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HomeMy WebLinkAboutNovember 30, 1995OFFICIAL PROCEEDINGS COLUMBIA HEIGHT CITY COUNCIL TRUTH IN TAXATION PUBLIC HEARING NOVEMBER 30, 1995 The Truth in Taxation Public Hearing was called to order at 7:00 p.m. by Mayor Sturdevant. Petkoff, Ruettimann, Peterson, Sturdevant- present Councilmember Jolly was out of town on City business. PURPOSE OF HEARING To consider adoption of the 1996 budget and establish tax levies. 3. PRESENTATION OF INFORMATION The City Manager advised handout material for this hearing is a summary of the 350 page budget document. He noted that when the final adoption of the budget resolution is completed and other information related to the budget is prepared, it will all be included in a budget informational video. This will be cablecast along with the taping of this public hearing. Preparation of the 1996 budget started in April of 1995. Numerous staff meetings and Council work sessions were held until the Truth In Taxation Public Hearing. During these meetings, each item in the proposed budget was scrutinized to address possible cuts or changes in individual departments or funds. Included in the handout packet was information regarding revenue sources and expenditures. The City Manager noted that municipal budgeting is rather complex but this information has been formatted to be very understandable. He recognized the efforts of staff in the Finance Department in producing this packet. The composition of the City's tax base was reviewed. The tax base is dominated by residential property which is about seventy-five percent of the total. The residential classification is the lowest taxed with commercial/industrial being taxed at a slightly higher rate. The rate on commerical/industrial has decreased in the last few years. TRUTH IN TAXATION PUBLIC HEARING NOVEMBER 30, 1995 PAGE 2 At its September 11, 1995 meeting, the Council set a "not-to- exceed" tax levy of 3%. The City Manager advised that with this budget, the City's share of the overall tax levy will be held at approximately a 1.25% increase. It is anticipated that taxes within the City will decrease from previous year levels. Any increase above the City's 1.25% would likely be due to an increase in a home's valuation. The City Manager presented a chart which addressed a five year projection of revenue needed and the effect on the local levy. The years focused on in the chart are 1995 through 1999. It was noted that some of the data presented for these five years is based on assumptions. The City Manager's presentation was concluded with his comments relative to a pie graph detailing where property tax dollars will be utilized in 1996. Fifty percent is allocated to the School District, twenty three percent is allocated to Anoka County, twenty two percent goes to the City and the remaining five percent is earmarked for special districts. COMMENTS FROM RESIDENTS One resident felt the funds used to improve the Sheffield Neighborhood should have been used to build a prison in that area. He suggested there could be a large profit realized from this venture. It is his opinion if this project were done there would be no future property taxes ever needed to keep the City operating. CLOSING OF PUBLIC HEARING Motion by Peterson, second by Petkoff to close the Truth in Taxation Public Hearing. Roll call: All ayes CONSIDERATION OF BUDGET RESOLUTION Motion by Peterson, second by Petkoff to add the budget resolution to the agenda of the Regular Council Meeting of December 11, 1995 at approximately 7:00 p.m. Roll call: AlL ayes TRUTH IN TAXATION PUBLIC HEARING NOVEMBER 30, 1995 PAGE 3 7. ADJOURNMENT Motion by Petkoff, second by Peterson to adjourn the Public Hearing at 7:48 p.m. Roll call: All ayes William Elrite, Secretary Pro-rem