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MINUTES
OF THE SPECIAL MEETING OF THE
EDINA CITY COTJNCIL HELD AT CITY
ON NOVEMBER 29, 1994 AT 7:OO P.H.
R0ILCAI.L Answering rollcall were Members Paulus, Rice, Smith and Mayor Richards.
Member Kelly entered the meeting at 7:07 P.M.
TRTJTH IX TAXATION PUBLIC EEARR?G HELD FOR PROPOSED 1995 CITY BUDGET Pursuant to
published notice given, a public hearing was conducted on the proposed property
tax increase in the 1995 Budget for the City of Edina, as mandated by Chapter
375, Laws of Minnesota 1993.
Mayor Richards stated that the hearing would focus on the proposed 1995 City of
Edina Budget relative to where the monies come from and how they are expended on
the various functions of the City.
value of their homes should appear at the Board of Review which will meet in the
month of April, 1995.
residential property is determined by the state legislature.
City's final property tax levy and final budget must be adopted at a subsequent
hearing and citizen input is important in that process.
.
Residents with questions about the market
Mayor Richards explained that the tax rate structure on
He said that the
Mayor Richards explained that the budget process began in the month of July with
a series of meetings at which budget assumptions were formulated and then the
Council directed staff to come back with a detailed draft budget broken down by
departments.
$15,723,228 which represents an increase of $660,927 or 4.39% over the Budget for
He told the audience that the proposed 1995 Budget totals
1994. Mayor Richards then opened the hearing for public comment and discussion.
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I Public Comment
Lincoln B. Shea, 4815 Lakeview Drive, said he had received his estimate of
proposed tax increase based on the state's estimate of income increase of 4.5%
for the year. Therefore, the City has felt justified in increasing its budget
accordingly which has nothing to do with the services received as a taxpayer.
He asked for justification for the proposed 4.39% increase in expenditures.
Mayor Richards responded that in considering the proposed 1995 Budget the Council
was not motivated by the state's estimate of income increase.
reasons for the following major increases in expenditures:
He explained the
1. Wage adjustment of 2.5%
2.
3. $30,000 additional clerical position - Police Department
4. $35,000 crime prevention specialist
5.
$10.00 per month increase in employee health insurance package
$40,000 additional Park maintenance position
Concerning revenue sources, Mayor Richards said the major components are 70.3%
from real estate taxes, 9.7% from intergovernmental aids, 8.3% from fees and
charges, and 5.9% from licenses and permits.
Mr. Shea also questioned what the City employees contribute to their benefit
package, the line item for Police Department computer contract and the additional
clerical position. Assistant Manager Hughes answered that the person on family
coverage pays approximately $160.00 per month, single employee coverage is paid
entirely by the City.
into a contract with a computer company for computerized dispatch which serves
the Police and Fire Departments.
and due to that renegotiated situation there is an approximately $9,000.00
increase in the contract price.
Chief Bernhjelm explained that in 1990-91 the City entered
The company holding the contract was bought out
Because of the buyout, the City anticipates a
11/29/94
reater level of service because the buyout company will be improving the
Bernhjelm said he now has police officers and investigators who are typing
reports.
134 oftware for the system. Regarding the additional clerical position, Chief
The more officers put on the road the less the response times.
Mayor Richards interjected that the crime prevention specialist position will be
fully funded by the Edina Crime Fund and the School District will pay $40,000 of
the cost of the Police School Liaison Officer position.
Frances Shea, 4815 Lakeview Drive, questioned the $75,000 increase in workers'
compensation insurance and asked if the City has a program for preventing
injuries.
major losses in the area of public safety - one of which was the death of a
Police Officer and several heart attacks. Ms. Smith said the City does have a
program in which the losses are studied followed by the insurance company working
with the various departments. In addition, a wellness program will be instituted
in January which is designed to reduce losses. In the past the City has had some
outstanding good years with $898,000 in returned premiums.
risk management services through its insurer, the St. Paul Companies.
Assistant to Manager Smith responded that the increase is due to some
The City receives
No further public comment being offered, Mayor Richards commented that, although
citizen input at this hearing was minimal, he felt the community is involved and
aware of how the City operates.
Member Smith made a motion to close the public hearing on the proposed 1995 City
Budget and that adoption be on the Council Agenda for December 5, 1994.
was seconded by Member Rice.
Motion
Ayes: Kelly, Paulus, Rice, Smith, Richards
Motion carried.
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