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HomeMy WebLinkAbout2014/12/01 - ADMIN - Minutes - City Council - Regular Il' `�St. ,,Louis Park OFFICIAL-'MINUTES j"IF ' MINNESOTA CITY COUNCIL MEETING ,i!' ST. LOUIS PARK, MINNESOTA DECEMBER 1, 2014 1. Call:to Order - Mayor Jacobs called the meeting to order at 7:30 p.m. Councilmembers present: Mayor Jeff Jacobs, Tim Brausen, Steve Hallfin, Gregg Lindberg; Anne Mavrty, Susan Sanger, and Jake Spano. - Councilmembers absent: None. Staff present:, City Manager (Mr. Harmening), Controller (Mr. Swanson), and- Recording Secretary(Ms. Staple). Guests: Mark Ruff, Ehlers. la. .Pledge of Allegiance lb. Roll Call 2.° ' Presentations—None- 3. Approval of Minutes 3a. Special Study Session Meeting Minutes October 20,2014 The minutes were approved as presented. 3b. ' Study Session Meeting Minutes October 27, 2014 _ The minutes were approved as presented. 3c. Special Study Session Meeting Minutes November 3,2014 Councilmember Brausen noted on page three, following the first sentence, the'following statement should be added,'"He thanked the hockey association for their willingness to make a substantial donation-:and, inquired if they would be willing to increase that donation to 50 percent of project cost." The minutes were approved as amended. 3d. Special Session MeeYmg Minutes November 10, 2014 Councilmember Spano noted on page five, the third paragraph from the bottom, it should state, "...time off-afterthe birth. The policy should also be supportive of same sex 1, couples desire to have and/or adopt'children." The minutes were approved as amended. 3e. Special Study Session Meeting Minutes November 17, 2014 _ rt lAVP I!' ''w, k J•c`lir�1 L„ I - - City Council Meeting -2- December 1,2014 Councilmember Sanger noted on page three, the fourth paragraph, it should state, "...because of reimbursement process ugh developed by the State in response to the Affordable Care Act." Councilmember Spano noted on page three, the third paragraph, it should state, "He questioned what the vision of was..." The minutes were approved as amended. 3f. City Council Meeting Minutes November 17, 2014 Councilmember Hallfin noted on page five, following the third paragraph, the following sentence should be deleted, "' . - - - - - . - - - -- • - - . - '- • -- - _ " The minutes were approved as amended. 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. 4a. Accept for filing City Disbursement Claims for the period of October 25 through November 21, 2014. 4b. Accept for filing Fire Civil Service Commission Meeting Minutes of June 26, 2014 4c. Accept for filing Planning Commission Meeting Minutes of October 15, 2014 It was moved by Councilmember Brausen, seconded by Councilmember Lindberg, to approve the Agenda as presented and items listed on the Consent Calendar, and to waive reading of all resolutions and ordinances The motion passed 7-0. 5. Boards and Commissions—None 6. Public Hearings 6a. Public Hearing — 2015 Proposed Budget, Tax Levies and Truth in Taxation Public Hearing Mr. Swanson presented the staff report and explained that this is an informational meeting to provide information on the budget process and proposed levies and to obtain public input before action is taken on December 15`h. He reviewed the 2014 adopted budget and 2015 proposed budget. He advised that the general fund has eight main types of revenue sources, with the largest portion (69 percent) generated from property taxes which is proposed at $22,400,000 for 2015. He compared the 2014 adopted budget to the 2015 proposed budget noting an estimated 7.22 percent increase in revenues, which will City Council Meeting -3- December 1, 2014 create a total of $32,600,000, which is an increase of $2,200,000. He reviewed the general fund expenditures including general government, public safety, operations and recreation and non-departmental. He reviewed the tax levy allocation, which has a proposed increase of 5.50 percent. He provided key dates in the tax process including the time a taxable market value is set for property in January, the mailing of valuation notices in March, the City Board of Equalization meeting in April or May, the Hennepin County Board of Equalization in June, and values established for preliminary property tax notices, which are mailed in November. He reported that across all jurisdictions 41 percent of residential property owners will see a decrease in their property taxes while 93 percent of businesses will see a decrease in their property taxes. He stated that the City ranks 16th out of 45 for city residential property taxes in Hennepin County, noting that a lower ranking equates to lower property taxes. Mayor Jacobs opened the public hearing Steve May referenced the 5.5 percent increase which he believed to be double the growth rate of the economy. He recognized that this is late in the process but asked that the Council consider something going forward that would be attached to the growth of the economy. He stated that sometimes the Council needs to draw the line and not consider everything that residents ask of them, as that accounts for additional staff time. He asked that the Council obtain input for those businesses that would be impacted by a community center. He appreciated the good work of the Council and for their time tonight Pat Nelson stated that he has lived in his home for 25 years and has been in the city since 1962. He stated that in that time City taxes have quadrupled, which is well past the growth of the economy. He stated that the utility value of his home has not changed and did not believe that the wages of residents have increased by 5.5 percent in the past year. He stated that he is in the group of residents that will see a change of more than 10 percent for his property taxes. He stated that if the citizens do not become more engaged, the proposed increases will continue on this trend. He asked how the community can address the rapid growth in City services that are not supported by resident wages. He asked how he could get involved in the budget process at an earlier time Mayor Jacob stated that discussions begin around June of each year He recognized the point made by the residents. Councilmember Sanger noted that some of the increase is due to aging infrastructure. Councilmember Mavity asked for a better explanation on why some residents will see a decrease in taxes while others will see an increase. Mr. Swanson explained that a larger tax base is created through development, noting that properties that had valuations that did not change will see a decrease in their property tax while properties that have a valuation that increased following the recession will see an increase in their taxes. Mr Harmening stated that the budget process does not tie together the taxable value or tax rate, explaining that the City views the budget independent from the tax rate. He stated for taxes payable in 2015 the value of commercial and business property stayed City Council Meeting -4- December 1, 2014 mainly flat, which is why that property tax rate is mainly decreasing while residential property values increased, which in turn increased the property tax rate. Mr. Nelson questioned why the tax rate is tied to the value of a property, as his wages and use of City services have not increased. Mr. Harmening stated that situation is a product of the property tax process developed by the State Legislature. He agreed that someone may be asset rich but income poor and acknowledged that may not work out well. Councilmember Mavity stated that cities do not have the ability to tax income as the State does; the City can only tax property. Councilmember Sanger explained that over the years more and more costs have been passed along to cities. Councilmember Spano stated that he and two other Councilmembers attended a national conference in Texas and had the opportunity to speak with people from across the nation. He noted that although the City has creative funding sources for road improvements, other than simply assessments, but also recognized the aging infrastructure of the City. He stated that the Council always considers the cost of projects to residents and the impact that could have on taxes, noting that is why the community center discussions have been placed on hold. Stan Jurgenson, West Ridge Lane, confirmed that 41 percent of residents will see a decrease in taxes but meanwhile the median tax rate for the City is 5.5 percent. He stated that appears that a different taxing mechanism is dropping their tax rate, not the City. Mr. Swanson explained that the average home value increased from around $204,700 to $217,600. Mr. Jurgenson stated that if a business tax rate increases, they will pass that cost on to the consumer and if someone owns a rental property, they will pass that increase on to their renters. He stated that the 5.5 percent increase proposed for the tax rate is well above the 1.7 percent increase that individuals will see. He stated that people will then have to spend less money on other items in order to afford that increase He stated that utility charges are increasing 4.6 percent and the franchise fees are also proposed for increase. He noted that all these increases have an impact and questioned where residents will gain the funds for that as the tax rate is increasing faster than the economic growth rate. Mr. Harmening appreciated the comments made by Mr. Jurgenson and recognized that there are limitations on what people can pay in property taxes. He asked that residents consider not just one year of tax rates but review a larger picture as there were large property tax decreases for properties that occurred during the recession. Mr. Jurgenson cautioned the City against spending more than what resident budgets can allow. City Council Meeting -5- December 1, 2014 Mr. Harmening stated that he would be happy to review information with Mr. Jurgenson. He noted that in 2003, all local government aid was lost and spending was cut because the City could not fund what they had been able to. Patty Carlson stated that she is on a fixed income and has been in the City for 38 years. She asked that the Council consider what is necessary for the City and not Just nice, noting that she was pleased that the community center is on hold. She questioned whether items such as dredging Bass Lake and building a boardwalk are necessary. She stated that her street was not swept this year or last year She appreciated the work of the Council. Mayor Jacobs asked that residents with any questions or input contact City staff prior to the meeting on December 15th when action will be taken. Councilmember Brausen encouraged residents from Ward 4 to contact himself with concerns about the budget. He stated that the Council is spending 2 2 percent on staff wages in order to be competitive and keep the best staff and is also investing in aging infrastructure. Councilmember Mavity referenced the statement that 5.5 percent is double the growth rate of the economy and appreciated the input. She stated that in the past years the City is and continues to be an attractive place for business to be and to invest in. She questioned the business investment in the City and how that compares to other cities. Mr. Harmening stated that building permits pulled is one method to measure that investment, noting that the City will be in the range of$120,000,000 this year, which is higher than had been estimated. He agreed that the City has, and continues to be, an attractive location for business providing an example of the reuse of the Novartis building. Mayor Jacobs closed the public hearing. Informational; no action required. 7. Requests, Petitions, and Communications from the Public—None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. Award Sale of 2014A G.O. Bonds for Sidewalks and Trails and Utilities — Resolution No. 14-170 Mr. Swanson presented the staff report regarding the bond sale for the 2014A bonds for sidewalks, trails and utilities. He stated that a bond sale occurred at 11:00 a m this morning. Mark Ruff, Ehlers, presented the results of the bond sale today. He stated that the City is able to achieve low rates because of the AAA rating, noting that there are less than 20 cities in Minnesota that have an AAA rating. He stated that the increased property values, the ability to maintain reserves dunng the recession and a low level of debt contnbuted to the AAA rating. He reviewed the bids that were received and recognized City Council Meeting -6- December 1, 2014 the winning bid, noting that there was national interest in the bonds. He reported that the City was able to achieve an additional $250,000 in proceeds with a lower than estimated interest rate. He congratulated the City and recommended approval of the bonds. It was moved by Councilmember Sanger, seconded by Councilmember Mavity, to Adopt Resolution No 14-170 Awarding Sale of$10,000,000 General Obligation Bonds, Series 2014A. The motion passed 7-0. 9. Communications—None None. 10. Adjournment The meeting adjourned at 8:35 p.m. Nancy StrG ty Clerk Jeff/ / , ayor