City Council Minutes 12-03-1997 SpecialMINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Wednesday, December 3, 1997 - 5 p.m.
Members Present: Bill Fair, Clint Herbst, Brian Stumpf, Roger Carlson, Bruce
Thielen
Members Absent: None
A special meeting of the City Council was held for the purpose of conducting the
Truth in Taxation public hearing for the proposed 1998 budget for the City of
Monticello.
Mayor Fair opened the public hearing.
City Administrator Rick Wolfsteller reported that at the last budget workshop,
Council reduced the proposed 19981evy by $134,000, which resulted in a 1998 levy
of $3,883,013. This amount would represent a net increase of 26.90% over 1997;
however, 20.52% of the increase would cover debt payments, while 6.38% would be
used for non-debt related items. He also explained that in order to keep the general
levy at its maximum allowed by the Department of Revenue, it was proposed to
transfer $134,000 from the liquor fund reserves to a debt service bond account,
which would preserve the City's higher levy limit should it be needed in future
years.
Overall, it was estimated that, even though the City's portion of 1998 taxes would
be increased, most residents would see a decrease in their taxes or the amount
would remain the same as in 1997, which was primarily due to the School District's
levy decrease resulting From additional state aid.
Mayor Fair requested that the previously-tabled web site maintenance service
proposals be placed vn the Council agenda in January 1998 in order to determine
whether the budget figures would need to be reorganized to accommodate payment
for this service.
Mr. Jeff Nelson noted that his statement showed the City portion of his taxes
increasing 50°la for 1998 and questioned whether there had been a change in the
way taxes were calculated. The City Administrator explained that the City's
portion of the tax statement shouldn't have doubled since the proposed levy was
increased approximately 30%; however, an increase in the home's valuation due to
improvements or changes in area property sales would cause an increase. It was
suggested that Mr. Nelson approach the Board of Review in 1998 to question the
valuation of his property.
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Special Council Minutes - 12/3/97
Mrs. Opal Stakes questioned why the valuation of her property increased $5,700 for
1998. Council explained that property valuations are reviewed each spring by the
Board of Review and suggested that she contact the County Assessor to find out
why the 1997 valuation was increased.
Mr. Joe Holthaus questioned why the City portion of his tax statement showed a
65% increase. The City Administrator explained that the 19981evy submitted by
the City proposed a 30% increase, and the School District's levy decreased, which
should keep taxes about the same as 1997 or cause a slight increase for 1998;
however, the State of Minnesota changed the formula in order to give commercial
and industrial properties a break on their taxes, which could be one of the causes of
the increase, along with increases in the valuation by the Assessar.
There being no further public comment, Mayor Fair closed the public hearing.
Council discussion focused on whether additional reserve funds should be used in
order to decrease the non-debt portion of the levy; however, no changes were made
to the budget at this time. The final 1998 budget will be adopted at the regular
Council meeting scheduled for Monday, December 8, 1997.
A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY BRIAN STUMPF TO
ADJOURN THE MEETING. Motion carried unanimously.
Office Manager
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