will help referendums be more
successful. It allows all funds to contribute. On the flip side, Dakota County
was criticized for taking on long term debt for the first time.
Cm. Orr: The argument would be more valid if taken to an extreme
and no bonds were ever issued. That is not the intent.
Cm. Orr:
The fund is for seed money. The Council would still go
to the voters for approval.
We are trying to be more prepared when approaching the
public.
Can the money be used for other purposes?
There are no legal requirements, but it is our intent to
leave the money in the building fund.
It sounds like a fancy accounting system to use the money
where you want.
I liken it to a household scenario where you plan for an
addition two years in advance and your car breaks down.
Cm. Ratty:
Cm. Orr:
Bill Fitch:
Cm. Orr:
Bill Fitch:
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Council Minutes - 11/16/92 - Page 2
Cm. Mayer:
Bill Fitch:
Adm. Thompson:
Cm. Orr:
Bill Fitch:
Cm. Galler:
Bill Fitch:
Any item in the budget is subject to rev~s~on. As the
Administrator pointed out, it is a planning document.
How can you justify a 7.8% on top of a 13%+ increase?
General Fund expenditures increased 2% last year.
City property taxes only went up on average of 3% this
year.
Are we in or out of the solid waste business?
The Council has made a commitment to stay in it for 5 years.
Why do we stay in the business if it costs tax payers dollars.
Cm. Galler: Solid waste operates on service fees and our fees are com-
petitive. How can we justify getting out of the business when
we are operating a competitive service?
Bill Fitch:
Cm. Orr:
Cm. Galler:
Gil Gilbertson:
Cm. Galler:
Gil Gilbertson:
Adm. Thompson:
$6,000.
Gil Gilbertson:
Cm. Orr:
Bill Fitch:
Finance Dir. Henneke:
Bill Fitch:
Finance Dir. Henneke:
Gil Gilbertson:
Cm. Galler:
Cm. Orr:
Adm. Thompson:
by the City Council.
Bill Fitch:
Fin. Dir. Henneke:
Bill Fitch:
Fin. Dir. Henneke:
Is the plan based on an incinerator or landfill?
It is based on the best information we have today. We con-
stantly review it.
We mainly focus on costs we can control.
Is the HRA in the budget?
No. It is a separate agency. The same as the Water Board.
Explain the Arena Bonds.
The Arena Bonds and Fire Hall Bonds were combined into
a refunding bond with an annual savings of approximately
The payoff of principal seems low.
Just like a house payment.
How much has LGA dropped?
It has dropped $49,462 from the 1985 figure.
How much decrease was due to TIF?
$3,800, I believe.
The HRA has the authority to sell bonds and levy taxes and
we have no control through elections.
The Council makes appointments. We try to screen applicants
accordingly.
Some Councils have dealt with it by appointing themselves
to the HRA.
The HRA can sell bonds but not back them with the full faith
and credit of the City. Also, tax levies must be approved
What benefits are given to part time employees?
If they qualify, the same as full time employees.
What do benefits cost?
About 25% of base salaries.
255'
Council Minutes - 11/30/92 - Page 3
Cm. Mayer:
Fin. Dir. Henneke:
What does the updated budget report contain?
Just the changes made at the last meeting.
Does the Arena hold its own?
It about breaks even.
Jerry Ristow:
P&R Dir. Bell:
Jerry Ristow:
P&R Dir. Bell:
Gene Clay:
Fin. Dir. Henneke:
Have we ever lost money?
We've lost money on summer ice and some rentals.
Do PERA employees also get social security?
Coordinated members are eligible but Basic and Police/Fire
are not.
5. MOTION by Orr, second by Rotty to adopt RESOLUTION NO. R146-92 establishing
the 1993 Budget and establishing the Tax Levy for the year 1993 Collectible.
Debt Levy
General Levy
Total
$ 357,897.00
1,216,969.00
$1,574,866.00
APIF, MOTION CARRIED.
6. MOTION by Mayer, second by Orr to adjourn at 8:35 P.M.. APIF, MOTION CARRIED.
Respectfully submitted,
/~ "Y2r'
Lfty Thompson
City Administrator
Approved
(;{/7 It? 2-