Agenda Packets - 2005/01/10 - Laserfiche WebLink

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Mounds View City Council December 6, 2004 Regular Meeting Page 6 Finance Director Hansen indicated the proposed Property Tax Levy for 2005 is $3,838,334, 1 which represents an $827,585 increase over 2004. He reviewed the items that accounted for the 2 increase, noting that the largest figure is from a reduction of Local Government Aid. He noted 3 that property taxes have increased to make up this loss and other changes in the budget. 4 5 Finance Director Hansen explained how property taxes are calculated, and compared the tax 6 increase on a median priced home from 2004 to 2005. He noted there would be an approximate 7 $300 increase, which represents 16.3%. He advised that property taxes are split between the City 8 of Mounds View, Ramsey County, the School District and other taxing districts, with Mounds 9 View receiving approximately 33.4 cents of every property tax dollar. 10 11 Finance Director Hansen reviewed the Mounds View Street Rehabilitation project, which 12 contributed to the increased budget amount for 2005. He explained the reduction of State Aid, 13 which was $477,000 in 2004 and another $301,000 in 2005. Mayor Linke added that in 2004 the 14 State took away the aid after telling the cities they would receive it. 15 16 A resident asked how much the golf course costs the city. Mayor Linke indicated it has cost just 17 over a million dollars. The resident noted it is just going to continue costing the taxpayers more 18 money. He asked how much of his taxes go to pay for it. 19 20 Mayor Linke indicated the golf course has taken loans from other revenue sources and will pay 21 that money back. 22 23 The resident asked if the community center is self-supporting. Mayor Linke indicated it is not, 24 but was never meant to be self-supporting. 25 26 The resident stated his taxes have gone up $500 in the last few years. He indicated the 27 newspaper says taxes are going up an average of 8 ½ %, but their property taxes are going up 28 over 17%. 29 30 Finance Director Hansen indicated Mounds View has less tax capacity than neighboring cities. 31 He stated tax capacity comes more from commercial and industrial property than from homes, 32 and Mounds View has little commercial or industrial property. 33 34 Bill Surges indicated every other city gets the same state aid as Mounds View and are dealing 35 with the loss, so he questioned why Mounds View taxes are going up so much. 36 37 Mayor Linke indicated some of the cities are bigger and can absorb the losses more, but not all 38 cities get the same amount of aid. He added that Mounds View does not have money in the bank 39 to the degree that other cities do, either. 40 41 Mr. Surges commented that the money on the golf course was wasted, and now the taxpayers are 42 subsidizing it. 43 44