HomeMy WebLinkAbout12-02-08December 2, 2008
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Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in special session
on Tuesday, December 2, 2008 at 7:00 PM in the St. Joseph City Hall.
Members Present: Mayor AI Rassier, Councilors Renee Symanietz, Dale Wick, Rick Schultr, City
Administrator Judy Weyrens
City Representatives Present: Finance Director Lori Bartlett, Police Chief Pete Jansky, Public Works
Director Terry Thene
Others Present: Patrick Flynn, Mike McDonald
Public Hearing - 2009 Budget: Rassier called the Public Hearing to Order and stated the purposed of the
hearing is to review the preliminary budget before final adoption. Weyrens stated that based on MN
Department of Revenue guidelines, the City is not required to conduct a truth and taxation hearing.
However, the City did publish a public hearing for the budget to solicit public input. The Preliminary
Budget presented represents an operational budget and does not include any staff additions.
Patrick Flynn, 620 Jasmine Lane, approached the Council to discuss the recent tax notice that he
received. He stated that they moved into their home in April. The figures shown on his recent proposed
tax statement were shocking. He stated that, last year, he purchased his home for $300,000. Last year,
his property value was $332,000 and this year it shows a property value of $387,900. Based on
conversations with realtors, home values have dropped 5-7% which would make his home worth
$285,000, $100,000 less than what he is being taxed for. Weyrens advised Flynn that the property values
are set in April and that if he had questions regarding his property values, he should contact Kelly at the
Stearns County Assessor's Office. Flynn clarified that the numbers for 2007 are final to which Weyrens
stated they are. He was advised that since he owns several acres of land, his land values are based on
the number of developable lots.
Bartlett presented the Council with a brief summary of the preliminary budget. She stated that the
General Fund has an increase of approximately $44,000. The general fund is broken down by salaries
and befits, repair and professional services, capital improvement, fire protection and other financing uses.
Bartlett also presented the Council with a chart showing the change in expenditure by department. She
added that growth in the City has slowed down. The City is showing a larger deficit than expected and
they are unsure as to what services can be reduced to make up the deficit.
Bartlett stated that the levy could have been as high as $1,184,236. The current levy is $1,179,551.
Rassier stated that the Council has looked at these numbers and they have cut what needed to be cut,
services would be next to be cut. Wick questioned whether the LGA numbers have been certified for 2009
to which Bartlett stated that they are proposed, not certified. He then questioned what would be done if
the LGA were to be cut. Weyrens stated that the City would then need to look at cutting programs and
services. In her opinion, this is a responsible budget for the City as all the Department Heads have
reduced the budget to the minimum needs.
Schultz questioned the cost to run a government to which Weyrens stated that there are different opinions
as to what services are essential. The Council would need to determine what services they feel are
essential and then the operation cost could be determined. Schultz agreed stating that it is both
subjective and objective. If you were to ask different people, you would get different answers to what is
essential for the City. Rassier suggested cutting the APO and the League of Minnesota Cities. Jansky
advised the Council that the department heads have been discussing this for a long time and they are
already working on contingency plans.
Mike McDonald, 213 13"' Avenue SE, approached the Council as well. He stated that the numbers are not
logical. He questioned whether the salaries and benefits for 2008 were overstated as the proposed
budget shows a decrease in salaries and benefits. Bartlett stated that this is the general fund budget and
some salaries were not included in this budget as they are charged to some of the enterprise funds based
December 2, 2008
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on how the employee's time is spent. Weyrens stated that in 2008, the City allocated funds for more staff;
however, there was no additional staff added.
Symanietz made a motion to close the public hearing. The motion was seconded by Wick and
passed unanimously.
Weyrens stated that the 2009 budget will be on the agenda for December 4, 2008 under administrator
reports for possible adoption as final.
Adjourn: Wick made a motion to adjourn; seconded by Symanietz and passed unanimously.
Ju y eyre s G
istrator