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HomeMy WebLinkAbout2001-04-19 Agenda 9�r i`i f�.0I !I `%' CITY OF ARDEN HILLS • Operations & Finance Committee Meeting Agenda Thursday, April 19,2001 at 7:00 p.m. Arden Hills City Hall, 4364 West Round Lake Road J. Call to Order ��� e�,n�rn� )qb's7(r 1 I 2. Roll Call 3. Approval of minutes from the February 15, 2001 meeting, if available. .4 Old Business: 1V1 A. Maintenance facility t (el i _k1.1\ k.1\ ��� Equipment sharing ...--- 0 New Business,Equipment 6AttfN\VZ-1 C-S -- krAt i ,_ £: Staff Update —___ Council Uill -t ( .� • $. Other Business `_-______.,._ - c9. Next Meeting / ,..: ve, :i 1/10 Adjournmen Please co tact Pam at (651) 634-5120 if you are unable to attend. 6 _, • • MINUTES OF THE ARDEN HILLS WORKSESSION COUNCIL MEETING MONDAY, OCTOBER 22 , 1990 - 4: 30 P.M. , CITY HALL • CALL TO ORDER Pursuant to due call and notice thereof, Mayor Sather called the meeting to order at 4 : 30 PM. ROLL CALL The roll being called, the following members were present: Mayor Thomas Sather, Councilmembers JoAnn Growe, Nancy Hansen, Thomas Mahowald and Paul Malone. Also present: City Engineer Terry Maurer, City Attorney Jerry Filla, Public Works Supervisor Dan Winkel, Park Director John Buckley, City Treasurer Frank Green, City Administrator Gary Berger, and Administrative Secretary Mary Ann Hillyer. Mr. and Mrs. Mark Magers and their attorney Carol Ryden were also in attendance for the Keithson Pond discussion. INVESTMENT POLICY Treasurer Frank Green was present to review his proposed investment policy. He stated that it may be time to formalize investing and felt that staff and the Finance Committee should review the policy to address all areas and agree on wording for a reasonable objective and come forward with recommendations for the City Council. Councilmember Hansen commented that an investment policy is very timely and needed and this appears to be a good way to start and has her support. Treasurer Green, in response to a question from Administrator Berger, noted that the proposed policy is modeled from the Municipal Treasurer's Association. Council concensus was to pass the policy to the Finance Committee for recommendations which will be available in January, 1991. COMMITTEES Mayor Sather commented that perhaps now would be a good time to consider putting 'the various committees together as an Ad-Hoc committee on an "as needed" basis. He expressed disappointment with the Planning Commission and Board of Appeals and their recent lack of a quorum to conduct business, as this holds up applicants and does not reflect positively on the City. Since these are statutory committees, they should be sure to have a quorum at all times to conduct business. The "convenient" committees (Public Safety/Works, Finance, City Hall, Human Rights, Park & Rec, Economic Development Committee, etc. ) could be combined to form an ad-hoc committee which could serve as needed, rather than on a monthly basis. N u� MOM Councilmember Hansen suggested increasing the number of alternates to the Board of Appeals. It was felt that having the same people on the Planning Commission as on the Board of Appeals was not fair to the applicants if their case was denied by the Board of Appeals. Mayor Sather suggested that a stipend be paid to the Planning Commission members if they miss no more than two meetings per year and also if they take some formal training sponsored by the • League of Minnesota Cities or Government Training Service, which the City will pay for, and that they will be able to attend on-going training as it becomes available in the future. • Are you interested in participating in the revision of the City of Arden Hills' Sign Ordinance? The City of Arden Hills is looking for interested residents and business owners to participate in a "working group" to review existing signs around the City and identify issues and priorities, resulting in a discussion of appropriate sign regulations. • It is anticipated that the working group will meet twice, beginning in May. If you are interested in participating in the working group, please contact City Planner Jennifer Chaput at (651) 634-5126 before April 20, 2001 . For more information, please check the city website at www.ci.arden-hills.mn.us! jngi 1714 -nuL riuiietrc F'KtbS FROM PAGE 1 A xes Proposed state aid change $530,792, or 73 percent, under the JUEDg proposal. The city's 2001 property taxes FROM IA would hit older cities hard increase of $613,288percwould have to higher municipal bills they increase 86 percent to make up lost revenue. L their tax statements. This chart shows the change in state aid to some Twin Cities area the "Our tax base is only going up urbs lose aid cities if Gov. Jesse Ventura's proposal becomes law. Some older suburbs would lose more than half of their aid, which likely would in value homes andwithses busin sses,"of sa drrent City Minneapolis and St. Paul lead to higher municipal property taxes.ose large amounts of aid, Administrator Barry Sittlow. "We're hoping the proposal doesn't ;est decreases as a propor Estimated the current grants would Ramsey governor's 2002 go through." [der, smaller cities. Total proposed proposed Percent Cities levy property taxes and first-ring suburbs would COUnty 2001 aid 2002 aid change change use general state aid to cover ex imered," despite that they Arden Hilts 111730 172,262 60,532 54.2% : revenueen sources,do not have as police ice ce the inner city" in terms Falcon Heights 398,982 339055 -59,927 -15 0% ` such as police ige incomes, property val- Gem Lake 9,043 plowserving, roada maintenance protection, snand other measures of wealth, 0 -9,043 -100.0% plowing, maintenance and to Rep. Boba Milbert,re DFL- Lauderdale 164,362 180,564 16,202 9.9% park upkeep. They also get state ,. Paul. Little Canada 505,490 413,823 -91,667 °-18;1 aid for specific purposes. al state aid to the city of Maplewood 2,352,762 1,041,303 -1,311,459 •55.7% The governor's plan is based on . Paul would decrease $2.7 543,926 47.3% the idea that property taxes are Mounds View 1,150,702 606,776 or 67 percent, in 2002 New Brighton 1,685,794 1,184,905 -500,889 -29.7% "essentially a fee for service," C is year's $4 million total. North Oaks 104,042 0 -104 042 -100 said Ventura spokesman John �'s total property tax col North St. Paul 1,160,961 731.109 429,852 -37.0°l° Wodele. Thus, the state is trying to b, this year will be $3.8 mil- Roseville 1,933,435 1,391,210 542,225 -28.0% decrease school taxes, which are at figure would increase Shoreview 1,043,125 852,318 190,807 18.3% not related to property, while in- '0 percent in 2002 if city St.Paul 71,799,795 82,070,685 -9,729 110 -13 8% creasing what residents and nerves pay for property relate atei- made up for the entire Vac nals Heights 395,059 361,729 -33,330 -8.4% d tate revenue. White Bear Lake 1,766,643 1,124,005 642,638 -36.4% services. These ids are not new.St. Paul, a Dakota County County total 84,581,925 70,469,744 -14,112,181 -16.7% lat rss were debating themLlois- s ng s about 20,000, lost 20 per- ts population two decades Washington County before Ventura became governor d in 1999. They have cut municipal $ ators were Afton 119,432 0 119,432 -100.0% ` aid in the past. But the current a Bayport 278,036 97,362 -180,674 -65.0% : proposal is causing more furor be hese ideas Birchwood 61,471 13,020 48,451 -78.8% cause the proposed cuts are much d e Ventura Cottage Grove 2,498,827 604,267 ° larger. Detiwood 1,894,560 75.8/° g r, 44,616 p 44,616 _10©©% Wodele, however, said the gov- s, le governor in Forest Lake` 670,199 235 847 434 352 -64.8% by eliminating also is giving cities a break d They have cut Grant 57,890 0 57,890 100.0% by the state sales tax a Hugo 258,241 0 -258,241 -100.0% on municipal purchases. tl Lake Elmo ; 196,779 But that is small comforttc ipal aid in the 0 `-196,779 -100.0% Carufel, who said SouthhS St.. Paul 3ut the current Lake St. Croix Beach 65,826 24,707 -41,119 -62.5% paid $85,000 in sales taxes last ai 2 "sal is causing Lakeland 86,36 6,582 79,780 92.4% Lakeland Shores 4,3 year, compared with the proposed fi 0 -4,343 -100.0% loss of $2.7 million in aid. ai furor because the Landfall 37,930 35,924 -2,006 -5,3% State aid to St. Paul would de- b; ied cuts are much Mehtamedi ' 474,419 93,606 380,813 -8U.3'i crease $9.7 million, p or. 13.6 er- th Marine-on-St. Croix 48,143 0 48,143 -100.0% cent, next year under the proposal. u; ' Newport 471,797 29,728 -442,069 -93.7% The city will collect $63.8 million se- ' !n the city's stockyards 32,543 38.595 in property taxes this year. ec Oak Park Heights 84,4$7 51,g44 t-packing plants closed. 720,631 944,101 776,5 0 , 45.1% Minneapolis would lose about se ©akdale 1 nce Director Jim Carufel Pine Springs 2,920 0 2,920 100.0% $9.2 million, a drop of 8.5 percent. dE still trying to recover. St. Mary's Point 6,026 0 6,026 100.0% We le skeptical that this is go- ce east metro cities that St. Paul Park" 724,728 193,936 -530,792 73 ing to lead to.2% tax es long-term property m big declines in state aid Stillwater 2,143,699 433.553 -1 710,146 -79.8% Mayor Susan Kimberly Paul said. If it th plan include i Wiile Farming- rne 81,394 g 30,377 51,017 -62.7% would, we'd look at it. If this isn't ev ngs and West St. Paul in Woodbury 1,378,746 265,361 -1,113,385 -80.8% long-term tax relief, then let's just at County; Maplewood, County total 11,516,942 3,060,315 -8,456,627 -73.4% leave it the way it is." to Tiew and North St. Paul ! County, and Cottage Dakota County Critics wary of school "v y ewport, St. Paul Park Apple Valle 3 78,524 5s6 S17 1,592,007 5f}.1% [water in Washington y , spending Burnsville 3,728,923 ' 2.9 -1,326,017 35.6°6 Critics of the plan say there is th the proposal; the state Coates 3,263 3,137 ° no guarantee that school property stf 126 -3.9/° illion to Minneso- Eagan 2,169,486 1,558,012 611,474 28.2% taxes will decrease in proportion of sdistricts-to elimi- Farmington,,, $86,243 459 to the new staten aid. fei do loca general education I°lampton 75� -'�26°4� �8i1°% State Revenue Commissioner do 3E1,539 12,219 -26,320 -68 3% ` Matt Smith says school taxes must de About $270 million of Hastings 2,515,762 831,456 -1,684,306 -67.0% go down initially because the state lai d be obtained by elimi- Inver Grove Hghts. 1,480,140 416,775 -1,063,365 71.8% sets the general education levy th( mestead and Agricultur- Lakeville 2,248,593 623,223 _1,625,370 -72.3% and will not allow school districts Cu: kid to cities. Other meth- Lilydale 7,898 17 025 9127 115�6% impose taxes for that purpose str, ing for the education aid to statefpropertyetax d Mendota 31,444 2,811 -28,633 -91.1% after Minnesota takes over those i Manrinta Haf�htc n7Q rnn _ PIMA:mono n..♦ ..,,I.,.,.1- -__ _- r,.. 647? ,k, ‘„\\(<\274 $;,f/7/. A'0' Arden Hills City Hall 1 104\ S.F. 643 $2,735,000 Base Building Materials at 50% $1,367,500 $ 315,000 Kasota Stone $ 126,000 Affixed Audio Visual Equipment $ 70,000 Affixed Furniture $ 40,000 Mobile Generator $ 30,000 Landscaping $ 18,000 Security System $ 14,000 Manual Transfer Switch. $ 2,500 Appliances $ 615,500 $ 41,000 Windows—2nd Floor $ 166,000 Utilities Oo Materials at 50% $ 103,500 $2,086,400 Total taxes payable per project $ 135,590 6.5% 10:" $ 13,559 10% Tax paid Sept-Dec, 2000 $ 12,753 I March 2001 FISCAL FOCUS Vol.XXVII,No.2 The real reform of the Governor's plan is seen at the local .7(6. Traffic-intensive properties could pay optional new transpor- level. When the statewide property tax is excluded, the C/I to tation utility fee. Neither this provision or number 5 is likely omestead effective tax ratio falls to 1.82 in 2001. This means to go very far,as numerous non-profit agencies testified before that, on average, city or county property taxes on business prop- tax committees how severely this will curtail their services to erty will be only 1.82 times higher than taxes on residential prop constituents. MTA originally proposed a similar idea but as a erty of the same value,located in the same city or county,instead 1% of tax capacity fee on non-profit owned property for city services(not specifically transportation). of 3 times as high. The proposed relationship is below the na- 7. Pollution control exemption extended to include properties tional average found in our latest 50-state comparison study and used to abate or control air, water, or land pollution. This lower than any seen in Minnesota in recent decades. can be a very significant tax break for industries required to The rest of this article describes the main points of the Gov- install this equipment,such as the utility industry.The taxation error's plan and presents additional fiscal information about its of these mandated purchases has been a sore point for these industries. affects on taxpayers and classes of property. 8. Property tax classification rates significantly compressed, • new market value credit introduced for homestead proper- The Gn,Lrnnr�c pjnn ties. State classification rates are compressed more than many Asexpected, including the business community, which has been a review, we present the 14 features of the Governor's working on property tax reform for years.See Table 3 on page plan we included in our last newsletter, with more detailed corn- 4 for a complete look at the new classification rates,and Table ments in most cases. 4 below that for an example of how to calculate a home- 1. Full state takeover of basic education expenses. The Gover- owner's property tax liability. nor's plan replaces the mandated general education levy 9. Resealing of class rates to bring Minnesota property tax (currently set at 32.38% of tax capacity) with a direct state rates on comparable basis to other states. The Governor's appropriation for the entire $3,964 per pupil unit that is guar- plan replaces the terms"tax capacity"and"tax capacity rates" anteed to school districts levying the state's full general educa- with more standard words such as"assessed values"and"mill tion rate. As we said in our last newsletter:"by funding a ma- rates". jor state property tax mandate,it makes remaining property tax '` 10. State aid to cities ("Local Government Aid" or "LGA") is bills more closely related to the cost of locally determined ser- eliminated, and replaced with a larger need-capacity pro- vices to property." gram. Other existing general aid to all taxing jurisdictions 2. New statewide property tax on "non-voting" properties to (HACA) is redirected to pay for schools and county man- help pay for school levy takeover. A new statewide levy of dates. Four new city aid formulas distribute $470 million in ill $470 million will fall on commercial and industrial property new LGA,an increase of$48 million above current law.They "(class 3),resort and cabin properties(4c),golf courses(4c(2)), provide aid-based on the difference between a new standard of and un-mined iron ore (5(1)). Concerns about singling out "need" for each group and by the amount of property tax reve- business property for K-12 funding increases have been some- nue per capita that would be raised by a standard levy of 17% what allayed by the fact that, though the state levy will be in- of their tax capacity. If 17% of tax capacity falls short of the creased annually for inflation, further increases will require a need amount the state fills in the gap with LGA appropria- super-majority(three-fifths)vote.If values increase faster than tions. Existing HACA (Homestead and Agricultural Credit inflation, the tax rate will go down, something rarely seen at Aid) is diverted to schools in the form of targeted categorical the local level. See Table 4 on page 4 for an example of how aid. the property tax on a$1 million business would be calculated. 11. Increase the maximum homeowner property tax refund 3. Properties subject to the statewide property tax will be totally (circuit-breaker). Currently 215,000 homeowners get circuit- exempt from paying school operating levies but will continue breaker refunds which are based on their property tax bills and to pay school debt levies. The issue of so-called"non-voting" their income. However 38%of those homeowners are receiv- properties paying for school operating levies has been a thorny ing maximum allowable amounts of$520. Under the plan the one, especially in districts where such properties pay the ma- maximum is increased to$1,190•the current renter maximum. jority of such levies.Referenda are notoriously easy to pass in 12. Limited Market Value provision phased-out. MTA has con- such districts,because those voting will directly pay so little of sistently spoken against the de facto creation of additional the cost. classes that result from limited market value. As some proper- 4. New equalization formula for school referenda levies. Cur- ties' values are limited because they are increasing rapidly,tax rently, the state equalizes school referendum levies of up to burdens are shifted onto properties whose values aren't grow- $415 per pupil. Levies over that amount are fully locally ing as rapidly.We believe it is time to end this provision. funded. The Governor's new equalization formula preserves 13. Metropolitan Council transit levy increase. Significant levy the average homestead tax price of existing referendum levies, reductions in other parts of the plan provide room for property Beginning in fiscal year 2003,new leyies are equalized using a tax funding for transit. Past efforts to fund transit from the two-tier formula which equalizes the first $600 per pupil at property tax and other sources have not been particularly suc- one rate($6,400 per pupil),and amounts over$600 but under cessful. $1,115 per pupil,at a lower rate ($4,265).Certain districts are 14. $65 million in new tax increment district grants.When com- exempt from the $1,115 cap. According to the Department of mercial/industrial tax burdens are reduced increments from Revenue the tax price of the equalized portion of referendum 1'lh districts are also reduced; this necessitates some kind of levies is reduced in most districts,but the tax price of the un- mechanism to ease the transition to the new system so that S equalized portion generally increases because properties sub there is enough revenue to pay off bonds purchased before the sub- ject to the new statewide property tax are exempt from new tax cut. referendum levies. 5. Exempt properties could pay optional city service fee for roads. See comment under 6. (Continued on page 5) • 3 price 6616360871 04/19 01 02: 12P P.001 • • Willie I Price, CFP 3471 Siems Court T:651-636-0869 Arden Hills, Minnesota 55112 F:651-636-0871 FAX Number of Pages, including this cover sheet: Date: /i5 To: r Fax 7)2 Comments: • price 6616360871 04/19/01 02: 12P P.002 Willie J. Price 3471 Siems Court Arden Hills, MN 55112 651.636.0869 April 19, 2001 Terry Post I will try to make at least part of the meeting tonight, but I currently have three conflicts during that time period. Perhaps you will recall our conversation regarding Ordinance No. 181. Specifically Section 4 (b) (1) Establishment and Designation Thereof In essence this ordinance requires the placement of buoys on Lake Johanna. Currently this is not being done. My concerns are safety and property values. Lake Johanna is not unique in the problem of unsafe and reckless operation of motorized watercraft. in my opinion, this problem is exacerbated by its relatively small size. Because of its smaller size, swimmers can often be observed swimming in various parts • of the lake, In addition, there are non-motorized watercraft operated by all ages., including young and not so young. I have personally observed many families in canoes and small boats. During the time I have lived on Lake Johanna, I have noticed one collision with injuries and numerous near misses. I have heard comments from homeowners on the lake as well as visitors to the lake commenting on safety issues and concerns, especially on weekends. As a homeowner and taxpayer, I am concerned about the potential liability resulting from litigation. In my opinion, failure to comply and enforce an existing ordinance places the city at unnecessary risk. I may be mistaken, but 1 believe the homes on Lake Johanna to have one of the higher tax bases in the city. We also have, in my opinion, a higher percentage of non-conforming lots. Net result is many homes would have difficulty getting equipment down to the shoreline to make necessary repairs. Many areas are experiencing shoreline erosion due in part to boats going too fast too close to shore- Potential decrease in property value. Boats are operating too close to shore because they don't realize they are too close, Brings us right back to the buoys as called for in the ordinance. The water patrol can only enforce what it sees and it can't be everywhere all the time. When they are called after the fact, little can be done. I feel that placing the buoys as called for in the ordinance will assist in the facilitation of safer boating conditions and reduced property damage. a 'pr 'price 6516360871 04/19/01 02: 12P P.001 • Willie J. Price, CFP 3471 Siems Court T:651-636-0869 Arden Hills, Minnesota 55112 F:651-636-0871 FAX Number of Pages, including this cover sheet: Date: 9/5fd r I • To: / / ' < �5 Fax: ?'7 - 75� 5 �/ Comments: 'price 6516360871 04/19/01 02: 12P P.002 • Willie J. Price <6CGI 13‘:' 3471 Siems Court Arden Hills, MN 55112 651.636.0869 April 19, 2001 `Terry Post I will try to make at least part of the meeting tonight, but I currently have three conflicts during that timc period. Perhaps you will recall our conversation regarding Ordinance No. 1,81. Specifically Section 4 (b) (1)Establishment and Designation Thereof In essence this ordinance a requires the placement of buoys on Lake Johanna. Currently this is not being done. My S concerns are safety and property values. 1,611 ' Lake Johanna is not unique in the problem of unsafe and reckless operation of motorized watercraft. In my opinion, this problem is exacerbated by its relatively small size. Because of its smaller size, swimmers can often be observed swimming in various parts • of the lake. In addition, there are non-motorized watercraft operated by all ages, including young and not so young. I have personally observed many families in canoes and small boats. During the time I have lived on Lake Johanna, 1 have noticed one collision with injuries and numerous near misses. I have heard comments from homeowners on the lake as well as visitors to the lake commenting on safety issues and concerns, especially on weekends. As a homeowner and taxpayer, I am concerned about the potential liajgay resulting from litigation. In my opinion, failure to comply and enforce an existing ordinance places the city at unnecessary risk. I may be mistaken, but I believe the homes on Lake Johanna to have one of the higher tax bases in the city. We also have, in my opinion, a higher percentage of non-conforming lots. Net result is many homes would have difficulty getting equipment down to the shoreline to make necessary repairs. Many areas are experiencing shoreline erosion due in part to boats going too fast too close to shore- Potential decrease in property value, Boats arc operating too close to shore because they don't realize they are too close. Brings us right back to the buoys as called for in the ordinance. The water patrol can only enforce what it sees and it can't be everywhere all the time. When they are called after the fact, little can be done. I feel that placing the buoys as called for in the ordinance will assist in the facilitation of safer boating conditions and reduced property damage. i