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HomeMy WebLinkAboutCC 12-05-1996 I I ~fJ MINUTES CITY OF ARDEN HILLS, MINNESOTA TRUTH-IN-TAXATION PUBLIC HEARING -1997 BUDGET THURSDAY, DECEMBER 5,1996 I 7:30 P.M. - ARMY RESERVE CENTER I CALL TO ORDERlROLL CALL I Pursuant to due call and notice thereof, Mayor Dennis Probst called to order the Truth-In- Taxation Public Hearing at 7:30 p,m, I Present: Mayor Dennis Probst; Councilmembers Paul Malone, Beverly Aplikowski (arrived at 7:40 p,m,), and Dale Hicks, I Absent: Councilmember Susan Keirn, Also present were: City Administrator, Brian Fritsinger; Parks and Recreation Director, I Cindy Walsh; City Accountant, Terrance Post; Community Development Director, Kevin Ringwald; Public Works Superintendent, Dwayne Stafford; and Recording Secretary, Lorri Kopischke, Ie ADOPT AGENDA I MOTION: Malone moved and Hicks seconded a motion to adopt the agenda for the December 5, 1996 Truth-In-Taxation Public Hearing - 1997 as presented, The motion carried I unanimously (3-0), MAYOR - MEETING OVERVIEW AND PROCEDURES I Mayor Probst explained that City Accountant, Terrance Post would present an overview of the proposed levy, revenue, and expenditures for the 1997 Budget of the City of Arden Hills, Upon I completion, the City Council would entertain questions or comments from the audience, SUMMARY PRESENTATION BY TERRY POST. CITY ACCOUNTANT I Terrance Post, City Accountant, explained the Preliminary Levy which was adopted at the I September 9,1996 City Council meeting will be discussed this evening. This is the basis of the property taxation statements which were issued by the County to property owners, Mr. Post explained the City is also required to discuss the Budget, If need be, there is also a Continuation I Public Hearing which will be held December 12,1996 at this same facility at 7:30 p.m, As the meeting tonight goes forward, City Council will make a decision to hold or not to hold the Continuation Hearing. ~ - - I I ~ ARDEN HILLS TRUTH-IN-TAXATION - DECEMBER 5,1996 2 Mr. Post explained there are three components which determine the Property Tax Payable, The first I aspect is the market valuation which is placed on a property which is a function of the Ramsey County Assessor's Office, The second aspect of determining property taxes is the class rates which are applied to different types of property, These rates are set by statute by the legislature. These two I aspects yield the Net Tax Capacity, This Net Tax Capacity is then applied against the jurisdiction needs, The Levy need is then divided by the Total Net Capacity of the jurisdiction which yields a I fraction, This fraction times the individual Net Tax Capacity then determines the individual local Property Tax amount. Ramsey County, the School District, and other miscellaneous jurisdictions amount of taxes are then added to determine the total Property Tax Payable, I Mr. Post explained the components of the total local tax rate for 1997 Property Taxes Payable, He noted the City component is the second lowest portion of the total. Mr. Post explained the Arden I Hills City tax rate is in the lower Y, in comparison to other cities in the east metro area in terms of comparable taxes on a $120,000 horne, I Mr. Post presented a chart which illustrated the 5 year trend information regarding market valuation of property, net tax capacity, fiscal disparities and tax levies. He noted in 1992,1993,1994 and 1995, the City of Arden Hills was faced with a declining Net Tax Capacity, This was a direct Ie function of the aggressive challenges to market valuation that commercial/industrial property owners took in terms of challenging their valuation with the County Assessor in Tax Court. By and large, they were successful in reducing their valuation, This has reduced the Net Tax Capacity of the City I of Arden Hills significantly, Mr. Post noted however, that one benefit of this lower valuation is that the City now is contributing less to the Fiscal Disparities Pool, as the City has less valuation to I contribute to the Metropolitan pooL Mr. Post explained in terms of the tax levy history, there was a spike in the tax levy in Payable 1994, I For Pay 1997 proposed tax levy increase 1.95% over the levy for Pay 1996, Councilmember Aplikowski arrived at 7:40 p,m, I Mr. Post presented a chart which compared the amount of State LGA and HACA Aid relative to the net levy amount of Arden Hills to that of neighboring communities. The gross level ofthe City of I Arden Hills levy increase of $35,000 or 1.95% is smallest compared to other neighboring communities, He noted many other cities also receive general State Aid in the form of LGA and HACA The City of Arden Hills receives very little in State Aid, 95.3% of the dollars spent to I conduct the services of the community are non-LGA/HACA generated dollars, I Mr. Post then explained that property taxes will fund 72% of 1997 General Fund Revenue, This percentage has not changed a great deal in the course of the past 5 years, He noted the intergovernmental funding portion was only 13% of the 1997 general tax revenue, This is much t' lower than in most other cities, I I I t' ARDEN HILLS TRUTH-IN-TAXATION - DECEMBER 5.1996 3 Mr. Post presented a pie chart which illustrated the proposed 1997 General Fund Expenditures, The I percentage of spending from 1993 to 1997 per category has not changed that dramatically with the exception of the capital funding area. The two things which have affected this area are the expanded scope of the Pavement Management Program and specific funding transfers to Capital Funds for I future general fund equipment, fire equipment and future facilities outlay, I Mr. Post then explained the significant expenditures per category. He noted an expenditure in the Planning and Zoning area of $50,000 for the Comprehensive Plan Update and in the Fire Protection area of $30,000 for State Insurance Fireman's benefit. There will be $30,000 in additional revenue I which will offset the $30,000 expenditure for the State Insurance Fireman's benefit. There will also be an expenditure in Street Maintenance of$48,000 which is due to an expansion for a county bridge project. Mr. Post noted this is a break even Budget, with the expenditures equally the revenues, I l\.1r, Post presented a chart which ties General Fund revenues with expenditures and illustrates how the levy relates. In summary, this budget anticipates a spending increase of 6.4% over the 1996 I Budget. There is also a projected 6,23% increase in revenue. Mr. Post then explained that the general fund expenditures only account for 1/3 of the total fund Ie expenditures/transfers of the City of Arden Hills, Approximately one-third or remaining expenditures are for water, sewer and storm water management utilities and one-third is spent for capital projects. I Mr. Post then presented a chart which illustrated the 5 year trend in spending by all Fund types. In I 1997, there is an expenditure in the Capital Project Funds of a $1,000,000 for a new City Hall facility, $700,000 of funding will be obtained from the Advance Refunding Bond Fund and $300,000 will be obtained from the Permanent Improvement Revolving Fund. Another $425,000 I in expenditures from the Permanent Improvement Revolving Fund will be used to fund the 1997 Pavement Management Projects, I PUBLIC COMMENTS Mayor Probst invited the audience to address Council with any matters of concern relating to the I proposed 1997 levy. Mr, Roger Aiken, 4360 Hamline Avenue, presented Councilmembers and Staff with a summary I of his questions and concerns. He noted he is a member of the Finance Committee but is not in attendance this evening as a representative of that committee. Mr. Aiken stated his property taxes for 1997 increased 5.5% in the amount of $12,00, Over the last three years, the property taxes on I his home have increased by over $300,00, Mr. Aiken stated that although the City of Arden Hills has a large industrial base, a large capital reserve and no debt, they also have a higher than average t' assessment rate for streets, limited services, and unfairly receives very little state aids like HACA. He stated the current city market valuation appears to be topped out and does not have appreciable I I I it ARDEN HILLS TRUTH-IN-TAXATION - DECEMBER 5,1996 4 upward mobility except in the case of the arsenal, which most citizens seem to agree is now in the I distant future, There also is not much additional traffic capacity in many areas of the City, Mr. Aiken commended Mr. Post on his presentation but stated he would recommend the charts be I more user friendly. He suggested that more general information is educational and useful for the public; more specific information should be included in the charts rather than listed on separate I sheets (or both); each chart should be fully explained in its respective categories; the relationship of the funds should be emphasized and the role they play; and the total assets, liabilities, fund equity, and maintenance and total available funds of the City should be described. I Mr. Aiken stated he felt the engineer had difficulty explaining what the Pavement Management Program was at the recent infomlational meeting, He noted he also has difficulty in identifying the I budget materials alone without referring to the annual budget document. He felt there was a similar problem with the tracking of administrative costs, He suggested a system be used that is similar to that utilized by non-profit organizations which would track administrative costs versus programs I provided in percentage terms. This could provide an accurate figure of how much is being spent on priorities versus administration. Ie Mr. Aiken questioned the City's rationale for hiring a full-time building inspector. He also questioned the contracting of engineering services at a rate of 15% on street projects and the contracting oflegal services with an attorney who happens to work for the City of Shoreview, Mr. I Aiken noted there has been a 137% increase in Planning and Zoning expenditures since 1992 and questioned when the residents would see the results of these expenditures, He noted the expenditure I of$50,000 for the Comprehensive Plan Update and questioned if some of the results of the prior year research on the economic development of the Arsenal could be utilized to reduce the cost. He also questioned the consequence if the Update was not done, Mr. Aiken questioned the expenditure of I $16,900 for a copier and P,C, workstation, Mr. Aiken questioned the necessity of the GIS system, He encouraged the City to go with less expensive or nonproprietary software - hardware setup and utilize citizen resources, I Mr. Aiken questioned the accumulation of $1 ,700,000 for the proposed new City Hall. He noted the Council has been accruing monies from the general fund since 1994 on an average of$125,000 per I year. He asked if the expenditure of the $125,000 out of the General Fund money will be continued to fund capital expansion, If so, what is the City planning to buy? Couldn't this money be benefiting residents now, rather than years from now? I Mr. Aiken asked ifthe commitment to the Blaine Hockey Facility will affect the City of Arden Hills in town expenditures for skating rinks and how this commitment will be reflected in the Budget I Mayor Probst stated the suggestions made by Mr. Aiken in regard to the presentation of the Budget it have been duly noted by Mr. Post for consideration. I I I it ARDEN HILLS TRUTH-IN-TAXATION - DECEMBER 5,1996 5 Mayor Probst explained the City does receive monies as part of the cable fees which are paid by I residents. This is a standard procedure in all Cable Commission communities, The City is restricted by Law to only use those funds for purposes associated with Cable, The cost which appears in the Budget is the cost associated with televising the Council meetings, The City intends and hopes to I use some of these funds to pay for the audio visual needs in the new City Hall for broadcasting of City Council meetings, I Mayor Probst explained the hours allocated in the Enterprise Fund versus the General Fund are done based on how much Staff time is expended over the course of the year, Staff tracks their time based I on what they are doing and charges it against the fund to which it is expended. Mayor Probst noted there are many different ways in which the City could choose to budget and I account. The choice the City has made is an accepted methodology for communities of this size. Mayor Probst stated he did not believe the City would be looking at doing multiple accounting. I Mayor Probst explained the increase in the Planning and Zoning area over the past two years has resulted from the planning work which has been done at TCAAP and this year $50,000 is being spent on the Comprehensive Plan Update which is required by State Law. The City also has a strong Ie motive for wanting to pursue the Update and that is that the City now has an understanding and agreement based on the work that the City Task Force did as well as what Congressman Vento did in terms of the new proposed reuse plan for the TCAAP facility. That needs to be officially I recorded, Mayor Probst stated he believed there will be activity at the TCAAP facility in a relatively short period of time, I ML Aiken asked if the changes involved would provide revenue back to the residents, I Mayor Probst stated he could not assure immediate revenue but can assure this is a significant step toward protecting the residents against future costs, I Mayor Probst explained the decision to hire a full-time Building Inspector is planned to save the City of Arden Hills significant dollars. Ifthere is a point when it is no longer saving money, the decision will again be reevaluated, The 15% paid to engineers for projects is a standard rate, I ML Aiken asked why an engineer was not hired to be on Staff, I Mayor Probst stated the City did not believe that the expertise provided for the street, water, sewer, and other engineering projects could be provided by one person. The projects require expertise in design, documentation, and field observation, He noted the City has instituted a program of review I of all consultants on a regular basis to ensure the City is contracting with the appropriate people. t' Mayor Probst explained in regard to the legal representation, the City has in fact retained other firms for specific areas of need when they have felt the usual contracted legal services are not qualified, I I I ~tt ARDEN HILLS TRUTH-IN-TAXATION - DECEMBER 5,1996 6 Mayor Probst stated the GIS system is the best way to track what is going on in the City, especially I Planning and Zoning cases, City Administrator Brian Fritsinger, reported Staff has been utilizing other resources to help setup I the GIS system, One resource has been the I-35W Corridor Coalition which is working with communities which are adjacent to the City of Arden Hills who actually have GIS systems and using I their expertise and experts on Staff to put together some programs that will assist Arden Hills Staff to put a package together. Recent conversation have been held with the Minnesota Real Estate Journal who do things in the area of economic development in real estate activities, The City has I had numerous meeting with the Metropolitan Council on how to utilize the system they have and Ramsey County has been involved with these meetings. lbis is not being attempted by Staff alone but is being done with five or six other cities, Ramsey County, the Metropolitan Council and several I other agencies, Mayor Probst stated this Council does not have an answer on future capital expenditures, He stated I in the four years he has been involved with this Council all decisions regarding the budget and expenditures have been made unanimously, If there are concerns of the residents which are not being reflected in what the Council is doing, he felt it was due to the fact that Council was not aware Ie of what those concerns are, Mr, Aiken asked if the transfer out of the General Fund would be continued next year if the new City I Hall was built this year or will the options be reconsidered, I Mayor Probst stated there would not be a request for funds if there was not a demonstrated need, He noted the City is in need of both a City Hall and a Public Works Facility, The financing which appears on the Budget is only adequate to fund a City Hall building. The City continues to work on I options to solve the Public Works Facility funding dilemma, Mayor Probst stated he felt the Council has been willing to look at other programs, He stated he I believed the Council has tried to fund the programs that the residents have expressed they desire and need, Mayor Probst noted there is a public comment portion at every City Council Meeting where residents can express their feelings on issues, I Councilmember Aplikowski stated residents were always welcome to telephone City Councilmembers as well, She noted this is the most direct form of communication, I Lois Rem, 1670 Glenwood Court, noted that at the Public Informational meeting regarding street improvements, the engineer stated there will be no Municipal State Aid (MSAS) Construction Funds I available this year. She questioned how this would affect assessments and the City Budget .... - I I fj ARDEN HILLS TRUTH-IN-TAXATION - DECEMBER 5, 1996 7 Mayor Probst explained none of the streets identified for street reconstruction are listed as MSAS ~I roads. The City did attempt to qualify one street but the State rejected the request. The City will therefore be limited in its match of funding by the amount in the General and Surface Water Management Funds, I Ms, Rem asked if the improvements would include the same scope of improvement and reconstruction if the MSAS funds are not available, I Mayor Probst explained this may result in the scaling back of the overall project but that has not yet been determined, I Me Aiken noted a new reclamation assessment category, I Mayor Probst explained this is treated like an overlay but is a little more expensive as it involves some curb replacement I COUNCIL/ADMINISTRATOR COMMENTS Ie City Administrator Brian Fritsinger, noted the Arden Hills Town Hall Meeting is scheduled for January 25, 1997 from 9:00 a,m, to 12:00 noon. Two locations, Bethel College (Benson Great Hall) and Valentine Hills Elementary, have been considered for the meeting, Mr. Fritsinger reported he I has visited both sites. The Bethel site will provide all the audio-visual needs and is offering use of the Benson Great Hall at no cost to the City, Valentine Hills offers some opportunity as it is a I smaller facility and depending on turn-out may provide a better fit The City would however, have the expense of a janitor and audio visual equipment would not be provided. Based on his visits to the two sites, Mr. Fritsinger stated he felt the Benson Great Hall at Bethel would be the preferred I site, There was Council consensus to conduct the Arden Hills Town Hall Meeting of January 25, 1997 I at Bethel College (Benson Great Hall), Councilmember Malone asked if Bethel would be willing to perform the taping of the Meeting, I Me Fritsinger stated Bethel is willing to provide the taping at no cost to the City, I Mr, Fritsinger noted from previous discussions City Council had indicated they would prefer a "State of the City" meeting. The Mayor and Council would run the meeting and Staff would be available for assistance. Me Fritsinger noted he felt the purpose/goal of the Town Meeting would include the I following: Improve Communication with residents; Accessibility to City Council/Staff; "Making residents partners in building a liveable community"; Provide information to residents/receive .. feedback from residents; and Assist with formalizing Committees/priorities, I ~. I ARDEN HILLS TRUTH-IN-TAXATION _ DECEMBER 5,1996 8 " There was Council consensus that the approach of the Town Hall Meeting and the Purpose/Goal was . as desired, Counci1members complimented Mr. Fritsinger on the planning of the Town Hall Meeting. -. Councilmember Aplikowski apologized for arriving late to the meeting this evening, She thanked Staff for their hard work and also thanked the residents for coming out for the Meeting. I Mayor Probst complimented Staff and City Council on the Budget preparation, MOTION: Malone moved and Hicks seconded a motion to cancel the Continuation Meeting of I the Truth-In-Taxation Meeting scheduled for December 12, 1996 at 7:30 p,m, at the Army Reserve Center. The motion passed unanimously (4-0), I Mr. Post noted a Meeting is scheduled on December 16, 1996 following the City Council work session to formally adopt the final 1997 Payable Levy and Budget. I ADJOURN .. MOTION: Malone moved and Hicks seconded a motion to adjourn the meeting at 8:25 p,m. The motion carried unanimously (4-0), I 7 I Brian Fritsing City Administrator I . . . I .. .