12/09/2002 Council Minutes - Laserfiche WebLink

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APPROVED •1 CITY OF LINO LAKES 2 MINUTES 3 4 5 DATE : December 9, 2002 6 TIME STARTED : 6:05 P.M. 7 TIME ENDED : 8:35 P.M. 8 MEMBERS PRESENT : Councilmembers Carlson, Dahl, O'Donnell, Reinert, and 9 Mayor Bergeson 10 MEMBERS ABSENT : None 11 12 Staff members present: City Administrator, Linda Waite Smith; City Clerk, Ann Blair; Community 13 Development Director, Michael Grochala; Finance Director, Al Rolek (part); City Engineer, Jim 14 Studenski; Police Chief, Dave Pecchia; City Attorney, Bill Hawkins. 15 16 TRUTH IN TAXATION HEARING 17 18 Mayor Bergeson advised the purpose of the meeting is to review the proposed 2003 Operating Budget 19 for the City and take public comment. Action will not be taken tonight on this item but a staff 20 presentation will be given and public input received. Formal action will be considered at the 21 December 16, 2002 Council meeting. 22 • 23 Finance Director Rolek reviewed the proposed 2003 Operating Budget and Property Tax Levy. He 24 provided a PowerPoint presentation, noting the major factors in 2002 as being the State Legislature 25 property tax reform, which resulted in reduced property class rates for all property and, thus lower 26 taxable value. Also, the State also took over funding for general education for school districts, 27 discontinued HACA to cities and counties, implemented State property tax for commercial/industrial 28 and seasonal properties, and reimposed levy limits for 2002-2003 taxes which will sunset after this 29 tax season unless the Legislature extends those levy limits. 30 31 Finance Director Rolek stated the Lino Lakes levy includes $200,000 to continue to implement the 32 Vehicle Replacement Fund and to phase out the use of debt, which will result in long-term savings. 33 The levy also includes amounts for other capital needs such as City Hall capital needs, office 34 machinery, computers, and salary and wage adjustments. He advised that the levy for next year will 35 increase by 3.8% and is broken into general levy, special levy, and special PERA levy. The tax rate 36 will drop about 5.5% and the City's tax rate will go from 53.15 to 45.167 under this proposal. 37 38 Finance Director Rolek reviewed the 2002 property tax distribution for 2003, noting Lino Lakes 39 makes up about 40% in 2002 and that will be reduced to 37% in 2003. He presented a chart 40 containing a property tax computation, which identified a slight reduction in taxes on a market value 41 home of $200,000 from $2,704 in 2002 to $2,595 in 2003. This does not take into consideration any 42 appreciation in value due to reassessment or improvements on the property. 43 •44 Finance Director Rolek reviewed the budget preparation calendar used by Lino Lakes, which started 45 with establishing budget priorities and objectives at a work session in May. In June and July the