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Home My WebLink About12-15-94 • CITY OF LAKEVILLE SPECIAL COUNCIL MEETING DECEMBER 15, 1994 The meeting was called to order at 7:00 p.m. by Mayor Zaun. Roll call was taken. Present: Councilmembers Johnson, Mulvihill, Harvey and Mayor Zaun. Absent: Councilmember Sindt. Also present: B. Erickson, City Administrator; D. Feller, Finance Director; B. Kempa, Senior Accountant; C. Friedges, City Clerk. Mayor Zaun opened the truth in taxation public hearing, which provides an opportunity for City taxpayers to ask questions or make comments regarding the proposed City of Lakeville budget and tax levy. He explained that the preliminary budget/levy was approved by the City Council in September of this year. The truth in taxation laws require that the final levy may be less than, but cannot exceed, the preliminary levy. He further explained that the actual budget resolutions cannot be acted on by the Council at this public hearing. They will be included on the December 19th regular Council meeting agenda. Mayor Zaun explained that parcel specific notices of the public truth. in taxation • hearings, which are held by the County, School Districts and City, have been sent to all Lakeville taxpayers. Finance Director Dennis Feller provided an overview of approximately 15 adjustments to the preliminary 1995 General Fund Budget, which were proposed as a result of recent City Council budget work sessions. The net dollar amount of the budget, however, did not change from the approved preliminary budget. Mr. Feller then provided the following General Fund Budget overview, stating the General Fund is used to account for all revenue and expenditures necessary in maintaining governmental activities of the City. Revenue for the 1995 General Fund is proposed to be approximately $8,181,722. The major revenue categories are as follows: Taxes (39.6%) State Aid/LGA & HACA (27.1%) Licenses and Permits (6.7°~) Intergovernmental (4.3%) Charges for Services (17.1%) Other (5.2%) • CITY OF LAKEVILLE SPECIAL COUNCIL MEETING DECEMBER 15, 1994 PAGE 2 Expenditures in the 1995 General Fund Budget are proposed to be $8,114,188. The major expenditures are as follows: General Government (26.9%) Public Safety (41.6%) Public Works (19.7%) Parks & Recreation (11.8%) Mr. Feller explained #hat Lakeville has one of the lowest per capita General Fund expenditures in the State of Minnesota, at $245 per capita for 1995. Lakeville also continues to have one of the lowest ratios of employees per capita in the state for cities of similar size. The 1995 ratio is 3.1 employees per 1,000 residents. Mr. Feller then provided an overview of the Special Revenue Funds, which are. used to account for the proceeds from specific revenue sources which are restricted to expenditures for specific purposes.. The eight Special Revenue Funds have collectively accumulated a balance of $317,856 since their initial creation less than five years ago. They are as follows: . Cable TV Fund Environmental Recycling Fund. Drug Enforcement Fund Employee Benefit fund Motor Vehicle Fund Geographic Information System (GIS) Fund Surface Water Management Utility Fund E-911 Fund Mr. Feller provided an overview of the Capital Project Funds, which account for financial resources used in the acquisition of capital facilities and equipment, except those financed by enterprise funds. They~re the Building Fund, Equipment Fund and the Municipal Reserves (Internal Service) fund. Mr:>Feller explained that the Enterprise Funds are used to account for liquor, water and sewer operations of the City, which are self-supporting from retail sales and user charges. The Enterprise Funds consist of the Liquor Fund, Water Operating Fund and the Sanitary Sewer Fund. The proposed 1995 Tax Levy is $4,628,479, which has not changed since the preliminary levy was adopted in September.. Mr. Feller explained that the 1995 • tax levy is to be applied to the following purposes: CITY OF LAKEVILLE SPECIAL COUNCIL MEETING DECEMBER 15, 1994 PAGE 3 Operations $3,523,038 Voter Approved Debt 655,215 Improvement Projects 450,226 Total $4,628,479 Mr. Feller explained how the ax capacity value of a parcel is calculated. He explained that Lakeville's-tax. capacity rate increased only 1 /10 of 1 which is -the lowest tax increase of any city in Dakota County. Several citizens have indicated that the City's share of taxes for their property is increasing from 10 to 20°~. Mr. Feller explained that such increases are due primarily to increases in the Assessor's market value for individual parcels and the park bond referendum which was approved by Lakeville voters in June of 1994. Mayor Zaun opened the meeting to questions and comments from the audience. 94.257 Motion was made by Harvey, seconded by Mulvihill to receive a letter from • Greg Corbett, 16160 Huron Court. Roll call was taken on the motion. Ayes, Johnson, Zaun, Mulvihill, Harvey. Mr. Mike Fotey, 11900 - 210th Street West, pointed out that Minnesota is known to be the third highest tax state in the country. He felt that although Lakeville maybe doing its part to control taxes, the State of Minnesota as a whole is not. He voiced his opposition to the recent watershed district tax that was included with the City's utility bill Ms. Colleen Ortner, :20665 Holt Avenue, stated her taxes have increased approximately 29% since 1992 due to increased valuations.. She stated she did not understand the increases in valuation, since her home is surrounded by commercial property. Mr. Erickson pointed out that the City adopts atwo-year budget in an effort to forecast he direction the City is headed. He also pointed out that there are no proposed increases in the water and sewer rates for 1995. Mr. Feller explained that the Contingency Fund provides only $40,000 per year for unforeseen disasters/emergencies. • CITY OF LAKEVILLE SPECIAL COUNCIL MEETING DECEMBER 15, 1994 PAGE 4 Mr. Dean Wedul, 17371 Faraday .Court, stated his frustration that the State legislature has. control over the City's taxes with its constant mandates on the cities. Mayor Zaun stated the City Council has a good communication network with the City's legislative representatives. Mr. Erickson pointed out that Lakeville was the first city in the State to request the Legislature to eliminate Local Government Aid, allowing individual cities to decide what level of services they can afford. Mr. Wedul also asked how the cable Channel 16 is paid for. Mr. Erickson explained that the public access channel is paid for by franchise fees collected from cable system users. Mr. Fotey stated he feels the City should be working harder to broaden its industrial base. He stated he felt the City caused a hardship to a particular business who wanted to locate in Lakeville. Mayor Zaun stated he feels the City, through its Economic. Development Commission, is well on its way toward promoting new and expanded industry. Mr. Erickson invited Mr. Fotey to meet with him individually to discuss the situation he is referring to. • Ms. Ortner asked if the recent fiscal problems in Orange County, California, regarding bad investments will have an impact on the City of Lakeville. Mr. Erickson stated it will not, further stating that the City Council adopted an investment policy several years ago that precluded derivatives from being part of the investment portfolio. 94.258 Motion was made by Harvey, seconded by Johnson to close the public hearing. Roll call was taken on the motion. Ayes, Zaun, Mulvihill, Harvey, Johnson. There being no further business, Mayor Zaun adjourned the meeting at 8:05 p. m. Respectfully submitted, Charlene Friedge City Clerk Du ne Zaun, Ma Dear Sirs, This letter is in concerns I have for the 11.7% Property Tax increase for 1995. I don't feel it's right to compare the personal income increase at 4.5% in Minnesota with the the personal income of the people in Dakota County. I work for Northwest Airlines (one of the largest employers in Minnesota) . A large amount of those thousands of employees live in Dakota County. Just a year ago we took a 10 to 12% wage decrease for 3 years and 2 months. This has been a terrible burden on these people, including myself. I listen every day to peoples financial concerns and this one has come up quite often. If our taxes are raised this high this could be the final nail in the coffin for many homeowners. Scary. So please do not compare the entire State of Minnesota's income increase of 4.5°I° to that of the income of the people in Dakota County. Not fair. Please consider this or bring it up at your meeting. Sorry I can not attend, I would love to. Concerned Homeowner, Greg Corbett 16160 Huron Ct. Lakeville, Mn. 55044 $91-4067