09-14-1981 SpecialCITY OF RICHFIELD
SPECIAL MEETING - BUDGET HEARING
September 14; 1981
The City Council of the City of Richfield met in special session on September 14,
1981 at 5:30 p.m. in the council chambers of the city hall.
Mayor Priebe called the meeting to order at 5:45 p.m.
Present: Bunce, Collins, Hassenstab, Ludeman, Priebe
Mayor Priebe stated that the purpose of the meeting was to begin review of
the city manager's proposed 1982 budget and revised 1981 revenue and expenditure
forecasts.
Mayor Priebe requested the city manager to describe the 1982 budget proposal
as detailed in the budget documents distributed to city council members last week;
Mr. Nollenberger presented an overview of the 1981 revised and 1982 proposed
budgets. He stated that the budgets had been developed based on the staff's
understanding of city council priorities and policies which was developed during
council/staff budget workshops held earlier this summer. He observed that the
city manager's budget message contained a summary of the overall fiscal policies
which were reviewed and generally endorsed by the city council during the workshop
sessions. These policies, although existing in practice for many years, have not
previously been a part of the city's systematic budget planning process. Mr.
Nollenberger stated that consideration of these policies, and annual review and
updating of the policies, appears to be an appropriate part of the city council's
budget deliberations.
Mr. Nollenberger presented an overview of the estimated revenues and projected
expenditures for each of the city's major activities and funds, including the
General Fund, Special Funds, Internal Service Funds, Enterprise Funds and Capital
Improvements. Generally, revenue estimates have been based on past and current
years actual revenue received. However, Mr. Nollenberger stated, the 1982 General
Special Meeting - Budget Hearing -2- September 14, 1981
Fund revenues anticipate significant adjustments"in many user fees and permit
charges. These fee and charge increases were endorsed by individual council
members in previous discussions, .although specific council action amending-city
ordinances establishing such fees.-and charges will be necessary before these
revenues may be realized. Mr. Nollenberger stated that the ordinance amendments
will be presented for council review in conjunction with deliberations on the budget.
Mr. Nollenberger presented charts analyzing the impact of the proposed 1982
property tax levy on three sample Richfield homes. The estimate of the mill rate
is based on an estimated valuation, since final figures are not yet available from
Hennepin County; however, the projected mill rate would increase property taxes. to
each of the three sample properties to approximately the same-level as taxes of 1978
and 1979. Mr. Nollenberger reminded council members that significant state adjust-
ments and homestead credit and the method of calculating property valuation created
large property tax decreases fo"r most homeowners in 180, and that the true impact
and increase in individual property owners' tax bill is most accurately described
in terms of the projected 1982 tax rate compared to the tax rate over several recent
years, not just the last year..
Mr. Nollenberger distributed a schedule of the-times and dates for continuation
of budget hearings, and stated that individual department program directors would
be prepared to present a summary of their departmental programs and budget proposals
at these hearings.
The budget hearing was continued to 7:00 p.m. on Wednesday, September 16, 1981.
The city council adjourned to reconvene in regularly scheduled session.
Date Approved: September 28, 1981
a.~
oyce ~. Wilde Acting City Clerk
Donald J. Priebe
Karl Nollenberger City Manager