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HomeMy WebLinkAboutDecember 4, 2000OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL TRUTH IN TAXATION HEARING DECEMBER 4, 2000 1. Call to Order – Roll Call Mayor Peterson called the Truth in Taxation Hearing meeting to order at 7:00 p.m. Members present: Councilmember Szurek, Councilmember Jolly, Councilmember Wyckoff, Councilmember Hunter, and Mayor Peterson 2. Presentation of 2001 Budget and Tax Levy Information Walt Fehst, City Manager, indicated that State law requires residents to receive notice of an increase or decrease in property taxes due to the proposed budget. Residents were notified of the 10% City budget increase. He stated that the last three years the City has been required to stay within levy limits. The 1999 levy was 1.2 percent and the 2000 levy was 1.8 percent. The proposed budget reflects departmental increases of less than 1%. Fehst stated there has been a dramatic drawdown in the City’s fund balance to meet payroll and other expenses. He indicated that if levy limits had remained in place, the City would have had to consider cutbacks or lay-offs. Bill Elrite, Finance Director, presented the 2001 Proposed Budget. He stated that the Public Works and Police Departments account for 46% of this budget, and personnel costs account for 63% of services provided. Items covered in the power point presentation included: · major expenditure increase differences from 2000 to 2001 · breakdown of the proposed property tax levy over the last three years · changes in State Aid · breakdown of expenditures of the General Fund and Library Fund · changes in the tax levy · class rate structure for real property · breakdown of where taxes go (23% of total taxes imposed go to the City) · examples of the tax bill for a $94,000 home · comparisons of taxes on various different valued homes. · comparison of what tax increase amount could purchase Elrite explained Fiscal Disparities funds received and their benefit to our City. He indicated that during the State imposed levy limits of the last three years the City has existed on fund reserves. He explained how taxes are collected on specific types of property. Fehst indicated the proposed budget would be presented to the City Council for approval at the next regular meeting on Monday, December 11, 2000. He referenced the Citizen’s League Annual Report, which is a metropolitan community comparison. The Councilmembers and the City Manager thanked staff for their efforts in the budget preparation. Hunter questioned the Columbia Heights survey. Fehst stated it should be presented at the th December 27 City Council meeting. 1 Wyckoff referred to $10,000 added back into the Park and Recreation budget for citizens who wish to do something for our parks and the City would provide matching funds. She was also glad to see the Community Service Officer position added back into the budget. Wyckoff questioned rebuilding the fund balance this year. Elrite stated this would begin the process. Wyckoff referred to budget funds available to publish City Council meeting minutes in the local newspaper. Szurek referred to the SUV cut from the Fire Department budget, and that they found other funds to make this purchase. She felt this purchase will work better, long term, instead of using the ambulance for things like inspections. MOTION by Jolly, second by Szurek, to schedule the date for the adoption of the city budget and tax levy for December 11th at approximately 7:00 p.m. in the City Council Chambers. All ayes. Motion Carried . 3. Adjournment Mayor Peterson adjourned the meeting at 7:35 p.m. Barb Goodwin, State Representative elect was present. The Mayor invited her to speak. She stated that she has asked citizens for their comments on property taxes. She stated she will be glad to work with the City Council and citizens of Columbia Heights. _______________________________ Patricia Muscovitz, Deputy City Clerk 2