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12-07-1994 SpecialCITY OF RICHFIELD, MINNESOTA SPECIAL CITY COUNCIL MEETING December 7, 19.94 MEMBERS PRESENT: Martin Kirsch, Mayor; Michael Sandahl; Susan Rosenberg; Russ Susag; and Don Priebe. STAFF PRESENT: James Prosser, City Manager;' Steven Devich, Administrative Services Director; Thomas Ferber, City Clerk; Donald Fondrick, Community Services Director; Byron Wallace, Community Development Director; Jack Erskine, Public Safety Director; William Fillmore, Liquor Operations Director; and Bridget Walstrom, Finance Manager. The meeting was called to order by Mayor Kirsch at 7:00 p.m. Item #1 PUBLIC HEARING ON CITY OF RICHFIELD 1994 REVISED/1995 PROPOSED BUDGET AND 1995 PROPOSED TAX LEVY. C.L. N0.321 City Manager reviewed the Truth-in-Taxation and budget review process. Administrative Services Director Devich reviewed the following issues: • Truth-in-Taxation notices • Distribution of property tax dollars to the school district (48~), county {27~), City (19~), and other taxing jurisdictions (6~) from the total tax capacity rate • General fund revenues • General fund expenditures • Local government aid • Number of employees • Balance of the mix of services based on a expenditure analysis of the departments: Public Safety (53~), Community Services (33~), Administrative Services (7~), Legal/Executive (5~), Community Development (2$) • General Fund Expenditures in constant dollars • Effect of the City's proposed tax levy on a $83,000 house • Analysis of the City's tax capacity • Special taxing jurisdiction levies • Proposed tax levy and changes in assessed value compound impact on a property ~~~-q,~.$1 Meeting 1!~-tes -2- December 7, 1994 Administrative Services Director Devich stated that the mayor issues to be considered by the City Council before adopting the 1995 Proposed Property Tax Levy and 1994 Revised/1995 Proposed Budget included the following: 0 Street Maintenance Program Level • Proposed Street Lighting Maintenance Program • Storm Sewer Utility Rate Increase • Sanitary Sewer/Water Rates • Values and Attitudes Training Program • Cornerstone Intervention Program Proposal • Frequency of the Your City Newsletter ~• Capital Improvement Budget - 1995 • Request for Playfeature at Fremont Park Dale Dhein, 7432 Fremont Avenue, representing a group of residents near Fremont Park, spoke in support of a new playfeature for Fremont Park. He stated support for a proposal by Council Member Susag to pair Fremont and Augsburg Parks upgrading only one area of Augsburg Park in 1995 in order to divert funds to provide a playfeature for Fremont Park in 1995 and defer completion of Augsburg Park to coincide with the originally vchcdul~d peri®¢~ f®r Frem©nt pa,~k, Matt Stokes, 6733 17th Avenue, Chairperson of the Community Services Commission, stated that the Commission had reviewed the request from the Fremont Park neighborhood in light of the status of the needs of other parks and demographics. He stated the Commission voted to recommend to the City Council that no changes in the schedule of park improvements be made to fund improvements for Fremont Park in 1995. Maureen Scaglia, 6410 Washburn Avenue, a member of the Community Services Commission, stated the need for equitable distribution of park improvements noting that other parks such as Lincoln Field had needs as compelling or more so than Fremont Park. She stated the park improvement plan was a fair and equitable plan. Charles Burrows, 2120 Forest Drive, questioned why his individual property taxes were increasing more than the amount suggested in the presentation. He also asked about the dollar amount of increase for the street maintenance program. Rollin Ives, 215 Pleasant Lane, questioned the large percentage increase of his property taxes. John Sieberz, 6434 Washburn Avenue, questioned the impact of fiscal disparities and the replacement of small businesses with new businesses along 77th Street on the tax base. He questioned the net gain or loss resulting from these businesses and the ~ impact on the tax burden of retired homeowners. Special Meeting Minutes -3- December 7, 1994 Jim Fleming, 6435 Knox Avenue, stated concern about the long term impact of increased property taxes on the ability of retired people to pay their taxes. Brian Kirchmann, 7426 Bryant Avenue, stated concern about increasing property taxes and the need to increase the commercial tax base. Vicki Groth, 7221 Humboldt Avenue, spoke in support of funding a playfeature for Fremont Park. She stated that a funding method was proposed without increasing the budget and was still fair to other parks. She stated Fremont Park served a large neighborhood and the playfeature was-not a minor issue for them. Council Member Priebe explained that the City Council cannot by law act on the adoption of the tax levy or budget at this meeting. He stated action on the tax levy and budget issues such as Fremont Park would occur at the December 12 regular City Council meeting. M/Susag, S/Rosenberg to close the public hearing. Motion carried 5-0. City Manager Prosser and staff responded to the following issues discussed during the public hearing: ~-~'~~ • Street Maintenance Program The total annual cost of the optimum program is $375'`;-000. The increase in the City's 1995 proposed General Fund-Budget is $485,000. The Street maintenance program accounts--for $307,000 of this increase. Council Member Susag explained that the street maintenance program will prolong the life expectancy of the streets delaying the need for total reconstruction. • Commercial Tax Base/Tax Increment Financing Increasing the commercial tax base is one goal of the City Council. Commercial properties pay a higher tax rate, thus lessening the impact on residential properties. Redevelopment of property is more expensive than development of empty land. Tax increment financing is a method to assist in redevelopment which has been used in the LHN; ILN, and CDP project areas. The impact is to stop the decrease in commercial property taxes which had been occurring in these areas by freezing the value. The new additional tax revenue from the developers is realized by the taxing jurisdictions when the district expires. Special Meeting Minutes -4- December 7, 1994 - • Individual Property Tax Impact The individual property tax impact is variable due to assessed market value changes, tax capacity changes, changes in Local Government Aid, and tax rate formula. The City Council discussed the impact of legislative changes and proposals on funding for City services. They urged residents to contact their legislators on these issues. • Fiscal Disparities The City benefits from the fiscal disparities law with approximately $3.3 million in net gain of tax base. • New Ford Town/Rich Acres Acquisition When completed, the estimated net loss of taxes from the buyout is $50,000. • Park Improvements Community Services Director Fondrick reviewed the Plan A and Plan B Capital Improvement Hudget and Capital Improvement Program proposals. City Manager Prosser stated that the City Council is the final authority in deciding park improvements. The Community Services Commission review the issues and provide a recommendation to the Council. Council Member Susag reviewed his proposal for providing a playfeature at Fremont Park in 1995. Council Member Priebe suggested that there were sufficient reserves in the liquor fund to take 5300,000 - $400,000 in 1995 for funding playfeatures at various parks that need them such as Fremont Park, Lincoln Field, and others. Council Member Rosenberg stated that she would not support dust funding a playfeature only at Fremont Park.. She. stated if funding was available, other City parks such as Sheridan Park should also receive improvements. Council Member Sandahl suggested staff provide additional information to•the City Council on December 12 regarding the two park improvement suggestions put forward by Council Members Priebe and Susag. • Your City Newsletter It was the consensus of the City Council to change to a frequency of six issues a year, with funding available for another two issues if needed for special topics. • Sanitary Sewer Rates Council Member Susag stated he had been asked by Metropolitan Council Chair Dottie Rietow to chair a committee to review the equity of Metropolitan Waste Sewer rates. Special Meeting Minutes -5- December 7, 1994 • Cornerstone Intervention Program City Manager Prosser reviewed the proposed domestic abuse intervention program. He recommended funding the $10,000 cost of the program on a trial basis. • Golf Fees Discussion was held regarding the proposed 15$ increase in golf fees, the impact on seniors, and fixed income individuals, and market conditions. City•Manager stated that City Council consideration of the 1994 Revised/1995 Proposed Budget and 1995 Proposed Tax Levy would be scheduled for December 12, 1994. • ADJOURNMENT The meeting was adjourned by unanimous consent at 9:25 p.m. 1 Date Approved: 12/12/94 ~~ ~ t Thomas P. Ferber City Clerk L. iiV Manager