12-08-03 BUDGET HEARINGMinutes for 2004 Budget Public Hearing
December 8, 2003
A budget hearing was held on Monday, December 8, 2004 in the Council Chambers at
Hopkins City Hall. Present were Mayor Maxwell and Council members Rick Brausen, Karen
Jensen, Diane Johnson, and Bruce Rowan. Also present were staff members Steve Mielke,
City Manager, and Lori Yager, Director of Finance.
The meeting was called to order at 6:30 p.m, by Mayor Maxwell.
Finance Director Lori Yager gave a presentation on the 2004 budget and tax levy.
Mayor Maxwell opened the public hearing.
Virgil Arness, 16 Ashley Road asked about the increases in valuations and tax revenue. It
was explained that the increases in valuation on residential property will cause increases in
the tax burden for residential properties, more than apartments or commercial and industrial
increases. It was also stated that increases in valuation do not result in increases in tax
revenues for the city. Tax revenues are derived from a specific tax levy decision during the
budget process.
Mr. Arness asked about franchise fees and how the city calculates the impact of the gas and
electric utilities on city streets. He proposed a charge to industrial users for the use of heavy
trucks if franchise fees are considered fair. It was explained that state law would prohibit the
assessment of fees against heavy truck users.
Mr. Arness indicated that the police department had the least amount of cuts in the budget
and suggested that there are ways in which the police department can save money through
the purchase of more economical and less costly vehicles. Mayor Maxwell replied that the
city would look at the types of vehicles purchased by the police department, with Mr. Arness'
comments in hand.
Don Roesner, 618 West Park Valley Drive, discussed the franchise fees indicating that the
system that has been established for the franchise fees are not fair to residential single
family homeowners and since the billing system cannot reasonably made fair, the city should
not impose the franchise fees. Mr. Roesner also indicated that he objected to the
construction of the facilities due to the tough economic times. Mr. Roesner stated that he felt
the use of tax increment financing by the city has been excessive and that the city should cut
back on its use of tax increment financing. Additionally he questioned the revenues stated
for the Arts Center, indicating that the city was misleading the public.
Tom Green, 14 Hawthorne Road, stated that much of the city's problems are a result of the
fact that Hopkins is a transient city, having developed with an excessive amount of apartment
complexes. He also stated that the problems facing the city are not a result of the state's
action, that is the city's problem, and that the city should be self sufficient and not rely upon
state finances.
Dennis Meuwissen, owner of a commercial structure a# 314 17t~' Avenue North, indicated that
his taxes and property values have both been going up at a rate that is too high. He also
stated that he spoke with the Hennepin County appraiser, who stated that the valuation
Budget Hearing Minutes 12/08/2003
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increases were good and that the taxes would be passed on to his tenants. Mr. Meuwissen
asked the Council to reduce taxes.
Mike DeCosta, 217 19t" Avenue North, asked about the tax levy and how much of the tax
levy was going toward bonds. He stated that the facilities were necessary but the timing was
bad.
John Miller, 100 Maple Hill Road, explained to the Council that he felt the city needed to have
a long-term plan for the city that could be documented and that would dove-tail with a
financial plan, such as the budget. He stated that it is difficult for residents to look at budget
numbers without being able to know what the long-term plan is for the city. After discussion,
Mayor Maxwell indicated that such a plan will be discussed and possibly developed.
Fred Mulvaney, 106 18t" Avenue South, asked for a clarification on the refuse rates. Finance
Director Yager indicated that the $18 per month that was shown is not an increase, but the
average cost today. He also asked for clarification on the 2003 property tax levy, which was
$7,168,000.
Greg Zoidas, 201 Homedale Road, discussed a Star Tribune article wherein property tax
levies and rates were discussed. He indicated that he and his neighbors are questioning why
the City of Hopkins rate is so much higher than surrounding communities. It was explained
that while the rate is higher, it is attributable to a number of reasons, and that property tax
base is significantly higher in other communities. It was further stated that basic services and
spending on a per capita basis was relatively the same between the communities, but that
tax base, along with levy, determined the rate.
Don Roesner, 618 West Park Valley Road, told the Council that the city needed a vision and
that he felt that the city's expenses needed to be better controlled.
After discussion a motion was made by Jensen, seconded by Rowan, to close the public
hearing. The motion passed unanimously.
There being no further business, a motion was made by Johnson, seconded by Jensen, to
adjourn the meeting. Motion passed unanimously. The meeting was adjourned at 8:30 pm.
ATTEST:
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