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HomeMy WebLinkAboutDecember 2, 2002 truth taxatioOFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS TRUTH IN TAXATION MEETING DECEMBER 2, 2002 The following are the minutes of the Truth in Taxation Hearing meeting of the City Council held at 7:00 p.m. on Monday, December 2, 2002 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, Minnesota. Call to Order - Roll Call Present: Mayor Peterson, Councilmembers Szurek, Wyckoff, Williams, Nawrocki Pledge of Allegiance Presentation of 2003 Budget and Tax Levy Information Mayor Peterson stated the purpose of the meeting. Linda Magee, Assistant to the City Manager, stated the 2003 proposed budget reflects' staff's' work to bom expenditures and yet provide public services. The largest increases are in regard to personnel costs' and benefit increases. Magee introduced Paul Gross, IS Department; Barb Kelzenberg, Accounting Clerk; and Bill E/rite, Finance Director. She stated there would be a power point presentation, narrated by Elrite. William d. E/rite, Finance Director, took Councilmembers and the pubfic through a presentation on the $22 million dollar budget. Tax supported funds are $9 million dollars'. He described the following charts: · the 2003 Revenue by source chart · budgetary funds (expenditures by function area) · budgetary funds (expenditures by classification) · expenditures by classification, · expenditures by departments for 2001 to 2002 and 2002 to 2003, · sources of general fund, Library fund and EDA revenue, · breakdown in the tax levy, · proposed property taxes 2002-2003 (the increase in 2002 was the shifting in aid). Nawrocki questioned the HRA levy. Elrite stated that is not reflected in theCity budget and is not a City tax levy. · Transition in State aid · Class rate percentages by real property taxes and the difference between residential and commercial rates. · Where your property taxes go (payable 2002 and 2003) E/rite referred to a handout describing categories where significant increases took place. E/rite indicated the increased amount paid by the City and by the employees for health insurance, increases in property insurance, and cost of living increases. Elrite referred to information showing the taxes on five different valued homes. Most had an overall decrease in taxes. We have decreased our property tax levy and have attempted to hold down expenditures. City Council Minutes December 2, 2002 Page 2 of 2 Wyckoff questioned the use of City reserves, and the long-term ramifications. Elrite stated that long- term use wouM deplete reserves, but in 18 of the last 20years there has been an increase in the fund balance. Revenues are budgeted at a minimum and expenditures estimated at a high level. Wyckoff questioned revenues from 2002. Elrite estimated $200, O00 from 2002 wouM go into reserve. Williams indicated the importance of expanding our tax base. Nawrocki referred to an article in Sunday's paper regarding Truth in Taxation. Most other communities will have a tax increase this year and we will have more than a six percent decrease, but he suspect; in future years we will have to catch up. There will also be some taxes included from the County, which are not reflected in the Truth in Taxation figures. Nawrocki indicated this does not include utifity cost,'. He referred to a story in the Minneapofis paper regarding what the new Governor will face to make the State budget. Nawrocki does not approve ora budget that does not have revenues meeting expenditures. Williams indicated that the State will look at our excess funds, so we shouM plan to use them as necessary. Resident; do not want cutback; in service. He indicated that an employee with family medical coverage would lose $4.16 each month in 2003 compared to their current rate of pay. The City has been prudent with our finances and the only way to make cut; is by reducing personnel. We have 130full andpart time employees and we need to encourage them to be the best they can be. We need to develop our City and increase our tax base. Nawrocki referred to the excess reserves and the State's comment; on City reserves. It is necessary to cash flow half of your budget with reserves. Fund; will be needed for industrial park redevelopment. We need to find more cost effective ways to provide services. Williams referred to national legislation to assist with insurance rates, and the hope that insurance rates will drop. He referred to page 23, and the difference where property taxes go in 2002 compared to 2003. Nawrocki referred to the difference in the school district levy. Williams stated that encouragement of private business and development will help our City. Peterson stated it takes work to increase our tax base, and this work shouM have been started earfier. We have worked on a bare bones budget. Our work force is going backwards, he feels badly about it. He referred to his property taxes in Columbia Heights, where one went down 7percent and the other went down 6. 4 percent. His property up north had a 19 °.4 increase. He is proud of the City and proud of the job the employees do; the Finance Department does a wonderful job and is very conservative. HaroM Hoium suggested giving everyone in town $30,000 to invest in their property, and to put homes on all the empty lot; like Lomianki Park that are not used. Magee indicated that the 2003 budget andproperty tax levy wouM be on the December 16, 2002 City Council meeting agenda. Adiournment Mayor Peterson adjourned the meeting at 7:55 p.m. Patricia Muscovitz, Deputy City Clerk