HomeMy WebLinkAboutCity Council Minutes 09-12-1995 SpecialMINUTES
SPECIAL COUNCIL MEETING
SEPTEMBER 12, 1995
A special meeting of the Plymouth City Council was called to order by Mayor Tierney at
7:08 p.m. in the City Council Chambers, 3400 Plymouth Blvd., on September 12, 1995.
COUNCIL PRESENT: Mayor Tierney; Councilmembers Anderson, Wold, Lymangood,
Helliwell, and Edson.
ABSENT: Councilmember Granath.
STAFF PRESENT: City Manager Johnson, Assistant Manager Lueckert, Community
Development Director Hurlburt, Public Works Director Moore, Finance Director Hahn,
Assistant Finance Director Jacobson, Public Safety Director Gerdes, Park Director Blank,
Transit Administrator Sweeney, and City Clerk Ahrens.
SET PRELIMINARY LEVY AND ESTABLISH 1996 BUDGET HEARING
DATES
Manager Johnson stated that during August, the City Council has had an
opportunity to review and discuss the proposed 1996 budget at two study
sessions. The City Council must approve a preliminary budget and a preliminary
tax levy rate by September 15, so that Hennepin County can produce Truth in
Taxation notices. Once the Council adopts the preliminary rate, the tax rate can be
lowered but cannot be raised when the budget is formally adopted in December.
The 1996 levy rate is proposed for 15.05, a decrease from the 1995 rate of 15.84.
Finance Director Hahn presented information that was requested by
Councilmembers at the budget study sessions. He first showed tax capacity
comparisons. In 1992, residential properties contributed 42 percent of the total
tax capacity base, while commercial/industrial properties contributed 57 percent.
In 1995, commercial/industrial properties are contributing only 48 percent of the
total tax capacity value of the City, with the residential paying 52 percent. He
noted that there has been a significant shift toward the residential properties.
Manager Johnson added that for 199.6, there is a 2 percent increase in burden in
tax capacity on residential properties in Plymouth. He stated that there isn't an
increase on the tax base as a whole, but rather a tax decrease for businesses and a
tax increase for residences. He explained that the average valued home is
appreciating at a higher rate than the average business. Residential properties are
increasing an average of 5.1 percent in valuation for next year, with the
commercial properties increasing by 1.4 percent. There are tax reductions for
many businesses that slightly outweigh the residential increases.
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September 12, 1995
Page 2
Finance Director Hahn explained that the average home value increased from
147,300 to $166,800 over the last four years. Taxes on that average valued
home were $401.57 for the City share in 1993, and are proposed at $393.71 for
1996. The City's tax rate continues to decline, from 18.04 to a proposed 15.05 for
1996 over the last four years.
Councilmembers Lymangood and Anderson stated that it is extremely positive that
the average valued home has appreciated more than $20,000 over the last four
years, while the amount of City taxes on that home has decreased. City
government is doing its job by creating value, while at the same time decreasing
taxes.
Councilmember Lymangood requested that the recycling fee information be added
to the graphs for the Truth in Taxation hearing to provide full disclosure to
residents. The recycling fee began at $1 per month, increased to $2 per month,
and is proposed at about $1.60 per month for 1996. This occurred in the last four
years.
Finance Director Hahn showed a summary of the expenditure categories in the
proposed budget. He stated that the percentages are unchanged from the 1995
budget, with 49 percent of the budget dedicated to salaries.
Mayor Tierney stated that salaries are 49 percent of the budget, but with benefits,
personnel costs are 60 percent of the budget. She stated that having 60 percent for
personnel is typical in government.
Manager Johnson showed information relating to taxes on a $1,000,000 Plymouth
business. He stated that the City taxes on an average business are decreasing
about 3.5 percent. The City taxes on an average home are increasing about 1.5
percent. There is a net reduction in City taxes overall, but the burden is shifting
toward residential properties.
Mayor Tierney suggested that discussion be held on salaries. She had contacted
various agencies to ask what they are considering for 1996 salaries. The League
of Minnesota Cities is proposing a 3.85 percent across-the-board average increase.
Hennepin County is trying to stay at a 2 percent increase. The State of Minnesota
is trying to keep some salaries at no increase.
Councilmember Lymangood did not believe that any of these examples were good
comparisons for Plymouth. Councilmember Anderson stated that in a business,
employees should be rewarded for positive performance. He stated that citizens
are receiving tremendous performance from very qualified people.
Mayor Tierney stated that the staffing level in Plymouth has been increased in
recent years. She believes the Council needs to be aware of where salaries are, as
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September 12, 1995
Page 3
well as growth projections. Keeping tabs on the growth of salaries is the Council's
job. She does not have a specific proposal, but believes it should be discussed.
Councilmember Edson stated that Plymouth needs to be in the competitive market
with business in order to get qualified employees. He stated that the question the
Council must ask is whether salaries are out of line. He believes that, in general,
salaries are fair and within the range of what is seen in the market, and that the
level of proposed increases is also fair compared to the private sector.
Manager Johnson stated that the overall salary budget is proposed at a 3.85
percent increase for 1996 (considering no new employees), but the budget is
modeled at an across-the-board 3 percent average increase. This percentage
would also include any amendments in benefits.
Mayor Tierney requested that the Market Segment Comparison Chart be amended
for the Truth in Taxation hearings to reflect the percentage of total City taxes paid
by rental properties. She would like rental housing separated because the tax rates
are different than for commercial properties.
Finance Director Hahn stated that the rental properties are currently included in
the commercial property category on the chart. Staff will separate out rental
properties for the hearing.
Councilmember Lymangood stated that at the budget study session,
Councilmember Helliwell had expressed concern about the proposed levy rate and
had wanted to see a tax cut of $10 to $20 per month in City taxes. He asked if she
had a specific proposal to be considered by the Council.
Councilmember Helliwell stated that tonight the Council is establishing the
preliminary tax levy rate. The proposed levy rate of 15.05 for 1996 is a reduced
levy rate from 1995, and she will support it. However, she noted that the tax rate
could be further lowered for the formal adoption in December.
Councilmember Lymangood stated that if Councilmember Helliwell wants to
consider a proposal to further reduce the tax levy, it should be done now so that
the Truth in Taxation hearing information is accurate. He stated that the proposed
City tax on an average valued home is proposed at $393 for 1996. A reduction of
120 or $240 would require major cuts in personnel and equipment. He asked
why she proposed no reduction to the 1995 levy, and what is the basis for her
comments now. He said the net effect in taxes for 1996 on the average
homeowner is less than it was in 1995 due to the $1 per month increase in the
recycling fee. He asked why this concern was not brought forward last year.
Councilmember Helliwell explained that her comments made at the budget study
session were intended to generate discussion among the Councilmembers. In the
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September 12, 1995
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past, Councilmembers have suggested things only for purposes of discussion. She
has no further comments on the issue at this time, and believes the Council should
move forward to establish the preliminary levy and set the budget hearing dates.
Councilmember Anderson stated that if a Councilmember is proposing a major tax
levy reduction, a specific proposal should be provided as quickly as possible to the
full Council because it would have major impacts on the operations of the City.
Councilmember Lymangood stated that a proposed reduction in City taxes of this
magnitude would, in effect, cut the City's budget in half. This would have drastic
impacts and should not be proposed lightly.
MOTION was made by Mayor Tierney, seconded by Councilmember Helliwell, to
adopt RESOLUTION 95-533 ADOPTING PROPOSED 1996 BUDGETS.
Motion carried, six ayes.
MOTION was made by Mayor Tierney, seconded by Councilmember Helliwell, to
adopt RESOLUTION 95-534 PROPOSED PROPERTY TAX LEVIES FOR
TAXES PAYABLE IN 1996.
Motion carried, six ayes.
MOTION was made by Mayor Tierney, seconded by Councilmember Helliwell, to
adopt RESOLUTION 95-535 SET TRUTH IN TAXATION PUBLIC
HEARING DATES FOR 1996 TAX LEVY.
Motion carried, six ayes.
APPROVE AGREEMENT WITH METROPOLITAN COUNCIL FOR METRO
MOBILITY
MOTION was made by Councilmember Wold, seconded by Councilmember
Anderson, to adopt RESOLUTION 95-536 APPROVAL OF
PARATRANSIT SERVICE AGREEMENT, METROPOLITAN COUNCIL
AND CITY OF PLYMOUTH.
Motion carried, six ayes.
Mayor Tierney stated that the City is working on long-range planning for this
issue. One consideration will be to align with other opt -out communities. She
reported on a conversation with the Burnsville Mayor. He had spoken with
Metropolitan Council Chairperson Curt Johnson. Mr. Johnson indicated they are
interested in working with a steering committee of interested City officials to
dialogue on issues relating to transit, Metro Mobility, and opt -out issues. She
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September 12, 1995
Page 5
stated that it is very positive that the Metropolitan Council is receptive to working
with communities on these issues.
CITIZEN SURVEY RESULTS
Assistant City Manager Lueckert reported on the results of the Citizen Survey.
She said that 98% of residents rated Plymouth's quality of life as excellent or good.
She reported some of the trends in the survey: 52% indicated that speeding is a
concern in their neighborhood; 80% do not want sidewalks in their neighborhood;
76% feel that the City's development generally was well planned; 71% feel the
planning has been environmentally sensitive and responsive; 69% feel that
Plymouth should continue to grow, but at a slower pace or not into undeveloped
areas; 39% feel that the City should encourage a downtown area, but 39%
disagreed; 64% feel that the City should support affordable housing, but 30%
disagreed; 81% support a mixture of housing types in the City; 50% stated that
water quality is good, but 43% feel water quality is only fair or should be
improved; 54% have sump pumps which drain outside their homes; 25% said
their lawn fertilizer contains phosphorus, but 51% did not know the content; 94%
feel the City should preserve one of the golf courses; 66% feel that the City
should study a possible community center; 56% said the performance of staff is
excellent or very good; 75% of those contacting City staff were satisfied with the
service they received; 43% would like to see City Center hours extended beyond
4:30 p.m.
Assistant Manager Lueckert stated this is the fourth survey conducted over the last
14 years. The quality of life rating has improved with each survey, and she
compared the ratings from this survey with previous surveys. In response to a
question by Councilmember Wold, Assistant Manager Lueckert said the expected
margin of error of the survey was +/- 5 percent.
MOTION was made by Councilmember Anderson, seconded by Councilmember
Helliwell, to accept the Citizen Survey results.
Motion carried, six ayes.
MOTION was made by Councilmember Edson, seconded by Councilmember Lymangood,
to adjourn at 7:50 p.m.
Motion carried, six ayes.
Lau ie F. Ahrens
City Clerk