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HomeMy WebLinkAbout12/05/1995/96budhrgCITY OF APPLE VALLEY Dakota County, Minnesota December 5, 1995 Minutes of the special meeting of the City Council of Apple Valley, Dakota County, Minnesota, held December 5th, 1995, at 7:00 o'clock p.m. at Apple Valley City Hall. PRESENT: Mayor Branning; Councilmembers Erickson, Goodwin, Humphrey, and Sterling. ABSENT: None. City staff members present were: City Administrator Gretz, City Clerk Mueller, Finance Director Ballenger, Fire Chief Calvin, Community Development Director Kelley, Public Works Director Miranowski, and Police Chief Willow. Mayor Branning called the meeting to order at 7:00 p.m. 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 1996. He noted that notice of the hearing was published, as required by law, and was mailed to all property owners, the truth in taxation notices, by Dakota County. PUBLIC HEARING 1996 BUDGET ~ TAX LEVY as part Of Mr. Gretz said the proposed budget and tax levy result in an estimated tax rate increase of 3.5 percent. The tax levy preliminarily adopted in September, as required by law, was $7,573,887, It can reduced, but cannot be increased. Mr. Gretz noted that approximately 10 calls were received since the notices were mailed and the questions related to market value increases of property. The Council received a letter of objection, dated November 19, 1995, from Joyce E. Ellickson, 13105 Gemstone Court. Mr. Ballenger reviewed a summary of the total proposed budget consisting of revenues of $22,858,913 and expenditures of $22,493,183. He presented charts showing the tax levy at 27 percent of total revenue. He reviewed the history of City tax levies since 1985 and the impact of proposed 1996 taxes on various valued homes. He presented a copy of the Citizens' League tax ranking of 103 municipalities showing Apple Valley ranked 87th from the top. Me reviewed examples of market value to tax capacity calculations and the impact of the state classification where the first $72,000 of value is at one percent and the remaining value at two percent. The Mayor asked for questions of comments from the public. Wilt Anderson, 5441 West 134th Street, expressed concern about increases in government spending; however, he does not believe the City's increase is unreasonable. He commented on the School District budget, levy referendum and growth in school taxes. He said the City tax increase appears to be necessary to maintain services, but suggested it may want to implement a process for a cost reduction plan. He presented a copy of a suggestion form, for reducing costs and/or increasing revenue, the School District will be using. CITY OF APPLE VALLEY Dakota County, Minnesota December 5, 1995 Page 2 Lyman Johnson, 14012 Essex Court, President of the Foxmoore Townhome Association, said of their units, 23 are owned by people living on fixed incomes. 2~aey pay for their common area maintenance, snowplowing, etc.; and are limited as to what property improvaments they can make unless all residents agree. They do not believe they should be assessed the same as a single family home. He asked what percent the market value can be increased in a year? He asked what percent of tax is spent on street maintenance? Mr. Ballenger said the Public Works budget is ten percent of the total and street maintenance is part of that budget. He noted that for certain services, towrahomes pay different rates than single family homes; such as parts of utility bills. At one time, there was a state annual limit on market value increases, but that was eliminated by the legislature. Mr. Johnson said their association fees can only increase five percent per year and they are concerned about how they will be able to fund future improvements. Market value increases should be limited also. Councilmember Goodwin said if the market value on a property is within 95 percent of what it could be sold for, it is in compliance. Property owners need to look at these adjustments each year when notices are mailed by the County Assessor, Waldon Bahn, 14429 Holland Court, said he understands the market value influence, but City taxes went up 10.9 percent on his home. There should be a cap on increases; nobody gets wage increases of 10 percent. Dan Newbauer, 13630 Johnny Cake Ridge Road, said he talked to many residents and not one had a tax bill going up less than 10 percent. The City should be more truthful in expressing tax rates; it is not 3.5 percent. He understands government services and works for Hennepin County Parks which is looking at a two percent increase. Councilmember Erickson said the budget increase is 3.5 percent. The City cannot control how taxes are spread to property. That is determined by valuation and the state property classification system. Councilmember Goodwin said his taxes are going up 15 percent and his market value went up 11 percent. It indicates a change in market value in the neighborhood; a couple of years ago his market value went down. He asked Staff for information on market value changes in the City; how many properties went up or down, etc. Gene Gratz, 14031 Essex Court, said even though City taxes went up 3.5 percent, shouldn't individual taxes be less because there are more homes sharing the increase? The Mayor said when new homes are built, it may take two years for the full value to be placed on them. Mr. Gretz also noted that the state adjusts new growth values and does not allow the City to capture all of it. Mr. Ballenger reviewed a chart showing the actual value of the City's growth rate, since 1989, and the limit imposed by the state on tax capacity. CITY OF APPLE VALLEY Dakota County, Minnesota December 5~ 1995 Page 3 Mr. Anderson noted he is one of the homeowners who only had a 2.5 percent market value increase. He said he believes the City does a good job of managing its assets and it should be noted that 52 percent of the property tax bill goes to the School District. The Mayor asked for other questions or comments. There were none. He said the Council is trying to maintain efficient City services in a cost effective manner. Mr. Gretz noted that adoption of the tax levy and budget will be considered by the Council at its meeting of December 7th, 1995. At that meeting, revised utility rates and other fee schedules for 1996 will also be considered. MOTION: of Humphrey, seconded by Erickson, 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.