Agenda Packets - 1999/09/27 - Laserfiche WebLink

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Mounds View City Council August 23, 1999 Regular Meeting Page 29 Council Member Stigney stated he did not have a copy of the resolution, and inquired if the information provided was strictly preliminary. Finance Director Kessel stated this was correct. He explained the amounts stated could not be exceeded, however, they could be amended downwards. K. Consideration of Resolution 5368, a Resolution Authorizing an Increase in the City's Property Tax Rate for the Year 2000. Finance Director Kessel provided the Council with a copy of a facsimile from Ramsey County which lists the preliminary tax capacity and market values for payable 1999 and 2000 taxes. He explained the total tax capacity value for local rates has increased by $245,192.00 for pay in 2000, versus pay in 1999. He explained that this represents an approximate increase of 5 percent in the City's tax capacity. Finance Director Kessel stated the City's levy limit is less than one percent based upon the formula that the state utilizes. He explained this represents a tax rate increase. He explained that although the denominator is increasing more than the numerator, the rate would actually go down, however, the method the state uses to calculate the property tax increase indicates that it has increased. Finance Director Kessel explained that in order to levy the maximum levy, the state requires there be a resolution on the books authorizing an increase in the tax rate as they define it, and this is required to be completed prior to October 20. MOTION/SECOND: Stigney/Marty. To Approve Resolution No. 5368, a Resolution Authorizing a property Tax Rate Increase for the Year 2000, Pursuant to Stated Statutes. Ayes—3 Nays—0 Motion carried. Council Member Thomason was not present for the vote. L. Consideration of Ordinance 641, an Ordinance Implementing a Franchise Fee on Electric and Natural Gas Utility Companies for the Operation of the Utility with the City. L.1. First Reading of Said Ordinance Finance Director Kessel stated this was the First Reading of Ordinance 641. He explained that this ordinance was the same as the ordinance approved the previous year, with the exception of the addition of Reliant Energy/Minnegasco. He stated the item that should be considered prior to Second Reading and adoption of this ordinance is Subdivision 3, the amount of the Franchise Agreement. He stated there has been some discussion in the past regarding lowering the feet to two percent, and also discussion regarding increasing the fee and earmarking a portion of it to a street reconstruction fund. He explained that the language currently indicates the Franchise Agreement of the sales of electric and natural gas within the City will be 2.5 percent, which is the present rate. Finance Director Kessel stated another item for consideration is Section 8, the Sunset Clause, which indicates the ordinance will automatically sunset on December 31, 2001. He explained