HomeMy WebLinkAboutDecember 6, 1999OFFICIAL PROCEEDINGS
COLUMBIA HEIGHTS CITY COUNCIL
TRUTH IN TAXATION MEETING
DECEMBER 6, 1999
1. Call to Order - Roll Call
The meeting was called to order by Mayor Peterson at 7:00 p.m. Present were Mayor Peterson
and Councilmembers Szurek, Wyckoff and Hunter.
2. Appointment of Patty Muscovitz as Secretary_ Pro Tem
MOTION by Szurek, second by Wyckoff, to appoint Patty Muscovitz as Secretary Pro Tem.
All ayes. Motion carried.
3. Presentation of 2000 Budget and Tax Levy Information
Mayor Peterson indicated this meeting was present the year 2000 Budget and Tax Levy
Information to give the public allowing time for any public questions.
Mr. Fehst, City Manager, indicated handouts for the meeting were: the Truth in Taxation Hearing
Budget booklet (with a correction in the State Aid page), Projected Fund Balance sheet, and the
Community Development/EDA Proposed 2000 Budget Summary.
Mr. Elrite, Finance Director, gave an overview presentation of information in the Truth in
Taxation Hearing booklet. He indicated with the year 2000 Budget the State has eliminated
Local Performance Aid. Additional items reviewed were proposed property taxes, changes in
property class rate percentages, 2000 budgetary funds expenditures/revenues/classifications,
proposed Levy and State Aids, EDA Tax Levy, General and Library fired expenditures, changes
in Tax Levy, and property tax percentage breakdown. Mr. Elrite then discussed the Projected
Fund Balance as of 1/1/2000 of $1,184,822 with possible areas to use some of these funds and
budget cuts to possibly add back in. If these changes were considered, the remaining fund
balance would be $586,158.
Mr. Fehst referred to a Citizens League study which indicated Columbia Heights ranked 107th in
taxes on a average home, out of 107 metropolitan communities.
Mr. Hunter asked if any area in the Police department budget was reduced significantly by the
$10,000 cut. Staff indicated it was an insignificant, across the board cut.
Mayor Peterson asked if anyone in the audience had questions on the Proposed 2000 Budget.
Mr. Bruce Nawrocki came forward. He questioned why the Truth in Taxation Hearing booklet
or summary sheets were not available at the Library for the general public. He felt this was
contrary to openness in govemment.
Truth in Taxation Hearing
December 6, 1999
Page two
Mr. Nawrocki commented on the interpretation of the Citizens League survey. He questioned
the I-IRA Levy, which was to be used for the Sheffield District, but the amount has risen from
$74,000 to $94,000. Regarding the Proposed Multi-use Center, Mr. Nawrocki questioned if a
levy was to pay off the debt service.
Mr. Elrite indicated no formal action has been taken, but Springsted Financial Inc., the Financial
Consultant, advises a bond sale added to the 2000 taxes. Mr. Nawrocki questioned the legality of
a levy before the debt service is issued.
Mr. Nawrocki spoke of information passed on to the Mayor that was referred to by the City
Financial Advisor as having come from the "Vote No" committee. He was upset to be indicated
as part of a "Vote No" committee when there is no such committee and he has never indicated a
"Vote No" position. He demanded an apology from Council, stating it was very unprofessional
for the Consultant to put this on paper. Mr. Fehst apologized for this misunderstanding. The
Mayor also apologized and stated there was no such intent. He only passed the information on to
the Consultant to find out if it was correct. All other Councilmembers also apologized and stated
they were not aware of this misunderstanding until this moment.
Mr. Nawrocki indicated his hope that if the Multi-use Center vote passed that it not reflect on the
City's benefit of Fiscal Disparities. He also felt that if the vote passed the tax increase may cause
financial hardship to senior citizens of the community that are on a very limited income.
Ms. Wyckoff asked the City Manager to explain why a percentage increase is necessary to
maintain a base for the future, and why there is a projected deficit for the Community
Development Department. Mr. Hunter discussed possible reasons for low property values.
4. Adjournment
Following no further questions, Mayor Peterson called for a motion to adjourn.
MOTION by Wyckoff, second by Szurek, to adjourn the meeting at 8:04 p.m. All ayes.
Motion carried.
P'~tricia Muscovitz, beputy C~y Clerk
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