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Mounds View City Council December 5, 2005 <br />Truth in Taxation Meeting Page 10 <br /> <br />numbers. Finance Director Beer stated that is correct. Mr. Amundson stated he wanted that 1 <br />clarified for people who may be watching the meeting from home. 2 <br /> 3 <br />Mr. Amundson stated there is still an increase and that is what bothers most people. He stated he 4 <br />appreciates that the rate is going down and the revenue generated is going to be equal in the 5 <br />general fund as it was in the last year. However, there is still an increase because the property 6 <br />value is going up. He stated that he does not understand why, if the City’s revenue is going to be 7 <br />flat, his cost is not decreasing. Finance Director Beer stated the reason is because there are four 8 <br />classes that property taxes get applied to and it is relative to the value increases. The home class 9 <br />increased by 15% in the last two years, commercial and industrial properties only had a 9% 10 <br />increase, and apartments saw a decrease. He stated the shift in the tax burden relates to the 11 <br />increases in values. 12 <br /> 13 <br />Mr. Amundson asked about the chart showing the tax rates compared to other cities which was 14 <br />shown in a per capita comparison instead of by per $100,000 for private homes. Finance 15 <br />Director Beer explained that since cities all have a different median tax values, it is hard to make 16 <br />a comparison that way and it is felt that per capita is a better comparison. 17 <br /> 18 <br />Mr. Amundson disagreed and stated if he looks at a home of the same value in another city, he is 19 <br />still paying more in property taxes than surrounding cities. He asked if that is because of 20 <br />population density. Finance Director Beer explained that North Oaks has a median tax value of 21 <br />about $580,000 with a tax rate of about 8%. Mounds View has a median tax value of $186,000. 22 <br /> 23 <br />Mr. Amundson stated he is talking about real dollars paid per $100,000, noting he is paying the 24 <br />highest rate for the suburban area. Finance Director Beer stated you cannot apply the Mounds 25 <br />View rate to another city, noting they have a bigger population base. 26 <br /> 27 <br />Mr. Amundson stated he does not like that the chart tried to show that Mounds View pays a 28 <br />lower property tax than other cities. Finance Director Beer stated Mounds View residents do pay 29 <br />a lower rate per capita. 30 <br /> 31 <br />Mr. Amundson stated that in terms of real dollars for the value, Mounds View residents are 32 <br />paying more. He stated his understanding from the Town Hall meeting that if additional 33 <br />inspectors are needed for the Medtronic project, it would be funded from TIF. He stated he had 34 <br />expected either the interfund transfers to be higher for that position or the position to be totally 35 <br />funded by TIF. Finance Director Beer referenced page 9 and stated the interfund transfers, on the 36 <br />expenditure side, did go up. 37 <br /> 38 <br />Mr. Amundson noted the City Hall remodel project is funded from the special projects fund and 39 <br />asked how many additional other funds exist. Finance Director Beer stated there are four 40 <br />enterprise funds, about a dozen special revenue funds, four capital project funds, and two debt 41 <br />service funds. 42 <br /> 43 <br />Mr. Amundson asked if any of those funds get property tax revenue. Finance Director Beer 44 <br />stated they do not. Revenue for those funds come from grants, interest income, fees, franchise 45