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HomeMy WebLinkAboutTT December 5, 2005 ~NDbVE~ TRUTH IN TAXATION HEARING - DECEMBER 5,2005 MINUTES The City of Andover Truth in Taxation Hearing was called to order by Mayor Mike Gamache at 7:00 p.m., Monday, December 5, 2005 at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Council Members Present: Council Members Absent: Also Present: Don Jacobson, Mike Knight, Ken Orttel Julie Trude Jim Dickinson, City Administrator Lee Brezinka, Assistant Finance Director Others i Mr. Dickinson noted that an advertisement announcing the public hearing was published in the Anoka County Union as required by law and each resident in the city received notice from Anoka County regarding their proposed 2006 property taxes. Mr. Dickinson explained that the city budgets all of its funds, not just operating funds. Property taxes collected in 2005 were $7,526,813 and proposed for 2006 is $8,517,523, which is an increase of 13.16%. The 2006 proposed tax rate is 31.547%, an increase of 1.5% over 2005. The city will actually see a 6.82% increase in revenues from taxes. Regarding market values, Mr. Dickinson stated that we have had a fairly steady increase. The market value increase for 2006 is 13.28%. Compared with other cities, Andover is toward the bottom for our tax rate. The operational levy has increased over the last 4 years; capital equipment has remained constant as well as the Parks levy. Mr. Dickinson explained that we don't have a very significant increase in expenditures. Revenues available to us are building revenues; we are not receiving any state aids. Council Member Jacobson asked Mr. Dickinson to explain why there is such a wide variation of numbers between the 13.16% increase in property taxes and the 6.82% change. Mr. Dickinson explained that it's market value. If a property doesn't increase in value the city portion of our tax increases by 1.5%. If there is an increase in market value the percentage is higher. An example would be if a property value increased by 10%, the property taxes would increase by 10%. Mr. Dickinson noted that the Star Tribune had an article regarding median value homes and the average in Andover was $240,100. Properties with that value would pay $757.44 in city taxes. Council Member Orttel explained that the $757.44 is just the city share of the taxes; the county and school district have approximately the same amounts. Truth in Taxation Hearing December 5, 2005 - Minutes Page 2 Motion by Jacobson, seconded by Knight to open the public hearing. Motion carried. Winslow Holasek, 1159 Andover Boulevard NW noted that the proposed revenues are about 29 million dollars and the expenditures are approximately 30 million dollars; the city is spending more than they are getting. Mr. Dickinson explained that the city is using the fund balance rather than levying a tax to balance the budget. Mr. Holasek felt that it is a good budget and that we have a very good Finance Department. He asked Mr. Dickinson to provide him with the overheads shown at the meeting. Robert Buchwald, 1526 -14tfh Avenue NW noted that the tax increase if going up faster than other items such as the CPI. Council Member Orttel stated that the problem the city has is all of the new people moving in; just keeping up with that is higher than the CPI. Gloria Kolton, 2535 -174/h Lane NW noted that a Pioneer Press article mentioned that property tax hikes for 2006 averages 10.2%. She came to the conclusion that her percentage of change from last year is almost 21 %. Her taxable market value went up $35,000 and she has not made any improvements to her home. She asked if she should be talking to the assessor regarding this increase. Mr. Dickinson felt that the question would be whether the value on her statement is correct. That would be something for the Board of Equalization that the City Council conducts. If The Council agrees with the resident to reduce it, that recommendation goes to the County. Council Member Orttel suggested that Ms. Kolton contact the County Assessor's Office to talk about the value on her home. Mr. Dickinson provided Ms. Kolton with the name of the city assessor at the county and his phone number. Motion by Jacobson, seconded by Orttel to close the public hearing. Motion carried unanimously. Mr. Dickinson noted that there would be no need for a continuation of this hearing. Council will be asked to adopt the budget at their December 20, 2005 meeting. Council Member Jacobson explained that in order for the city to change the rate we charge, things would need to be taken out of the budget. He requested that ifresidents feel the city is doing something they should not be doing to contact the Council members. Mr. Dickinson stated that the budget will be placed on the city's website; it's available for anyone to look at. Truth in Taxation Hearing December 5, 2005 - Minutes Page 3 Motion by Jacobson, seconded by Orttel to adjourn. Motion carried. The meeting adjourned at 7:40 p.m. Respectfully submitted, U' {LIL Vicki V olk City Clerk "