1997-12-11MINUTES - TRUTH IN TAXATION PUBLIC HEARING
1998 BUDGET - MOUND CITY COUNCIL
DECEMBER 11, 1997
The City Council of the City of Mound, Hennepin County, Minnesota, met in special session for the
Truth in Taxation Public Hearing on Wednesday, December 11, 1997, at 7:30 P.M., in the Council
Chambers at 5341 Maywood Road, in said City.
Those present: Mayor Bob Polston, Councilmembers Andrea Ahrens, Mark Hanus, Liz
Jensen and Leah Weycker. Also in attendance: City Manager Edward J. Shukle, Jr., Parks
Director Jim Fackler, Building Official Jon Sutherland, Police Chief Len Harrell, Fire Chief Steve
Erickson, Public Works Superintendent Greg Skinner, Liquor Store Manager Joel Krumm, Finance
Director Gino Businaro and Fire Chief-Elect Greg Pederson.
The following interested citizens were also present: Scott Spanjers, Randy and Marilyn Bell.
The Mayor opened the meeting.
1998 PROPOSED BUDGET COMMENTS
City Manager Ed Shukle reviewed the proposed 1998 Budget. He indicated that the City Council
had reviewed the proposed budget at the October Committee of the Whole and had asked to make
some revisions for discussion this evening.
Shukle reviewed the purpose of the Truth in Taxation hearing and then introduced Gino Businaro,
Finance Director, to present some statistical information and other data associated with the proposed
tax increase and budget for 1998 in the City of Mound.
Businaro played a video produced by the Minnesota Association of Counties regarding the
Minnesota Property Tax system. He then reviewed various terms related to the tax system and
presented sample properties with different market values to indicate the tax impact on those
properties.
Businaro pointed out that the City Council had approved a preliminary budget and levy in September
and that the proposed tax increase from the 1997 levy was approximately 5.5%. The City Council
asked if the tax increase could be lessened by reducing the general fund balance to approximately
37% of total general fund expenditures proposed for 1998. Copies of the budget reflecting that
concept had been distributed to the Council prior to this evening's meeting. Shukle had sent a cover
memo out with this information indicating that it was his recommendation that the City Council stay
with the 5.5% increase since there was no increase in the levy for 1997 from 1996 and that it is not
a good financial practice to reduce the fund balance. The fund balance is used for cash flow
purposes until the City receives its tax settlements and Local Government Aid (LGA) and
Homestead and Agricultural Credit Aid (HACA) payments into the middle or latter part of the year.
Further, it is important that the tax increases be consistent and that major increases not be proposed
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December 11, 1997-
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to make up for what was not levied previously. The renovation of the Westonka Community Center
will definitely involve some form of tax increase as it pertains to operating expenses for the center.
This is another concern that staff has expressed to the Council that they keep in mind.
Mayor Polston then opened the public heating. No one present asked to address the Council
regarding the Truth in Taxation issues. The Mayor closed the public hearing and returned the matter
to the Council for discussion.
The Council discussed whether the 5.5% tax increase was a good idea or if it should be reduced to
1.91% as they had talked about at the October Committee of the Whole meeting. Mayor Polston
suggested a 3.5% increase while Ahrens and Hanus were focusing on the 1.91%. Hanus was
suggesting that the City Council look at "growing into the increase." Jensen and Weycker supported
the 3.5% increase.
Concerns were raised by some members of the Council regarding revenues projected for 1998 and
that maybe more revenue would be taken in than what is shown in the revenue section of the budget.
Questions were raised regarding the adequate amount for a fund balance.
Following the discussion, it was suggested that the item be moved to the December 16, 1997 City
Council agenda for action.
It was moved by Polston, seconded by Weycker and carried unanimously to cancel the December
18, 1997 continued Truth in Taxation public hearing since the City Council agreed to bring the final
budget and levy discussion to the December 16 agenda.
The Council then continued the meeting to Conference Room 301 regarding the Westonka
Community Center.
Westonka Community Center
The Council then convened in Conference Room 301 for a meeting with representatives of the
Westonka School Board regarding a joint powers agreement for the renovation and operation of the
center. Members present from the City of Mound: Mayor Polston; Councilmembers Ahrens,
Hanus, Jensen and Weycker; City Manager Ed Shukle. Members present from the School Board:
Pinegar and Charon; Superintendent Dr. Pam Myers. Also Present: Bert Haglund, TSP/EOS.
Ed Shukle lead the group through a summary of the last meeting held on this subject. It was agreed
that the Superintendent and the City Manager present a summary of the discussion to the School's
attorney and the City's attorney and jointly a document will be developed based on the discussion
by the two parties. A meeting to review such document will be held sometime in January 1998.
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Minutes of Truth in Taxation Hearing
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A brief discussion regarding identifying the "players" who will be a part of the renovation project
was held. The Superintendent and the City Manager wondered if this discussion could take place
while the joint powers agreement was being created. Questions regarding the architect's role,
whether a construction management firm would be hired, who the owners representatives would be
etc., were asked. Mayor Polston asked if the project could be done on a "design/build" or "mmkey"
basis.
Bert Haglund, TSP/EOS, explained that there are 3 basic types of construction forms:
o
Design/Bid/Build/Delivery
Construction Management Delivery
Design/Build (Turnkey)
Haglund reviewed each of those and listed some pros and cons of each. He indicated that he would
provide more information on this at the next meeting.
It was moved by Polston, seconded by Jensen and carried unanimously, to adjourn the City Council
meeting at 11 p.m. ·
City Manager
City Clerk
Attest:
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