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Mounds View City Council November 22, 1999
<br /> Public Hearing Meeting Page 3
<br /> Wastewater Enterprise Funds, direct monies toward the Vehicle Equipment Fund, which is
<br /> utilized as a mechanism to pay for City vehicles.
<br /> Finance Director Kessel indicated there are three Enterprise Funds, which include the Water and
<br /> Wastewater Funds for which a charge is assessed on a quarterly basis. He stated there was also a
<br /> Golf Course Fund, and the fees paid by persons using the driving range or the golf course are
<br /> directed to this fund and are utilized to pay the expenses associated with the golf course.
<br /> Finance Director Kessel stated there is a levy in the General Fund for Fire Improvement Bonds,
<br /> which was issued in the early 1990's to construct several fire stations and pay for some capital
<br /> equipment. He explained that those bonds were re-financed two years earlier, through a joint
<br /> venture with the cities of Blaine and Spring Lake Park. He stated the residents pay a percentage
<br /> of the bond payments, and since the bonds were issued, the percentage has gone from 25 percent
<br /> to approximately 17 percent, based upon the tax capacity and the number of fire calls. He noted
<br /> the City of Mounds View's share has continued to decrease on both of these.
<br /> Finance Director Kessel advised that Ramsey County estimates the market value for all property
<br /> within the County, and the State of Minnesota determines classifications of property and
<br /> associated class rates. He indicated some of the major classifications are residential property,
<br /> which include homesteaded and un-homesteaded properties, commercial and industrial
<br /> properties, and apartment complexes.
<br /> Finance Director Kessel advised that the three major taxing jurisdictions are Ramsey County, the
<br /> School District, and the City of Mounds View. He stated there are seven additional taxing
<br /> jurisdictions including the Rice Creek Watershed District, and the Library, which comprise the
<br /> total amount of taxes paid by the residents of Mounds View. He explained that these taxing
<br /> jurisdictions determine the property taxes that are levied, and based upon the market value,
<br /> classifications, and taxes needed, the actual tax is calculated.
<br /> Finance Director Kessel stated the average market value of a residential home in Mounds View
<br /> in 2000 will be $105,000, which represents a $7,500 increase over the 1999 market value, or 7.7
<br /> percent. He explained that the City's levy, including the Fire Improvement Bonds, is increasing
<br /> by $9,290, for an actual increase of.5 percent. He stated the preliminary tax rate, which is the
<br /> tax levy divided by the tax capacity, based upon the market value, will decrease by 4.9 percent in
<br /> 2000, for an average residential house. He pointed out that with the increase in market value,
<br /> and the decrease in the City's tax rate, this represents an approximate $12 increase in the City's
<br /> portion of the property tax, or a 4 percent increase from the previous year.
<br /> Finance Director Kessel stated the general property tax in 1999 was $1,760,000, and this will
<br /> increase to $1,769,000 in 2000, or approximately .5 percent. He stated the property taxes
<br /> comprise approximately 46 percent of the City's General Fund revenue, franchise fees are
<br /> $195,000, which is approximately five percent of the City's revenue, and license and permit fees
<br /> are approximately $120,000, or three percent of the City's total revenues.
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