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Mounds View City Council December 5, 2016 <br />Truth in Taxation Meeting Page 2 <br /> <br />noted the 2017 budget did not have a lot of increases. He indicated the General Fund operating <br />budget would increase by 0.65% over 2016. He reviewed how the City received its revenues <br />noting 66% of revenues were received through property taxes. It was noted the City was <br />estimated to receive $671,517 in LGA for 2017. Staff provided further comment on the <br />proposed property tax levy of 3.4% with the Council and indicated that it could be reduced to <br />1.71%. Finance Director Beer described how the median valued home would be impacted by the <br />proposed levy. He was pleased to report the City’s tax levy per capita was on the low end when <br />compared to neighboring communities. <br /> <br />Council Member Mueller questioned when the City would receive its second LGA payment. <br />Finance Director Beer reported the City would receive this payment at the end of December. <br /> <br />Council Member Mueller asked if the presented financial report would be available to the public <br />on the City’s website. Finance Director Beer reported this information would be posted on the <br />City’s website and the Truth in Taxation meeting would be available for viewing as well. <br /> <br />Mayor Flaherty requested clarification from staff why a 3.4% tax levy was being approved when <br />the operating budget has only increased by 0.65%. Finance Director Beer explained the General <br />Fund had an increase of 0.65% while there was an overall increase in revenues of 1.71%. He <br />added that these percentages also don’t address the increases or decreases the City has in other <br />revenues for 2017. <br /> <br />Mayor Flaherty discussed the spending per capita ranking received by the City of Mounds View <br />and commended staff for their efforts. <br /> <br />Council Member Meehlhause stated that much of the increase in expenditures incurred by the <br />City were out of the City’s control. These costs were controlled by Roseville IT, Ramsey County <br />Dispatch, consulting staff members, Police and Fire staff, etc. <br /> <br />Council Member Gunn added that there were also state mandates that were handed down to the <br />City. <br /> <br />Mayor Flaherty recommended the Street Levy go away after the City completed the final portion <br />of the project. <br /> <br />Council Member Hull questioned how much the City would be spending on the new Public <br />Works Facility. Finance Director Beer reported the City should plan to spend $425,000 to <br />$450,000 in annual debt service which would be 10-12% of the City’s tax levy. He anticipated <br />this debt would begin in 2018. <br /> <br />Council Member Meehlhause recommended the tax levy be set at 1.75%. <br /> <br />Council Member Hull reported he supported a levy amount of 1.71%. <br /> <br />Council Member Gunn stated she could support either number.