Agenda Packets - 2006/01/09 - Laserfiche WebLink

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Mounds View City Council December 5, 2005 Truth in Taxation Meeting Page 11 fees, etc. Mr. Amundson stated his concern when he heard there was $3.5 million in a special 1 projects fund and now there are also net proceeds from Medtronic so there is $7 million sitting 2 someplace. He stated the City is still talking about a $3.8 million general fund and asked why 3 money from the other funds is not being used to pay for City general services and truly keeping it 4 a zero increase for City service increases. 5 6 Finance Director Beer explained that the special project fund is scheduled to be spent down over 7 the next four to five years on projects like the City Hall renovation and fixing the sign. 8 9 Mr. Amundson asked where he can get a copy of that information. Finance Director Beer stated 10 it is included in the Capital Improvement Plan. Mr. Amundson asked that it also be included on 11 the City’s website. 12 13 Barbara Haake, 3024 County Road I, asked about page 12, the Sample Home Tax Impact chart, 14 showing a $103,000 house and tax of $670 for the City’s portion back in 2005 and going to $697 15 now, which is a $27 difference. She asked how much the City gathered in income just from 16 home valuations in 2005 and what is projected that the City will get in 2006. Finance Director 17 Beer stated the County has not yet provided that information. 18 19 Ms. Haake stated that will be additional income and the Council is saying they are not raising the 20 levy limit but there is additional money coming in. Finance Director Beer stated the City will 21 not be getting in any additional money because the levy in 2005 was $3.8 million and in 2006 it 22 is $3.8 million. He explained that what Ms. Haake is seeing is a shift from commercial, 23 industrial, and apartment building properties to residential properties. 24 25 Ms. Haake asked what is the final budget for income received in 2005 and will be received in 26 2006. Finance Director Beer stated page 8 shows the levy for both 2005 and 2006. 27 28 Ken?? Meyer, 2812 Sherwood Road, stated the Council is saying they are not raising taxes but he 29 believes they are over taxed for the services they get compared to other cities. He asked why 30 they don’t talk about asking each department in the City for a 3% decrease. He stated the City is 31 living on a shoestring and there are no contingencies being built into the budget. Mr. Meyer 32 stated the City does not have any cash reserves and is talking about using the Medtronic money at 33 once, forgetting about the future. He stated the City does not have any cash in the bank and is 34 counting on a 12% to 15% increase in property value every year which cannot continue and may 35 go flat. 36 37 Mr. Meyer stated the City cannot expect to continually increase property values and he believes 38 the City is living from paycheck to pay check and has no cushion whatsoever. 39 40 Mayor Marty noted there was inflation this year and yet the Council was able to keep the levy at 41 the same level as last year. 42 43 Councilmember Thomas noted one resident said the City has too big of a “financial cushion” 44 because of the special project funds and another perception is now being presented that the City 45