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1998-12-07MINUTES-TRUTH IN TAXATION MEETING DECEMBER 7, 1998 The meeting was called to order at 7:30 p.m. Members Present: Mayor Bob Polston, Councilmembers: Ahrens, Hanus, Weycker and Jensen. Also Present: Jon Sutherland, Building Official; Len Harrell, Police Chief; Greg Pederson, Fire Chief; Joel Kmmm, Liquor Store Manager; Greg Skinner, Public Works Superintendent; Gino Businaro, Finance Director; Mayor-Elect Pat Meisel; Councilmember-Elect Bob Brown; Ron Motyka, Pam Amidon, Gene Adams, Tom Menken and Ed Shukle, City Manager. Purpose of Hearing Ed Shukle, City Manager, explained the purpose of the meeting. He indicated that this meeting is held annually by state statute. The purpose is to allow the public to address concerns regarding the city's proposed budget and levy for the coming year and how it impacts property in the city from a tax standpoint. General Information on Taxation Issues Shukle introduced Gino Businaro, Finance Director, who gave a brief presentation on taxation laws in the state of Minnesota and how they apply to Hennepin County and the City of Mound. Discussion Regarding the Proposed 1999 Final Budget and Levy_ Shukle reviewed the proposed budget and levy as it was adopted in September, 1998. He indicated that the City Council had approved a 12.37% levy increase at that time and that the City Council could reduce that levy amount but could not increase it. Shukle reviewed the four major issues of concern as the Council was contemplating what to approve for a budget and tax levy increase for 1999: 2. 3. 4. General Fund Capital Outlay General Fund Balance Mound Visions Westonka Community Center Shukle indicated that the Council should consider a 6% increase in the tax levy taking into account the above issue. He stated that to continue to spend from the general fund balance is not a good a financial path to take. The Council then discussed their issues: Need to establish a stormwater utility fund based upon the fact that the stormwater utility is in place. Truth in Taxation Meeting Minutes December 7, 1998 Page 2 2. 3. Delete the computer in docks under capital outlay. Use of planning and engineering consultants under Planning and Inspections. The City Manager responded by saying that the stormwater utility account could be established now if that is what the Council desires. The City Manager stated that the lap-top computer purchased about 2 years ago came out of the Parks and Planning budgets. Planning and engineering consultants are usually charged to Planning and Inspections as the majority of their work is generated within that department. Mayor Polston then opened the public hearing: Gene Adams, 6215 Bayridge Road: Mr. Adams gave examples of what cities in the metropolitan area are doing for 1999 with regard to tax levy increases. He mentioned Robbinsdale, Eden Prairie, Minnetonka and Mound. Para Amidon, 1909 Lakeside Lane: Concerned with storm sewer cleaning and pulling weeds from sidewalks. Bob Brown, 5453 Three Pts. Blvd.: Commented on the outstanding police department. Asked what happens ifa department, such as the Planning and Inspections Department, is over budget on a line item? Also commented on the operational costs of the Westonka Community Center. What is the minimum amount that the City will have to contribute after the buildings are renovated? Ron Motyka, 1545 Bluebird Lane: Commented on the Community Center project, salaries for employees, salary for the city manager and the sump pump inspection program. Tom Menken, 1720 Dove Lane: Mr. Menken had overall questions about the tax system in Minnesota. Pat Meisel, 5501 Bartlett Blvd.: Expressed her concerns over a 0% tax levy increase. She recognizes this as a problem as she begins her first term as Mayor. Truth in Taxation Meeting Minutes December 7, 1998 Page 3 The Mayor then closed the public hearing. Councilmember Liz Jensen stated her concems regarding a 0% tax levy increase. She agreed with staff' s recommendation on a 6% tax levy increase and indicated she would not support a 0% increase based upon the staff recommendation. Councilmember Weycker expressed the same concerns and thought that the levy could be more around 3%. Mayor Polston then moved and Ahrens seconded the motion, to approve a 0% increase in the tax levy and directed that a resolution be prepared to that effect to be considered at the December 8, 1998 regular city council meeting. Ayes - Polston, Ahrens and Hanus Nayes - Jensen and Weycker Motion carried. Polston then moved to cancel the scheduled continuation heating of December 14, 1998. It was seconded by Jensen and carded unanimously. It was then moved by Weycker, seconded by Hanus and carried unanimously, to adjourn the Truth in Taxation meeting. The meeting was adjourned at 9:00 p.m. City Manager THIS PAC~E LEFT BLANK INTENTIONALLY.