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HomeMy WebLinkAboutSept 21, 1978OFFICIAL PROCEEDINGS SPECIAL MEETING OF THE CITY COUNCIL CITY OF COLUMBIA HEIGHTS, MINNESOTA SEPTEMBER 21, 1978 The meeting was called to order at 7:15 p.m. Roll Call: Logacz, Norberg, Hentges, Nawrocki - present PURPOSE OF MEETING Mayor Nawrocki stated that this was a special meeting called for the purpose of considering the proposed budget for the City for the year 1979. The City Manager has presented a budget to the Council and the Council has had several meetings to consider parts of the budget. This meeting is to allow the public to have input to the Council before it makes its final decisions. PRESENTATION OF INFORMATION The City Manager reviewed the sources of revenue, costs of City services, comparative analysis by fund, the change in the mill rate from what he had recommended to the Council, and gave an example of how this mill rate would affect a typical home in Columbia Heights. He stated that a resolution dealing with the general fund had been prepared and was ready to be read. Discussion followed on the transfer of funds from and to the general fund. Motion by Norberg, seconded by Hentges, that the 807 fund from the sale of Sullivan Lake property, be segregated from the general fund until further action from the Council. The question was raised as to where the funds are at the present time. John Schedler, Finance Director, stated that the funds are in a separate account at this time. Councilman Norberg stated that his motion is just to be sure that they stay separate. Roll Call: Norberg, Hentges, Nawrocki - Aye Logacz - Nay The City Manager read the resolution. RESOLUTION 78-41 ADOPTING A BUDGET FOR THE YEAR 1979 AND LEVYING TAXES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS as follows: Section A. The General Fund budget for the City of Columbia Heights for the year 1979 is hereby approved and adopted with appropriations for each of the departments as follows: September 21, 1978 Page 2 GENERAL FUND Mayor-Council $ 70,665 Executive 74,000 Finance-Assessing- Elections 141,290 General Buildings 57,465 Legal 57,820 Planning 30,835 Public Safety 1,127,300 Public Works 586,345 Sanitation 248,860 Library 127,930 Parks 318,985 Unallocated and Transfers 237,290 $3,078,785 Section B. The estimated gross revenue of the City of Columbia Heights from all sources, including general ad valorem tax levies as hereinafter set forth for the year 1979, the same being more fully detailed in the City Manager's official copy of the 1979 budget, are hereby found and determined to be as follows: GENERAL FUND $3,078,785 REVENUE SHARING $ 187,500 Section C. There is hereby levied upon all taxable property in the City of Columbia Heights a direct ad valorem tax in the year 1978 payable in 1979 for the following purposes and in the following amounts: PURPOSE AMOUNT General Fund (Including Recreation) Police Pension Fire Pension Bond and Interest $],261,108 78,5OO 47,000 245,000 $1,631,608 Provision has been made in the General Fund for payment of the City's contributory share to Public Employees' Retirement Association in the amount of $91,140. Provision has also been made in the General Fund revenues for receipt of the State Sales Excise Tax local government aid distribution. September 21, 1978 Page 3 Section D. A certified copy of this resolution shall be transmitted to the County Auditor. Passed this 21st day of September, 1978 Offered by: Logacz Seconded by: Hentges Motion by Norberg, to amend Section A, paragraph l, to read as follows: "The estimated expenditures for the City of Columbia Heights for the year 1979 are approximately as follows:" The City Attorney stated the motion is out of order because it would remove the purpose for a levy. Without the budget, in a City that requires budgeting, the City would not have the power to levy taxes. Mayor Nawrocki explained that if the resolution states "approximately" the City could be in a position of levying an amount which may be more than eventually is required. Councilman Norberg withdrew his motion as the word "approximately" did not appear in the original resolution as he had thought it did. Motion by Norberg, seconded by Hentges, to amend Section B, the general fund amount to $2,978,785 and Section C the general fund levy amount to $1~31,608 which lowers both numbers by $100,000. Councilman Norberg stated that the City is in a position of having a substantial surplus and it appears to him that the City doesn't need that big a surplus. The money would be better administered in the hands of the taxpayers. He would like to lower the levy by $100,000. Councilman Logacz stated he knows that the motion is noble. His feeling about surpluses is that they should be as big as possible and the surplus should be invested to bring in an income to provide a permanent reduction in taxes. Councilman Norberg stated he thinks that the savings on the part of the taxpayers might make quite a difference to some of them. He feels a half a million dollar surplus is sufficient. He added that he believes people would rather spend their money themselves than give it to a governmental agency to spend for them. The amount of the reduction would be only a small percentage of the surplus and he thinks it should be given back to the people. Mayor Nawrocki asked what the balance was in the general fund. The City Manager answered that it was approximately $863,000 to the beginning of the year, of which $101,000 has been appropriated for the City Hall addition. Councilman Norberg stated that this is the general fund balance and doesn't include the revenue resulting from the sale of the Sullivan Lake property. He stated that since the Sullivan Lake property was purchased with a special levy out of people's pockets, and now some of the land has been liquidated, the taxpayers should see the benefit. He believes the 807 fund, from the sale of the Sullivan Lake land, should be included in the surplus for consideration at this time. He asked if the Council would consider turning back some significant amount that represents a little bit of benefit to the taxpayers. September 2i, 1978 Page 4 Councilman Logacz asked Councilman Norber9 to add up all the interest Columbia Heights has paid on bond issues over the years. He feels the surplus should be used for this type of purchase and then the people wouldn't have to pay the resulting interest on bonds. The City Manager stated that what Councilman Norberg~s motion proposed would not accomplish what he intended because the motion would reduce the revenue. He should leave the revenue alone and just reduce the tax levy. Counc:i]man Norberg responded that this is a technicality. The matter should not be dispensed with on a point of order. Mayor' Nawrocki commented that Councilman Norberg made it sound like the Council is in an adversary position with the people in the community. He stated that nobody on the Council is trying to squirrel away the public's money. He believes the Council has been acting quite prudently and responsibly over the past few years. The Council has been fiscally sound in setting budgets, and after the budget's been set they watch the expenditures closely. This has given the City the surplus it has today. He doesn't think a surplus is something to be ashamed of, it is something to be proud of. He added he thinks it is prudent to have money to handle the cash flow necessary in the first part of the year. Roll Call: Norberg - Aye Logacz, Hentges, Nawrocki - Nay Motion fails. The City Manager noted two changes in the resolution as read. Roll Call on resolution: Logacz, Nawrocki Aye Norberg, Hentges Nay Resolution fails. The Mayor noted that he had received a packet of flood insurance studies from HUD with letters that indicate that the City's flood plan was adopted. He also received a letter from the State DNR stating that the City's ordinance is different from the model ordinance the State had approved previously and therefore doesn't meet their requirements. They ask that the City's ordinance be amended by September 29. The City Attorney answered that this was a surprise to him and he felt sure that the State was aware of the City's change in its ordinance. Mayor Nawrocki noted that the letter from the federal government stated the ordinance meets their requirements and was accepted by them. Mayor Nawrocki stated that since the Council chose not to adopt the resolution tonight and the next meeting scheduled for September 25 will be adjourned to October 2, the levy will be brought to the Council at the October 2 meeting or a subsequent special meeting. The levy has to be sent to the County by October lO. Motion by Hentges, seconded by Logacz, Roll Call: All Ayes to adjourn at. 8:45 p.m. Bruce G. Nawrocki, Mayor