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City Council Minutes 12-04-2002 Special( MINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL Wednesday December 4, 2002 - p.m. Members Present: Roger Belsaas, Roger Carlson, Clint Herbst, Brian Stumpf and Bruce Thielen. Members Absent: None. 1. Call to Order. Mayor Belsaas called the meeting to order at 5:05 p.m. and declared a quorum present. 2. Consideration of awarding sale of 2002 GO Improvement Bonds. Mark Ruff from Ehlers & Associates, was present to provide information on the proposed sale of 2002 general obligation bonds in the amount of $2,420,000. A total of 7 bids were received with United Bankers Bank of Blooming being the low bidder with 3.362% true interest rate. The proceeds of the bonds will go to reimburse the City for costs of improvements for Walnut Street, 7`" Street East, CSAH 75 and Cedar Street. He added that Moody's Investor Services had given the City a bond rating of A3 and the City's ability to maintain good cash balance reserves was one factor in determining the rating. There are four major factors in determining the rating: 1) City finances; 2) Social and economic factors; 3) Management; and 4) How growth is managed. He noted that Monticello had diversity in their tax base which he also felt was important. CLINT HERBST MOVED TO ADOPT THE RESOLUTION AWARDING THE SALE OF THE 2002 GO IMPROVEMENT BONDS TO UNITED BANKERS BANK OF BLOOMINGTON AS RECOMMENDED BY THE CITY'S FINANCIAL CONSULTANT, EHLERS AND ASSOCIATES. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 3. Public Hearing on adoption of the 2003 budget and tax levy. City Administrator, Rick Wolfsteller, provided background information on the 2003 budget and tax levy noting that the City's increase in tax dollars collected over last ($283,939) is approximately 4%. There were no major changes from the preliminary budget that was adopted and the final proposed tax levy is set at $6,782,018.00. The budget covers funding for the street reconstruction project, increased police protection and debt service. Rick Wolfsteller stated that the market value increases due to inflation and new residential and commercial construction has allowed the City's tax base to increase at a higher percentage rate than the City's levy increase. Clint Herbst commented on Xcel Energy's portion of the City's market value and how that has changed in the past few years. Special Council Meeting - 12/4/02 Mayor Belsaas opened the public hearing for Truth in Taxation. Mr. Lawrence Clausen stated that his Truth in Taxation notice from the County indicated a 30% increase which he felt was excessive. He pointed out that an article in the Minneapolis papers stated that apartment units could expect to see about a 4% so he questioned why he was seeing a 30% increase. It was pointed out that the valuation of his property had increased by about 10% (increased by $7,200) and the City's share of the taxes increased from $315 to $380. The Council discussed the notice but was unable to account for the 30% increase and suggested that Mr. Clausen contact the Wright County Auditor. It was noted that another resident had appeared before the start of the meeting and her notice indicated a 50% increase in taxes for her single family residence. There was no one else present who spoke on the proposed 2003 budget and tax levy. Mayor Belsaas then closed the public hearing. 4. Adjourn. CLINT HERBST MOVED TO ADJOURN AT 5:30 P.M. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Recording Secretary 7