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City Council Minutes 12-06-2000 SpecialMINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL TRUTH IN TAXATION HEARING Wednesday, December 6, 2000 - 5 p.m. Members Present: Roger Belsaas, Roger Carlson, Clint Herbst, Brian Stumpf and Bruce Thielen. Members Absent: None Mayor Belsaas called the meeting to order at 5:05 p.m. and declared a quorum present. City Administrator, Rick Wolfsteller, stated that this meeting is the Truth in Taxation hearing which provides the public an opportunity to comment on the proposed budget and tax levy for the year 2001. Rick Wolfsteller explained that the proposed final budget for 2001 is essentially the same as the preliminary budget certified to the County in September with only some minor revisions, such as funding for Community Education, the YMCA Detached Worker Program, and a proposed bike park. In budgeting for Community Education and the YMCA, city staff determined that 72.8% of the school tax value comes from the City of Monticello so 72.8% of the amount requested was budgeted. The same formula was used for the YMCA request. However, it was noted that if funding was not received from the other. entities that comprise the school district and the YMCA service area, the City would fund only 50% of the requested amount. Rick Wolfsteller explained that the proposed budget shows expenditures in excess of revenues but there are some expenditures that are being funded from reserves. The proposed 2001 levy is set at $5,067,342 which would be a 6.9% increase in dollars collected over the 2000 levy but just a 2.4% increase in tax rate. The City's 2001 tax capacity rate would be 37.146 if the budget is left as it is. The Council reviewed the information submitted with the proposed budget relating to market values and tax capacity values. Rick Wolfsteller also informed the Council that the City's levy for bonded indebtedness would average about 2.2 million per year for the next 13 years. The council also discussed the impact that the depreciation of the NSP facility had on the City's tax values. Mayor Belsaas opened the public hearing. Patricia Schmitz, 301 Washington Street, stated she lives on a fixed income and the increases in her taxes have put her in a position of deciding whether she can keep her home or give it up. She asked that when the Council considers the budget that they keep in mind how the tax increases, even if they are small increases, impact those people on fixed incomes. She also stated that she believed having NSP in the area should reduce the tax burden for the city residents. Mayor Belsaas responded stating that the City's budget was set looking carefully at keeping spending under control. Bruce Thielen added that as Monticello's valuation continues to grow the tax burden is shared by more people. Arnold Dehn, who lives in Rogers but has two rental properties in Monticello located at 625 and 705 1 Council Minutes - 12/6/00 East Third Street also voiced his objection to the tax levy. He stated that the valuation on his property has jumped dramatically so the tax impact of this budget is significant. He owns property in both Monticello and Rogers and he compared the two communities noting that in Rogers he wasn't picking up the cost of a new city hall facility. He suggested that if the private sector had built the swimming pool and community center, the City would be collecting taxes from it, instead, he as a property owner in Monticello is paying taxes to support it. Clint Herbst stated that he had also received a call from a property owner in Meadows Oaks 4"' Addition who could not be present at the meeting but did have questions regarding the taxes. Clint Herbst suggested that in future years the Truth in Taxation meeting be held later in the evening. It was noted to those present that the City of Monticello does not receive LGA (Local Government Aid) which other communities do receive. The Council also indicated that if the property owners had questions about the valuation on their property that is an item that would need to be discussed with the assessor or at the Board of Review meeting which is held in the spring. Mayor Belsaas closed the public hearing. The Truth in Taxation meeting was adjourned at 5:45 p.m. 00 Recording Secretary (�J 2