HomeMy WebLinkAbout19921130_special35
MRUTES
OF TJXE SPECIALMEETING OF TBE
EDIHd CITP COUNCIL HELD AT CrrP EALL
NOVEMBER 30, 1992 - 7:OO P.H.
R0I;LCBI;L Answering rollcall were Members Kelly, Paulus, Rice, Smith and Mayor
Richards.
TR~ IN TAXATION PUBLIC HEARING HELD FOR PROPOSED 1993 CITP BUDGET Pursuant
to published notice given, a public hearing was conducted on the proposed
property tax increase in the 1993 Budget for the City of Edina, as mandated by
truth in taxation legislation.
Mayor Richards stated that the focus of the hearing would be on the proposed
City Budget for 1993 and the expenditures Council has determined necessary to
run local government.
value of their homes should appear before the Board of Review which will meet
on April 12, 1993.
Residents with questions or objections to the market
Presentation of 1993 Budget Summarv
Mayor Richards stated that the 1993 Budget proposes total expenditures of
$14,471,815 with an increase in spending from 1992 of 4.7% and an increase in
tax revenues of 2.97%. Expenditures by type: salaries 53.7%, central services
21.2%, contractual services 12.4%, equipment 7.0%, commodities 5.0% and
reserve 0.7%. Expenditures by area: public safety 47.1%, public works 23.8%,
general government 13.9%, parks 12.4% and non departmental 2.8%.
Major changes since 1992 Budget include: 3% wage increase plus $lO/month
increase in health insurance; $72,500 increase in overtime budgets for Police
Department and Fire Department; $100,000 increase in reserves; no new
programs; seven staff positions vacated in 1992 will not be filled in 1993.
Major sources of City revenues: taxes 76.8%, fees and charges 14.3%, licenses
and permits 5.4% and intergovernmental aid 3.5%.
spent on programs mandated by the State of Minnesota coupled with the loss of
sales tax exemptions by all cities.
comment on the proposed 1993 Budget.
For 1993, $212,000 will be
Mayor Richards then called for public
Public Comment
Edward Kaisler, 6216 Rolf Avenue, asked about the impact of the class rate on
home value.
out the 3% class rate for higher valued homes.
owner-occupied housing are 1% for the first $72,000 of market value and 2% for
market value in excess of $72,000.
assume a larger share of the tax burden in 1993.
$260,000 may receive a tax reduction in 1993 due to the reduction in class
rates. With regard to the proposed $lO/month increase in health benefits,
Mr. Kaisler suggested that City employees pick up a greater proportion of the
cost just as is being done in private industry.
Mayor Richards explained that the State Legislature is phasing
The current class rates for
As a consequence lower valued homes will
Homes valued at more than
Frederick Koehn, 5428 Brookview Avenue, commented that although the proposed
1993 Budget is an increase of 4.7% his taxes are going up 17.9% and on a fixed
income that is unreal and unjust.
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Will Merrill, 4905 West 66th Street, asked: 1) what controls will be placed on
expenditure of the reserve fund, and 2) why the large increases in the Police
Department budget.
reserve and makes.the final decision on all spending. Four expenditure items
comprise the majority of the increase in police services: $17,500 for overtime
to more accurately reflect costs, $20,000 for mandated training, $110,000 for
sales tax liability in commodities and equipment replacement, and $20,000
added above the normal central services increase.
I . Mayor Richards responded that the Council controls the
Douglas Miller, 6436 Red Fox Court, suggested that in the future all State
mandated program costs be listed separately so that some of those could be
preempted.
John Maloney, 4400 Curve Avenue, asked why expenditures and profits for
Braemar Golf Course, the new golf course, Edinborough Park and Centennial
Lakes do not show in the budget.
proprietary enterprises which are run like a private business and are not part
of the general fund budget.
operated. Mr. Maloney recalled that two years ago at a similar hearing he had
mentioned that there was waste in the Fire Department of which he is an
employee. Specifically, he challenged the salary paid to the Fire Chief when
compared to the salary paid to the Minneapolis Fire Chief. He said that a
group of citizens have made a study of the Fire Department and have made a
number of recommendations concerning the Fire Chief.
that this is a Truth in Taxation hearing and that the Council is not here to
receiGe a report from the citizens' task force.
Mayor Richards said that those are
He then explained in some detail how those are
Member Smith interjected
Paul Green, 6945 Southdale Road, commented that he felt the Council has done
an exception job in running the City.
assured that the entire City is assessed equally at 100% value.
would like to see the City compared to the rest of the county to make sure
Edina is not contributing more than its fair share to Hennepin County and to
the State of Minnesota.
He added that he would like to be
He then
Hans Kuhlman, 5104 Halifax Avenue, mentioned he had just entered the meeting
and said his notice indicated his property tax would go up 10% for the City
portion. The budget facts sheet stated that taxes need to increase by 2.97%
to support the 1993 City Budget.
Mayor Richards responded that, as explained earlier, the property tax has
increased because of the different tax capacity rate established by the State
Legislature.
He asked what makes up the difference.
Marjorie Ruedy, 5048 Edinbrook Lane, observed that revenues from false alarm
calls and ambulance services go into the general fund.
should apply to profits from the enterprises (Braemar, Edinborough, Centennial
Lakes, etc.).
She felt the same
Kate Donnelly Schneider, 6505 Biscayne Boulevard, spoke to her concern that
the Park Department had recommended suspending the bus service for the
swimming program because there are not enough riders.
need this service and urged the Council to continue the bus transportation.
Park and Recreation Director Kojetin explained that the total cost for the
swim program was $28,987 and that the revenue was only $20,000.
bus service for the swim program is included in the 1993 Budget but that the
She said many families
He added that
11/30/92 - 37
service is being analyzed because the average usage is 8-10 students per bus
per session.
Dan Peterson, 5616 Sherwood Avenue, said that each year the budget shows that
expenditures exceed revenues. He asked how that gets reflected in the next
year's budget and if the amount budgeted for 1993 is enough.
responded that this is reflected in the annual audit as uncommitted surplus
which currently is approximately $500,000.
Mayor Richards
Richard Dahlstrom said he is president of the LeChataignier Condominiums
Board, 7200 Cahill Road, and represented 52 people, 80% of which are retired.
Interest on their investments has gone down in the last four years, social
security does not pick the difference, expenses are going up and they are
biting the bullet.
employees are biting the'bullet like they are.
He said he wanted to make sure that the Council and City
Thomas Brennan, 7013 Mark Terrace Drive, asked what the cumulative reserve
is at currently.
$500,000; historically it has been a little over one Million. Mr. Brennan
also asked if the example extension rate of 123.330% in the budget facts sheet
would apply to all homes. Assistant Manager Hughes the 123.330% rate is an
average but it would vary somewhat depending upon which school district the
home was located in. Mr. Brennan said they have lived here for 24 years,
having moved from Pennsylvania and cannot think of a better place to live.
Although he concurred with some of the comments that have been made, he
commended the City for the outstanding services, i.e. police, fire, parks.
Finance Director Wallin responded that it is a little over
No further public comment being heard, Mayor Richards declared the hearing
concluded. He suggested that, in order to reflect on the comments made, that
final action on adoption of the 1993 Budget be continued to December 9, 1992.
Member Smith made a motion to continue the matter of adoption of the 1993
Budget to December 9, 1992, 7:OO P.M. Motion was seconded by Member Kelly.
Ayes: Kelly, Paulus, Rice, Smith, Richards
Motion carried.
Mayor Richards asked that staff bring back additional information on the
following issues: increases in police and fire budgets, expanded hearing
notices, Park and Recreation swim program and Fire Department salaries.
Mayor Richards then declared the meeting adjourned at 8:35 P.M.
City Clerk