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Mayor Richards then opened the hearing for public comment.
residents made comments: Patricia Hansen, 7 Circle West; John Maloney, 4400
The following
Curve Av. ; Don Buck, 6509 Indian Hills Rd. ; Dr. George Fisher, 7000 Tupa Dr. ;
Howard Hyde, 7415 Hyde Park Dr.; Harvey DOW, 6212 Loch Moor; Ed Norbut, 7312
Schey Dr.; Robert Spear, 4703 Sunnyside Rd.; Kathleen Mulder, 4510 Casco Av.;
Art Heim, 5205 Richwood Av.; Walter Sandison, 4612 W. 58th St., and Andy
Rosenthals, 5316 Windsor Av.
Suggestions that were noted included encouraging the Council to scrutinize the
bidding process more closely to reduce costs, a solicitation to become
involved with an organization called Minnesota Fairshare, which is a
grassroots volunteer organization who are proponents of a flat property tax at
approximately 1 1/2%, that the Legislature needs reacting to and that Edina
needs to set an example by not increasing its budget.
MINUTES
SPECIAL TRUTH IN TAXATION EDINA COUNCIL MEETING
HELD AT CITY HALL
NOVEMBER 20, 1990
ROLLCALL Answering rollcall were Members Kelly, Paulus, Rice, and Mayor
Richards.
Pursuant to published notice given, a public hearing was conducted on the
proposed property tax increase in the 1991 Budget for the City of Edina, as
mandated by truth in taxation legislation.
background information. StaEf had established City budget assumptions for
1991, totalling $13,577,622, that they felt would be applicable, including
capital expenditures, wages based upon inflation, new programs, and central
services.
has tentatively accepted it for the purpose of holding this public hearing.
The 1991 Budget will not be formally adopted until the hearing process is
completed. Mayor Richards explained that approximately 77% of the budget is
raised by real estate taxes, with the balance coming from licenses and fees,
and permit applications, etc. The proposed total expenditures for 1991 is a
4.2% increase, which means that residents in Edina would have a 3.9% increase
in real estate taxes if the proposed budget would be adopted. Mayor Richards
encouraged residents to become involved in the budget process of the school
district and the countv.
Mayor Richards gave the following
Council has reviewed the 1991 Budget line by line, made changes and
.
Some residents in attendance commented that they had attended the Hennepin
County budget hearing where the meeting was billed as a frustrated taxpayers
revolt. The burden of the two-tier tax system was questioned as values have
gone up 51% in 10 years while taxes have increased 113%.
selling in Edina, according to one realtor, because taxes are so high, even as
much as 300% more than homes outstate. One resident was disgruntled with tax
increment financing. Annual employee salary increases were questioned, and
creative budgeting to allow employee salary increases but to hold the line on
raising the budget.
Homes are not
Mayor Richards commented that Minnesota is one of a few states that has the
1-2-3 tiered tax system.
Municipal Legislative Commission, along with 14 other communities. The
He stated that we are members of a lobbying group,
252 ll/M)/90
highest priority item is to attempt to convince the legislature to do away
with this 1-2-3 tax system.
this tax system via the lobbying effort.
- The City has taken an aggressive approach against
Lobbyists are paid to work on making our voices heard by.the Legislature.
Expenditures of city government (per capita - 1989) by city were compared as
follows :
$546 Bloomington $405 Richf ield
$448 Eden Prairie $333 St. Louis Park
$396 Hopkins $885 Minneapolis
$352 Minnetonka $338 Edina
The metro average is $480.
$448, and state-wide is $468,
In the non-metro area, the per-capita average is
(Council Member Glenn Smith entered the meeting at 5:50 P.M.)
Mayor Richards'explained that the two largest areas of budget increase are
salaries and central services. Central service increases are driven by the
cost of energy and petroleum products, and commodities provided by vendors.
Currently, there are approximately 180 people employed on the operating budget
full-time whose wages are paid 77% from real estate taxes and 23% via other
funds. The total City employees number approximately 220-225. The other
employees work for the enterprise operations, (5.e. Braemar Golf Course, the
Liquor Stores), that contribute to the economic well-being of the City.
Richards stated that the net income received from the liquor operations was
approximately $300,000-$400,000 per year, and the golf course attributed
approximately a half-million dollars to the City.
been to make the recreational facilities a profit center, therefore not taking
money from the general fund to pay for the enterprise operations.
Richards stated that there has always been an attempt by the Council to treat
employees fairly salary-wise.
The budgeted amount for increased wages is 4% for City of Edina employees, to
reach state-mandated wage equalization amounts. He observed that salaries in
the public sector are generally lower than in the private sector.
Mayor
The City's philosophy has
Mayor
The projection for inflation in 1991, is 4%.
Mayor Richards emphasized that the City of Edina does not institute new
programs and is very traditional as it relates to the delivery of services.
One and one-half percent of the budget is for compliance programs to respond
to demographics we are experiencing in Edina, with the aging population.
Mayor Richards encouraged the residents to continue to scrutinize and speak on
what the elected officials are doing. On a broader scale, the School Board,
County Commissioners, State Senators and Representatives need to know what
Edina residents are thinking.
estate taxes is necessary for a better balance.
people are being educated and becoming involved in this process and that this
is not a political issue, nor a partisan political issue, but a metropolitan
vs. an outstate issue.
Lobbying for fairness and equity regarding real
Mayor Richards stated he felt
In summary, Mayor Richards said he and the Council are listening to all
residents' comments, reading all letters and will attempt to be reasonable in
considering the proposed budget.
11 /23 /90
Mayor Richards announced that this Truth in Taxation Hearing would reconvene
on November 29, 1990, at 5:OO p.m. and that further testimony would be heard
at the regular Council Meetings of December 3 and 17.
Budget must be certified to the county auditor by December 28, 1990.
He noted that the 1991
Mayor Richards then declared the meeting adjourned until November 29, 1990.
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Actihg Cityylerk