HomeMy WebLinkAboutDecember 5, 2005
OFFICIAL PROCEEDINGS
CITY OF COLUMBIA HEIGHTS
CITY COUNCIL TRUTH IN TAXATION HEARING
DECEMBER 5, 2005
The following are the minutes for the Truth in Taxation Hearing ofthe City Council held at 7:00 p.m. on
Monday, December 5,2005 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia
Heights, Minnesota.
1. Call Truth in Taxation Hearing to Order - Roll Call
Present: Peterson, Williams, Nawrocki, Diehm, Kelzenberg
2. Pledge of Allegiance - recited
3. Presentation of2006 Budget and Tax LevY Infonnation
a. Walt Fehst, City Manager, indicated that the budget review began in August of2005. He described
the budget process and the three year objective. The initial reading was for an overall 4.4% increase.
TIns has resulted in property tax increases varying from one to eight percent. F ehst described budget
cuts that were replaced last year and recOlmnended add backs tills year in the police, fire and library
budgets.
b. William J. Elrite, Finance Director, narrated a power point presentation on the 2006 budget
recommendation. He stated copies were available on the table in the rear of the room for members of the
audience. The power point presentation included:
a) Budgetary funds revenue by source - taxes, utility sales, liquor, fines, licenses
and pennits, governmental revenue, charges for services, TIF and HRA Levy
and miscellaneous
b) Budgetary funds expenditures by functional area: administration, recreation,
public works, police, liquor, library, general government, fire, finance,
cOlmnunity development, and debt service
c) Sources of general fund, library fund and EDA revenue - taxes, transfers and
non revenue, intergovernmental, charges for services, and other
d) General fund, library, and EDA expenditures by classification - personal
services, contingencies and transfers, capital outlay, other services and
charges, and supplies
e) General fund by percent of total - police, public works, and fire are the largest
f) History oflocal government aid in Columbia Heights - loss of government aid
is $4,962,530 since 2003.
g) Property taxes 2004-2007 - this began with a plan to deal with the significant
loss of government aid. This table was a breakdown of the levies and general
fund
h) Breakdown of property taxes and where they go - for the years 2005 and
2006. Fehst and Nawroc/..:i referenced the change in school tax funding.
i) Property tax illstory from 1997 to 2006 on five selected properties. This was
based on the infonnation sent out by the County and does not include the
school referendum increase.
j) Tax levies payable 2003-2006 - this infonnation was on a vmiety of market
value homes
k) Cumulative LGA lost - this compared certified LGA and LGA lost
1) LOA and Tax Levy history - with the effect on taxes. We have still not
replaced the revenue that we were at in the 2003 budget.
m) Tax supported budgets, general fund, librmy fund, EDA fund - The budget is
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December 5, 2005
Page 2 of 4
still down from four years ago, and we have absorbed inflation and the cost of
living, while maintaining services.
n) Cost savings from 2003 to 2007 - Our net budget reduction over four year is
approximately $300,000.
0) What will $50 a month buy? - property taxes on an average home will be $50
a month. This comparison shows what $50 a month will buy relative to city
servIces.
Nawrocki felt this document unduly emphasized the loss ofLGA on our budget and did not show
HRA Levy infonnation. There was a time when we did not receive state aid. Nawrocki stated that
this infonnation does not show the surplus funds we have. LGA was also taxpayer money, so they
are not getting relief. There are parts ofthe budget that can fluctuate yearly, such as employee
compensation. When we reduced personnel, the job still got done. We have surplus funds. He
referred to the property tax listing in the Anoka County newspaper. Nawrocki stated he researched
the Anoka County web site current year taxes. The average value home in Columbia Heights is
$149,000 and an average metro home $222,000, and on his home. He compared Andover, Columbia
Heights, Coon Rapids, and Fridley and they pay were slightly less than us in property taxes. You can
play games with numbers. He stated his personal property tax went up 8.6 percent in city tax.
c. Presentation by staff on department needs -
Tom Johnson, Chief of Police
Johnson described the need for an additional Police Officer to assist the AnokalHennepin Drug Task
Force. He listed the 2004 and 2005 incidents the Task Force were involved with in our city. Johnson
detailed the extensive problems associated with the growing use of methamphetamines in our area.
Nawrocki agreed there is an increasing problem with meth, but his understanding was that the
County Task Force was to deal with it. They are negating the property tax resource he and regrets
that, but at this point we don't have much choice.
Bob Streetar, Community Development Director
Streetar stated that the City Council has established certain goals. He pointed out the development in
the old industrial park. The Electrical Steel building is now demolished. 23 units in the phase one
development are now sold. The city has received $3 million in grants and we have applied for an
additional $1 million grant. Also, 21 units sold have been sold at Grand Central Lofts. The Council
has looked at additional redevelopment south of the Heritage Heights neighborhood. A study is
being conducted and a neighborhood group will begin to meet in January. Streetar pointed out that
people want other things to happen in the city, such as development at 39th and Central. A city tour is
being considered for December 1 ih. There is a development agreement for 40th and University and
possible development for the Apacha Theatre area next year. Streetar stated that he gave a
presentation to the League of Minnesota Cities on our industrial park redevelopment last Friday and
they were amazed at the challenges we are overcoming.
d. Walt Fehst, City Manager Budget Presentation SUlmnation
Fehst stated that the City Council has discussed dedicating some of the fund balance to the
development of Grid 8, the Heritage Heights area. A resolution will also be prepared to protect some
of the fund balance for three gyms, possibly at the NEI site or Murzyn Hall; possibly in connection
with the schools or an outside agency such as the YMCA.
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December 5, 2005
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F ehst handed out the Citizens League Report on property taxes. Columbia Heights was 163 rd of 168
cities for the median household property tax. Our median tax value went fl:om $147,000 to $156,000.
Fehst listed details from the report. He referred to the effective tax rate. Columbia Heights had a
high increase in our market value, which is a good thing.
Nawrocki stated that numbers can be manipulated and gave examples of value differences. Fehst
stated that Columbia Heights has the best tax value. Nawrocki stated his concern is for seniors living
on social secUlity.
Streetar stated that iftaxes rise more than 12 percent there is a tax break available and another break
available for eligible seniors. Anyone wanting infonnation on these programs can contact him.
Streetar explained how the Citizens League detennines their numbers. Fehst indicated that the new
housing developments would affect the overall market values.
e. Public Comments
Mayor Peterson opened the Public Hearing.
Harold Hoium, 4315 5th Street NE, stated that hidden funds were available to cover needed costs. He
referred to the abatement of his property.
Joyce Myers, 4931 Jackson Street, also referred to the abatement of her property and the injustice of
the system.
TroyNeurauter, 4954 7th Street, stated that residents want quality services, which they realize cost
money and may require that taxes be raised or to decide which services are critical. He indicated that
Fire and Police services are very critical, especially with additional housing being build. The citizens
ofthis city aren't getting the services they deserve. If you keep residents happy they will tell their
friends who will move here too, but if you are on the news for problems and section 8 housing you
will lose residents.
Nawrocki asked Neurauter how he would evaluate the services of the city. Neurauter stated that the
people hired are trying to do the best they can, but when they do not have the best tool, equipment,
or training to do the work, you can not do the best job.
Peterson stated that we have many of the best services around, and he would not accept cliticism of
our Police or Fire Depatiments.
Lee Stauch, 1155 Khyber Lane, stated that our Police and Fire Departments give good service, and
most of our streets are taken care of - our service is above average.
Jeff Diehm, 5125 St. Moritz Drive, stated he watches the Council meetings and does not like the
theme of negativity and wants it to change. The cuts in budget have been endured. He stated he came
to this cOlmnunity from Califomia and they deal with many of the same issues. Diehm applauded the
last meeting when everyone worked together. He stated the other meetings insult him. Our greatest
savings is in our real estate and our homes, and the value is outpacing our taxes. Diehm applauded
Streetar for the development that is under way. He stated that when he first came to the community
there was no change happening, but now people see Columbia Heights as a desirable cOlmnunity
with things happening. He applauded staff for maintaining and improving the level of service in the
face of budget reductions. Diehm indicated that fund surpluses should go to improve parts of the city
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December 5, 2005
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that horrify neighbors and areas that need to have something done. Diehm stated that he was willing
to endure the tax increase to his home, as he knows it is not due to wasteful spending. He stated that
he does not see waste or fluff. He indicated the definition of a Patriot is a person that loves their
country and is willing to sacrifice for their country. We can say the same for our city. We will
ultimately all benefit from sacIificing for our community.
Williams stated police, fire, and public works services are essential to our city. Protection is essential
to our city. He stated he is all for the 25th officer. We must continue to redevelop our city. He stated
his belief that as a small city we must work with our school district. We have been very careful how
we spend our citizen's money. While he has been on the City Council home values have doubled.
f. Adjournment of Truth in Taxation Hearing
Mayor Peterson adjourned the Truth in Taxation hearing for Council members to enter an Executive
Session for the purpose to discuss labor negotiation issues at 8:35 p.m.
\fIA
Patricia Muscovitz, CMC
Deputy City Clerk/Council Secretary