Special City Council Meeting Truth in Taxation Pubic Hearing

Special City Council Meeting Truth in Taxation Pubic Hearing

Truth in Taxation Public Hearing – 12-04-00 - 1

Minutes

Special City Council Meeting – Truth in Taxation Pubic Hearing

December 04, 2000

Call to Order Roll Call

Pursuant to due call and notice a special meeting of the St. Michael City Council was held on Monday, December 04, 2000 at St. Michael City Hall. The purpose of the hearing was to conduct the Truth in Taxation Public Hearing. Mayor Kessler called the meeting to order at 7:00 P.M. The Pledge of Allegiance was said. The following Council Members were present: Mayor Kessler and Councilors Dean Eggert, Ken Duerr, Joe Hagerty and Tom Hagerty. Also present were City Assessor Tom Zander and Administrator Bob Derus.

Introduction

Mayor Kessler briefly introduced the meeting and explained that all Local Governments with populations greater than 500 are required by State Law to conduct a Truth in Taxation Hearing prior to setting the local property tax. The City must review the proposed levy and discuss the proposed increase and reasons for the increase. The public must be given a reasonable amount of time to answer questions. Mayor Kessler then asked Administrator Derus to explain the budget and levy.

Explanation of Proposed 2000 Property Tax Levy

Derus presented the following charts to explain the increase in levy:

TAX LEVY COMPARISON – 2000 TO 2001

Year ExplanationAmount% Change

2000 General Purpose Levy $1,620,99510.14 %

2000Bonded Debt $89,050 0.0 %

2000EDA 0 NA

2000 Total $1,710,045 13%

Year ExplanationAmount% Change

2001 General Purpose Levy$1,800,000 11.04%

2001Bonded Debt $95,550 7.3 %
2001EDA $60,000 NA

2001 Total$1,955,550 14.35%

The following chart was presented to show what the increase in levy is funding:

ExplanationAmount

  • Public Works$80,000
  • Community Development $69,000
  • Bonded Indebtedness $5,500
  • Downtown Redevelopment$60,000 *
  • Miscellaneous$31,000

TOTAL $245,500

* Downtown Redevelopment is a new levy

Proposed 2001 Budget

Derus briefly went over the proposed 2001 line item budget.

Public Hearing - Question and Answer

Mayor Kessler declared the meeting open for public hearing on the proposed levy and budget. The following is the summary of public testimony:

Wally Walz, 11813 36th Circle NE: I am asking this question for someone who could not be present tonight - Why are the tax bills for two owners with an almost identical floor plan in our development so different?

Tom Zander explained that there are a lot of things that could explain it. Most likely there were different values, perhaps caused by the timing of construction.

Wally Walz, 11813 36th Circle NE: Will we cut taxes next year?

The Council explained that an individual’s taxes were not likely to go up too much since there was a lot of growth, however the overall tax levy would rise. This led to a long discussion between residents, City Council and staff on property taxation, assessing procedures and laws and city services.

Moved by Duerr, seconded by Joe Hagerty to close the public hearing at 7:40 P.M.

Motion carried unanimously.

Administrator Derus announced that the Council was likely to adopt the levy at the 12-12-00 City Council meeting.

Adjourn

Moved by Tom Hagerty, seconded by Dean Eggert to adjourn at 7:45 P.M.

Motion carried unanimously.

Attest:

______

City AdministratorMayor