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Home My WebLink About12/03/2007 TIT Meeting CITY OF APPLE VALLEY Dakota County, Minnesota December 3, 2007 Minutes of the special meeting of the City Council of Apple Valley, Dakota County, Minnesota, held December 3, 2007, at 7:00 o'clock p.m., at Apple Valley Municipal Center. PRESENT: Mayor Hamann-Roland; Councilmembers Goodwin and Grendahl. ABSENT: Councilmembers Bergman and Erickson. City staff members present were: City Administrator Lawell, City Clerk Gackstetter, Finance Director Ballenger, Assistant City Administrator Grawe, Public Works Director Heuer, Parks and Recreation Director Johnson, Police Chief Johnson, Community Development Director Nordquist, Human Resources Manager Strauss, Liquor Operations Manager Swanson, and Fire Chief Wassmund. Mayor Hamann-Roland called the meeting to order at 7:00 p.m. Everyone took part in the pledge of allegiance to the flag. Mayor Hamann-Roland 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 2008. 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 2008 based on preliminary budgets and tax levies approved in September. The hearing notification was published as prescribed by law. No written comments have been received. Mr. Ballenger received nine phone calls and one walk-in with questions. All but one of the questions had to do with homestead credit, address changes, or market valuation, so he referred the callers to the County. One resident stated her property taxes went down, and she wondered if her mortgage payment would go down. She was referred to her mortgage company. Mr. Ballenger then presented statistics on population growth and Legislative impacts. He reviewed proposed revenues and expenditures. The City received approximately $3 million in State aids in 2001, just over half that amount in 2002, and nothing in 2005 and 2006. This year the City received $871,873. Staff is projecting receipt of $850,000 in Market Value Homestead Credit (MVHC) in 2008. Mr. Ballenger said the projected total revenue in 2008 is $44,701,234. The General Fund and debt service is $25,893,257. The General Fund budget is $24,337,161, which is a 6.52 percent increase over 2007. He gave an overview of the proposed 2008 budget. The total 2008 City budget is $45,296,171. He reviewed the budget highlights, and described impacts and costs associated with the quality rental housing program, consolidated dispatch, staffing proposals, elections, the infrastructure preservation program, energy, and the Comprehensive Plan update. CITY OF APPLE VALLEY Dakota County, Minnesota December 3, 2007 Page 2 He described the phase-out of the State’s Limited Market Value program and its impact on some of the older homes. There are approximately 108 parcels still impacted by this program in Apple Valley. The Limited Market Value program will be completely phased out by 2009. Mayor Hamann-Roland said prior to the meeting some residents voiced concern with their market values. She asked if there was still time for residents to have the County adjust their market values for 2008. Mr. Ballenger stated he believed the open book period for 2008 taxes was in April or May of 2007. However, he has also heard residents have gone before the Dakota County Board at other times. He then listed various relief programs of which he is aware. He also presented tax calculations on a median valued home of $240,000 with a 0 and .58 percent property value increase. The Tax Capacity Rate is 35.647. He noted the park bond referendum approved this fall will not affect the 2008 taxes; it will first impact property taxes in 2009. Mr. Ballenger added the Council can take questions on the budget and tax levy tonight, but cannot act on it. Councilmember Goodwin asked Mr. Ballenger to repeat the assessed value percentages. Mr. Ballenger said 4 percent of the properties will have a decrease in their assessed values, 85 percent will have a 0 to 1 percent increase, and 11 percent will have an increase greater than 1 percent. Councilmember Goodwin clarified that means 89 percent of the properties in Apple Valley will have a decrease or an increase of up to one percent in assessed valuation. The Mayor asked for questions or comments from the public. Mr. Hannibal (John) Haase, 13537 Embry Way, stated the valuation of his property, a 1.5 acre lot, increased by $58,000. He commented on development in the area and stated he was told it would not impact his taxes. Mr. Ballenger said the Dakota County Assessor determines the value of the property; however, the Assessor follows the guidelines established by State Law. Mr. Haase described various conversations he had with the County Assessor. He was told the value of his property was impacted by homes in his neighborhood which were for sale, but later taken off the market. Councilmember Grendahl asked if Mr. Haase was stating his property is being assessed using list values of neighboring properties, even though the properties have not sold. CITY OF APPLE VALLEY Dakota County, Minnesota December 3, 2007 Page 3 Mr. Haase said yes. Councilmember Goodwin stated his understanding of the law is that a comparable value must be based off of actual sales prices, not list prices. Mr. Haase added that the last property owner to sell property to the neighboring developer received a very high price for his land. The developer was willing to pay an inflated price in order to complete his project. Mr. Haase believes the price the developer paid for the last parcel in the development has also impacted the value of his property. Mr. Ballenger agreed that would be a sale of record and may impact Mr. Haase’s value. Mr. Lawell said he remembers that subdivision going in, and it was a long process. He indicated Mr. Haase could argue there were other driving factors impacting the sales price on the lot in question. As a result, the sale price should not be used as a comparable value. Mayor Hamann-Roland asked staff to help Mr. Haase identify the specifics surrounding that purchase so he may appeal to the County. Mr. Maj Spudan, representing his parents who live at 14115 Pennock Avenue, #101, stated his parents’ property taxes went up 21 percent. Mr. Ballenger said the resident is experiencing a $13,000 increase in valuation. He suspects this is one of the properties still impacted by the Limited Market Value program, and described how the program works. Mayor Hamann-Roland asked staff to also assist Mr. Spudan with the process. Councilmember Goodwin said a good rule of thumb when trying to determine if your assessed value is appropriate is to ask yourself if you would be willing to sell your home at that price. Mr. Ballenger said adoption of the budget and tax levy is scheduled for the meeting of December 13, 2007. The Mayor asked for other questions or comments. There were none and the hearing was declared closed. Mr. Lawell said people on low incomes and the elderly can learn about various tax relief programs at www.taxes.state.mn.us. CITY OF APPLE VALLEY Dakota County, Minnesota December 3, 2007 Page 4 MEETING SCHEDULE Mr. Lawell reminded the Council and audience that the informal meeting scheduled for December 13, 2007, was previously canceled. The next regular Council meeting will be at 8:00 p.m. on December 13, 2007. MOTION: of Goodwin, seconded by Grendahl, to adjourn. Ayes - 3 - Nays - 0. The meeting was adjourned at 7:58o’clock p.m.