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HomeMy WebLinkAboutSP December 6, 1990 ~ CITY of ANDOVER Special city Council Meeting December 6, 1990 7:30 P.M. Call to Order Budqet Hearing Adjournment <A. CITY 01 ANDOVER J[ SPECIAL CITY COUNCIL MEETING-DECEMBER 6, 1990 Pursuant to State Law, a special budget meeting was called to order by Mayor Jim Elling at 7:30 P.M., Thursday, December 6, 1990 at the Andover City Hall, 1685 Crosstown Boulevard N.W., Andover, MN. Councilmembers Present: Knight, Jacobson, Orttel, Perry Councilmembers Absent: None Also Present: Howard Koolick, Finance Director; others Mayor Elling explained that the 12.7% increase in taxes as stated in the notice that was sent to residents is an incorrect statement. It does not take into consideration a number of factors. He noted that Howard Koolick, the City's Finance Director, will go through the porcess and what are are actually talking about. Mr. Koolick explained that the city maintains 50 accounting funds which are broken down into five types of funds. One fund is the General Fund which funds general operations such as police and fire protection, street maintenance, park maintenance and general operations. Only the General Fund and the Certificates of Indebtedness fund are supported by property taxes. The tax levy is subject to guidelines set up by State Law. Levies which exceed a specified amount outside of the limit require resident approval. Examples of this are the fire bond that was recently passed and school referendums. Truth in taxation started in 1989. The statement that was received by the residents does not take into con- sideration homestead credit or population growth. The original intent was to sent out parcel specific notices; however, this was not practical yet. It will be done on a test basis next year in Hennepin, Ramsey and St. Louis Counties. Mr. Koolick noted that due to growth, the actual tax rate for the city share of taxes will decrease. The growth in city net tax capacity has been 16.15%. The growth in actual tax base used to calculate taxes has been 16.626%. The levy advertised was the gross levy. Mr. Koolick then noted that he took an individual property in Andover and put together a comparison for the last three years. It showed that the county and school district share are going up and the city share is decreasing. He then explained that the General Fund Budget which covers general operations has a number of revenue sources, including current taxes and state aid for taxes, delinquent taxes, licenses and permits, inter- governmental revenue, charges for services, court fines and others. The expenditures include general government, public safety, public works, park and recreation and others. Police and fire are the major categories. The Debt Service Funds can be broken down into four categories: l} Special City Council , ~eting December 6, 1990 - Minutes Page 2 Improvement bonds funded by special assessments, 2 ) State Aid Bonds funded by Minnesota State Aid street money; 3 ) Tax increment bonds funded b an increase in tax capacity of certain properties; and 4) Equipment certificates funded by property taxes. Mr. Koolick noted that equipment certificates prevent large swings in taxes. The proposed levy was $157,485. It is recommended to decrease this by $37,630 to $119,855. This decrease is possible due to other funding sources being available. The uses for the tax increase are 1) reinstating the sealcoating program; 2 ) increases for opreating the new fire stations; 3 ) salary increases of 4%; and 4) increase in fees charged by the assessor and attorney. The entire budget shows a 4% increase. Mr. Koolick noted that the Council tonight will approve a tax levy and a budget. Mayor Elling noted that Andover is the 9th fastest growing community in the state. He also noted that Local Government Aid was cut last year and will be cut again this year. At this time, Mayor Elling opened the meeting to public comment. Sophie Kozlowski - stated that the Planning and Zoning Commission was discussing diseased trees and that the city sould buy the equipment necessary to take care of the trees. She asked why the city doesn't have the residents plant trees instead of trying to save those that are dying of disease. Ann Sikora - noted that the Planning and Zoning Commission was also talking about having the city fire a forester and two helpers. Councilmember Perry explained that the Planning Commission is looking for funding sources that may be available. Mrs. Sikora felt that the city should put a stop to any new hiring. She also felt that the Park and Recreation Budget and questioned why we need more fire stations when the one we have is centrally located. She stated that it's time the Council listens to the people who have lived here for 40 years. Ron Roden, 15481 Kiowa Street N.W., stated that taxes in Andover are too high. His property taxes last year increased by 80% and if they don't stop, he is going to have a hard time paying his taxes. Mr. Roden objected to the 4% increase in salaries as his salary over the last three years has only increased by 3%. He also felt that for the number of people who use the city parks, we don't need to have more. He asked if the budget is cut and dried because if it is, it's a waste of time for the public to be here. Mayor Elling stated that it is not. The Council needs to adopt the budget yet. He then explained that as far as the fire stations are concerned, som rigs will be left at the present location to serve the northeast side of the city. The station on 139th and Crosstown will serve the southern part of the city and the northwest station will take Special City Council ~eting December 6, 1990 - Minutes Page 3 care of the northwest corner of the city. Mr. Roden asked why the budget shows a 16% increase for fire protection when the stations haven't been built yet. Mayor Elling explained that the stations are expected to be ready to go in March. The increase is for insurance and more fire fighters. Mr. Roden also questioned the 17% increase in the City Council budget. Mr. Koolick noted that this covers the dues for the League of Minnesota Cities. Mr. Roden stated that property taxes have nothing to do with the residents' ability to pay. It's a regressive tax. He felt that things are going to have to start tightening up; we have to cut spending. Jay Blake, 13425 Uplander Street N.W. - noted that he is a former city employee and a relatively new resident of Andover. His experience as a city employee has been that there is little, if any, ~laste in this organization. Mr. Blake stated that the money he is paying is worth the fire protection, police protection, street maintenance, etc. that he receives. This city will continue to grow; because of our natural features people will flock here. Our tax rate is one of the lowest in Anoka County and the Metro area. He felt that the elected officials are doing a very good job of holding down costs. Mayor Elling noted that as the city gets bigger, we are going to be asked to provide social services. Mr. Blake stated that there was a study done by the State Auditor last year that showed Andover has the lowest number of employees per capita. William Wood, 3155 - 149th Lane N.W. - stated that every year the valuation of his home increases as well as his property taxes. He told Council that the services the city provides are great. However, if we need more services, they should be put on the developers' shoulders. Mayor Elling explained that the developers pay for everything. If a person has sewer and water, those services are supported by user fees; if they don't have sewer and water, they don't pay for them. Councilmember Knight noted that of the 72 metro cities, we ranked 60th in taxation. Mayor Elling stated that 54% of our tax total is for the school district, 32% is the county and the city is 12.5%. Jack McKelvey, 15327 Niqhtingale Street N.W. - looking at the budget, he felt an excellent job was done on it. He was under the impression that the fire stations would be going on line in March, but in talking to the Fire Department, they said they won't be ready until September. He asked how they can then justify $37,000 for only three months. Mr. Koolick explained that the fire stations are anticipated to be ready to go in the spring. Councilmember Orttel noted that the new Special City Council Meeting December 6, 1990 - Minutes Page 4 fire fighters need to be trained now so they are ready when the stations are bui 1 t. Lois (7), l42nd Avenue N.W. stated that she attended both the county and s-ëhool district meetings on their budgets and is still confused on how the percentages came up. Mr. Koolick explained that 12.7% is the actual increase in actual totals we are levying in taxes. Councilmember Knight stated that it doesn't take into consideration population growth or homestead credit however. Mayor Elling noted that if there was no growth or homestead credit, it would have gone up 12%. Mr. Koolick stated that the intent is that the property owner would get a statement saying their market value is x-dollars and their taxes are x-dollars. The state is working toward that. Lois (7 ) noted that being a relatively new resident, she really enjoys the park system but realizes that for someone whose children are grown up it's hard to want to pay taxes for new parks. Mike McIvor, 3527 - l69th Lane N.W. questioned the snow and ice removal budget and asked where the excess money goes. Mr. Koolick noted that one of the major expenses for snow and ice is the cost of the sand, for which we are only billed once a year. What is not showing up in the expenditures is that bill because we don't receive it until January. The excess money remains in the General Fund for unexpected expenses. Councilmember Orttel noted that one of the moneymakers for the city is the building department. Wayne Newhouse, 2624 - l40th Lane N.W. asked why the amounts for the rescue service and animal control are the same in the material he received from City Hall. Mr. Koolick explained that there was a programming error and that animal control should actually be $9,096.00. Winslow Holasek, 1159 Andover Boulevard stated that government can only levy money that it needs. He congratulated the Council because "ith the population increase and the raise in taxes, there is only about a 1/2% increase. lie felt the Council has done a good job in the budget process. Councilmember Orttel stated that our population growth was 11% and valuation increase was 16.6%. The higher value homes help out a lot. Mayor Elling noted that for the record, letters in opposition to an increase have been received from the following residents: Guy and Linda Mahmarian, 1484 - l49th Lane N.W.; Valerie Bornetun, 141 - l50th Lane N.W.; Elizabeth Kirkeide, 950 - l46th Lane N.W.; Jeanne and William Fudge, 16005 Makah Street N.W.; and Brian Nystrom, 4075 - 149th Avenue N.W. Ann Sikora asked if the valuation of properties will decrease since the houses are harder to sell and are being sold for less money. Special City Council Meeting December 6, 1990 .;. Minutes Page 5 Mayor Elling stated that he discussed this with the assessor and also the fact that people bought lots with trees and those trees have since dies; hence those properties are not as valuable. The assessor did not have an answer. At this time, Mayor Elling closed the public portion of the meeting. MOTION by Jacobson, seconded by Perry to adopt a resolution establishing the 1991 levy to be certified to the County Auditor by the City of l\ndover. (See R173-90J. Motion carried unanimously. MOTION by Perry, seconded by Orttel adopting a resolution establishing the 1991 General Fund and Debt Service Fund Budgets. (See R174-90J. Motion carried unanimously. MOTION by Perry, seconded by Knight to adjourn. Motion carried unanimously. Meeting adjourned at 9:35 P.M. Respectfully submitted, i:L. l-æ Vicki Volk Recording Secretary