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HomeMy WebLinkAbout19951129_specialMINUTES OF THE SPECIAL MEETING OF THE EDINA CITY COUNCIL HELD AT CITY HALL ON NOVEMBER 29,1995 AT 500 P.M. ROLLCALL Answering rollcall were Members Maetzold, Paulus, Smith and Mayor Richards. Member Kelly was absent. TRUTH IN TAXATION PUBLIC HEARING HELD FOR PROPOSED 1996 CITY BUDGET. Pursuant to published notice given, the Edina City Council conducted a public hearing on the proposed property tax increase in the 1996 Budget for the City of Edina, as mandated by Chapter 375, Laws of Minnesota 1993. Mayor Richards stated the purpose of the Truth in Taxation hearing would focus on the proposed 1996 City of Edina Budget. The budget review relates to where the monies come from and how they are expended on the various functions and services of the City. Residents with questions relating to the valuation placed on their homes should plan to appear at the Board of Review in April of 1996. Mayor Richards explained that the Minnesota legislature In addition, Mayor Richards explained that Council would not adopt the City’s final property tax levy and final budget at the hearing but at a subsequent Council meeting. The Council believes that citizens’ participation is important in the budget process. . determines the tax rate structure of residential property. The Mayor informed the audience that the Budget process began with the formluation of budget assumption at a series of meetings in July. After reviewing the budget assumptions Council directed staff to come back with a detailed draft budget broken down by departments. He stated that the proposed 1996 Budget totals $16,504.290 which represents a 4.97% increase or $781,062 over the 1995 Budget. Mayor Richards then opened the hearing for public comment and discussion. Public Comment Ed Klis, 6804 Iroquois Circle, told Council he received his proposed 1996 property tax notice and noted that he had a 4.75% increase in his valuation, but his taxes went up 10.8%. He notes that there are a lot of senior citizens in attendance. They are not paupers but their base income, social security, investments and pensions certainly did not increase by 3%. His worry is that if increases continue it will drive people out of Edina. Remember that the senior citizens at some point simply can no longer afford these increases. Mayor Richards reminded that there are many layers of government in Minnesota, namely school, county and city. There is a fluctuation in market value where increases cause some individual property taxes to increase at a higher rate than the Budget‘s overall percentage increase. Also the legislature has shifted how properties are taxed from 1995 to 1996 with a residential properties assuming a greater share of the property tax burden. Mayor Richards pointed out that the public safety portion of the budget amounts to fifty percent. He commented that monthly the City gets letters telling what an important function the police and fire fulfill and to keep up the great job they’re doing. I MinuteslEdina Citv Council/November 29.1995 Hugh Thompson, 6126 Arctic Way stated he was a corporate employee and he had just received his first salary increase of 2.5%, in 18 months. Eighteen months ago he had received a 2% increase, yet City employees receive annual salary adjustments. Perhaps the city should freeze salaries for a year. Mr. Thompson believes government should run more like business. Also look at expenditures annual increase which reflect creeping inflation from all departments. Mayor Richards pointed out that city is currently staffed at the same level as ten to twelve years ago. He continued that Edina is a leader in bringing our city into compliance with the gender equity legislation. Member Paulus interjected that the City is mandated by law to arbitrate with bargaining units. Harvey Dow, 6212 Loch Moor Drive, pointed out that 58% of the budget increase goes to wages. Mr. Dow recommended that outsourcing for services be looked at a means of controlling increases. Ed Norbut, 7312 Shey Drive. Its been four years since he had been before the Council. He stated that he is impressed with the overall effort of the Mayor and his staff, however he thinks there are some comments which need to be made on the tax bill. Mr. Norbut suggested that the City become more active in lobbying to reduce the overall tax burden. He reminded the Council that this is the age of downsizing and perhaps the City should look to that area. Current tax structures amount to incremental increases which are going to drive some citizens out of our community since they can no longer afford their taxes. He feels that government needs to have the mind set that each dollars is spent as if it is your own. I Berit Christiansen, 6566 France Avenue South, questioned why there is such a great variance in the percentage increases within one municipality between properties. She stated that her Edina taxes increased 24% and yet this evening she has heard a number of different percentages stated. She finds this confusing and would like it clarified Mayor Richards stated he would attempt to explain. He observed that in Edina the budget is built from the bottom up as suggested by the previous speaker Mr. Norbut. Each department is looked at as to how much they are proposing to spend. The proposals are reviewed and justified by before being placed in the budget. This is how the City arrives at the total dollar expenditure increase which this year amounts to 4.97%. This 4.97% should not be confused with an individual’s property tax increase which is derived by applying the proposed tax rate to each individual market value. Increases in value can change the percentage that one property is increased. Likewise a decrease in market value could mean a smaller percentage than the 4.97% George Fischer, 7000 Tupa Drive. He built his home in I972 and three years when three homes adjacent to him sold, he went to the City Assessor and researched the homes. The final result was a reduction in his market ... value of $25,000. Now he sees them creeping back up and he is unhappy about that. Page 2 Minutes/Edina City Council/November 29,1995 Vin Mc Carthy, 6813 Dakota Trail, wondered why it is assumed that there is a direct relationship between his income and the value of his property. He believes the entire system is based on an erroneous premise. He would like to see the Council do something about the system. ‘I Mayor Richards responded that the tax system has been designed by the legislature. The City does not make the system, but we are mandated to operate within the system. The Council does address these issues through lobbying efforts of organizations that the City belongs to. However, tonight‘s only issue is the 1996 Edina Budget delivering services to its 46,000 residents. Lloyd Cherne, 5704 View Lane, commented that he currently owns land in three or four communities and he has learned that some communities help you upgrade your land so that market value increases and taxes increase. Mr. Cherne wondered if the Gordon Lewis property had ever been looked at for assistance. Are there other areas in the community that could be looked at. Mayor Richards reported that the City has spent a tremendous amount of time on the Lewis property and in fact are spending time on it today. He urged Mr. Cherne to attend the Council meeting of December 4th when the property will again be discussed. This property has been before the Council approximately fifteen times in 1994. The City has been very responsible in this area. Edina is 99% developed. The City has a policy of working to get the public the best return for public dollars spent which is reflected in the many fine businesses, parks, and residential areas in the Edina. I Don Buck, 6509 Indian Hills Road, pointed out that taxes rise on a geometric basis. The increase in a home value increases the home’s tax capacity. Then you add the increase of the City. This sneaks up on homeowners. Mayor Richards pointed out that the problem with trying to apply a geometric function to the tax increases is that in 1995 Edina’s tax rate actually went down. Therefore no geometric progression would take place. This is a very complex system which is why the Council focuses on the dollar amount of increase. Member Paulus made a motion to close the public hearing on the proposed 1996 City Budget and that adoption be on the Council Agenda for December 4, 1995. Member Smith seconded the motion. Ayes: Maetzold, Paulus, Smith and Richards Motion carried. There being no further business on the Council Agenda, Mayor Richards adjourned the meeting at 555 P.M. I a City Clerk J Page 3 .- This page left intentionally blank