12-06-99 Special-2
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Special City Council Meeting
December 6, 1999
CALL TO ORDER
The meeting was called to order by Mayor Kirsch at 7:00 p.m.
ROLL CALL
Members Present:Martin Kirsch, Mayor; Sue Sandahl; Susan Rosenberg; Russ Susag;
and Kristal Stokes.
Staff Present:Samantha Orduno, City Manager; Steven Devich, Administrative
Services Director; Thomas Ferber, City Clerk; Bruce Palmborg,
Community Development Director; Dan Scott, Public Safety Director;
Mike Eastling, Public Works Director; Jim Topitzhofer, Recreation
Services Director; William Fillmore, Liquor Operations Director; and
Chris Regis, Finance Manager.
Item #1TRUTH IN TAXATION PUBLIC HEARING REGARDING 2000 PROPERTY
TAX LEVY AND 1999 REVISED/2000 PROPOSED BUDGET AND
PROPOSED WATER, WASTEWATER, STORM SEWER AND STREET
LIGHT UTILITY RATES C.L. NO. 288
Administrative Services Director Devich provided an overview of the Truth in
Taxation requirements, the 1999 Revised/2000 Proposed Budget and the 2000 Proposed
Property Tax Levy including the following:
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Calendar of Events & Dates
Adopt Preliminary Levy/Special Meetings
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Submit Levy/TNT Dates – Sept. 15
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Truth in Taxation Hearing Dates – Dec. 7 & 14
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Last Day to Take Council Action – Dec. 27
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Certify Final Levy – Dec. 28 Deadline
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Special Council Meeting Minutes-2-December 6, 1999
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Major 2000 Proposed Budget Initiatives & Issues
Continue Present Level of Services
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Continue Street Lighting User Fee?
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Airport Redevelopment Area (CARA)
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Redevelopment Projects
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Airport Expenditures
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$950,000 – 1999
$455,410 – 2000
Transfers from capital fund
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2000 Proposed Gross Levy
2000 Gross Levy is $8,171,762
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Increase of 1.45% over the 1999 Levy
Gross Tax Levy History
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1993 - $7,122,366 – 4.00% Increase
1994 - $7,293,600 – 2.40% Increase
1995 - $7,452,200 – 2.17% Increase
1996 - $7,637,200 – 2.48% Increase
1997 - $7,787,090 – 1.96% Increase
1998 - $7,929,927 – 1.83% Increase
1999 - $8,054,792 – 1.57% Increase
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General Fund Budget History 1991 – 2000
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2000 Proposed Budget General Fund Expenditures
Public Safety 55%
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Public Works 22%
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Recreation 10%
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Administrative Services 7%
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Legal/Executive 5%
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Community Development 2%
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2000 Proposed Budget General Fund Expenditures
Police 22%
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Fire 13%
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Parks 5%
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Streets 11%
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Police Services 12%
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All other 37%
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1990/2000 Expenditure Profile
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2000 Proposed Budget General Fund Revenues
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Local Government Aid (LGA) Comparison
9.6% total decrease since 1989
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LGA represents 24% of General Fund Revenues
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Levy to Budget Explanation
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How Property Taxes are Determined
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1999 Tax Capacity Rate
School District 280 – 48%
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Hennepin County – 27%
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City of Richfield – 19%
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Misc. – 6%
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1993/2000 Tax Capacity and Rate History
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2000 Tax Levy Analysis
Special Council Meeting Minutes-3-December 6, 1999
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2000 Proposed Levy Estimated Impact
Est. Impact on $100,000 Property (No Increase)
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City Portion of Tax 1999 - $333.58
City Portion of Tax 2000 - $310.04
Decrease of $23.54 per year
Est. Impact on $100,000 Property (6.4% Increase)
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City Portion of Tax 1999 - $333.58
City Portion of Tax 2000 - $338.36
Increase of $4.78 per year
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Example of a Richfield Homeowners Truth in Taxation Notice
Vicki Forslund, 6624 Morgan Avenue, spoke in opposition to continuation of the
street light utility fee stating that it was intended for funding the conversion from mercury
vapor to high pressure sodium lights which has been completed. She asked about the
balance in the street light utility fund.
Finance Manager Regis indicated the fund balance to pay off the conversion cost
was approximately $70,000 - $80,000 at this time. He stated the fee is scheduled to end
on December 31, 1999.
Finance Manager Regis reviewed the following information regarding the proposed
2000 Water, Wastewater and Storm Sewer utility rates:
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2000 Sewer Maintenance Operating Budget
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Metropolitan Council Environmental Services (MCES) Charges
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Sewer Fund Operating Results
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Projected Yearly Sewer Rates – City and Metro Average
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City Sewer Rates 1987 – 1999
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2000 Water Maintenance Operating Budget
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Water Fund Operating Results
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Water Rate History 1989 – 2000
He presented the proposed utility rates as follows:
Water - $1.62 per 1,000 gallons
Wastewater - $2.29 per 1,000 gallons
Storm Sewer - $8.80 per quarter
Council Member Rosenberg asked if the street light fee would end December 31,
1999 unless the City Council takes action to continue it.
Finance Manager Regis stated that it is scheduled to end on that date and it was a
policy decision for the City Council to decide if it should be continued to defray a portion of
the cost of the electricity for the street lights.
Larry Wozniczka, 6744 Wentworth Avenue, discussed his ideas and concerns
regarding the following:
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Redevelopment at the expense of basic services
Special Council Meeting Minutes-4-December 6, 1999
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Preservation of residential areas
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Pedestrian safety
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Costs of the airport issue, rejected community center project and second ice
sheet
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Re-channel airport lobbyist costs to mitigation measures
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Lower utility rates
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Reduce staff
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Administration of the swimming pool, ice arena and golf should be transferred to
Recreation Services
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Lessen dependence on Ehlers and Associates to do Community Development
work
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More public hearings for capital improvement projects
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Proposed Maintenance Facility lacks information comparing it to the option of
expanding at the current site
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Improve services at lower costs
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Utility fee increases are not justified
M/Susag, S/Stokes to close the City of Richfield Truth in Taxation Public Hearing on
the 1999 Revised 2000/Proposed Budget, Proposed 2000 Property Tax Levy and
Proposed 2000 Utility Rates.
Motion carried 5-0.
Mayor Kirsch stated the City Council would consider approval of the 1999 Revised
2000/Proposed Budget, 2000 Proposed Tax Levy and 2000 Proposed Utility Rates at the
December 13, 1999 City Council Meeting.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:40 p.m.
Date Approved:
Martin J. Kirsch
Mayor
Thomas P. FerberSamantha Orduno
City ClerkCity Manager