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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. Special Council Meeting 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 Special Council Meeting 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 Special Council Meeting September 12, 1995 Page 4 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 Special Council Meeting 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