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.