Agenda Packets - 2005/04/25 - Laserfiche WebLink

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Mounds View City Council April 11, 2005 Regular Meeting Page 13 1 1. Announce that the Mounds View Employee Appreciation Lunch will be 2 on Wednesday, June 8, 2005 from 11 a.m. to 1 p.m. 3 4 City Clerk/Administrator Ulrich announced the Mounds View Employee Appreciation Lunch 5 will be 6 on Wednesday, June 8th, from 11:00 a.m. to 1:00 p.m. He stated it was for the Council’s 7 attendance if they are available. 8 9 2. Long Range Financial Plan 10 11 Finance Director Hanson stated he had not been able to attend the April 4th work session, and he 12 would be answering some questions that came up. He stated that in the long-range plan dealing 13 with bond issuance, there was not a bond issue in the year 2009 related to this street project, and 14 the question was why. The tentative plan he used in terms of the street reconstruction had a high 15 percentage of municipal state aid for streets and roads being done that year, and so there was 16 only going to be about $200,000 worth of costs that would be bonded for that and would be 17 repaid at the property tax levy, and the financial advisor had advised him that is too small an 18 amount to be bonded for and the bond issuance costs would be too much, so the plan is simply to 19 hold that over to the year 2010 and then propose to issue a larger number of bonds in the year 20 2010. He stated the year 2009 was not missed, and it was just a small bond issue, so it was 21 carried over and lumped into the next year. 22 23 Finance Director Hanson stated the other question that came up is a request for a projection of 24 property tax bills that would occur in the future with the bond issues going on for the street 25 program. He stated that due to the complexity of the property tax system in the state, that’s 26 extremely difficult to do a projection on, especially going out into the future with the bond 27 issues. He stated he attempted to make a projection, with the caveat that it’s not something you 28 can rely on. He explained how he got to the figure of $141 or 7 percent on the home tax bill, but 29 that if they do proceed on the street program, he was sure in nine years they would be looking at 30 a tax levy that would be different than this. 31 32 Brian Amundson, 3048 Woodale Drive, thanked Mr. Hanson for attempting to make this 33 projection. He asked what the median home value was that he used. 34 35 Finance Director Hanson stated that the median home value for 2005 has an estimated market 36 value of $178,000, and a limited market value of $162,000, which is what the tax is based on. 37 38 Council Member Thomas cautioned that he was not able to build into this any county increases 39 for valuation changes to the market, which is the number one inflationary issue they’ve been 40 dealing with is the rising value in housing, and it’s just not possible for him to figure that into 41 those charts, so that’s just a number they can work with for the valuation that they have. 42 43 Mr. Amundson stated that his original question was to understand the dollar impact of ten years 44 worth of bonding, which is the point at which they have all of the projects actually into service. 45