Minutes - 1999/11/22 (2) - Laserfiche WebLink

Home Browse Search

Mounds View City Council November 22,1999 • Public Hearing Meeting Page 3 Finance Director Kessel stated the Capital Projects Fund, Municipal Aid for Streets, and the Special Projects Fund represents approximately 1.6 million dollars, and the interest on that amount is utilized to maintain the City streets. He indicated the General Fund and the Water and Wastewater Enterprise Funds, direct monies toward the Vehicle Equipment Fund, which is utilized as a mechanism to pay for City vehicles. Finance Director Kessel indicated there are three Enterprise Funds, which include the Water and Wastewater Funds for which a charge is assessed on a quarterly basis. He stated there was also a Golf Course Fund, and the fees paid by persons using the driving range or the golf course are directed to this fund and are utilized to pay the expenses associated with the golf course. Finance Director Kessel stated there is a levy in the General Fund for Fire Improvement Bonds, which was issued in the early 1990's to construct several fire stations and pay for some capital equipment. He explained that those bonds were re-financed two years earlier, through a joint venture with the cities of Blaine and Spring Lake Park. He stated the residents pay a percentage of the bond payments, and since the bonds were issued, the percentage has gone from 25 percent to approximately 17 percent, based upon the tax capacity and the number of fire calls. He noted the City of Mounds View's share has continued to decrease on both of these. Finance Director Kessel advised that Ramsey County estimates the market value for all property within the County, and the State of Minnesota determines classifications of property and associated class rates. He indicated some of the major classifications are residential property, which include homesteaded and un-homesteaded properties, commercial and industrial properties, and apartment complexes. Finance Director Kessel advised that the three major taxing jurisdictions are Ramsey County, the School District, and the City of Mounds View. He stated there are seven additional taxing jurisdictions including the Rice Creek Watershed District, and the Library, which comprise the total amount of taxes paid by the residents of Mounds View. He explained that these taxing jurisdictions determine the property taxes that are levied, and based upon the market value, classifications, and taxes needed, the actual tax is calculated. Finance Director Kessel stated the average market value of a residential home in Mounds View in 2000 will be $105,000, which represents a $7,500 increase over the 1999 market value, or 7.7 percent. He explained that the City's levy, including the Fire Improvement Bonds, is increasing by $9,290, for an actual increase of .5 percent. He stated the preliminary tax rate, which is the tax levy divided by the tax capacity, based upon the market value, will decrease by 4.9 percent in 2000, for an average residential house. He pointed out that with the increase in market value, and the decrease in the City's tax rate, this represents an approximate $12 increase in the City's portion of the property tax, or a 4 percent increase from the previous year. Finance Director Kessel stated the general property tax in 1999 was $1,760,000, and this will . increase to $1,769,000 in 2000, or approximately .5 percent. He stated the property taxes