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LAKE ELMO CITY COUNCIL MINUTES DECEMBER 4, 2012 Page 1 of 2 CITY OF LAKE ELMO 2012 TRUTH IN TAXATION PUBLIC HEARING MINUTES December 4, 2012 Mayor Johnston called the 2012 Truth in Taxation meeting to order at 7:02pm. PRESENT: Mayor Johnston, Council Members Emmons, Smith, Pearson, and Park. Also Present: City Administrator Zuleger, City Attorney Snyder, City Engineer Griffin, Finance Director Bendel, Planning Director Klatt, and City Clerk Bell. City Administrator Zuleger explained the purpose of the hearing. He and Finance Director Bendel presented an overview of the 2013 budget. Mr. Zuleger explained that the proposal was the culmination of several budget workshops. A preliminary levy was adopted on September 18, 2012. Per state statute the adopted levy can go down, but not up. 2013 property values were assessed by City Assessor Frank Langer. Total City taxable market values decreased 1.2 percent from 2012 to 2013. Median taxable market values decreased 8.3 percent from 2012 to 2013. Finance Director Bendel explained the tax capacity calculations and the resulting differences in the 2013 general levy from the 2012 general levy. Mayor Johnston asked for clarification on the new library portion of the levy; specifically, whether it included the bonding and when the bonding would change. Mr. Zuleger confirmed that the figure was after the bonding had been taken out. He also reported that the City has inquired several times about the bonding changing and have not received and answer as of yet. Ms. Bendel explained that the debt service levies are included in the total levy. There is an increase in the difference between the general levy and the total levy due to debt service increase and the addition of the library levy. Mr. Zuleger provided an explanation of how the property tax rate was calculated. 2013 rate of 28.037% resulted in a 25% total rate increase from 2012. Mayor Johnston asked about how the 25% rate increase was possible. Mr. Zuleger and Ms. Bendel explained that there is a worksheet that can be provided that explains the calculation. Mr. Zuleger and Ms. Bendel reported the average home value of Lake Elmo is higher than the surrounding area, and Lake Elmo properties have retained their value better than the rest of the county. Mr. Zuleger gave a summary of 2013 budget inclusions. The 2013 budget is a balanced budget. Revenues are expected to increase. Budget expenditures were explained. The City is low in public works and safety, but little high in general government expenditure. A reason for that is legal and engineering contract services are high.