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HomeMy WebLinkAboutTNT December 6, 2004 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER. MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US City of Andover Truth in Taxation Hearing 2005 Proposed Budget Monday, December 6, 2004 7:00 p.m. Council Chambers C I T Y o F r'~ '-"" . Ct/.,-y NDOVE ~ \-;).-.::<1-0'-\ TRUTH IN TAXATION HEARING - DECEMBER 6, 2004 - MINUTES The Truth in Taxation Hearing was called to order by Mayor Mike Gamache at 7:00 p.m., Monday, December 6, 2004 at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Council Members Present: Don Jacobson, Mike Knight, Ken Orttel, Julie Trude Council Members Absent: None Also Present: Jim Dickinson, City Administrator Lee Brezinka, Assistant Finance Director Mr. Dickinson explained that Council is required to hold Truth in Taxation hearings to give the public the opportunity to comment on the proposed 2005 budget and tax levy. If this hearing is not sufficient for all public comment a continuation hearing will be necessary. If it is not necessary the city must announce the date and time for the official adoption of the final levy and budget. It is expected that date will be December 21,2004. Mr. Dickinson stated that the 2004 budget was $42,335,402 and the proposed 2005 budget is $38,497,356, a decrease of9.1 percent. Mr. Dickinson reviewed the revenues and expenditures for 2004 and 2005. He noted that Council set up a series of guidelines that staff followed in preparing the operating budget. The 2005 budget includes the funding of a Parks Department Maintenance employee that was approved as part of the 2003 budget but was not hired due to the State's budget shortfall. Also included are a maintenance worker in the streets department and the conversion of the year-round planning intern position into an Associate Planner position. The salary compensation adjustment package of 5% will provide wages that are competitive with other government entities. This includes a 4% across the board cost-of- living increase and using the other 1 % to bring into market positions that are not competitive at this time. Mr. Dickinson noted that the attorney's budget reflects a 4% increase and the Sheriff's contract has a 4% general increase with an additional deputy starting mid-year. Council Member Knight asked Mr. Dickinson to explain the handout that includes spending, taxes and local tax rate comparison. Mr. Dickinson explained that the spending deals with the total spending in the city; the taxes show what portion is actually Truth In Taxation Hearing December 6, 2004 - Minutes Page 2 collected from the residents and the tax rate comparison shows the current local tax rate, the 2005 tax rate if there is no levy increase and the 2005 proposed tax rate. He noted that on a $200,000 home the tax capacity value is $2,000. Thirty-one percent of the $2,000 (approximately $600) is the amount that goes to the city. Council Member Orttel stated the other entities such as the county and school district also compute their tax off the tax capacity value. Mr. Dickinson reviewed his handout explaining the 2005 proposed tax rate breakdown, expenditures by function, etc. He explained that limited market value is a limitation on the amount that a property's market value may grow from one year to the next for purposes of property taxation. It was enacted to help mitigate rising property taxes resulting from rapidly inflating property values. Steve Carlson, 2180 _141" Avenue NW -noted that he has a 17.6% property tax increase. He stated that we are one of the largest cities and we don't have our own police department and we don't have a high amount of city services. Mr. Dickinson explained that our city services include parks and recreations, flIe and police protection, code enforcement, etc. Mr. Carlson asked if the new YMCA accounts for part of the taxes and what the need is for a YMCA. Mayor Gamache stated the YMCA is paying for their part of the building. The residents' part of the payment is for the ice arena and fieldhouse. Gary Setala, 650 - 141 " Lane NW - stated that his taxes went up 16%. He asked if the city's budget were less would that change the limited market value. Council Member Orttel stated that 10 years ago a home over $115,000 paid 3% of its value; today it's 1% for everyone. Winslow Holasek, 1159 Andover Boulevard - stated that the city needs commercial businesses, not only for taxes but also for services. Without a major highway it's hard to attract commercial businesses. The Mayor, Council and staff have done a good job of holding taxes down. John Feges, 15456 Eagle Street NW - stated his property taxes increased by 38.4%. Mr. Dickinson noted that he is not in limited market value so an increase next year would likely be less. Motion by Jacobson, seconded by Knight to adopt the 2005 budget at the second meeting in December. Motion carried unanimously. Truth in Taxation Hearing December 6, 2004 - Minùtes Page 3 Mayor Gamache stated that now that the ice arena is open there is public skating on Saturdays and Sundays from 2:45 pm - 5:00 pm. At this time there is no skate rental. Motion by Jacobson, seconded by Knight to adjourn. Motion carried unanimously. Meeting adjourned at 8:05 p.m. Respectfully submitted, U'IJ~ Vicki Volk City Clerk