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Falcon Heights City Council Minutes Truth in Taxation Hearing • December 6, 2005 Mayor Gehrz called the Truth in Taxation Hearing to order at 7:00 p.m. PRESENT: Mayor Sue Gehrz, Council members Laura Kuettel, Robert Lamb, Peter Lindstrom, and Richard Talbot. Also present: City Administrator Heather Worthington, Finance Director Roland Olson, Councilmember-elect Pam Harris, and Planning and Zoning Intern Jane Fandrey. COMMUNITY FORUM: There was no commentary from the audience. PRESENTATIONS: None Scheduled PUBLIC HEARINGS: Truth in Taxation Hearing Mayor Gehrz began by explaining the meeting is the annual Truth in Taxation Hearing to present the proposed budget and levy for 2006. It also provides an opportunity to present some information about the impact on proposed taxes and what some of the other impacts are that affect people's proposed taxes. She explained the staff report by Administrator Worthington will start off the meeting, which will be followed by a public hearing. She noted there will be no council action at the meeting, but action will be taken at the Dec. 14 meeting. . Administrator Worthington began the item with a presentation and by thanking Finance Director Olson for his hard work in preparing the budget. She explained the budgeting process began in June. Next she explained the goals of the City which are: to protect public health and safety; to sustain and promote the assets of the city's unique neighborhoods and tax base; to expand opportunities for the interaction and involvement of citizens of all ages; and to provide a responsive and effective city government. For 2006, she noted an added goal of the City's website becoming an effective and useable tool for citizens 24/7. Administrator Worthington presented information about the 0.0% increase in the Falcon Heights' levy for 2006, the proposed general operating budget of $1,652,499, and the Special Revenue Fund Budgets for the year 2005 totaling $88,680. The Truth in Taxation Hearing was opened to the audience for questions and commentary. Jim. DeLeo, 1365 Idaho Ave W, asked about the legislative changes shifting the tax burden away from the state to local governments. He asked how much of a burden Falcon Heights has to shoulder. Mayor Gehrz stated that Falcon Heights has taken a hit due to LGA, HACA, and MVHC losses. Administrator Worthington noted that although there was a significant dip in these dollars the last several years, there was a slight increase this year. She answered the impact was mostly on property owners. She also noted the HACA dollars will probably not be gotten back. Councilmember Lindstrom added that the unfunded mandates from not only the state, but the federal government as well are burdens on cities. Councilmember Lamb explained how the city portion of levy was not raised, but property owners will see the city portion has risen. He stated that the increase was blamed on market value increases - 4 categories of • property: tax exempt (U of M, State Fair, schools, churches), business/commercial (not a lot in FH), multi- tenant housing/apartments, and individual residences. He stated that three categories are eligible for the tax 6 ~CHG02:40069922.v1 ~9/28/OS 11:33 AM