HomeMy WebLinkAboutTT December 7, 1998
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CITY of ANDOVER
TRUTH-IN-TAXATION HEARING
ANDOVER CITY COUNCIL - DECEMBER 7, 1998 - MINUTES
The Truth-In-Taxation Hearing of the Andover City Council was called to order by Mayor Jack
McKelvey on December 7,1998,7:06 p.m., at the Andover City Hall, 1685 Crosstown Boulevard
NW, Andover, Minnesota.
Councilmembers present: Mike Knight, Ken Orttel
Councilmembers absent: Bonnie Dehn, John Kunza
Also present: Finance Director, Jean McGann
City Administrator, Richard Fursman
Others
Mr. Fursman showed a short video of some of the improvements that have taken place in the City
such as trail improvements, residential and commercial construction. There have been over 430 new
homes in Andover so far this year. He then presented various graphs indicating 91 percent of
Andover's tax base is residential, which is the highest of any of the top ten growing cities in the
metropolitan area. There is a ratio of one staff per 390 residents, which is higher than any of the
other developing cities. The average ratio is one to 250 residents. He then reviewed the proposed
spending and revenues for the 1999 budget. Andover is ranked 93 out or 94 communities in the
metropolitan area by the Taxpayers' Association for overall taxes. Approximately $0.49 of every
dollar paid by an Andover resident goes to the school district; $0.29 cents goes to the county, $0.20
goes to the City and $0.02 goes to other districts.
Several residents present asked why the county assessor is not present. Mr. Fursman explained the
purpose of this meeting is to review the City's proposed 1999 budget. The meeting where the county
reviews at the assessed value of properties is at the Board of Review in the spring.
Mayor McKelvey then opened the hearing to public testimony.
Ann Sikora - stated she paid $1,000 more in 1998 than she did in 1997 for taxes, which is a hardship
because she is a senior citizen. She had a 15.3 percent increase in her taxes. Her house and rental
unit were raised 2.3 percent. The valuations raised $7,000 for one parcel and $16,000 on another,
and there have been no improvements. She stated the porch and a part of the roof caved in on the
building. The shingles on the other house are 40 years old. She gets only $450 a month for rent, and
every year she spends $2,000 on repairs of the building. A tenant moved out giving her only two
days' notice and leaving the place a mess. The water was so bad in the rental unit that she had to buy
a rust and odor remover at a cost of $50 per month. That eliminates her profit. When they built the
house 35 years ago, they figured there would be enough money ITom the rental to pay the taxes, but
it isn't working out that way because the taxes are increased every year.
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Andover 1999 Truth-In-Taxation Hearing
Minutes - December 7, 1998
Page 2
Ms. Sikora claimed she does farm the land, as she has a one-acre garden. It is the first time in SO
years that her homestead is not considered agriculture. It is now classified residential. She asked
how her 60 acres ofland can be called residential. She doesn't want anyone to destroy all the trees
around her which she planted. Illness and two eye operations have hindered the work she can do
now. She has been told the development would not affect her, but it has caused her taxes to go up
every year. A pole barn was built across ITom her on low land that has been filled. Ms. Sikora also
told of the problem she now faces with the junk items left behind by the tenant, yet she has to wait
60 days to move it out. The City wants low rental property, yet these are the ITustrations she is having
and there is no help. Mayor McKelvey thought she could put those items in storage for 60 days.
He will contact the Lions for some help to move those things out of the rental unit.
Ms. Sikora stated she has farmed the land in Andover for SO years, but now she is being forced to
pay increasing taxes when she is living on a fixed income. She asked if the Council felt it would be
nice to keep some land natural instead of developing everything. Councilmember Orttel thought the
residents may be willìng to bond to acquire land which would permanently remain open land and
rural. He also suggested she talk to the County Assessor about the amount of increase on her
property values, as it should not have gone up more than 10 percent.
Councilmember Knight suggested the Council consider asking its legislators to carry the message
of Green Acres to the State. The change in the Green Acres law was made by a judge, and he felt
judges should not be making law. It forces development on the smaller pieces of property. The
Council agreed.
Mr. Fursman stated the final acceptance of the 1999 budget will be on the December 15 Council
agenda.
Motion by Knight, Seconded by Orttel, to adjourn. Motion carried on a 3- Yes, 2-Absent (Dehn,
Kunza) vote.
The meeting adjourned at 7:S6 p.m.
Respectfully suemitt~d,
\~~~('- ~L
Marce A. Peach
Recording Secretary