2007-12-03MOUND CITY COUNCIL MINUTES
DECEMBER 3, 2007
The City Council of the City of Mound, Hennepin County, Minnesota, met in special
session on Monday, December 3, 2007, at 7:00 p.m. in the council chambers of city hall.
Members present: Mayor Mark Hanus; Councilmembers David Osmek, Mike Specht,
and John Beise.
Members absent: Councilmember Greg Skinner
Others present: City Manager Kandis Hanson, Finance Director Gino Businaro, Ron
Burdes, John Sobraske, Dave Painter, Bill & Pauline Thorson, Tom Reese, John & Linda
Verkennes, H. Barnett, Tim & June Kennedy, Ray Salazar, Curt Wynkoop.
1. Open meeting
Mayor Hanus called the meeting to order at 7:00 p.m.
2. Truth In Taxation Hearing
Kandis Hanson welcomed residents present and reviewed the budget process used by
the City. Gino Businaro reviewed the proposed 2008 budget and its affects.
Hanus mentioned that in September the preliminary budget was passed, that contained
a general fund levy of 6.3%. Since then there has been another meeting and a majority
of the Council (three members) agree to adjust that number to 1.75%.
Businaro then reviewed the proposed 2008 budget with a general fund levy of 1.75%.
Mayor Hanus opened the public hearing for comment.
Tom Reese, 5641 Bartlett Blvd, asked where these taxes are going. His have gone up
15% per year for the last four years, and 12% in 2004. They have gone up 87% in four
years. He's hurting more than others being on a fixed income and 79 years old, but
there must be a lot of people living in a house for a long time, and now have way too
high market values. He asked if his valuation goes down will his money be reimbursed?
Hanus stated that Hennepin County has an open book meeting in the Spring where
residents can contest property values, and the county can reduce them.
Reese stated that it doesn't make sense and wonders where all of this money is going.
Kandis Hanson stated that the assessor reported that inland properties have stayed flat
in their values, and lakeshore properties are going up again 14-15%. She stated that you
can approach the county assessor at any time, not just at the open book meeting, and
ask them to review your property value. Hanus stated he feels that there was too much
taken in prior years that's why they are going with a 1.75% this year. The City does not
have any control over the property values, however,
Osmek stated that the other part of this is how much the city spends. That is the part
that the Council can control by putting a 1.75% increase instead of the proposed 6.3%.
Mound City Council Minutes -December 3, 2007
Reese stated that he is being taxed out of a house that he's lived in for forty years.
Jim Bedell, 2627 Wilshire Blvd, stated he looked at a property on Three Points on the
lake, that sold three years ago for $650,000 and came on the market this morning for
$312,000. The market values are being affected by foreclosures, etc. There are a lot of
expensive homes in the area, over $1.2 million. The ones that are hurting are the ones
in the $700,000-1 million range. He met with the assessor on 2 lake properties and 2 off
the lake, and within 1 '/z hour he had those four properties reduced by about $375,000 in
market value. There are a lot of homes selling for $200,000-300,000 less than a couple
years ago. He asked about a commercial property he has that pays more for fiscal
disparity that others. He was told that cities don't really have any control over the fiscal
disparity figure.
John Verkennes, 4771 Island View Drive, stated he has a lot of the same feelings as
Reese. His problem is his taxes over the last three years have increased 39%. The City
of Mound portion has increased 46% and that is just not right. His questions is, how do
you get that changed? Who governs it and who makes that equation? Hanus stated
that as long as the same taxing system exists, the only way to change it is to pass
legislation to cap how much taxes can increase. Even if the city reduced the levy, not
just zero, but a reduction, there would still be some people that would pay higher tax.
Verkennes feels that the Council should do their best to remedy this. Hanus stated that
in the prior two years before this year there were huge increases. The last two years
had huge tax increases in the city. This year they are trying to keep it under 2%. State
laws govern the taxing system and the City doesn't have any control over the method of
taxation. All the City can do is determine how much they're going to spend and how
much to levy.
John Sobraske, 5009 Wilshire Blvd., stated he sent a letter to the Hennepin County tax
assessor, stating his value went up $80,000. City tax went up 20%, and the county went
up 21 %, and although he's a retired Army officer, he can handle it but it's ridiculous that
houses are being bulldozed down and replaced with $2 million dollar houses. What is
happening with the neighbor who is next door to these mini-mansions? He is next to a
cabin on the corner of Brighton and Wilshire that hasn't been improved for 24 years and
the place is a mess. The fence was destroyed and it sits next to his house and affects
the value of his house. Also the swimming beach has been unsupervised for the last
few years, causing problems for him. He also questioned what is obligated and
committed for the budget year. Businaro stated that it is basically 100% committed. The
staff goes in with needs and the council approves. The numbers reflect the needs of
each department. He would like the park supervised like before to eliminate problems.
Hanus stated that with budget constraints the lifeguards were eliminated a couple years
ago. Sobraske suggested that the council revisit this issue.
Ray Salazar, 4559 Island View Drive, applauded the City Council on trying to maintain
the budget. His taxes have more than doubled since 2002. He explained Proposition 13
in California, which freezes the value of a home and can't go up more than 2% per year
and the city and state can't change the multipliers. He was told by the Hennepin County
assessor that if the values are lowered, the county will still get their taxes, by changing
the multiplier.
Mound City Council Minutes -December 3, 2007
Salazar asked if Steve Smith is the person to go to regarding legislation and was told he
would be the person to start with.
Mark Smith, 4665 Island View Drive, thanked the council for listening to the moaning
over the system when they don't have control over the system or method of taxation. In
the budget, is there enough money to repair the city streets? Small cars have been lost
in his street. Hanus stated that one of the things he brought up at the last meeting was
he would like to take part of the street program over in the Langdon area, and include
Island View Drive because it needs it desperately. Because of hearing requirements
and notice requirements, he doesn't think it will happen next year. He thinks Island View
Drive is not scheduled until 2010, but will try to get it moved at least to 2009. Smith
asked if they considered bonding for the whole thing and just get it done. Hanus stated
that the law requires noticing for these improvements.
Osmek asked if we bonded for the Island View area and paid for it 100% upfront and
included them one year late for assessments, does the city pay interest? Hanus stated
that the public hearing needs to be held before the project is done, that's the problem.
Osmek stated that the other problem would be the size of the project.
Upon no further comments, Mayor Hanus closed the public hearing.
MOTION by Specht, seconded by Osmek to cancel the meeting for December 10, 2007,
that was to serve as a continuation of this public hearing, as it is not needed. All voted in
favor. Motion carried.
Osmek asked where the rest of the Council is with reference to staff's request to leave
the levy at 6.3%, but spending the difference between 6.3% and 1.75% on paying up
front for equipment as opposed to bonding for it. Hanus' position is to stay with the
1.75%, as approved in the preliminary budget. Specht also indicated he wants to use the
1.75% figure. Beise is fine with leaving the equipment in as is, but not fine with the
1.75%, and prefers the 6.3%.
MOTION by Osmek, seconded by Specht to adjourn at 8:30 p.m. All voted in favor.
Motion carried.
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Attest: Bonnie Ritter, City Clerk
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Mayor Mark Hanus