12-18-2013 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL DECEMBER 18, 2013 condominium homes decrease the value of the City's median valued home. The total City tax bill for a median valued home would be $640.38 in 2014, or $53.37 monthly. This tax covers the cost of public safety (53 %), general government (14 %), public works (11 %), community services (13 %), infrastructure improvements (6 %), and debt service (3 %). For residential properties with no valuation change, property owners will see a .97% increase in their property taxes given the corresponding increase in the City's tax capacity rate. Residential properties with a 5% valuation increase will see a 6.02 %. With regard to the 2014 total property tax distribution on a median valued home, the County accounts for 48.90% of the tax bill, the City 24.01%, School District 17.88 %, and miscellaneous jurisdictions 9.21 %. The City Administrator reported that for 2014, purchases made by the City will be tax exempt. He noted that several years ago, cities were tax exempt entities; however, the State Legislature implemented sales taxes on cities to help resolve the State Budget crisis. The Legislature has again exempted from cities from paying sales tax on direct goods and materials purchases. The Administrator estimated that this will result in a General Fund savings of $14,200, and a total tax savings for operating costs of approximately $27,000. Additional tax savings will be realized for construction of the new Public Works /Parks Facility and reconstruction of the Fire Barns Warming House. In looking at future impacts to property taxes, the City Administrator again noted the sales tax exemption savings, the City's moving forward with a new Public Works /Parks Facility, the potential for changes to Local Government Aids (LGA) given 2014 is an election year, and the building out of the Pinetree Pond development. The Administrator concluded his presentation indicating that the 2014 Budget will be posted on the City's website. He indicated that if property owners have any questions, they can contact City staff. Blesener asked if there was anyone from the general public present wishing to comment on the proposed 2014 Budget. Brian Singletary indicated that his property taxes are doubling for 2014. Singletary asked the basis for this increase. He also noted that he lives near Highway 36 and expressed concern about the noise from this highway. The City Administrator noted that the increase in Singletary's property taxes is the result of his new home reaching a fully taxed status for 2013, pay 2014 property taxes. The Administrator also explained that the City has no authority relative to sound walls along freeways, and this is an issue that is under MN DOT's control. The Administrator reported 12