HomeMy WebLinkAboutDecember 4, 2006 Truth in Taxation
OFFICIAL PROCEEDINGS
CITY OF COLUMBIA HEIGHTS
CITY COUNCIL TRUTH IN TAXATION MEETING
DECEMBER 4, 2006
The following are the minutes for the Truth in Taxation Hearing of the City Council held at 7:00 p.m. on
Monday, December 4,2006 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia
Heights, Minnesota.
Call Truth in Taxation Hearing to Order - Roll Call
Present: Mayor Peterson Councilmember Williams, Councilmember Nawrocki, Councilmember
Diehm, Councilmember Kelzenberg
Pledge of Allegiance - recited
Presentation of 2007 Budget and Tax Levy Information
a. Walt Fehst, City Manager, described the budget meetings held regarding the 2007 budget. He
recommended a 2.41 percent increase in general fund expenditures. Approximately 60 percent of
that increase would be for the Police and Fire Departments and for the Community Development
Department review of the Comprehensive Plan. This presentation will include our tax history and
where we are going, including cuts made in state funding while still maintaining the same level
of service. Fehst described the drop in expenditures over the last four years.
b. William J. Elrite, Finance Director, described budget information using a power point
presentation.
. All budgetary funds - revenue by source
. All budgetary funds - expenditures by functional area
. Sources of general fund, Library fund and EDA revenue
. General fund, Library and EDA expenditures by classification - personnel services are 69
percent of expenditures
. General fund by percent of total
. History oflocal government aid - he referred to the loss of state aid since 2003. To date
we have lost $6,375,935 in state aid.
. Property taxes 2003-2007. The only way to make up for state aid losses was through
property tax increases.
. Where your property taxes go - there is little change from last year in this area.
. Property tax history from 1998 to 2007 on five selected properties. The property tax,
through legislation, has shifted from higher value homes to lower value homes.
. Tax levies payable 2003 to 2007 - in each case the school district is the major increase,
due to the approved school referendum. The average home value in Columbia Heights is
$185,000.
. Graph of cumulative Local Government Aid lost
. Local government aid and tax levy history. The total revenue base in 2003 was
$7,469,983. Through 2006 we stayed below that level. In 2007 it raises slightly.
. Total tax supported budgets - general fund, library fund and EDA fund.
. Cost savings from 2003 to 2007 - the graph shows the proposed budget is still $200,000
less than the 2003 budget.
. $55 a month in city tax buys quality and quantity in the City of Columbia Heights.
City Council Minutes
December 4,2006
Page 2 of 4
c. Staff presentations
Tom Johnson, Chief of Police, gave a power point presentation:
. Police Department Budget - the Police Department has an authorized strength of 25
sworn officers and seven civilian personnel.
. Proposed personnel costs in 2007 are $2,563,094 or 83 percent of the department's
budget. The cost of police working at Murzyn Hall will be covered by rental fees.
. The 25th officer has been assigned to the Anoka County Drug Task Force since 2006.
. Anoka-Hennepin Narcotics & Violent Crimes Task Force 2006 3rd Quarter Statistics
. Map showing the ongoing drug cases. Four cases are in the Heritage Heights area.
. Supply costs
. Other services and charges - training, expert and professional services, etc. The
increase is the match for the Drug Task Force position.
. 2005 statistics on area cities - Columbia Heights made more arrests than any other
city. Only two cities have a higher case clearance.
. 14 percent of our part one crimes have been in Grid 8. The Council approved extra
patrol from May to December in this area. It was requested to look at this as a year
round detail, therefore the request for $45,000 to cover overtime patrol in this area.
Fehst stated that an inner ring city needs to actively pursue crime and we have done so.
Bob Streetar, Community Development Director, stated that five years ago the Council
established the ten goals for housing and redevelopment that have been pursued. He
addressed the highlights of the last 60 months:
. 2002 redevelopment of industrial park - 550 housing units and 15,000 square feet of
commercial. Phase I is complete, Phase II is underway and Phase III will begin in
2007. This area went from $4,500,000 in property value to $125,000,000 in property
value.
. Vacancy ofK-mart property - developed 231 housing units and 10,000 square fee of
commercial. That plan is one-third complete. In 2007 there will be a plan for the
commercial development. The value of that property went from $1,600,000 to
$60,000,000.
. 40th and University -Sarna's Bar and Grill will open in February, replacing a vacant
gas station and two non-conforming homes with dirt floors.
. 3ih and Stinson (the old Apache Theater) - Beginning in December and into 2007
there will be 58 units of senior assisted housing, 12 units of memory care and a new
municipal liquor store. The theater had a market value $837,000. The market value of
the new homes will be $8,500,000. Demolition was funded by a Federal grant.
. 39th and Central- acquired the vacant Burger King property, completed cleanup and
a preliminary development agreement for some commercial business and housing.
. 3 ih and Central - two single family non-conforming homes and a commercial
building have been acquired and demolished, with possible redevelopment in 2007.
. NEI site - the school closed in 2004. The city acquired the property and is holding it.
It is a possible site for a community center or private redevelopment.
. Heritage Heights area Council established a committee of residents for
redevelopment concepts for that area. With the change of state law, it is now almost
impossible for a public entity to acquire blighted property.
. Vacant parcel next to Lomianki Park was utilized by an industrial business looking
for land to develop.
City Council Minutes
December 4,2006
Page 301'4
. Community center - established a committee to review possibilities. This process is
about one-half complete.
. The Design Guidelines established were advantageous in current redevelopment.
. Established partnership with Greater Metro Housing Corporation - funded the Rehab
Incentive Program with 62 houses participating receiving rebates of up to $3,000.
That has stimulated about $700,000 in improvements.
. Participated in the single family home development program, with money from the
Minnesota Housing Finance Agency and the Met Council, which lead to demolition
of four blighted homes and development of eight new homes.
. In the last 60 months the city has received 22 competitive grants totaling $5,400,000.
It is anticipated next week we will receive $947,000 toward a parking ramp at Grand
Central and another $147,000 for additional clean up in the industrial park. This will
be a total of a little over $6,500,000 in grant money we have received.
41 In 2007-08 we will update the city's comprehensive plan, which must be done every
ten years, This process takes about one and one-half years to two years to complete.
Streetar stated that the success of Columbia Heights is due to the leadership of the City
Council and support of staff. He thanked the Council for their leadership and support.
d. Walt Fehst, City Manager Budget Presentation Summation
Fehst stated that we are asking for a 2.41 percent increase in the general fund. This meeting
is for public comment. Fehst referred to the property value decrease in higher value homes.
e. Public Comments - none received
Miscellaneous
Nawrocki stated this information does not cover the total city budget, as it does not include fund
transfers, utilities, or the $3,900,000 transfer for the activity center. Information does not take
into account the amount of local government aid (LGA) we do receive. He referred to cities that
do not receive LGA or a small amount compared to what we receive. Fiscal Disparities, of which
we are beneficiaries, is about $60 per resident. Other communities receive considerably less. The
home values represent family incomes, of which we have a lower percentage, as we have a
higher amount of seniors. We do not have a breakdown of the expenses in 2003. We do not talk
about the surpluses we have. We do not have to raise taxes with the surpluses we have on hand.
He referred to the HRA levy, stating it was not mentioned in the presentation. He stated that we
paid three to four times the market value for the liquor store property purchased. He indicated
that we do not need a levy increase; there are surplus funds available.
Peterson commended staff and the finance staff for the work they do, and the police department
for keeping tabs on their budget. He indicated he would like to see the policy of cleaning up the
city continue. The Community Development Department has done a great job accomplishing
development in our city.
Nawrocki stated that we did not talk about the 50 percent increase in the utility fund over five
years and that with a new survey utility rate increases will again be discussed.
Peterson stated that if there were millions in surplus he would like to know so we can clean up
blighted areas and continue to improve our community.
City Council Minutes
December 4, 2006
Page 4 of 4
Steven Popo, 3812 Van Buren, asked why 43rd and Central has not been cleaned up. Peterson
stated that is private property and is in litigation. Nawrocki referred to the construction debris at
this site that does not get cleaned up.
Peterson asked that city crews clean up the area and assess the cost. Diehm stated that we can do
that on residential property, but at this time it is only a goal to be able to do that on commercial
property. Peterson asked that the city attorney be questioned on what we can do.
Adioumment of Truth in Taxation Hearing
Mayor Peterson adjourned the meeting at 8:00 p.m.
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Patricla-Muscovitz, CMC /-~r
Deputy City Clerk/Council Secretary