City Council Minutes 12-09-1998 SpecialMINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Wednesday, Dccernber 9, 1998 - 5 p.m.
Members Present: Bill Fair, Clint Herbst, Roger Carlson, Bruce '1 hielen
Members Ahscnt: Brian Stumpf
A special meeting of the City Council was held for the purpose of allowing public comment on
the proposed 1999 City budget and resulting tax levy.
City Administrator Rick Wolfsteller reported that at the first budget workshop, Council adopted
a preliminary tax levy at the maximum allowed totaling $4,802,470; however, staff was directed
to reduce the $353,000 non-debt portion of the levy increase by approximately one-third. After
further workshops, the proposed tax levy was reduced to $4,617,725, which amounts to a total
levy increase of 18.5%, 1 S% of which is due to debt, and 4.3% related to non-debt portions of the
budget. The City Administrator reviewed residential homestead and commercial tax information
for 1998 vs. 1999 and noted that, when considering the proposed City levy and proposed
maximum levies of the County, School, and Hospital Districts, almost all homestead and
commercial properties would see a reduction in their 1999 taxes.
Councilrnember Clint Herbst stated that the proposed taxes he received for his property showed
the City's portion of taxes increasing $2S0 and noted his concern regarding statements that taxes
will decrease. The City Administrator responded that according to information received from the
County Auditor, a home valued at $175,000 and using the maximum levy amounts would result
in a $7S increase; however, when the City's levy amount was lowered from the maximum
amount, the total tax calculated to a $2S decrease. Councilrnember Bruce Thielen added that
property tax calculations also depend on shifting of the tax burden by the State.
Mayor Fair opened the public hearing.
Mr. Mark Haider of 1230 West River Street stated that he felt the City was missing out on
possible state aid since Monticello receives only 3.S% and the average for other cities is
approximately 3S%. Mayor Fair responded that Monticello's state aid is much less due to its
large tax capacity.
Mr. Craig Wcbcr of 1440 Uak Ridge Circle stated that the valuation for his house increased
6.1 %, and the City's portion of taxes increased 37.7%. l le also noted that Buffalo has a budget
that is about half of Monticello's and felt that Monticello should begin saving money for the
future. Mayor Fair and staff noted that the City had a no-growth budget far many years and is
now in the process of catching up. In addition, the City's tax capacity was decreased by $1.2
million due to legislation changes, which lowered taxes for commercial and industrial properties
and shifted more of the burden to residential properties.
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Special Council Minutes - 12/9/98
Mr. Dick VanAllen, Chairman of the Industrial Development Committee, noted that the amount
to be set aside for purchase of industrial property was reduced from $75,000 to $25,000, and he
requested that Council consider increasing the amount back to $75,000. He noted that the City
needs industrial development to replace future decreases in the NSP tax base. Council members
noted that industrial development had been discussed at the budget workshops and that reserve
fiends could be used for industrial projects if necessary.
Mr. Scott Douglas stated that he hasn't seen a decrease in taxes for his commercial property
resulting from the legislation changes.
Economic Development Director Ollie Koropchak also requested that Council consider
increasing the industrial property budget amount from $25,000 to $75,000, not necessarily for a
specific project but more for firture development.
Mr. Pat Brennan of 2328 Eastwood Circle stated that the City needs to control spending and
asked why his taxes increased $84 due to spending. Mayor Fair responded that when the taxes
were calculated initially, the maximum levy amount was used; however, the levy amount was
reduced during the Council budget workshops. The City Administrator added that the tax
amount increases when a structure is built on the lot.
City Administrator Rick Wolfsteller explained that a portion of the City's increase is due to tax
rate changes in industrial and commercial, which shifted additional tax burden to residential
properties. Because 70% of Monticello's tax base is commercial/industrial, the tax burden shift
is very noticeable.
There being no further public comment, Mayor Fair closed the public hearing.
Mayor Fair noted that Council would be considering adoption of the final budget at their regular
meeting on December 14, 1998.
A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY CUNT HERBST TO
ADJOURN. Motion carried unanimously.
Kare Doty
Deputy City Clerk
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