HomeMy WebLinkAboutCity Council Minutes 12-01-2008 SpecialAdopted Minutes
Special Council Meeting
December 1, 2008
Mayor Slavik called a Special Meeting of the Plymouth City Council to order at 7:05
p.m. in the Council Chambers, 3400 Plymouth Boulevard, on December 1, 2008.
COUNCIL PRESENT: Mayor Slavik, Councilmembers Bildsoe, Black, Hewitt,
Murdock, and Stein.
ABSENT: Councilmember Willis.
STAFF PRESENT: City Manager Ahrens, Administrative Services Director Portner,
Police Chief Goldstein, Community Development Director Juetten, Public Works
Director Cote, Parks and Recreation Director Blank, City Assessor Hebert, Appraiser
Supervisor Olsson, Finance Director Bursheim, and Deputy City Clerk Olson.
Truth in Taxation Hearing
Administrative Services Director Portner gave a presentation on the 2009 proposed
budget. He stated the proposed levy is 5.14%. He outlined the expenditures and revenue
sources for the budget. He stated 41 % of property owners would realize a decrease in
property taxes, 48% would see a less than 5% increase, and 11 % will realize an increase
over 5%. He addressed the tax shift between residential and commercial properties. He
noted a utility rate study was conducted in 2008. Based upon the study, the City's
consultants recommended a 3% increase in water fees and 5.5% increase on sewer fees
for a total increase of $1.39 per month per household.
Councilmember Bildsoe reported that the state is going to announce budget projections
soon and asked if staff foresees any consequences for the city. Administrative Services
Director Portner replied they do not receive government aid from the State but they could
lose the market value homestead credit. If that is lost, it could possibly change some
operational functions. Councilmember Black stated that recycling funds could also be
pulled. Most likely the state would not pull funds currently allocated but any future funds
cities might receive.
City Manager Ahrens stated that police and fire aid comes through insurance premiums
and they have tried to minimize any risk by placing it in street repairs. They have also
decided to eliminate nine positions within the City but hopefully those positions will be
by attrition. By the request of the Council, staff has provided a report on training is
required for certain staffing positions.
Mayor Slavik opened the public hearing.
Adopted Council Minutes 1 of 3 Special Meeting of December 1, 2008
Mark Danyluk, 10620 South Shore Drive, stated his property valuation is extremely high.
He stated the proposed increase in taxes for 2009 is 32%, and he has had increases of
20% in 2008, 20% in 2007, and 26% in 2006.
Mike Selzer, 205 Black Oaks Lane, inquired if there is a carry over of funds from 2008,
and if there are contingencies in place for if the economy continues downward. He
questioned if there are funds for extra energy costs should the prices rise again. He asked
if the Council has discussed increasing revenue for permit fees rather than shifting the
burden to property taxes.
Vitaliy, 810 Niagara Lane, stated he would be experiencing an increase of 71% on his
taxes which is troublesome.
Mike Reitz, Niagara Lane, stated he has a level of frustration with a property tax increase
of 5.14% while his personal budget is going down. He wants to know why the budget is
increasing and who is going to have the courage to stop the growth. He referred to the
purchase of the Parkers Lake electric sign out of the general fund budget.
Joe Scheitlin, 2325 Evergreen Lane, he stated that between property taxes and
reconstruction of the street in his neighborhood, he feels he can't afford to continue to
live in Plymouth.
Greg Merz, 12520 29t" Avenue North, he would like to give a professional overview
based on his conversations with Hennepin County. He felt that all looks right with the
property assessments. The problem is with the retail area. He referenced the IRS ruling
on Section 382 Acquisition of Accounting. He requested the Council and staff to focus
on essential services such as police fire, sewer, water, plowing and maintenance and how
to make a leaner budget.
Mayor Slavik closed the public hearing.
City Assessor Hebert stated staff would revisit Mr. Danyluk's property on Medicine
Lake.
Mayor Slavik explained the Board of Equalization meeting would be conducted on
April 7, 2009, and residents could question their property values at that meeting. City
Assessor Hebert added that values are based on sales Oct. 12006 thru Sept. 30, 2007 to
determine values effective Jan. 2, 2008.
Mayor Slavik stated that Council did look at contingencies. She explained that it was left
in the budget in case the State pulls more money from them or issues an unfunded
mandate. It could decrease from 5.14% to 4.2% if that contingency was left out. She
stated that Plymouth is somewhat penalized because Plymouth is looked at as a wealthier
community but are very conservative in finances.
Adopted Council Minutes 2 of 3 Special Meeting of December 1, 2008
Public Works Director reported they reduced the budget by $220,000 due to recalculating
energy costs.
Mayor Slavik addressed the question of raising permit fees. She stated that by raising
fees to a point where they are unfeasible, the City would be discouraging development.
Community Development Director Juetten added there is a limit on what the City can
charge for, which is the actual cost to provide the service. Councilmember Bildsoe added
that park and recreation fees are reviewed yearly.
Mayor Slavik responded to the comments on not growing government. She stated the
City hasn't initiated any new services. In regards to the Parkers Lake sign, she
acknowledged that this sign probably wouldn't have been purchased in today's economic
climate. However, residents do expect a high level of service. The Council tries to
balance those needs and maintain core services as well as the City's infrastructure.
Councilmember Murdock reported that Hennepin County is conducting their Truth in
Taxation hearing on Thursday, December 4 with their final budget approval on December
16.
Councilmember Black commented that the Council received the report from staff on
training and subscriptions for employees. She stated she would rather eliminate this
expense than employees. She requested these expenditures remain in the budget as a fall
back measure.
Mayor Slavik placed the adoption of the proposed 2009 budgets and tax levies on the
December 8 Council agenda.
Adiournment
Mayor Slavik adjourned the meeting at 8:17 p.m.
Kimberly A. /019,6n, Deputy City Clerk
Adopted Council Minutes 3 of 3 Special Meeting of December 1, 2008