Agenda Packets - 1996/09/30 - Laserfiche WebLink

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.11-#1 COI OVIL+10 ot r J lei,lime SF° City staff and City Council have spent months reviewing operations and priorities of the City and have prepared the preliminary budget for 1997. The purpose of this newsletter is to provide you • with information relating to the City budget so that you can provide us with your input on the services we provide and the associated costs and fees. Mounds View is one of the few cities in the State that conducts an informal meeting on the proposed budget well in advance of the State mandated Truth in Taxation Hearing (which has been set on December 4). This special newsletter, outlining City revenues and outlays for all funds for 1997, is intended to provide you with information prior to the Informational Meeting so that you can be better prepared to ask questions and receive answers. We welcome your participation, questions and suggestions. If you would like additional information prior to the informational meeting, please contact our Finance Director,Bruce Kessel, or Clerk- Administrator, Chuck Whiting. This year's budget was prepared looking at the City's priorities for both next year as well as for the future (next five years). This has resulted in a proposed budget with a proposed increase in the property tax levy of$55,846 or 3.5%. Over the last several years, the City has made a concerted effort to keep property tax increases to a minimum while keeping its quality services intact. Since 1994, the total property tax levy has only increased$99,594, which is 6.4% or approximately 2%per year. When you look at your individual property, you may have found that your taxes have changed more than 2%per year and may question how this could happen? When the City establishes a local property tax levy, such as our preliminary 1997 levy • which is a 3.5% increase over the 1996 levy, some properties in Mounds View will see an increase greater than 3.5% while other properties may actually see a decrease in their property taxes. This is due to changes in a property's assessed valuation(approximate market value) as determined by the Ramsey County Assessor. Preliminary information from the County indicates that the average residential assessed valuation increased 4.81% in 1996. The higher the increase in your property's assessed valuation, the greater the increase in your property taxes. How did the Council and staff arrive at a preliminary budget with an increase in the property tax levy of$55,846 or 3.50%? Based upon input from the Focus 2000 strategic planning process,the community expressed the need for a local community center. As a result,the City purchased the Bel Rae Ballroom and is in the process of developing plans to enhance the building's ability to meet the needs of the community. The building was purchased with available tax increment funds which were generated from the success of commercial development in prior years; as a result, no residential property taxes were used for the building. We are in the process of investigating options for funding building enhancements, and it appears that tax increments and/or other non-property tax monies can be used for such improvements. Ongoing operations, however, may take several years before achieving maximum potential, and as such, $50,000 has been budgeted to cover start up operations . in 1997. The objective is to design a facility that will meet the communities needs while