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

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Mounds View City Council November 22, 1999 Public Hearing Meeting Page 6 Finance Director Kessel stated there was $3,090,000 debt issued for the golf course in 1999. He explained that the first principal payment on this amount is due January 1,2000, and the last payment is due January 1, 2014. He explained that golf course fees will be utilized to pay all golf course expenses, and staff is currently researching a possible City loan, to be used to correct some of the construction problems at the golf course. He advised that such a loan would be repaid to the City with interest. Finance Director Kessel stated the preliminary tax rate for Mounds View residents, including City, County and School District taxes, will decrease by approximately 4 percent. He stated the City's share of the tax has slightly increased, however, when the other taxing jurisdictions are factored in, the average property taxpayer should see a decrease of approximately 4 percent in the year 2000. There was no public input. Mayor Coughlin advised the purpose of this meeting is to present the budget to the citizens, and to address any questions they may have. He suggested the Council continue to discuss the budget at this point, in terms of the golf course loan, streetlight utility rates, and others items mentioned. i Finance Director Kessel stated a uestion was raised at the revious Council Meetin relating to q p g the Theater Project and its impact upon the taxes of an average residence in the City. He indicated that the estimated total tax on both parcels at the Theater Project is approximately $140,000, and the City tax is approximately $17,500. He explained that with the total tax capacity and the residential tax capacity of the City, which is approximately 65 percent, and considering the values before and after the improvement of those parcels, the average residence would realize an approximate $2.50 reduction in taxes on the City side in 2000. He noted that the following year, when all of the value is factored in, that amount should increase. Council Member Quick inquired if this represented extra monies to the City's General Fund, or if this money would be distributed throughout the tax base. Finance Director Kessel stated this money would be incorporated into the tax base. He noted that residential properties represent approximately 56 percent of the tax capacity, however, this does not include apartments, or commercial or industrial properties. City Administrator Whiting stated staff has spent an extensive amount of time considering the Community Center issues. He stated it was important to note that while $50,000 is transferred from the General Fund to the Community Center to fund the expenses of operating the facility, the facility also generates revenues that are directed back into the operations. He added that the facility has been in operation for only eleven months. Finance Director Kessel stated there were four different components of the Community Center facility. He stated the Children's Home Society Leases a portion of the building and it is