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1998-12-07 Truth in Taxation HearingPage No. 1 December 7, 1998 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Monday, December 7, 1998 Pursuant to due call and notice thereof, the adjourned meeting of the City Council, City of Mendota Heights, Minnesota was held at 7:30 o'clock p.m. at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. Acting Mayor Smith called the meeting to order at 7:30 o'clock P.M. The following members were present: Acting Mayor Smith, Councilmembers Dwyer, Huber, and Krebsbach. Mayor Mertensotto had notified the Council that he would be absent. TRUTH IN TAXATION Acting Mayor Smith opened the meeting for the purpose of HEARING conducting a Truth -in- Taxation hearing to consider the proposed city tax levy and budget for 1999. Treasurer Shaughnessy informed Council and the audience that this evening's meeting is to receive input on any changes Council would like to see in the budget and to receive public comments. He explained that the final budget and levy documents will be presented to Council at the December 15 continued Truth -in- Taxation hearing. Treasurer Shaughnessy reviewed a number of graphics showing comparisons of tax capacity from 1994 through 1999 and the impact of state imposed tax capacity rate changes. He informed Council the proposed city levy should result in a reduction in the city portion of next year's property tax for both residential and commercial properties. He reviewed graphics showing informed Council that reviewed the proposed General Fund Revenues and expenditures as well as revenues and expenditures for the Engineering, Utility and Storm Water Utility Enterprise funds. He explained that the proposed net levy is $2,800,000, which is $18,000 less than what had originally been proposed. He stated that the expenditure for hospitalization insurance costs has been reduced by $9,000 and that the city will receive $9,000 in PERA aid that had not been anticipated. Page No. 2 December 7, 1998 Treasurer Shaughnessy stated that the proposed budget includes a $60,000 contingency which will be used in part for correction of Year 2000 (Y2k) non - compliant equipment problems. He informed Council that the Fire Chief and Assistant Fire Chief do not currently receive pays for calls or training but are paid an administrative salary. He explained that contingency funding has been placed in the budget in each of the past three years to allow for an adjustment in the Chief and Assistant Chief pay. Responding to a question from Councilmember Huber, he stated that the proposed budget was prepared with a proposed increase in the administrative salaries for the two individuals but no pay for calls or training. Acting Mayor Smith stated that it is her understanding that there are many different ways the fire chief and members of the department can be compensated and those possibilities have been listed in communications to Council. She asked if staff has researched what is being done throughout the fire community. Administrator Batchelder responded that staff has been compiling research and will submit information to Council for the December 15 meeting. Treasurer Shaughnessy stated that the hourly rate of pay for volunteer fire fighters is not proposed to change, but an increase is in the city's contribution to the firefighters' pension fund equal to 3% of their salary (an 11 % increase in the Fire Relief levy) is again proposed for 1999. He noted that the department members have requested that annual increases go to the pension fund rather than salaries. He informed Council that the chief and assistant chief are paid salaries but they receive the same retirement benefit as the other members of the department because the total contribution to the pension fund is divided equally amongst the members irregardless of the amount they individually receive in fire pay. There were no public comments. Acting Mayor Smith stated that the Truth -in- Taxation hearing will be continued to a subsequent hearing on December 15. She invited the members of the community to visit City Hall and look at the proposed budget and to attend the December 15 meeting if they have any questions or to give Council input. ADJOURN There being no further business to come before Council, Councilmember Dwyer moved that the meeting be adjourned to the Page No. 3 December 7, 1998 subsequent Truth-in-Taxation Hearing to be held at 7:30 p.m. on December 15. Councilmember Huber seconded the motion. Ayes: 4 Nays: 0 TIME OF ADJOURNMENT: 8:15 p.m. Kaffileen M. Swanson City Clerk ATTEST: Jill Smith Acting Mayor