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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 1 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 2 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. 3 Respectfully submitted, Linda jentink, City Clerk Recordmg Secretary