HomeMy WebLinkAboutCity Council Minutes 12-06-2004 SpecialAdopted Minutes
Special Council Meeting
Truth in Taxation Hearing
December 6, 2004
Mayor Johnson called a Special Meeting of the Plymouth City Council to order at 7:00 p.m. in
the Council Chambers of City Hall, 3400 Plymouth Boulevard, on December 6, 2004.
COUNCIL PRESENT: Mayor Johnson, Councilmembers Black, Bildsoe, Hewitt, Slavik, Stein,
and Neset.
ABSENT: None.
STAFF PRESENT: City Manager Ahrens, Finance Director Hahn, Police Chief Goldstein, Park
and Recreation Director Blank, Community Development Director Hurlburt, and Deputy City
Clerk Gulbrand.
Presentation on 2005 Proposed Budget
Mayor Johnson stated the purpose of tonight's meeting is a hearing on the City's proposed 2005
budget and tax levy.
City Manager Ahrens introduced the proposed budget, summarized the items which affect the
budget and explained the budget process.
Finance Director Hahn highlighted the proposed 2005 budget. He noted there is a 4.69% general
fund increase over the 2004 budget and the average increase previous two years was 6%. He
stated the City's property tax is projected to decrease from 25.23 to 24.90, and overall City tax
levy would increase by 10.13%. City taxes on average valued homes ($323,900 after 9.0%
appreciation) would increase by $69.70 (9.56%). City taxes on typical business ($1,000,000
after 2% decrease) would decrease by $82.24 (-2.87%). He noted the difference is due to the
shifting in appreciation of property values. He illustrated how the tax rates compared with
homes in the surrounding cities.
He noted key budget features which include adding a Police Sergeant and Transit Coordinator,
reclassify Street Lead position to Drainage Maintenance Supervisor, increase Ice Center,
Volunteer Coordinator and Public Works clerical support, continue use of Tree Trust and expand
the I.C.W.C. program and reduce overtime expenditure. He noted the 2005 budget includes total
General Fund expenditures of $22,493,654, which represents an increase of 4.83% over the 2004
adopted budget.
Truth in Taxation Hearing
Mayor Johnson opened the public hearing for testimony.
Adopted Council Minutes
Special Meeting of December 6, 2004
Page 2 of 2
Leland Eyres, 13900 54th Ave N. #3, asked if residential growth pays its cost for city services.
Mayor Johnson replied that one of the problems with the 2004 budget was that the legislature
would not allow the City of Plymouth to levy for growth. She noted that commercial and
industrial had picked up approximately 60% of the property tax bill; but, this has changed
through formula change, property tax reform and the economy. Therefore, this shift has caused
the homes in the City of Plymouth to pick up 60% of the budget.
Finance Director Hahn stated that a study was completed five years ago to determine if
residential growth covers its cost, and the study seemed to support that concept.
Councilmember Black noted the lack of funding for road improvements.
Mayor Johnson closed the public hearing.
Motion was made by Councilmember Hewitt, and seconded by Councilmember Black, to cancel
the reconvened December 13 Truth in Taxation hearing. With all members voting in favor, the
motion carried.
Mayor Johnson stated approval of the 2005 Budget and Tax Levies will be on the December 14
Council agenda.
Adiournment
Mayor Johnson adjourned the meeting at 7:39 p.m.
Sue M. Gulbrand, Deputy O Clerk