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HomeMy WebLinkAbout12/12/1996/97budhrgCITY OF APPLE VALLEY Dakota County, Minnesota December 12, 1996 Minutes of the special meeting of the City Council of Apple Valley, Dakota County, Minnesota, held December 12th, 1996, at 7:00 o'clock p.m. at Apple Valley City Hall. PRESENT: M ayor Branning; Councilmembers Erickson, Goodwin, Humphrey, and Sterling. ABSENT: None. City staff members present were: City Administrator Gretz, City Clerk Mueller, City Attorney Sheldon, City Engineer Gordon, Finance Director Ballenger, Golf Course Manager Dodge, Assistant to the Administrator Grawe, Community Development Director Kelley, Public Works Director Miranowski, and Police Chief Willow. Mayor Branning called the meeting to order at 7:00 p.m. The Councilmembers and everyone in attendance took part in the pledge of allegiance to the flag. Mayor Branning 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 1997. He noted that notice of the hearing was published, as required by law, and was mailed to all property owners, as part of the truth in taxation notices, by Dakota County. Mr. Gretz said property values in the City have been increasing an average of four to six percent per year. Residents have been seeing this result in larger property tax dollar increases even though tax rate increases have been minimal. Most of the questions received since the notices were mailed related to property market value increases. Mr. Ballenger reviewed a summary of the total proposed budget consisting of revenues of $24,552,716 and expenditures of $23,996,891. He presented charts showing the tax levy at 28 percent of total revenue. He reviewed the history of City tax levies since 1985 and the impact of proposed 1997 taxes on various valued homes. Councilmember Goodwin asked if there are statistics on the number of homes where the value stays the same or decreases from one year to the next? Mr. Gretz said he does not have specific numbers, but the Assessor estimates about 70 percent of the homes increase in value each year. The Mayor asked for questions of comments from the public. Wilt Anderson, 5441 West 134th Street, expressed concern about increased taxes and said he is not upset with the City, but with the tax system. It gives property owners a double hit; from an increase in value and an increase in tax rates. He asked the Council to consider whether the six percent budget increase is still a bare bones budget with no waste. If it is, he would support approving it. CITY OF APPLE VALLEY Dakota County, Minnesota December 12, 1996 Page 2 John Schaffhausen, 5725 West 150th Street, asked if there is a way for tax breaks to be given to those who have lived in their homes for a long time? Mr. Gretz said the State is discussing tax reform options that might include something like this, but it is not part of the tax system now. Councilmember Erickson said the proposed six percent budget increase is minimal considering the increased cost of providing services and continued growth in the City. About 500 homes were added in the past year. Lyman Johnson, 14012 Essex Court, noted the County newsletter indicated a three percent tax increase. With an increase in property value, he will have a 15 percent tax increase. The townhouse association pays for common area maintenance, snowplowing, etc.; and it seems townhouse values are increasing faster than single family homes. Stan Merrill, 14060 Essex Court, said he understands that only five units in the townhouse association are paying taxes based on market value and the rest are not. He commented that townhouses are paying twice for services such as street maintenance and lighting. Rod Carlson, 6332 West 137th Street, said he would like to see the Council hold the budget down to only allow for increases tied to the rate of inflation and increase in number of homes. Mike Collins, 14037 Essex Court, said his home is four years old and taxes went up 15 percent. He asked when the values will level off? The Mayor commented on the process by which the County Assessor establishes values for the following year. On new construction, it may take three years before a property is valued in full. Beyond that, values are determined by market conditions. He noted information about market value on any property is available from the County Assessor. Herb Olander, 15844 Gooseberry Way, said he would like the City budget to only increase based on the inflation rate or cost of living rate even if it means less service. He commented on the State Legislature taxing citizens too much. He asked how long the transit system has been around and been subsidized? If it is not being used, it may be a luxury we cannot afford. Users should pay the cost and it should be run more efficiently. A resident of a townhouse area commented on lack of City services required for those types of homes. He asked that the issue of costs for those services be addressed at some future time; perhaps in a newsletter. Lyman Johnson, commented with difficulty an ambulance had getting through the street in his neighborhood because a car was parked on the street. He suggested the City look at whether such narrow streets should be allowed. CITY OF APPLE VALLEY Dakota County, Minnesota December 12, 1996 Page 3 The Mayor asked for other questions or comments. There were none. Mr. Gretz said the City has worked to become more efficient and conservative in its operations. Snow plow trucks used to be replaced every seven years; now they are kept for 13 years. Park mowing has been reduced in some areas. The City has 38 police officers for a population of approximately 42,000 rather than one officer per 1,000 as is sometimes recommended. The City continues to try and maintain efficient services in a cost effective manner. Adoption of the tax levy and budget will be considered by the Council at a meeting on December 19th, 1996. MOTION: of Erickson, seconded by Humphrey, to adjourn and declare the hearing closed. Ayes - 5 - Nays - 0. The hearing was adjourned and declared closed at 8:05 o'clock p.m.