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HomeMy WebLinkAbout12/01/2003CITY OF APPLE VALLEY Dakota County, Minnesota December 1, 200 3 Minutes of the special meeting of the City Council of Apple Valley, Dakota County, Minnesota, held December 1 s t, 200 3 , at 7:00 o'clock p.m. at Apple Valley Municipal Center. PRESE NT: Mayor Hamann - Roland; Councilmembers Bergman, Erickson, Goodwin, and Grendahl. ABSENT: None. City staff members present were: City Administrator Lawell, City Clerk Mueller, Finance Director Ballenger, Assistant to the Administrator Grawe, Public Work s Director Heuer, Parks & Recreation Director Johnson, Police Chief Johnson, Community Development Director Kelley, Police Captain Lohse, Human Resources Manager Strauss, 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. The Mayor 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 servic es the City will provide in 200 4 . Mr. Lawell reviewed the budget preparation process prescribed by state law. The focus is on funding basic services while meeting growing demands for City services. He reviewed growth statistics and said the latest estim ate shows the City has grown to a population of 50,532 residents. Notices of proposed property taxes that residents received showed the impact of State legislative decisions. In 1993, a system of limiting taxable market value was instituted. That progra m is going away and is in the second year of a six - year phase out. Properties affected by it are seeing up to 12 percent value increases and higher proposes taxes than newer homes. He reviewed the City’s state aid receipts from 1995 to 2003 estimated the City will receive $72,000 for 2004. In 2003, the Legislature eliminated cities’ unused levy authority, but allowed cities to levy back 60 percent of their lost state aid. This amounts to $915,487 for 2004 and is included in the budget recommendation. T otal General Fund expenditures are proposed at $19,438,200, a 1.37 - percent reduction from 2003 . Mr. Ballenger said the total proposed tax levy is $16,971,252, re sulting in a tax rate of 39.526 percent. On the average, homes with an 8.6 percent increase i n value will have a five percent increase taxes. He reviewed t ax calculations on various valued homes. He noted the Council can take questions on the budget and tax levy tonight, but cannot act on it. Adoption is scheduled for the meeting of December 8, 2003 . The Mayor asked for questions or comments from the public. Wilton Anderson, 5441 West 134th Street, commented on the complexity of the tax system but said Social Security is only increasing 1.74 percent while his City property tax is increasing 8. 5 percent. Taxes based on market value of property are unfair and he is disappointed in seeing a tax increase. CITY OF APPLE VALLEY Dakota County, Minnesota December 1, 2003 Page 2 However, he does want the City to pursue storm water quality issues, particularly on Long Lake, and look for solutions. He thanked the Council for the good things it is trying to do in the City . David Lindroth, 8150 West 137th Street, said he is a retiree, living on a fixed income, and cannot afford an increase. He suggested the Council look at the parks and recreation budget. Some parks are used very little and could be sold for housing. He commented on oak wilt and ash tree diseases increasing and potential costs to the City. He suggested contracting with loggers who might pay for the lumber when trees need to be remove d to recover some co sts . M ayor Hamann - Roland thanked them for their comments and said that tax policy and legislative changes have fo r ced certain difficult decisions on the City . She thanked Staff for holding the line in preparing the proposed budget . Councilmember Goodwin said the sample homes used to illustrate tax impacts were worst - case scenarios. Older homes are seeing the larger, 12 percent, value increases while newer homes are not impacted as much . The two issues affecting the changes are phasing out of limited ma rket value and levying back lost state aid. It should be noted that the General Fund budget for 2004 is actually going down . Councilmember Bergman asked Staff to provide him with some additional information on 10 - year comparison s . In response to the iss ue of selling seemingly unused parks, he would not be willing to support that anytime in the near future. Some provide a green space amenity even if they are not actively used . Councilmember Grendahl asked how the City compares in fiscal disparities impa cts. Mr. Ballenger reviewed the fiscal disparities process where 40 percent of commercial/industrial values in the Metropolitan area are contributed to a pool and then redistributed. Apple Valley continues to benefit from the system, gaining more than it contributes. 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 8th, 2003. MOTION: of Erickson, seconded by Grendahl, to adjourn and declar e the hearing closed. Ayes - 5 - Nays - 0. The hearing was adjourned and declared closed at 7:52 o'clock p.m.