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HomeMy WebLinkAbout12/11/2000/01budhrgCITY OF APPLE VALLEY Dakota County, Minnesota December 11, 2000 Minutes of the special meeting of the City Council of Apple Valley, Dakota County, Minnesota, held December 11th, 2000, at 7:00 o'clock p.m. at Apple Valley City Hall. PRESENT: M ayor Hamann-Roland; Councilmembers Erickson, Goodwin, Grendahl, and Sterling. ABSENT: None. City staff members present were: City Administrator Lawell, City Clerk Mueller, City Engineer Gordon, Finance Director Ballenger, Police Chief Erickson, Assistant to the Administrator Grawe, Public Works Director Heuer, Parks & Recreation Director Johnson, Community Development Director Kelley, Human Resources Manager Margarit, Administrative Assistant Pederson, and Fire Chief Wassmund. Mayor Hamann-Roland called the meeting to order at 7:00 p.m. 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 services the City will provide in 2001. Mr. Lawell reviewed the steps in the budget process prescribed by state law. It began with department preparation in July. After review and adjustment, the City Administrator submitted the proposed budget to the Council in August. The Council reviewed the document and approved the preliminary budget and tax levy, based on it, in September. Before adoption of the final budget, this public hearing is required. Mr. Ballenger reviewed details of the proposed 2001 budget showing a 7.9 percent increase from last year. Total revenue is $33,921,408 and expenditures are proposed at $32,521,612. The total tax levy is being increased by $2,100,000. The increase is generally for Fire, Police and Inspection Department expenditures. It includes a fulltime Fire Chief, refurbishing fire vehicles, implementing a housing maintenance code, adding three fulltime Police Officers, expanded Park operations, and increased fuel and utility costs. He reviewed the calculations to determine tax capacity rate and the impact of tax rates on various valued homes in the City. It results in a City tax capacity rate of 28.613 percent; more than the 2000 rate, but still less than the 1999 rate of 29.409 percent. Each one percent of the tax rate generates approximately $360,000 in revenue. He reviewed estimated taxes on an average $150,000 market value home in the City. Councilmember Erickson commented that the City portion of taxes on a $150,000 home will be $567.00 or $47.25 per month. For that, they receive police services, fire protection, street maintenance, snow plowing and other services. He noted the City also has attained and ISO rating of 3 resulting in lower fire insurance premiums for property. Councilmember Goodwin cited statistics on accidents in the City during the past year and noted increased costs for repairs and insurance. The City portion of tax on a $150,000 home is projected to CITY OF APPLE VALLEY Dakota County, Minnesota December 11, 2000 Page 2 increase $48.00. Of that $48.00, 60 percent is for public safety. The increase in the tax levy was a conscious decision on the part of the Council to increase public safety services and reduce accidents. The Mayor asked for questions or comments from the public. Wilton Anderson, 5441 West 134th Street, said the market value on his home increased 8.8 percent. His County tax bill increased 3 percent, the School portion 12.6 percent, and the City portion 18.6 percent. He expressed concern about the increases and noted most of the work force received only two percent increases. Mr. Ballenger explained that the comparisons he used are based on no change in market value from last year. Any change in market value results in different percentages on a particular property. The City establishes its budget based on dollars needed and does not set the tax rate. The County spreads this amount on property and that determines the tax rate. Mr. Anderson asked whether an increase in the City’s tax base would lower the tax dollars? Councilmember Goodwin said the tax base is growing but so is the demand for services. Apple Valley does not have a large of a commercial/industrial tax base as its neighbors and that affects tax bills also. Mr. Anderson said he is pleased with City services overall and hopes there are dollars in the budget for storm sewer improvements also. Greg Kapala, 14548 Genesee Avenue, said he is happy to be a resident and does not object to the tax dollars being raised, but is concerned about the percent of increase shown on his proposed tax bill. He noted last year inflation was 2.7 percent and wages increased 3.2 percent nationally. The City’s tax increase seems out of line in comparison. He knows the City is doing a lot of things, such as building a new City Hall, but so is the County and its taxes are not increasing as much. Mayor Hamann-Roland said the City Hall is being built by money saved and is not part of the increased tax levy. Councilmember Goodwin noted the County can take advantage of the entire larger County tax base in its levy. About 60 percent of the City’s increase is directly related to public safety issues. Mr. Ballenger commented on the percentages and dollars shown on the tax notices. The State mandates the language and the calculations shown including the column “increase or decrease due to spending”. The notice shows only numbers and does not take into account inflationary changes or growth factors. 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 14th, 2000. MOTION: of Ster ling, seconded by Grendahl, to adjourn and declare the hearing closed. Ayes - 5 - Nays - 0. The hearing was adjourned and declared closed at 7:53 o'clock p.m.