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HomeMy WebLinkAbout12-14-09CITY OF LAKEVILLE SPECIAL COUNCIL MEETING DECEMBER 14, 2009 Mayor Dahl called the meeting to order at 7:00 p.m. Roll call was taken. Present: Mayor Dahl Council Members Bellows, Rieb and Miller' Absent: Council Member Swecker Also present: Steve Mielke, City Administrator Dennis Feller, Finance Director Charlene Friedges, City Clerk Item 3 Truth in Taxation Public Hearing Mayor Dahl opened the public hearing on the proposed 2010 budget and tax levy. (The City of Lakeville 2010 Proposed Budget and Tax Levy is on file in the City Clerk's office.) Finance Director Dennis Feller highlighted the changes that were made to the proposed 2010 budget and tax levy since the preliminary budget was adopted in September. Elimination of the franchise fee is being offset by a youth sports surcharge increase and a Dakota Communications Center rebate. Other adjustments as a result of eliminating the franchise fee include an administrative reorganization and deferring major park maintenance projects to future years as well as other adjustments. Mr. Feller explained that the proposed expenditures for 2010 are $222,000 more than revenues included in the budget. At the end of 2010, the fund balance will be approximately 45% of proposed expenditures, which is within the City's approved fund balance policy. Mr. Feller explained that interest costs within the Debt Service Fund have been reduced by $133,090 as a result of favorable bids received last week on the sale of bonds for the County Road 70 interchange improvements and the refinancing of several existing debt issues. As a result, the proposed 2010 tax levy has been reduced by $133,090. Mayor Dahl opened the public hearing to questions and comments from the audience. Scott Sammon and his daughters Ellie and Maggie, 16226 Havelock Way, addressed the City Council regarding the closing of the Highview Heights skating rink and asked if the residents could be allowed to raise the CITY OF LAKEVILLE SPECIAL COUNCIL MEETING DECEMBER 14, 2009 Page 2 money to open the rink. Mr. Sammon also asked the Council to put the Highview Heights rink back in next year's budget. Grant Jacobson, 20859 Idaho Avenue, voiced his concerns regarding the proposed property tax increase and budget, stating he feels the City needs to spend within its means and consider additional staff reductions. Jack Matasosky, 17024 Huntington Path, stated that businesses know and understand that they will see impacts on City services as a result of the current economy, and he asked the Council to look at all categories of the City's operation and be cautious in accepting the proposed budget. Kevin McCarney, 19061 Jordan Trail, asked the Council to control spending as much as possible. Lisa Schneegans, 17728 Kingsway Path, asked the Council to explain the rationale behind the proposed increase in fees for development and building permits. Mark Zweber, 12320 210th Street W., spoke about the economic impact on commercial development and asked the City Council to adjust its spending accordingly. Marty Kiehm, 8345 W. 267th Street, stated the business he owns in Airlake Industrial Park has had to reduce costs, and he feels the City should also reduce its costs to avoid an increase in property taxes. Wally Potter, 10691 202nd Street W., voiced frustration with the inequity in property values and taxes. He stated that while his and other Lakeshore property values have gone down, taxes are going up. He stated he feels the City should make budget cuts equally from every department. Mike Jentzsch, 16813 Hutchinson Drive, stated he feels the City should address the loss of Market Value Homestead Credit and make permanent cuts. He noted that other metro area cities of similar size have either reduced their levy or adopted levies lower than what Lakeville is proposing. Henry Nguyen, 16055 Huron Path, asked why his property taxes have increased when the value of his home has decreased. CITY OF LAKEVILLE SPECIAL COUNCIL MEETING DECEMBER 14, 2009 Page 3 Ann Proudfoot, 19605 Jersey Avenue, asked how valuation is determined on commercial property. Todd Bornhauser, Executive Director of the Lakeville Area Chamber of Commerce, stated he feels the Market Value Homestead Credit needs to be cut out of the budget. The Chamber of Commerce expects the City to provide the basic, core services and is opposed to any increase in taxes. Ron Gerk, 10466 W. 175th Street, stated he feels the City needs to cut or freeze wages in order to balance the budget. Jon Bonneville, 20679 Helena Lane, voiced his concerns with the decline in residential property values and the taxable market value of his home. Cindy Rollins, 17212 Idlewood Way, stated she feels that government services are sometimes called upon more during these difficult economic times, and she thanked the City for doing more with less. John Cummings, 19158 Ittabena Way, urged the City Council to not cut services and detract from the quality of life in Lakeville that residents expect and enjoy. 09.88 Motion was made by Rieb, seconded by Miller to close the truth in taxation public hearing. Voice vote was taken on the motion. Ayes, unanimous. Mr. Feller addressed the concerns regarding market values and explained that the tax burden has shifted from residential to commercial /industrial and residential Lakeshore property. He pointed out that the City has no authority to change property values or market trends. Mr. Feller recommended that residents and business owners contact the Dakota County Assessor's Office to make sure that the attributes on their property are correct in the County's database. Item 4 Public Hearing to Consider a Fee Schedule Amendment Mayor Dahl opened the public hearing to consider a fee schedule amendment by ordinance, pursuant to Minnesota Statutes 462.353, subdivision 4, and Minnesota Rules 1300.0160, subp. 2. The City Clerk attested to legal notice publication. CITY OF LAKEVILLE SPECIAL COUNCIL MEETING DECEMBER 14, 2009 Page 4 Mr. Feller explained that the last time the City of Lakeville increased building permit fees was in 1998. Other permit fees, such as re- roofing, re- siding, water softeners, etc. have been in place since 1993. When compared to other cities in the metro area, Lakeville currently has the lowest building permit fees. The total increase on an average ($280,000) residential building permit is approximately $243. The proposed fees remain comparable with other metro area cities. Lakeville's planning fees are also currently the lowest in comparison with other metro area cities, and even with the proposed fee increase, Lakeville remains one of the lowest in the metro area. New fees related to the Wetland Conservation Act are being added to the fee schedule. These fees, which will now be paid by developers, go to the Surface Water Management Fund. Mr. Feller explained that surface water management activities are currently subsidized by the taxpayers. Mayor Dahl asked Mr. Feller to explain why these fees are being increased now. Mr. Feller explained that in prior years, there was sufficient building activity to pay for the services provided. He also pointed out that the Planning, Building Inspections and Engineering work force has been reduced by 40 Mayor Dahl opened the public hearing to questions and comments from the audience. Mark Zweber, 12320-210th Street W., asked Mr. Feller to explain the difference between the surface water management fee and the storm sewer area charge. Mr. Feller explained that the surface water management fee is an ongoing maintenance fee that property owners pay on their utility bills. The storm sewer area charge is a one time fee charged to the developer for construction of a storm water system. Todd Bornhauser, Lakeville Area Chamber of Commerce, voiced opposition to the proposed increase in development related fees. Ron Gerk, 10466 W. 175th Street, voiced opposition to the proposed increase in development related fees. CITY OF LAKEVILLE SPECIAL COUNCIL MEETING DECEMBER 14, 2009 Page 5 09.89 Motion was made by Miller, seconded by Rieb to close the public hearing to consider a fee schedule amendment by ordinance. Voice vote was taken on the motion. Ayes, unanimous. Mayor Dahl stated that action on the 2010 budget, tax levy and fee schedule ordinance will be taken at the regularly scheduled City Council meeting of December 21, 2009. At that time, the City Council and staff will address questions and concerns brought forward this evening. Mayor Dahl adjourned the meeting at 8:25 p.m. Respectfully submitted, Charlene Friedges ity Clerk