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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