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HomeMy WebLinkAbout11/29/1990CITY OF APPLE VALLEY Dakota County, Minnesota November 29, 1990 Minutes of the special meeting and public hearing on the 1991 budget and property tax levy for the City of Apple Valley, Dakota County, Minnesota, held November 29th, 1990, at 8:00 o'clock p.m. at Apple Valley City Hall. PRESENT: Mayor Brarming; Gouncilmembers Goodwin, Holton and Savanick. ABSENT: Councilmember Humphrey. City staff members present were: City Administrator Helena, City Clerk Mueller, City Attorney Sheldon, Administrative Intern Asselanis, Finance Director Ballenger, Personnel Director Boland, Public Works Director Gretz, Park & Recreation Director Johnson, City Planner Kelley, Police Chief Rivers, Assistant to Administrator Weldon and Community Development Director Welsch. Mayor Branning called the public hearing to order at 8:00 p.m. He stated the purpose of the meeting is to conduct a hearing on the City's 1991 budget and tax levy in accordance with state law. He noted that the notice of the hearing was published in the Minneapolis Star Tribune and the Dakota County Tribune on November 22, 1990, as required. Mr. Melena reviewed charts of the handouts, which were available to the audience, showing the total 1991 budgets of $16,952,885; an increase of $28,100 over 1990. He reviewed a breakdown of funds within the total budget of which the General Fund comprises 50.8 percent. The 1991 General Fund expenditures are proposed at $8,595,593. Another chart showed a comparison of housing units by value. Homes valued under $100,000 are 69.8 percent of the total and homes valued between $100,000 and $150,000 are another 20.5 percent. In reviewing a comparison of 1985 through 1991 tax capacity rates, Mr. Melena suggested that if the tax levy is reduced by $16,500, the City's rate will remain at 24.586 for 1991; the same as 1990. Depending on County and School District levies, the total 1991 City tax rate is estimated at 96.405 compared to 90.806 for 1990. Mr. Melena reviewed estimated 1991 property taxes on various valued homes showing the City portion of the taxes would remain the same or be less in all cases. The proposal is for a balanced budget and no tax increase. He also reviewed expenditures which would be funded by equipment certificates and Local Government Aid. These have been identified so that if Local Government Aid is cut, the purchases could be deferred. The Mayor asked if anyone in the audience had any questions. Wilt Anderson, 5441 West 134th Street, asked why the City budget is $28,100 more than in 1990 and yet it appears taxes will go down? He also expressed concern that the City could be more creative in providing services. Mr. Helena said the City has been looking for other sources of funding and have been able to do so somewhat in order to tax less. He noted the City has been doing more with less and the City's growth rate was 6.6 percent yet the budget increase is only $28,100. CITY OF APPLE VALLEY Dakota County, Minnesota November 29, 1990 Page 2 Mayor Branning said for 1990, the City has been doing more with less than in 1988. Mr. Melena reviewed a chart of actual growth in the past five years and noted that in 1988, the population was around 32,000 and in 1990 is nearly 35,000. Gary Shade, 15989 Garden View Drive, said the Liquor Fund accounts for 15.6 percent of the budget, what is the return to the City? Mr. Melena said it is a self supporting fund and after paying for a new store in 1990, the fund will be allowed to grow in 1991. Thereafter it will be paying $150,000 to $200,000 to the General Fund. The rate of return has been seven to eight percent. A resident asked for an explanation of how the numbers shown in the mailed notice of proposed property tax tie in with the budget. Mr. Melena said the notice compares actual tax dollars levied in 1990 to those proposed for 1991. The dollar amount results from the budget request. Mayor Branning noted that all property in the City has a market value. That total value increased from 1990 to 1991. By spreading dollars over the increased value, the tax rate stays the same even though more dollars are levied. A resident asked if the City acquires more industry, is there reason to hope that taxes will go down eventually? Mayor Branning said yes, that is what the City has been working toward. Mr. Melena said the City used incentives to encourage commercial growth and that is beginning to happen. Tax increment financing was used to encourage Target to build. Target's taxes will be used for eight years to pay for ring route and utility improvements. After eight years, those taxes will be available to help reduce general taxes. Todd McKee, 453 Walnut Lane, asked whether Target is paying taxes? Mr. Melena said it is and those funds are being used by the City. He reviewed the ring route project costs and revenue used to finance the project. Mr. Gretz noted that most of the cost of the project was for street widening, turn lanes and traffic signals. Councilmember Goodwin said commercial and industrial property pays a much higher tax rate than residential. The ring route was needed to encourage that development and build a tax base for the City. Mr. McKee said, with the Megs Mall being built in Bloomington, only five minutes away, he believes people will drive there to shop. He believes it would have been more prudent to wait and see how that develops before trying to build a downtown. Mr. Anderson asked if the City has any policy on cost reduction and targets set up for doing more with less? Mayor Branning said there is not a formal policy, but cost savings are recognized. Mr. Gretz cited an example of the Employee Recognition Program where one employee recently recommended changes in the Utility Department which will reduce electric bills by $50,000. Mr. Melena said Council direction in preparing the 1990 budget was to live within the 1989 bottom line. This 1989 bottom line was the same direction for 1991. Even with that, some new programs have able to be instituted and other funding used. CITY OF APPLE VALLEY Dakota County, Minnesota November 29, 1990 Page 3 Mr. Shade asked if there are any plans to open City facilities to the public when not being used by the City to generate revenue, such as the Police firing range? Mayor Branning said not at this time. Mr. McKee asked if the City has considered contracting for forestry services rather than having employees on staff? Mr. Melena said there were three employees, now reduced to two fulltime employees, who are used as the core of the program and are more involved in inspections. Tree trimming and removal have been done more by contract. Mr. Gretz said the program involves more than inspecting diseased trees. Each lot is now inspected when a building permit is issued to determine which trees can be saved, etc. A resident said he attended the County hearing and was told the County paid $70,000 for trees for the new Service Center and the City paid another $70,000, was this appropriate? Mr. Melena said the City did not pay for trees on the County site. It did install trees along the ring route by the Government Center just as it did in the entire project. Councilmember Goodwin said the theory of the truth in taxation notice for this meeting is good, but the format and information it contains is confusing. City taxes on property will not be going up 7.7 percent though the notice shows a tax levy dollar increase of 7.7 percent. Cities and counties statewide have had a problem with this legislation and it needs some changes. Councilmember Savanick said this is the largest attendance the City has ever had for this type of hearing. People should be informed on where their tax dollars are being spent and she appreciates the attendance. Mayor Branning said he concurs with Councilmember Goodwin. Unfortunately there are not too many experienced people representing the City and School District in the Legislature. They don't really represent concerns of the citizens. The Council has been very frugal and City Staff is outstanding. Mr. Shade, who was a candidate for City Council, congratulated Councilmember Savanick on her re-election. He agreed with the Mayor and thanked Staff for bringing in a good budget for the City. The Mayor asked for further comments or questions. There were none and the hearing was declared closed at 9:02 p.m. MOTION: of Goodwin, seconded by Holton, adopting Resolution No. 1990- RES. 1990-226 226 approving the 1990 tax levy collectible in 1991, 1990 TAX LEVY consisting of $6,630,969 for general purposes and $1,453,987 for debt purposes, totaling $8,084,956. Ayes - 4 - Nays - 0. CITY OF APPLE VALLEY Dakota County, Minnesota November 29, 1990 Page 4 MOTION: of Goodwin, seconded by Holton, adopting Resolution No. 1990- 227 approving the 1991 City Budget, with total revenues of $16,904,614 and total expenditures of $16,922,885, for all funds. Ayes - 4 - Nays - O. RES. 1990-227 1991 BUDGET MOTION: of Goodwin, seconded by Savanick, adopting Resolution No. 1990-228 approving 1991 pay scales for City employees with an increase for non-union employees of approximately four percent effective December 29, 1990. Ayes - 4 - Nays - O. RES. 1990-228 1991 PAY SCALES MOTION: of Holton, seconded by Goodwin, to pay the claims and bills, checks numbered 69765, 81033 through 81162, in the total amount of $4,128,023.55. Ayes - 4 - Nays - 0. CLAIMS & BILLS Mayor Branning announced that the meeting would now be closed to the CLOSED SESSION public under the attorney-client exception to the open meeting law to ON ZOO PUD discuss the Zoo Planned Development Agreement. Mr. Sheldon advised the Council that the meeting can be closed only for the purpose of discussing threatened or pending litigation or litigation strategy. The meeting was closed at 9:15 p.m. Those in attendance in the closed session were Mayor Branning, Councilmembers Goodwin, Holton and Savanick; City Administrator Melena, City Clerk Mueller, City Attorney Sheldon, Public Works Director Gretz and Community Development Director Welsch. The open meeting reconvened in the Council Chambers at 9:34 p.m. with these same persons in attendance. MOTION: of Holton, seconded by Savanick, directing the City Attorney to formalize and submit a letter to the Director of the Minnesota Zoological Garden stating that the 1975 Planned Development Agreement is in force and the City does not consider the Zoo's letter rescinding the agreement in any way binding. LETTER TO ZOO REFUTING AGREE- MENT TERMINATION Mr. Melena said there is an indication from the Zoo that it wants future contacts conducted through its attorney and the City Attorney. On Wednesday, the City issued a stop work order on fence installation without a permit. If they start work without a permit, is Staff authorized to issue a citation? Mayor Branning said yes, but if they get a permit, they would not be subject to a citation. Vote was taken on the motion. Ayes - 4 - Nays ~ O. MOTION: of Savanick, seconded by Holton, to adjourn. Ayes - 4 - Nays - 0. The meeting was adjourned at 9:44 p.m.