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HomeMy WebLinkAboutDecember 3, 2001OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL 2002 BUDGET REVIEW DECEMBER 3, 2001 The following are the minutes of a special 2002 budget review meeting held at 7:00 p.m. on Monday, December 3, 2001 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN CALL TO ORDER Mayor Peterson called the meeting to order at 7:00 p.m. ROLL CALL Present: Mayor Peterson, Councilmember Williams, Councilmember Szurek, Councilmember Wyckoff, and Councilmember Nawrocki, PLEDGE OF ALLEGIANCE ADDITIONS/DELETIONS TO MEETING AGENDA Upon vote: all ayes. Motion carried. 2002 BUDGET MEETING B. Establishing 2002 Rental License Fees Fehst requested this item be tabled until further information can be collected, such as fees charged by other cities. Fehst would like to pass this information along to local landlords at their next regular meeting on December 11th. Fehst indicated that Chief Johnson requests Councilmembers attend the February Landlords meeting. Peterson stated that the December 11th Landlords meeting would still be held and Council was welcome to attend. Motion by Szurek, second by Williams, to table the establishment of 2002 Rental Licensing fees to a future meeting. Upon vote: All ayes. Motion carried. 2002 Budget Tax Levy Information Presentation by the City Manager: Walt Fehst, City Manager, indicated the number of preliminary budget meetings held, and the request that division heads reduce their original budget by ten percent ($800, 000), because of the budget shortfall resulting from the change in the State tax structure. On September 10tn City Council approved the preliminary levy limits as recommended. Following subsequent budget meetings, Council recommended adding back $259,000 of proposed cuts, and allowing $300, O00 for community redevelopment of our downtown district. Fehst read information from the League of MN Cities summarizing the new State budget process. He stated that the funds lost from the State forced Columbia Heights and other municipalities to increase levy amounts. Fehst read a list of initial budget cuts and then read a list of items considered for addition back into the budget. Bill Elrite, Finance Director, narrated a power point presentation including the following items: · 2002 revenue by source - all funds · Expenditures of functional area · Expenditures by classification · Revenue of tax supported funds o Intergovernmental portion of revenue was reduced by the State. Elrite stated that the average savings on a Columbia Heights home should be about $150 to $200. · General fund and library fund expenditures City Council Budget Meeting December 3, 2001 Page 2 of 4 · Ten departments with major expenditure increases. The election expenditure increase is because elections are now only on even years. We save $33,725 in non-election years. · Class rate percentages of taxes payable since 1997. · Changes in State aid · Proposed property taxes from '99 to '02. Elrite explained fiscal disparities and levy increases from each year. · Changes in the tax levy from the general fund, library fund and EDA fund. · 2002 property tax levy of $4,839,314. The largest portion of increase was in state aid reduction. Elrite stated that the implicit price deflator used was 3.86% to factor our property tax levy and aid received. · Where 2001 property taxes went: 51% school, 21% county, 23% city, and 5% miscellaneous. · Where 2002 property taxes will go: 27% county, 38% city, 30% school, and 5% miscellaneous. Elrite stated that action taken by the State Legislature would result in a 10-20% reduction of preliminary tax bills. · Monthly tax break down. Fehst mentioned that tomorrow the State would announce a budget deficit, which could cause additional cut backs in State aid. Fehst stated that along with Councilmember Nawrocki, he attended the Association Metropolitan Municipalities meeting, which considered cut backs and deficits. Williams questioned what the tax difference would be on a $100,000 home. Elrite stated it would be about 15% or about $120 to $170. Elrite indicated there would be a property tax increase for commercial property. Nawrocki referred to taxes for commercial properties and the proposed State deficit. Nawrocki indicated that the reference to City services costing residents $27 per month does not include utilities. Nawrocki stated that he had a difficult time following the budget process this year. He questioned specific items to determine if they were added back into the budget or deleted. Discussion included the future of the Special Assessment Department upon retirement of the current clerk. Elrite stated that duties would be distributed through various City departments and the County would be contracted to do special assessment billing with the County tax statement. Lee Stauch, 1155 Kyber Lane NE, stated that the County has indicated tax statements will be mailed on December 15. He gave his estimation of tax increases for non-owner occupied rental property and owner occupied rental property. Bill Turner, 5240 7th Street, questioned the conflict in inflation numbers. As a senior citizen, the proposed increase is significant to the 2.6 percent increase he received. Nawrocki stated there are many different "Cost of Living" figures used. Nawrocki questioned adding back $20,990 in the Fire Department budget for EMT services. Elrite indicated that part of the funding will be through budget add backs and part through other cuts. Nawrocki requested more information to understand this. Nawrocki questioned where the infrastructure cost comes from under Engineering. Fehst stated this would have been to recoup engineering costs by adding them to the project versus from the general fund. Nawrocki questioned if the City would pay 25% of private Dutch Elm removal costs. Fehst stated that they would, but would be recommended for elimination next year. City Council Budget Meeting December 3,2001 Page 3 of 4 Nawrocki questioned recognition costs. Elrite stated this was a conglomeration of departments and items, such as the City's queen float, beautification, annual employee holiday lunch, etc. Harold Hoium 4315 5th Street, asked if general funds are invested and if we received a good interest rate. Elrite indicated recent rates have declined, but that all idle cash and funds are invested. Hoium requested that the weed ordinance be more strictly enforced. Hoium questioned what civil defense funds are used for. Nawrocki stated for the maintenance of sirens, Fehst stated for portions of fire employee wages, and Elrite stated for payment of fire training. Hoium requested that the Police Department do a better job patrolling the City, including the bus terminal. Fehst indicated that there has been a significant reduction in part one and part two crimes. Hoium stated that citizens are not informed of department actions and should received reports at each meeting. Fehst felt it would be beneficial to put this type of information in the City newsletter. Fehst suggested Mr. Hoium review the City's Annual Report. Hoium stated that street lighting in the City should have improved now that it is contracted out. Peterson asked that he take these comments to the Traffic Commission. Hoium questioned the number of different funds created by the City. Elrite estimated there are approximately 30funds. Lee Stauch asked if there was $2, 000, 000 in this budget for a new liquor store. Fehst stated no, but when the liquor store lease at the Rainbow center ends in three years, we will consider options for another liquor store. Nawrocki indicated that he was not ready to support this budget. Motion by Szurek, second by Williams, to waive the reading of Resolution No. 2001-79, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Szurek, second by Wyckoff, to adopt resolution 2001-79, being a Resolution adopting a budget for the year 2002 and setting the total City levy collectable for the year 2002, and approving the HRA levy. Nawrocki felt that the proposed Levy was the same dollar amount as the maximum levy allowed. Fehst indicated that the alternate motion recommended would lower this amount. Motion by Nawrocki to amend the $4,851,347 levy to $4,671,662 representing a 3.5 percent increase in the levy, and represents a defendable increase. Motion died for lack of a second. Williams questioned where Nawrocki proposed cutting these funds from. Nawrocki asked that the budget not be acted upon until the next meeting, to see where we stand with tonight's cuts. Williams questioned if we had the liberty to delay this budget. Peterson suggested a motion be made to include the decease of $27,000. Peterson stated that the budget as proposed would allow funds to redevelop areas. Williams indicated that he wants the City to move forward with residential, commercial and industrial improvements. Williams was concerned that Nawrocki did not bring his questions forward at the last budget work session. Fehst stated that the budget must be complete by December 28. Nawrocki stated that with or without the budget increase, things like road improvements would continue to get done. Nawrocki suggested removing Values First from the budget and a less expensive style City newsletter. Williams stated that he still has questions on revenue from the liquor stores. He also stated that we have spent nothing on our parks since 1968, and we need to spend money to improve our City. Nawrocki stated that if the budget were tabled to the next Council meeting, he would have a list of proposed cuts. Peterson stated that the budget is basically a yearly repetition, and that departments do not trying to bury funds. He stated that he has a high regard for our staff and they do a good job. Peterson indicated that you have to pay for what you receive and he believes that the citizens of Columbia Heights get a good dollar City Council Budget Meeting December 3, 2001 Page 4 of 4 value. He state that this budget was gone through item by item and compromises were made. Nawrocki stated that according to the Fridley newsletter, which compared costs for providing services, Columbia Heights is on the high end. Williams felt it was important to build up City reserve funds. Wyckoff stated that Council spent a lot of time on the budget. She lobbied to retain the receptionist position and did not want to see all of the assistance for diseased tree removal dropped. Wyckoff stated that Columbia Heights was fortunate, as most cities do not have EMTpersonnel. She was sad to see the "Back to the Parks "fund be cut, but even though she contacted residents, the program was not utilized. Williams indicated that the city is very conservative, but felt renovation is essential. Nawrocki stated concern about the effect of this increase to our senior citizens on a limited income, and that it would be possible to cut an additional $200,000. Szurek stated that Councilmembers worked hard on this budget, and it was the same process since she has been on the council. She did not find the information difficult to understand. Szurek indicated that community redevelopment was very important to her, and our industrial area needs to be improved. Motion amendment by Szurek, to set the total levy collectable in 2002 at $4,824,130 and approving the HRA levy of $111,702. Amendment agreed to and seconded by Wyckoff. Elrite pointed out an add-on in the resolution of $12, 033for PERA increases. Upon vote of the amendment: All ayes. Motion carried. Upon vote of the original motion: Williams, aye; Szurek, aye; Wyckoff, aye; Nawrocki, nay; Peterson, aye. 4 ayes- 1 nay. Motion carried. ADJOURNMENT Mayor Peterson adjourned the meeting at 9:15 p.m. Catricia Mu~i;vitz, Deputy City Cl;¢ RESOLUTION 2001-79 RESOLUTION ADOPTING A BUDGET FOR THE YEAR 2002, SETTING THE CITY LEVY, APPROVING THE HRA LEVY, AND APPROVING A TAX RATE INCREASE FOR PROPERTY TAXES PAYABLE IN 2002 NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA: that the following is hereby adopted by the City of Columbia Heights. Section A. The budget for the City of Columbia Heights for the year 2002 is hereby approved and adopted with appropriations for each of the funds listed below. Section B. Expense General Fund 8,223,346 Community Development Fund 317,463 Economic Development Fund 137,015 Anoka County CDBG 377,787 Parkview Villa North 383,072 Parkview Villa South 218,587 Rental Housing 18,481 HRA Administration 111,702 State Aid 96,713 Cable Television 212,896 Library 609,402 DARE Project 8,825 Infrastructure 144,500 Capital Improvement 289,138 Capital Equipment Replacement Funds 2,378,500 Central Garage Fund 508,803 Liquor 6,524,403 Water Utility Fund 1,586,491 Sewer Utility Fund 1,374,986 Refuse Fund 1,512,083 Storm Sewer Fund 251,114 Energy Management 101,209 Data Processing 274,592 Debt Service Fund 2,820,649 Total Expense Including Interfund Transfers 28,48.1,757 The gross revenue to fund the budget of the City of Columbia Heights for all funds, including general ad valorem tax levies and use of fund balances, as hereinafter set forth for the year 2002: Revenue General Fund 8,223,346 Community Development Fund 317,463 Economic Development Fund 137,015 Anoka County CDBG 377,787 Parkview Villa North 383,072 Parkview Villa South 218,587 Rental Jousing 18,481 JRA Administration 111,702 State Aid 96,713 Cable Television 212,896 Library 609,402 DARE Project 8,825 Infrastructure 144,500 Capital improvement 289,138 Capital Equipment Replacement Funds 2,378,500 Central Garage Fund 508,803 Liquor 6,524,403 Water Utility Fund 1,586,491 Sewer Utility Fund 1,374,986 Refuse Fund 1,512,083 Storm Sewer Fund 251,114 Energy Management 101,209 Data Processing 274,592 Debt Service Fund 2,820,649 Total Revenue Including Interfund Transfers 28,48'1,757 RESOLUTION 2001-79 RESOLUTION ADOPTING A BUDGET FOR THE YEAR 2002, SETTING THE CITY LEVY, APPROVING THE HRA LEVY, AND APPROVING A TAX RATE INCREASE FOR PROPERTY TAXES PAYABLE IN 2002 Section C. The following sums of money are levied for the current year, collectable in 2002, upon the taxable property in said City of Columbia Heights, for the following purposes: Estimated General 4,095,527 Estimated Library Levy 591,588 Estimated EDA Fund Levy 137,015 Total Proposed Levy 4,824,130 Section D. The City Council of the City of Columbia Heights hereby approves the Housing and Redevelopment Authority Tax Levy for the fiscal year 2002 in the amount of $111,702. BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, COUNTY OF ANOKA, MINNESOTA: That the county auditor is authorized to fix a property tax rate for taxes payable in the year 2002 that is higher than the tax rate calculated pursuant to Minnesota Statutes '275.078 for the city for taxes levied in 2000, collectable in 2001. The City Clerk is hereby instructed to transmit a certified copy of this resolution to the County Auditor of Anoka County, Minnesota. Approved this 3rd day of December 2001 Offered By: Szurek Seconded By: Wyckoff Roll Call: Ayes: Peterson, Szurek, Wyckoff, Williams Nays: Nawrocki Mayor Gary L. Peterson Patdcia Muscovitz, Deputy City Clerk