HomeMy WebLinkAbout6.b. Minutes of December 5, 2005 Truth-In-Taxation Public HearingITEM 06
ROSEMOUNT CITY PROCEEDINGS
SPECIAL CITY COUNCIL MEETING
TRUTH IN TAXATION PUBLIC HEARING
DECEMBER 5, 2005
Pursuant to due call and notice thereof a City Council Work Session was held on Monday, December
5, 2005 at 6:31 p.m. in the Council Chambers at City Hall.
Mayor Droste called the meeting to order with Council Members DeBettignies, Baxter, Shoe
Corrigan, and Sterner present. Also in attendance were City Administrator Verbrugge, City Clerk
Jentmk, Finance Director May, and Communication Coordinator Cox.
Mayor Droste explained the purpose of the meeting was to allow the pubhc to comment on the
budgets and levies for the City of Rosemount in 2006.
2006 Budget and Levy Presentation
Finance Director Jeff May gave a presentation for the 2006 City of Rosemount budgets and levies.
Mr. May explained the meeting would include the presentation, clarification questions from City
Council, input from the public, and then the Public Hearing would be closed by a motion after all
testimony was heard. The Council action on the budget would occur at the next regular City Council
meeting on December 6, 2005. Mr. May reported that Truth -in- Taxation notices were mailed to all
Rosemount property owners and notice was published in the Rosemount Town Pages and the Rosemount
Thrs Week.
Mr. May reviewed the planning process used to discuss the budget and levies. By September 15,
2005, the budget and levies were certified to Dakota County. Council continued to review the
budget numbers and further reduced the budget expenses. Mr. May reported in the published Truth
in Taxation Notice that the 2005 City tax rate was 46.041 based on the preliminary levy, if the levy
had not increased, it would be 38.715% for 2006; and, the 2006 proposed tax rate is 45.488 Mr.
May then presented the percentage of change from the 2005 Budget to the 2006 Budget. Total
revenue sources produced an 8.53% increase and the operating budget had a 6.51% increase.
Mr. May made a comparison of the tax capacity rates for the last five years including the city, county,
school district, and special taxing distracts.
Mr. May reported on a home valued at $250,000 to demonstrate the property tax figures for
Rosemount residents. The chart presented the yearly, monthly, and daily cost of city department
services to residents. Mr. May compared the monthly Police Department services at a cost of $16.51
to a resident who may have a security system with a higher monthly expense. He also used the
example of a lawn care service for residents to the park's maintenance yearly cost of $45.51 for over
200 acres of parks.
Mayor Droste opened the discussion for questions from Council Members. Council Member Sterner
inquired what would be included in the special taxing districts. Mr May noted that Mosquito
Control and the iifetropohtan Council, among others, would be included.
Mayor Droste requested Mr. May to explain the state funding that has been lost in the last four years
Mr. May reported that the City lost $577,000 in HACA funding m 2002. In 2003 the City lost
$402,000 m LGA (Local Government Aid) and $350,000 in MVHC Market Value Homestead
Credit) during the middle of the year as the State dealt with its 4.5 billion dollar deficit. The LGA cut
has become a permanent cut for the City. The MVHC cut has been promised to be restored but to
date has not. Also, the State, dunng the past legislative session extended the MVHC cuts out
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ROSEMOUNT CITY PROCEEDINGS
SPECIAL CITY COUNCIL MEETING
TRUTH IN TAXATION PUBLIC HEARING
DECEMBER 5, 2005
through at least the next two years. Mayor Droste noted that the residential growth helped the City
balance these major funding losses.
Mayor Droste opened the discussion to the audience for public comment.
Jim Vitek, 3330 147'' Street West, reported that his tax records for the last six years show an average
tax increase of 5.9■ on his property taxes. Mr Vitek was unhappy that his property tax increase this
year is 10.7 °'0 He stated he beheved that with the increase m population and taxpayer base, the taxes
should go down. Mr. Vitek noted that he is retired and he has a hmited income with large increases
to his health care.
Mr. May pointed out that home values have increased 8% to 15 which increases the tax costs to
the resident despite the city portion of taxes going down. Council Member Shoe Corrigan explained
that on the Truth in Taxation nonce to residents it showed that the city and county tax rates had
been reduced and the school distract and special taxing districts had been increased. Council Member
DeBetdgmes pointed out that operation costs for the city have mcreased, yet the tax rate was cut by
51/4, showing that a concerted effort was made by staff and City Council to lower the tax rate.
City Admuustrator Verbrugge explained how the home values have stayed artificially low and that the
legislature had recently made changes to return the home values to a more realistic value. The
legislature is phasing out the Limited Market Value.
Council Member Baxter pointed out that it is a very difficult task to hone the budget in order to
bring down the tax rate. He stated the balance is reached by spending the increase from growth in
order to bring the tax rate down Mr. Baxter observed that the citizens do not want the level of
services to come down. He noted that he appreciates the pubhc coming out to comment on the
budget. 'The city reported that 211/4 of the tax base is from commercial /industrial and 771/4 is coming
from residential. He commented that one of the goals of the City Council is to increase the
commercial tax base in Rosemount. Mr. Baxter acknowledged that fixed income families have a
difficult time.
Mayor Droste reported that the City has lost almost $3 million in state funding over the past four
years. He stated that Rosemount was fortunate that growth has allowed the City to weather the
funding shortage well.
Allan Windom, 14107 Autumnwood Way, stated he had down sized from a home in Burnsville to a
townhome in Rosemount Mr Windom beheved townhomes have a lower demand on city services
and should pay lower taxes.
Mr. Verbrugge responded that property taxes are applied equally for all types of residential housing.
He stated it is Dakota County that assigns valuation to property. Mr. Verbrugge reported that
Rosemount did have the highest tax rate in Dakota County three years ago, but slow improvement
has been made Burnsville has a larger commercial tax base that can provide lower property taxes for
residents. Mayor Droste noted that it would be very comphcated if residents received credit for
services they did not use. Mr. May reported that rural residents Ming on a county road have had the
same argument. Mr. Baxter pointed out that all the other roads in the City which are maintained, are
used often by people makmg taps to and from their homes. Mr. Verbrugge gave the example of the
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Motion by Droste. Second by Baxter.
ROSEMOUNT CITY PROCEEDINGS
SPECIAL CITY COUNCIL MEETING
TRUTH IN TAXATION PUBLIC HEARING
DECEMBER 5, 2005
cost of private versus public education and the support of taxes for public education. Ms. Shoe
Corrigan stated that much of Rosemount's housing is reasonably priced and she welcomed all new
residents.
Forrest Krough, 2685 132n Court West, questioned if the notice from the county had the revised
budget amounts. Mr. DeBetttgnies told him it did not. Mr. May noted that the city share will be
lower then stated, but the final county and school district numbers are not known at this time. Mr.
Krough requested the budget include a part -time coordinator for senior citizens. Mr. DeBettigrues
stated that if you compare dollar for dollar for the city share, there would be a 5% decrease.
Fern Krough, 2685 132n Court West, questioned what health insurance changes have occurred for
city employees. Mr. Verbrugge explained the insurance coverage for the 80 city employees with four
bargaining umts Two years ago a 22% prennum increase was faced and the city changed to a high
deductible plan with the ability to place money in a health savings plan. The premium was able to
remain nearly the same. Ms. Krough commented that this contributes to an increase in her taxes.
Dick Dorniden, 13054 Charleston Way, had concerns about his property valuation. He did not agree
with the high increase for his rural residential home. He was unhappy with the removal of Dodd
Boulevard from the road improvement list and its access closure to Connemara Trail. Mr. May noted
that the hunted market value change did affect Mr. Dorniden's property so he had a 15% increase on
property value. Mr. May suggested he attend the public meeting for the Board of Appeals with
Dakota County to contest his home value.
Mayor Droste and Council Members thanked all residents attending for their valuable comments.
Mayor Droste stated he greatly appreciated the direct feedback.
MOTION to close the public hearing for Truth in Taxation for the 2006 Budget for the City
of Rosemount.
Ayes: 5.
Nays: 0. Motion carried
Motion by Mayor Droste to adjourn. Second by Sterner. Ayes: 5. Nays: 0. The meeting was
adjourned at 7:34 p.m
The City Council's Agenda Packet is Clerk's File 200549.
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Respectfully submitted,
Linda jentink, City Clerk
Recordmg Secretary