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Home My WebLink AboutTT December 3, 1997 l/r{Jrt.;j'¿(l 12-3-17 CITY of ANDOVER ANDOVER TRUTH IN TAXATION MEETING - DECEMBER 3,1997 MINUTES The Truth in Taxation Meeting of the Andover City Council .vas called to order by Mayor Jack McKelvey on December 3, 1997,7:05 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present: Mike Knight, Ken Orttel Councilmember absent: John Kunza, Bonnie Dehn Also present: Finance Director, Jean McGann City Administrator, Richard Fursman Others PROPOSED 1998 GENERAL FUND BUDGET Mr. Fursman recapped the strong growth in Andover in 1997 in residential, commercial and governmental areas. He also noted that Andover is one of the top gainers in population growth since 1990 with a 47.1 percent increase in the last seven years, The growth has resulted in an increase in - market values in Andover for resideniial and commercial areas. About 90 percent of Andover's tax base is residential, which is considerably higher than most other communities. The residents per employee in Andover is 385, which excludes the police department, and is the highest ratio of any of the other nine fastest growing cities. Of the average Andover property tax bill, the City receives 18.3 percent, the county 28.0 percent, the school 52.2 percent with special assessments of 1.5 percent. The total General Fund Budget is $5,456,612 of which approximately $1.6 million is for t}¡e general government, $1.6 million for public safety, $2, I million for public works and $125,000 for other expenditures. The major changes to the budget reflect the Public Works building, increased police and fire protection, increased Public Works staff, an expansion of the cracksealing and sealcoating program, and an additional snow plow. There is also about $420,500 in new tax revenue. Since 1990 there has been a 35 percent increase in the road mileage, a 20 percent increase in park acres and 2,790 new homes, Out of 105 communities in the metropolitan area, Andover ranks 95 with only 10 communities having a lower tax rate. Sophie Kotlowski - stated the City is forcing her out of her home. The taxes keep increasing, $2,000 this year; but she can't pay them. The person who said he was going to buy her property only gave her a deposit, but she didn't know ifhe will really purchase the property or not. She didn't think the increased valuation on her property makes sense. Her house is 100 years old and is falling apart. It is small and no one will do the needed repairs. She's lived there since 1943 and wants to stay there until she dies. There are wetlands and eaSements on her property, which she feels diminishes the value of her property. She only gets paid $10,000 a year, so a $2,000 increase in taxes is a lot of money. She didn't think what they are doing to old people is fair. t , Andover Tmth in Taxation Meeting Minutes - December 3, 1997 Page 2 (Proposed 1998 General Fund Budget, Continued) Ann Sikora - stated everyone else got a reduction in taxes except those who own land. She felt the City wants to take their land and give it to the developers beca\:se the taxes keep going up and up. She and her husband moved to the City and started from scratch. Those people who started the Town of Grow are now being forced out. She has 40 acres of virgin woods and people see the beauty of it when they drive by. She has planted 400 to 500 trees every year, which is a lot of work. The taxes are forcing her to cut the trees and sell it for lumber to pay the taxes. However, the woods are important because she is provided with meat from the deer, mushrooms and wood to bum. She cuts the dead oaks and splits the wood. Her house is 35 years old and has cracks in it. It needs a new roof, plumbing and the sump pump. She had $400 worth of repairs recently to the furnace. Her late husband told her that the rental house would provide enough income to pay the taxes, but that isn't the case. The one house is so years old and the other is over 100 years old and in need of repair. The assessor doesn't see that; he just sees how much land there is and increases the valuation every year. The City says it wants to protect the wetlands and forests and preserve open spaces and farm land. Her's is farm land. She raises vegetables and fruits to survive. Ms. Sikora stated she never thought she would have to fight for her rights like this. She's been here for so many years and nothing has been considered. Her house is surrounded by water. She'd like the DNR to test the water to see how high it is. When they built the house 35 years ago, they hit water at two feet; so they had to build it . up. She has a wall all around the house because the water level is so high, but she still has water in the basement when it rains. When University Avenue was repaired, all the water drained to her place, but the assessor doesn't see that when valuing her property. She feels that Andover is trying to get rid of the old people, but she will not let them take advantage of her. In 1998 her taxes will be $3,624.S5, but she doesn't know where she will get the money. She works hard and gets social security. She has heard the county will offer jobs to those who cannot pay their taxes. She's willing to do that. Ms. Sikora went on about how they built their homestead, the deterioration of the dwellings on her property, her concern with the fast rate at which the City is growing and seemingly at the expense of the elderly, and her frustration over the apparent lack of understanding by the assessor and at the yearly increase in the valuation and taxes. Councilmember Orttel empathized with those seniors because they are the age group that have the land but are the least able to afford the taxes. There doesn't seem to be any protection for them. He didn't understand why the property was reclassified from Green Acres to residential, thinking the Green Acres should be used for those people who farm the land. He also thought the Ag Preserve proposed by the Metropolitan Council was to keep the open spaces and farmlands. That is exactly what it would do for these people. They want to be able to be left alone and to keep the open spaces. There may be programs available, such as grants for restoring prairie grass. Mayor McKelvey stated the City has no intent to develop in that area of the City. I Andover Truth in Taxation Meeting lvlinutes - December 3. 1997 Page 3 (Proposed 1998 General Fund Budget, Continued) Mr. Fursman suggested Staff investigate all the agencies and state laws that protect seniors, as he thought there were some safety nets built into the system that the City may not be aware of to protect seniors. If they can't find some relief that way, perhaps the City on behalf of the property owners, especially the seniors in Andover, can talk to its legislators and those of other outer ring suburbs about getting help through the legislature to protect people for as long as they own their property. The Council supported that suggestion. Mr. Fursman also noted the 20 percent rebate most residents will get on their 1997 property tax bill when they file their state taxes for 1997. Motion by Orttel, Seconded by Knight, to adjourn. Motion carried on a3,.Yes, 2-Absent (Kunz;a, Dehn) vote. The meeting adjourned at 8:02 p.m. Respectfully submitted, ~~2~L Marce la A. Peach Recording Secretary ____. -0-- u __..~.__