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HomeMy WebLinkAbout6.a. Minutes of December 6, 2004 Special Meeting Truth in TaxationROSEMOUNT CITY PROCEEDINGS ITEM SPECIAL MEETING Truth in Taxation DECEMBER 6, 2004 Pursuant to due call and notice thereof a special meeting of the Rosemount City Council was duly held on Monday, December 6, 2004, at 6 30 p in in the Council Chambers at City Hall, 2875 145th Street West Mayor Droste called the meeting to order with Council Members DeBettigmes, Shoe-Corrigan, Riley, and Strayton present Council Members Elect Baxter and Sterner also attended City Administrator Verbrugge, Finance Director May, and Communication Coordinator Cox also attended 2005 Budget and Levy Presentation Mayor Droste introduced Finance Director May to present the 2005 budget and levy Finance Director May reviewed the legal process necessary to approve the City Budget for 2005 This meeting allows the residents of Rosemount to voice concern$ or ask clarification questions for the budgeted expenses and revenues of city funds City Council will consider final approval at the regular December 7, 2004 City Council meeting The approved resolutions and budget documents will be compiled into a final book for use by City departments for direction throughout 2005 All remaining reporting requirements to Dakota County and the State of Minnesota will be completed by year end Finance Director May gave a Power Point Presentation showing the monthly development of the budget since April In September the proposed levy was sent to Dakota County This proposed tax rate was reduced from the 2004 Tax Rate of 52 368% to 46 468% This was the largest city tax rate decrease in Dakota County A reduction of $300,000 was made to the Street CIP from the original proposal Hopefully, the tax rate will be reduced as the City continues to grow Minimal changes have been made to the budget format Enterprise Funds were added to the overall documents for the first time this year The Port Authority added aline item for an Operating Levy for the downtown redevelopment City insurance needs have increased because of city growth and additional employees Council Member Riley noted the GASB 34 reporting requirements which were added last year City Administrator Verbrugge reported that the Star Tribune newspaper gave a comparison of metro area taxes and home valuation on December 5, 2004 The median local market value (LMV) for a home in Rosemount is $212,000 The average LMV is $240,000 The information in the comparison included proposed tax rates submitted in September and did not include any reductions from the proposed taxes to those being considered for final budgets The City of Rosemount, for the median valued home in District 196, showed a 3 9% increase for all taxingjunsdictions That figure compared favorably to most other communities in Dakota County Council Member Strayton explained that the budget is an adjustable document The Market Value Homestead Credit is as good as gone and the State has cut city revenues tremendously the past three years The City cannot rely on the State for revenues City Council has tried to improve the tax base for stability and keep taxes tow to encourage commercial growth ROSEMOUNT CITY PROCEEDINGS SPECIAL MEETING Truth in Taxation DECEMBER 6, 2004 Mayor Droste opened the Public Hearing for public comment on the City's budget and levies Forrest Krogh, 2685 132 Court West, asked about the budget process City staff and City Council were involved in the specific review of each department's expenditures Mr Krogh asked what the average value of a Rosemount home was and City Administrator Verbrugge noted the Dakota County Assessor's Office reports that amount is $240,000 Council Member Strayton left the meeting due to a family commitment at 6 57 p m Council Member Elect Steiner asked why the street maintenance budget was selected for the $300,000 cut Council and staff explained that the original amount proposed was cut, but that amount had not been accepted into the 2004 budget Mayor Droste stated that the amount for street maintenance was still increased 66% over 2004 Sterner also asked why the Senior Citizen Coordinator position recommended by the Facility Task Force was not included in the budget Council Member Shoe-Corrigan explained that the City Council has Just started to analyze that study and will continue to plan how to work it into the city budget. The study of this report is in the goals for City Council in 2005 and the possibility of a Senior Coordinator is acknowledged Funding will need to be determined for that position in the future Mayor Droste noted that many reductions from the original draft budget were made including a police officer position Priority goals will determine how funds are apportioned in 2006 Sterner asked about local government aid from the State and whether the City Council had planned for further reductions City Administrator Verbrugge noted that the budget does anticipate receiving Market Value Homestead Credit (MVHC) in 2005, however staff had presented recommendations to the City Council during budget discussions on how the City can address the loss of MVHC MOTION by Droste to close the Public Hearing for Truth in Taxation Second by Riley Ayes DeBettigmes, Shoe Comgan, Droste, Riley. Nays None Motion tamed Council Member Kim Shoe -Comgan noted that she had a whole wish list from the library being built sooner to preserving open space Staff and Council worked very hard on the budget and had many interesting conversations Shoe-Corrigan noted she looks forward to the coming year's challenges and looks for good things to happen in Rosemount Mayor Droste noted that the adoption of the 2005 levy and budgets will be considered by the City Council at its December 7, 2004 regular meeting Mayor Droste adjourned the meeting at 7 01 p m Respectfully submitted, Linda Jentink, City Clerk Recording Secretary The City Council Agenda Packet is Clerk's File 2004 -47