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HomeMy WebLinkAboutSP November 19, 1995 CITY of ANDOVER 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (612) 755-5100 SPECIAL CITY COUNCIL MEETING - NOVEMBER 29, 1995 TRUTH-IN-TAXATION HEARING MINUTES A Special Meeting of the Andover City Council was called to order by Mayor Jack McKelvey on November 29, 1995, 7:04 p.m., at Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota, to hold the Truth-in Taxation Hearing. Councilmembers present: Dehn, Jacobson, Knight, Kunza Councilmembers absent: None Also present: City Finance Director, Jean McGann City Administrator, Richard Fursman Others PUBLIC HEARING: 1996 PROPOSED TAX LEVY AND GENERAL FUND BUDGET Mr. Fursman gave a presentation to the Council and those present on the projected revenues and expenditures for the General Fund Budget for 1996, compared the budget with those of prior years, explained why taxes may rise faster than the levy, explained the class rates and how taxes are determined, and showed a comparison of Andover's levy with other cities of similar size. The proposed levy will decrease from 19.8 percent in 1995 to a proposed 19.24 percent in 1996. The largest share of the City's revenue is derived from property tax; however, only 17.2 percent of the total tax for residents goes to the City. Because of the low commercial tax base, residential housing makes up the bulk of the tax revenue for Andover. It is often found that the taxes rise faster than the City's levy because of the increases in property valuations. Those valuations are controlled by the county, and the time to challenge the valuations is in April at the Board of Equity. In 1995, Andover ranked 93 out of 103 communities in the Metropolitan Area for property taxes; and the tax rate of 19.24 percent is below the average of 28 percent in Anoka County. In comparing the number of full-time positions in Andover to residents served, Andover serves 541 residents while the average of other cities of the same size serves 247 residents per full- time worker. Mayor McKelvey opened the hearing for public testimony. Randv Coleman - didn't understand how the graph showing Andover's tax comparison with Columbia Heights relates to the number of residents served. He didn't see much differençe in the tax rates, yet they have four times more employees per resident than Andover. Mr. Fursman explained Andover does a lot of contracting of its services, including the contract with Anoka County for police protection which significantly decreases the residents per worker. Also, Columbia Heights has a much larger portion of their taxes paid by a commercial and industrial base. He later found more information which showed if Andover were to adopt the same rate of tax as Columbia Heights, Andover's tax rate would go up by 37 percent. Mayor McKelvey noted the City is working hard to bring more commercial business into the community. Special City Council Meeting - Truth-in-Taxation Hearing Minutes - November 29, 1995 Page 2 (Public Hearing: 1996 Proposed Tax Levy and General Fund Budget, Continued) Carroll Abbott. 2917 142nd Lane - asked who is filling the position of Community Service Officer. Mayor McKelvey noted it is being done by the Anoka County Sheriff's Office. That person will handle the minor calls so the squads can be released to respond to emergency calls more quickly. Mr. Coleman - stated last year the complaint was on police protection. There was a confusion as to what protection there was in the City. He asked what the protection will be for 1996. He's lived in Andover for 17 years and has been in his new house for 2 1/2 years. He has seen a deputy go through only one time. He also related a negative experience with a Deputy's lack of concern over a potential grave on his property. Councilmember Jacobson stated in response to the concern for police protection last year, the City has increased coverage at a significant increase in cost to add two more police officers and one CSO. That is one of the things driving the cost of the budget up. Sandra Kerrv. 176th and Round Lake Boulevard - asked who does the assessing. Mayor McKelvey explained the County Assessor's Office does Andover's assessing. Each year residents receive a post card before the Board of Review hearing that tells the property value for the next year. That card also lists the dates of the hearings by the City and the county. Mr. Fursman also reviewed the factors that are considered in determining market value. Mr. Coleman - now understood and agreed with Mr. Fursman' s comments. He built his house 2 1/2 years ago. The assessor came out, but only looked around from the door. The second time the assessor went through the house and acknowledged there was a problem with the market value. Mr. Coleman had noted the taxes on his neighbor's house which had more ameni ties were $1,500 less than his. To compensate, the assessor increased his neighbor's market value instead of lowering his or meeting in the middle. John Kerrv - asked why they can't get the card with their market value at the same time the information for this hearing is sent to them. Mayor McKelvey explained the time table for the budget process and the sequence of events set up by the legislature. Mr. Kerrv - stated his property went up $1,500 two years ago and $8,600 this year. He hasn't gained any more services and felt it is ridiculous. Councilmember Dehn encouraged residents to contact their county and state legislators on issues that concern them. Mr. Fursman advised residents to first call the county assessor if they have a question or concern over their property valuation. If it is not resolved, then attend the City's hearing, and then the county's hearing if necessary. Harold Lindsev. 181st Avenue - with the increases in taxes, the concern of those in the rural area is that they are not paying for the Special City Council Meeting - Truth-in-Taxation Hearing Minutes - November 29, 1995 Page 3 (Public Hearing: 1996 Proposed Tax Levy and General Fund Budget, Continued) increasing population in southern Andover. He understands the City looks at the residents as a whole, but those in the rural setting havo a real concern and do not what to pay for the southern portion because they receive no benefit. He's lived there for ten years and hasn't seen any increase in services other than fire and police protection. There is a county road in front of his property. He also asked if he could see how the expenses are broken down. Mr. Fursman stated that information is available to him. Mr. Lindsev - asked if the City has looked at the possibility of its own full-time police department versus contracting with the county. Mayor McKelvey stated that has been studied, and it is considerably more expensive for a full-time Andover Police Department, though some day the City may be able to afford to do that. Winslow Holasek - noted Ham Lake is not listed on the back page of the report on the number of residents served by full-time employees. Mr. Fursman stated in Ham Lake each full-time employee serves about 900 residents, but they have no public sanitary sewer or water. Those cities listed were only those within a similar population range. He used cities with populations of 14,000 to 24,000. Andover is approaching a population of 22,000 now. Mr. Kerrv - asked if the monies to buyout the junkyards comes out of this budget. Mayor McKelvey stated no, it comes from the TIF District. He went on to explain how the TIF district functions. Mr. Kerrv - asked of the TIF funds will be used for a new City Hall. Mr. Fursman guessed about 1/10 of 1 percent would be used. He noted some of the projects that those funds can be used for. Mr. Holasek - wondered if the figures on the comparative expenditures page are actual to date and he questioned the difference in the figure for administration in 1994, 1995 and 1996 . He also noted the actual expenses for 1995 are not yet known, so they must really budget for two years. Ms. McGann explained in 1994 the administration and City Clerk's departments were combined. They were separated in 1995. Mr. Fursman explained the budget process is started in June of each year. Mayor McKelvey asked for a motion to close the public hearing. MOTION by Knight, Seconded by Kunza, to so move. Motion carried unanimously. 8:05 p.m. .... . "-- - -.- Special City Council Meeting - Truth-in-Taxation Hearing Minutes - November 29, 1995 Page 4 ANNOUNCE ADOPTION DATE Mr. Fursman recommended the 1996 General Fund Budget be adopted at the Council's regular meeting on December 19, 1995. MOTION by Knight, Seconded by Dehn, to so move. DISCUSSION: Councilmember Jacobson asked if the budget could be approved tonight since there are no changes to it. Mr. Fursman explained legally the budget cannot be adopted this evening and proper notice must be given. The earliest it can be adopted is at the December 19 regular meeting. Motion carried unanimously. OTHER BUSINESS Sunday Liquor - Councilmember Knight noted that both Christmas Eve and New Year's Eve fall on a Sunday night; but because of the ordinance, Pov's will not be able to serve liquor those evenings. Mayor McKelvey stated Pov's is aware of that fact. One thing being considered is a teen evening with music, etc. , and no alcoholic beverages served. MOTION by Kunza, Seconded by Dehn, to adjourn. Motion carried unanimously. The meeting was adjourned at 8:10 p.m. Respectfully submitted, ~~""~~L Mar lla A. Peach Recording Secretary .... . .. - ~ -- . ~