HomeMy WebLinkAbout12/12/2005 TIT Meeting
CITY OF APPLE VALLEY
Dakota County, Minnesota
December 12, 2005
Minutes of the special meeting of the City Council of Apple Valley, Dakota County, Minnesota,
held December 12th, 2005, at 7:00 o'clock p.m., at Apple Valley Municipal Center.
PRESENT: Mayor Hamann-Roland; Councilmembers Bergman, Erickson, Goodwin, and Grendahl.
ABSENT: None.
City staff members present were: City Administrator Lawell, City Clerk Gackstetter, Finance
Director Ballenger, Assistant Finance Director Broughten, Assistant City Administrator Grawe,
Public Works Director Heuer, Parks and Recreation Director Johnson, Police Chief Johnson,
Acting Community Development Director Lovelace, Police Captain Rechtzigel, 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.
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 2006.
Mr. Lawell 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 2006 based on
preliminary budgets and tax levies approved in September. The hearing notification was published as
prescribed by law. Mr. Lawell reviewed revenue, expenditure, and property tax comparisons of cities
similar in size to Apple Valley, as available on the State Auditor’s website. He described the two new
positions in the proposed 2006 budget as well as other budget highlights.
Mr. Ballenger gave an overview of the proposed 2006 budget and reviewed the City’s growth
statistics. He reviewed state aid receipts from 1996 to 2005 that are now projected at zero. He
described the phase-out of the State’s limited taxable market value program and its impact on older
homes. The limited taxable market value program will be completely phased out by 2009. There is
no Market Value Homestead Credit (MVHC) projected in the 2006 budget. He summarized the
budget highlights as contained in the City Administrator’s August 22, 2005, memo.
Councilmember Goodwin pointed out that state aid use to pay approximately 24 percent of the City’s
portion of the average homeowner’s taxes. The loss of state aid has had a negative impact on the
City of Apple Valley.
Mr. Ballenger said total 2006 revenue is shown as $41,093,152. The General Fund and debt service
is $23,159,370, a 5.6 percent increase over 2005. The total tax levy certified in September was
$19,183,861, a 6.9 percent increase over 2005. Based on Council feedback at the budget work
session on November 28, 2005, staff made budget modifications. The revised tax levy is
CITY OF APPLE VALLEY
Dakota County, Minnesota
December 12, 2005
Page 2
$19,030,124, a 6.1 percent increase over 2005, resulting in a tax rate of 35.632. He reviewed tax
calculations on a median valued home with an 8 percent increase. The total revised 2006 City budget
is $41,005,539. Mr. Ballenger 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 20, 2005.
The Mayor asked for questions or comments from the public.
Caroline Bennett, 13984 Herald Way, asked the Council and all taxing agencies to remember the
senior citizens when proposing property tax increases, and stressed the difficulties those on a limited
fixed income have in paying increased taxes.
Mr. Lawell said there are programs such as the Circuit Breaker Property Tax Program which can
assist eligible property owners with their property taxes. He offered to provide Mrs. Bennett with
details on the program.
Ed Scislow, 15712 Highview Drive, said his proposed property tax reflects a 12.5 percent increase.
He recommended senior citizens receive some sort of a tax break.
Councilmember Bergman suggested Mr. Scislow solicit the help of Rep. Lloyd Cybart, who was in
the audience.
Rep. Lloyd Cybart indicated the House of Representatives recently passed a bill establishing a
program designed to assist senior citizens with their property taxes. The Senate has yet to vote on
the bill.
Ruben Foley, 12078 Gantry Lane, said he questions the accuracy of his home’s market value,
especially when considering the air traffic as a result of the new runway opening. Based on previous
discussion, he noted this may not be the proper venue to discuss market value.
Mr. Lawell said property valuation is determined by the County Assessor, and staff can provide Mr.
Foley with that contact information.
Al Kettlekamp, 5563 – 133rd Street Court, expressed concern with the water quality of Long Lake.
Five years ago, he was told the City needed data on the lake. Since then he has volunteered to collect
data for the Citizen Assisted Monitoring Program (CAMP). During that period, he believes the
quality of the lake has gotten worse. With State and Federal mandates on water quality and the
potential impact of Apple Valley’s water on the Vermillion River Watershed, he strongly encouraged
the Council to keep the Water Quality Technician position in the budget for 2006.
Mayor Hamann-Roland thanked the audience for their comments and thanked Staff for their work in
preparing the proposed budget.
CITY OF APPLE VALLEY
Dakota County, Minnesota
December 12, 2005
Page 3
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 20, 2005.
MOTION: of Bergman, seconded by Grendahl, to adjourn and declare the hearing closed.
Ayes - 5 - Nays - 0.
The hearing was adjourned and declared closed at 8:16 o'clock p.m.