12-08-2008 Truth in TaxationDecember 8, 2008
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MINUTES OF THE HOPKINS CITY COUNCIL
TRUTH-IN-TAXATION PUBLIC HEARING
Monday, December 8, 2008
Mayor Maxwell opened the public hearing at 6:30 pm. Present were Mayor Maxwell and
Council members Rick Brausen, Kristi Halverson, Bruce Rowan and Cheryl Youakim. City
personnel present were City Manager Rick Getschow, Finance Director Christine Harkess,
Assistant City Manager Jim Genellie and Administrative Assistant Debbie Sperling.
Christine Harkess Finance Director and City Manager Getschow reviewed the budget and the
assessment processes, how property taxes are determined and reviewed the proposed budget for
2009.
Finance Director Christine Harkess showed a video on Property Taxes 101.
The budget challenges are: health care costs, PERA rate increase (state mandated) and inflation
(energy costs, fuel & fuel related projects, property & liability insurance and Personnel).
Savings and Efficiencies by the City:
Police Department implemented police vehicle fuel monitoring program to save on fuel costs.
$582, 294 in total savings over last 4 years ($394,329 in grants received to offset program and
capital expenses, $23,309 in donations received to offset program expenses and $164,656
savings realized by using local vendors, omitting capital purchases and reworking cell phone
program).
Fire Department daytime rescue standby program (responded to over 100 calls inception of
program, frees up police allowing them more street time, reduced cost in number of firefighters
responding to rescue calls, faster response to medical emergencies, $10,000 savings in payroll
costs and $2000 savings in building maintenance costs.
Public Works refuse containers in CBD allow for servicing with automated refuse truck
(manpower savings), City Hall HVAC upgrade -replacement of old chiller with efficient rooftop
units -Savings of $20,000/yr, five year payback, In-House Utility Rate Study -savings of
$10,000, In-House Pavement Management Inspections -Savings on annual consulted fees, Fire
Alarm Central Reporting System -Fire, boiler and intrusion alarms routed to dispatch and
savings on annual service contract of $2,500, Restructured PW Department -Combined three
depts., re-organized staff and eliminated one superintendent, Savings on $50,000 per year, HC
sentencing to Service Work Force Program -low risk offenders with Co. Supervisor perform
litter control, landscape area maintenance and grass cutting, Cost saving of $7.00 per hour over
PW seasonal staff, Diseased Elm Tree Removal -combined PW departments resulting in larger
workforce and reduced need for contractual services.
December 8, 2008
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Other Departments:
Administration: Since 2005, received 1153 hours donated for clerical service, a savings of over
$20,000. Assessing contract with Hennepin Co. saves $74,000/yr.
Documents scanned into digital storage system.
Planning & Zoning: Utilizing current staff to do in-house GIS mapping.
Finance: Implemented mandatory direct deposit for employee payroll and fully integrated
finance software.
Other noted items:
City tax on a home valued at $225,000 increases by approximately 4.0% or $43.00, which
equates to $3.50 per month.
The current City's tax rate is 45.01%, the TNT 2009 proposed tax is 47.306%, the 2009 final tax
rate is 47.306% and the Tax rate increase is 1.905%.
The Truth in Taxation notices were mailed last month (November, 2008) by the City. There will
be a continuation hearing on December 16th if needed. The final adoption of the budget and levy
is set for December 16th at the Council Meeting.
Answering Council member Youakim, City Manager Getschow stated that the volunteer program
is a very creative way to save money and help these people from Tree Trust to learn about the
City, which assisted them to get full time employment and give back to the community.
Council member Brausen stated that in regards to health care costs, he would like to see City of
Hopkins ban with other cities to take this issue to higher levels of government and to look at
ways to get the costs down.
Mayor Maxwell then opened the hearing to the public for comment at 7:30 p.m..
Fred Mulvany, 106 18th Ave South, spoke to the Council and also handed out a piece of
paper in regards to "Proposed 2009 General Fund budget & Tax Levy"-see attached.
Virgil Aarness, 16 Ashley Road, provided a letter that the Mayor read into the record-see
attached.
A motion was made by Brausen, seconded by Youakim to close the public hearing. The public
hearing was closed at 7:54 pm.
Next a motion was made by Halverson, seconded by Rowan to adjourn the meeting at 7:54
pm.
December 8, 2008
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Rick Getschow, Secretary
ATTEST:
%~c'" ,
Eugene J. axwell, Mayor
CITY COUNCIL ~
PROPOSED 2449 GENERAL FUND BUDGET & TAX LEV'~
PUBLIC HEARING 12-8-2008
COMMENTS
o In 2008, Market Values decreased for more than half of the residential
properties in Hopkins. The remaining properties either had an increase in
MV or no change in value at all.
o In 2009, most( but not all) homeowners will have an increase in local
property taxes, but in varying amounts.
o In 2008, the~Market Value for my house remained at a constant value of
$226,040, but the 2009 local property taxes will increase by 4.5% or $43.01.
o The preliminary Proposed Salary/Wage & Health Ins. Premium increases
exceeded the preliminary tax levy increase.
o The revised Proposed Salary/Wage & Health Ins. Premium increases also
exceed the revised tax levy increase.
o Next year, I will not see any increased or additional City services ,but yet,
I' 11 get another property tag hike.
o During this economic crisis , I strongly oppose raising local property taxes to
fund "across the board" pay increases for full time and regular part time
City employees.
o I think City employees should start paying a much higher portion of the
premium for their Health Ins. coverage.
Fred C. Mulvany
Thank you, Gene, for considering reading this letter at the Tuesday open forum.
Tax Increases
In today's times when tax increases are very sensitive issues, I think the city officials
should explain in more detail how they have tried to cut cost of operation without
reducing service to the residents of Hopkins. Too much emphasis is placed on asking the
question, "What services would you want to see reduced or eliminated?" instead of the
city looking at how costs can be reduced tv render the services.
Be forthcoming with the citizens of Hopkins regarding the true percentage of city
expenses vs. property tax revenue. When TIF program properties reach maturity and
begin to pay property tax on true value, that action shauld reduce the property tax on
residential housing. In reality, a 3.9 o tax increase to property owners could actually
mean a greater percentage is needed for city operating expense because of additional tax
revenues coming Pram TIF properties, subject of which is not addressed.
Fuel Costs For City Vehicles
The example given at the citizen academy reunion of how the fuel mileage has been
increased to 5.5 MPG an the police squad cars is, in my opinion, a totally unacceptable
figure in today's economy. 'I"here is no reason why a squad car operating in the city of
Hopkins cannot attain a double-digit rnpg figure.
If the public works department does not have an idle time restriction on all the
maintenance vehicles, this should be implemented.
Senior Citizen Recog_nitian
set's be innovative with programs for our senior citizens. Here are a few examples of
fees you could consider eliminating or reducing:
Meter fees on residential properties for seniors
Fees for seniors to participate in city functions
Charges for refuse pickup on residential properties
Virgil Aarness
16 Ashley Road
Hopkins