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HomeMy WebLinkAboutNovember 30, 1994OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL TRUTH IN TAXATION PUBLIC HEARING NOVEMBER 30, 1994 The Truth In Taxation Public Hearing was called to order at 7:00 p.m. by Mayor Sturdevant. 1. ROLL CALL Jolly, Ruettimann, Peterson, Sturdevant - present Councilmember Nawrocki arrived at the hearing at 7:25 p.m. 2. PURPOSE OF MEETING To consider adoption of the 1995 budget and establish tax levies. 3. PRESENTATION OF INFORMATION City Manager Hentges reviewed the calendar for the budget preparation. The last day to certify the levy to Anoka County is December 28, 1994. The tentative date to adopt the 1995 budget is December 12, 1994. The City Manager addressed the factors affecting the proposed City preliminary tax increase. The five factors are as follows: 1. The City now proposes to reduce by $33,466 the preliminary tax levy. 2. The City proposes to hold the levy increase to $25,000 over that which was levied in 1994. 3. The City will receive a $31,391 reduction in area-wide tax (fiscal disparity). The net result will be a corresponding increase to the local share of the property tax bill. 4. Commercial and industrial values decreased slightly, thus shifting a greater burden on residential values. 5. Some residential property values increased thus those owner's statements will reflect significantly higher tax increases. Overall the property values remain stable. The City Manager's presentation included an overview of the 1995 proposed budget including revenue sources, average tax base and the market value composition of the tax base. He addressed budget issues which resulted in recommended revisions to the proposed budget as made by himself and staff. TRUTH IN TAXATION PUBLIC HEARING NOVEMBER 30, 1994 PAGE 2 e Se With the use of graphs and charts, a comparison of 1995 to 1994 expenditures and revenues was done. The impact of a $25,000 increase in the tax levy on properties having the same value as in the previous year was reviewed. CONSIDERATION OF RESOLUTIONS Resolutions were drafted to set the tax levy collectable for 1995 and to adopt the budget for 1995 The City Manager advised that the budget cannot be adopted at a Truth in Taxation Hearing or at the Continued Hearing. OUESTIONS AND ANSWERS Some LaBelle Condo owners stated their tax statements reflected a difference in the taxes on their garage spaces which are all identical. They questioned this disparity. The City Manager will contact the County Assessor regarding this matter and pass the explaination received onto LaBelle residents. A similar situation regarding garage space was expressed on behalf of University Heights property owners. They also receive two tax statements, one for the living space and another for the garage space. Their concern focused on being taxed as two separate entities when the garage space is attached to the living space. There was also a disparity among the tax amount for garage space although they are all identical. The City Manager will pursue an explanation for this situation from the County Assessor. A Sullivan Shores property owner felt she should be given a credit for that portion of property tax used for street maintenance. She noted that the Sullivan Shores development has private streets which are maintained and cared for by the Association. All costs for this work comes from Association fees. Examples were cited of circumstances where property owners pay taxes to support activities from which they receive no direct nor indirect benefit. Some of the examples included the School District for people who have no children, the public transportation subsidy for people who never use the bus and recreational opportunities not accessed by everyone. TRUTH IN TAXATION PUBLIC HEARING NOVEMBER 30, 1994 PAGE 3 Se She was advised property taxes are used on streets located outside of the development which she frequently uses. Residents were advised that the appropriate place to discuss their property values is at the City's Board of Review Hearing which is traditionally held in the spring. Each property owner is sent a card early in the year with their proposed property value. This card also contains information regarding the dates and locations of the City's Board of Review and the County's Board of Equalization. Members of the City Council commended the City Manager and staff on meeting the goals set for this budget. CLOSING OF THE PUBLIC HEARING Motion by Ruettimann, second by Peterson to close the Truth in Taxation Public Hearing until the December 12, 1994 meeting and that consideration of the budget be placed on the agenda of that meeting. Roll call: All ayes yor ~6s~ph Sturdevant -Anne Student, -C~uncil Secretary