Agenda Packets - 2006/01/09 - Laserfiche WebLink

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Mounds View City Council December 5, 2005 Truth in Taxation Meeting Page 7 1 Mayor Marty explained that the Council set a preliminary levy and the Council can not go up 2 from that estimate but can go down. The Council started it at an 8% increase and then adjusted it 3 down to zero. 4 5 Councilmember Thomas explained that the County provides a base number on what they 6 estimate the tax base to be that the Council can balance against what they think the revenues will 7 be. 8 9 Mr. Glidden asked if it takes into account the assessed values. Mayor Marty stated it does. 10 11 Finance Director Beer explained that assessed values are only a piece of the formula. The rate 12 factors into it and the amount of revenue that the Council is trying to generate is also factored in. 13 The Council started with an 8% increase over last year’s levy of about $4.1 million and the levy 14 to be certified is about $3.8 million. The City figures the expenses first, looks at all revenue 15 sources and estimates what will be received. The filler number is the levy and because the 16 Council was able to reduce some of the expenditures and add additional revenue sources from 17 the proposed levy, the percentage went down to zero. 18 19 Mr. Glidden asked how the Council takes into consideration the increased valuations of 20 resident’s homes that generates additional revenue. He asked how that is factored into what the 21 City’s expectations are for incoming revenue. Finance Director Beer explained the County is 22 responsible for assessed values and the City cannot control that piece of it but can control how 23 much to levy for. He advised that the base is made up of home owners, industrial property, 24 commercial property, and apartment buildings. The City is more reactive as a result of what the 25 County does but cannot control what the County does. 26 27 City Administrator Ulrich stated the City receives a preliminary estimate of the impact of the 28 market value increase which is used to establish the tax rate. 29 30 Mr. Glidden asked if there is a County Truth in Taxation meeting. Councilmember Thomas 31 advised it will be held on December 13, 2005. Finance Director Beer stated all taxing districts 32 have to hold their own Truth in Taxation hearings. Mr. Glidden stated he has never seen an 33 advertisement or notice for a County Truth in Taxation hearing. 34 35 Finance Director Beer advised that the hearing dates are on the Truth in Taxation statement. 36 Councilmember Thomas suggested they also be posted on the City’s web site. 37 38 Mr. Glidden stated his understanding of how the Council takes into account the increase in 39 assessed valuations based on data from the County. That information is used to build the first 40 budget and then the levy is adjusted accordingly to match the new assessed value. He noted if 41 you do not do that you are just taking a “windfall cut” almost by formula of assessed values. 42 43 Finance Director Beer explained that since the City lowered the rate, that is not what Mounds 44 View is doing. He stated that some cities claim they kept the rate the same and would get a 45