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HomeMy WebLinkAboutCity Council Minutes 12-01-2003 SpecialAdopted Minutes Special Meeting Truth in Taxation Hearing December 1, 2003 A Special Meeting of the Plymouth City Council was called to order by Mayor Johnson at 7:00 p.m. in the Council Chambers of City Hall, 3400 Plymouth Boulevard, on December 1, 2003. COUNCIL PRESENT: Mayor Tierney, Councilmembers Neset, Hewitt, Slavik, Bildsoe, and Stein. ABSENT: Council Member Black. STAFF PRESENT: Interim City Manager Ahrens, Finance Director Hahn, Public Service Manager Qvale, Community Development Director Hurlburt, Park and Recreation Director Blank, Captain Mike Goldstein, Fire Chief Kline, and Office Support Representative Langer. Presentation on 2004 Proposed Budget Mayor Johnson stated the purpose of tonight's meeting is a hearing on the City's proposed 2004 budget and tax levy. She stated adoption of the 2004 budget and tax levies would be on the December 16 Council agenda. Interim City Manager Ahrens gave a brief overview of the budget and taxes along with elements affecting the budget. She noted there is a 5.65% general fund increase over the 2003 budget and described factors that contributed to this increase. Finance Director Dale Hahn noted the average budget increase for the previous two years was 6%. He discussed the total levy limit increase of 6.28%. City taxes on an average valued home ($294,500 after 10.3 % appreciation) will increase by $59.91, which is 8.89%. City taxes on a typical business valued at ($960,000 after 4% decrease) will decrease by $159.10, which is (-5.30%). He noted budget elements which include implementing Public Safety initiatives, preparing for financial independence; including roads/infrastructure, reviewing City Center plan and exploring opportunities for additional housing or mixed use projects in the area, continue and evaluate traffic calming program, increase water supply capacity, consider drinking water taste/quality improvements, and acquire 10th playfield site and open space. Key budget features include adding four police officers, a firefighter, streets lead person, park maintenance worker, and water resources technician position. Truth in Taxation Hearing Mayor Johnson opened the public hearing for testimony. Adopted Council Minutes Special Meeting of December 1, 2003 Page 2 of 2 Francis Bohnenstingel, 4465 Trenton Lane, #109, Plymouth, MN 55442 spoke regarding a 28% increase in his taxes over two years. Mayor Johnson explained that the city is not increasing spending by that amount, however, commercial values are dropping causing homeowners to pay more of the tax burden. Finance Director Hahn was available after the meeting to go over any questions with Mr. Bohnenstingel. Council a egnda. With all members voting in favor, the motion carried Finance Director Hahn asked that Council review the revised 2004 HRA Levied Budget Proposal before adjourning. Council member Bildsoe gave an overview of this proposal in which HRA Commissioners had suggested an alternative levy of $593,395, an increase of $41,115 from 2003 or 7.48%. This would reduce the proposed HRA levy by $63,954. The $41,115 increase would allow funding the increases attributed to personnel costs, inflation adjustments and allocated costs but would not allow for the $75,000 proposed increase in rehabilitation assistance. This loss would be made up in state aid of $11,046 through the market Value Credit that was not factored into the original proposed levy. Motion was made by Council Member Bildsoe, and seconded by Councihnember Slavik, to change the HRA Levy to the revised amount. With all members voting in favor, the motion carried. Adiournment Motion was made by Mayor Johnson to adjourn the meeting at 7:56 p.m. With all members voting in favor, the motion carried. a Langer, Office up Rep se ative