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HomeMy WebLinkAbout12/11/2006 TIT Meeting CITY OF APPLE VALLEY Dakota County, Minnesota December 11, 2006 Minutes of the special meeting of the City Council of Apple Valley, Dakota County, Minnesota, held December 11, 2006, at 7:00 o'clock p.m., at Apple Valley Municipal Center. PRESENT: Mayor Hamann-Roland; Councilmembers Bergman, Erickson, Goodwin, and Grendahl. ABSENT: None. City staff members present were: City Administrator Lawell, City Clerk Gackstetter, Finance Director Ballenger, Assistant Finance Director Broughten, Assistant City Administrator Grawe, Public Works Director Heuer, Parks and Recreation Director Johnson, Police Chief Johnson, Acting Community Development Director Lovelace, Human Resources Manager Strauss, Liquor Operations Manager Swanson, and Fire Chief Wassmund. Acting Mayor Erickson called the meeting to order at 7:00 p.m. Everyone took part in the pledge of allegiance to the flag. Mr. Lawell stated the Mayor and Councilmember Goodwin should arrive shortly. The aircraft they were flying on was delayed in Salt Lake City due to mechanical problems. Acting Mayor Erickson announced that the purpose of the meeting is to hold a public hearing on the City's budget and on the amount of property taxes proposed to be collected to pay for the costs of services the City will provide in 2007. Councilmember Goodwin joined the meeting at 7:02 p.m. Mayor Hamann-Roland joined the meeting at 7:03 p.m. Mr. Lawell said staff would like to show a short video prepared by the Association of Minnesota Counties, in cooperation with the League of Minnesota Cities and the Minnesota School Boards Association. The video is titled “14 Reasons Why Property Taxes Go Up and Down” and does a nice job explaining factors that can impact your taxes. The Council and audience watched the videotape. Mr. Ballenger reviewed the budget preparation process prescribed by state law. All properties in the City received mailed notice of the hearing that included proposed property taxes for 2007 based on preliminary budgets and tax levies approved in September. The hearing notification was published as prescribed by law. He presented statistics on population growth and Legislative impacts. He then reviewed proposed revenues and expenditures. State aids were approximately $3 million in 2001 and are now projected at zero. There is no Market Value Homestead Credit (MVHC) projected in the 2007 budget. CITY OF APPLE VALLEY Dakota County, Minnesota December 11, 2006 Page 2 Mr. Ballenger said total 2007 revenue is shown as $42,663,707. The General Fund budget is $22,847,111, a 5.2 percent increase over 2006. The General Fund and debt service is $24,221,140. Mr. Ballenger gave an overview of the proposed 2007 budget. The total 2007 City budget is $42,327,443. He described the two new positions in the 2007 General Fund budget as well as other budget highlights. He explained dispatcher wages will be shifted from Personnel Services in 2006 to Commodities in 2007 because of the Dakota Communications Center. The rising cost of energy, goods and services, and maintaining an aging infrastructure are reflected in the budget. He presented tax calculations on a median valued home of $224,800 with a 0, 6.7, and 15 percent property value increase. He described the phase-out of the State’s limited taxable market value program and its impact on some of the older homes. Mr. Ballenger noted the Council can take questions on the budget and tax levy tonight, but cannot act on it. The Mayor asked for questions or comments from the public. Ms. Marion Brown, 7754 – 142nd Street W., questioned why the percentage of increase in the 2007 proposed budget, as listed in the truth-in-taxation public hearing notice, is less than the 2007 proposed tax rate. Mr. Ballenger explained the difference between property taxes and the tax capacity rate. Ms. Marion Brown then asked why the percentage of taxes varied on the two slides showing revenues. Mr. Ballenger explained one slide illustrated the City’s total revenue and one slide illustrated General Fund revenues. Property taxes represent 40 percent of the City’s total revenue and 76 percent of the General Fund revenue. Mayor Hamann-Roland thanked staff for preparing the proposed budget. Mr. Ballenger said adoption of the budget and tax levy is scheduled for the meeting of December 14, 2006. The Mayor asked for other questions or comments. There were none. Adoption of the tax levy and budget will be considered by the Council at its meeting on December 14, 2006. Councilmember Goodwin recommended Mr. Ballenger show the video and present the budget information again on December 14, 2006. CITY OF APPLE VALLEY Dakota County, Minnesota December 11, 2006 Page 3 Councilmember Erickson also recommended the video be replayed. He encourage residents who may have a question on their property tax statement to contact the Finance Director. MOTION: of Grendahl, seconded by Erickson, declaring the hearing closed and adjourning the meeting. Ayes - 5 - Nays - 0. The hearing was adjourned and declared closed at 7:46 o'clock p.m.