HomeMy WebLinkAbout1993/11/30 - ADMIN - Minutes - City Council - Regular 4c
MINUTES
TRUTH IN TAXATION PUBLIC HEARING
ST. LOUIS PARK CITY COUNCIL
Tuesday, November 30, 1993
1 . Call to order
Mayor Pro Tem Keith Meland called the meeting to order at 7 : 30
p.m.
2 . Roll call
The following Councilmembers were present at roll call : Jeff
Jacobs, Gail Dorfman and Keith Meland.
Also present were the City Manager (Mr . Meyer) ; Director of
Finance (Mrs . McBride) ; Asst . Dir. of Finance (Mr. Rambow) and
the City Assessor (Mr. Stepnick)
3 . Purpose of the meeting
Mayor Pro Tem Meland explained the purpose of the meeting: To
receive input from residents on the City' s tax levy for 1994 as
well as answer questions .
4 . Budget presentation
Mr. Meyer said he would be commenting on various aspects of the
tax levy and budget augmented by overheads and explanation by
Mrs . McBride.
Mr. Meyer said the 1994 tax levy reflects no increase over 1993
and no significant reduction in the current level of services is
anticipated.
Factors which influence the City' s budget include : inflation;
price of goods purchased; utility costs; increases in costs for
health insurance; and the most signficant factor being the City' s
relationship with the State . State Aid cuts in 1990 and 1991
required the City to find ways to absorb those cuts without
raising taxes . In mid-1992 the State Legislature did not pass a
State Aid cut; instead, they required cities to pay sales tax on
goods they acquire . On an annual basis payment of sales tax
affects the City by $500, 000 per year.
Ways in which the City has tried to hold down costs include :
consolidation with other cities in dispatching; a change in
pension plans which reduced costs considerably; sharing of
computer services with other cities; going to self-insuring in
several areas; cooperative purchasing resulting is discounts in
certain areas .
In the personnel area, several approaches have led to savings :
consolidation within and between certain departments; to leave
certain positions vacant rather than filling immediately. The
Truth in Taxation Act requires cities to reveal their personnel
costs . Mrs . McBride provided an overhead and explanation of
personnel costs.
A projected 1 . 9% increase across the board for City employees is
impacted by two factors : (1) in the case of Police/Fire, the City
is subject to binding arbitration laws ; and (2 ) the City is
subject to comparable worth legislation.
Also affecting the City' s tax levy is the fund balance. The fund
balance is money in reserve to operate for cash flow purposes .
Mrs . McBride provided an overhead and explanation.
Mr . Meyer addressed the question of why, when there is no
increase in the tax levy, would some residents see an increase in
their property taxes . One, the tax levy is spread over all
properties and residential properties have continued to see
increases in value, while commercial/industrial property values
have decreased in the past several years . Mrs . McBride displayed
a graph showing this ratio.
Mr. Meyer said the City will continue and redouble its efforts to
find ways to save money.
5 . City Council comments
Neither Councilmember Jacobs nor Councilmember Dorfman had 111
comments at this point .
6 . Audience comments
Three members of the audience addressed Council : Lynette
Siegfried, 9275 22nd St . W. ; Robert Swanson, 7700 W. 24th St . ;
and Donald Hunter, 3309 Dakota Ave. So.
7 . Concluding remarks
There being no one further wishing to speak, Mayor Pro Tem Meland
adjourned the public hearing.
8 . Adjournment
It was moved by Councilmember Jacobs, seconded by Councilmember
Dorfman, to adjourn the meeting at 7:59 p.m.
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Mayor Pro Tem
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