1983-09-07September 7, 1983
SPECIAL MEETING
OF THE
CITY COUNCIL
Pursuant to due call and notice thereof, a special Budget Hearing of the
City Council of the City of Mound, Hennepin County, Minnesota, was held at
5341 Maywood Road in said City on September 7, 1983, at 7:30 P.M.
Those present were: Mayor Robert Polston, Couneilmembers Pinky Charon,
Phyllis Jessen, Gary Paulsen and Russ Peterson. Also present were: City
Manager Jon Elam, City Clerk, Fran Clark and the following interested
citizens: Bruce Wold, Larry Connolly, Bruce Charon, Mrs. George Shepherd,
Sharon Legg, Joyce Nelson, Jan Bertrand, Deloris Schwalbe, Jerry Henke,
Joan Polston, Janie Skinner, Greg Skinner, Dick Hall, Robert Hanson,
Margaret Hanson, Mr. Heck, Jeanette Arndt, W. C, Sycks, Helen Wolner, Ray
Falls, Frank Hancuch, Bill Clark, Lowell Swenson> Dick Schwert, Jim Regan,
Bill Holm, Wayne Storlien, Don Chamberlin, Julie Elam, Art Andersen,
Shirley Anderson, Charles Nungesser, Orv Huseby, Dee Huseby, Wayne Barkley,
Jerry Longpre, Jim McGee, Jim Bain, Diane Arneson, Bernie Benz, Mrs. Lloyd
Reistad, Jim Butler, Herb Wolner, George Kinzer, Phil Hasch, Frank
Livingston, Orv Fenstad.
The Mayor opened the Meeting and welcomed the people in attendance. He
and the Council commended the Staff on their work on the proposed Budget
and the 21 page handout that has been prepared for this meeting. He then
turned the meeting over to the City Manager who went over the handout in
detail for the public.
The handout included: mill rates broken down by percentage and taxing
auhtority for 19$2 and 1983; the City's assessed valuation; how total
property tax is arrived at in Mound; a comparison of per capita costs for
Mound and several nearby cities; comparison of nearby cities assessed value
and assessed value per capita; a comparison of productive efficiency of
what people are receiving for their taxes (ratio of employees of the city
to population in Mound and other lake communities); projected 1983 income
by source; 1983 salary analysis of all city employees; breakdown of 1983's
City Budget; an analysis of three properties in Mound (one in Island Park,
one in The Highlands and one lakeshore property) showing the taxes and how
they are distribute among the various taxing bodies; summary of income over
expenditures for the General Fund (1983 approved, 1983 projected and 1984
proposed); a staffing pattern and salary comparison of Lake area police
agencies; a review of the homestead credit modification and levy increase;
an analysis of the number of homestead residential properties and the range
of their value.
The following people asked questions or made statements regarding the
proposed 1984 Budget:
September 7. 1983
HERBERT PECK: Asked for a definition of what private lakeshore is.
Mayor Polston answered that private lakeshore is any non-commons
lakeshore.
BUZZ SYCKS: Commented on the Stanton Report (salary analysis) and
asked why the City of Mound reports net salaries and everyone elso
reports gross.
The City Manager stated that the Stanton Report is a very
reliable document and that everyone reports net for salaries not
gross. The report carries salaries without benefits.
BILL CLARK: Asked what the percentage. total salaries the benefits
are.
The City Manager stated 16.9.
JIM McGEE: Stated that his taxes have increased 181 since 1979 and
wanted to know why.
The City Manager recommended that he come in and bring his tax
statements with him so they could be looked at and analyized.
HERB WOLBIER: Asked what the delinquent taxes were last year.
The City Manager stated they were 5.5~ of the total assessed
value or around $34 000.
Mr. Wolner then objected to the proposed 5~ salary increase for
all City employees.
The Mayor explained that salaries will not be set until December
but because there are three labor contracts to be negotiated in
December the 5~ is a proposed figure so that the Council can
bargin in good faith.
Mr. Wolner then submitted a copy of a letter written to Judge
Johnston asking that Judge Wolper be removed from all Mound cases
because of a possible conflict of interest caused by his
membership and leadership in the citizens review board. He asked
if the City Council authorized this letter.
Mayor Polston stated that this was an administrative function and
was written with the no malice in mind.
Judge Wolner stated he would like the City Manager to write
another letter written to Judge Johnston telling him to ignore
the Police Chief's letter. He further stated that he thought the
letter was slanderous and libelous.
The Mayor and the City Manager stated that they did not see
anything in this letter that was slanderous or libelous but that
letter would be sent to the City Attorney for his opinion.
Judge Wolner stated that he sees Mound as a bedroom community
when Tonka leaves and that the City Council should do the
following to keep taxes down in Mound: keep staff at a minimum;
add no new staff; and increase the mill rate.
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September 7, 1983
MARGARET HANSOM: Asked about the City Manager/City Clerk budget.
The City Manager went over this department's budget completely,
explaining what each line item is.
DON CEiEMBERLIN: Spoke about property .taxes in general and how the
public should undertand that any changes in the way property taxes
are levied is a Legislative matter not a City matter.
FRANK LIVINGSTON: Spoke on taxes in general and how he feels all
government should watch for any waste and eliminate it.
The City Manager stated that in 1979 the City budget finished X149,166 in
the red, in 1980 it finished $87,442 in the red, in 1981 when he started
working for the City it was already $67,000 in the red and was only $13,042
in the red at the end of 1981 with all the cuts that were made. 1982 ended
only $18,469 in the red and the 1983 projection is to end $132,880 in the
black. All the years the City was in the red is where all the City
reserves went. He further stated that a healthy city of Mound's size has
about $400,000 in reserves and Mound has got to build up its reserves.
ORV FENSTAD: Mr. Fenstad stated that he is a former Mayor and
Councilmember in Mound and he cannot remember ever having a
budget hearing when the Council was not put down for raising
taxes. He reminded everyone that when the City Manager came-this
City was $67,000 in the red and it is very important for the City
to have reserves. He stated that City officials try to make
decisions for the good of all the citizens. He feels Tonka
leaving was not caused by the City but by the economy. He stated
that he feels everyone is getting their moneys worth from their
tax dollar, the best Fire Department and Police Department and
city services.
The Mayor asked if anyone else wished to comment. No one did so he closed
the hearing.
The City Manager stated that this is your (the public's) budget and input
from citizens is necessary to prepare a budget with the services the public
wants. He stated that it is his goal to have all citizens proud of Mound
for its services. The Liquor Store reserves are being used to do the seal
coating on all the new streets over a 5 year period of time. This is
something that was never done before and will protect the large investment
each citizen has in the new streets.
The City Council thanked all the citizens for their input, reminded
everyone that the Council will be meeting on September 13, 14 and 15 to
review the proposed 1984 Budget and welcomed everyone to those meetings.
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September 7~ 1983
SET PUBLIC~iEARING DATE
Paulsen move and Peterson seconded a motion to set September 27~ 1983. at
7:30 P.M. for a public hearing to consider the issuance of an "On-Sale Wine
License"~ an On-Sale Beer License". and and "Off-Sale Beer License for
Merritt L. Geyen DBA Al and Alma's Supper Club. The vote was unanimously
in favor. Motion carried.
Jessen move and Paulsen seconded a motion to adjounr at 9:~40 P.M. The vote
was unanimously in favor. Motion carried.
G~~
on Elam, City Manager
__-./L~ rn. ~.Jr/1~
Fran Clark. City Clerk
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