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<br />Mounds View City Council December 6, 1999
<br />Truth in Taxation Hearing Page 2
<br />the General Fund, which is utilized for Police Protection, Snow Removal, Street Maintenance,
<br />Administration, Community Development, which includes Code Enforcement, Parks and
<br />Recreation, and some assistance to the Community Center.
<br />Finance Director Kessel indicated the City has Debt Service on Fire Improvement Bonds, which
<br />were issued in the early 1990's, to construct and maintain several fire stations and pay for capital
<br />equipment.
<br />Finance Director Kessel stated Ramsey County estimates the market value for all property within
<br />the County, and the State of Minnesota determines classifications of property and associated
<br />class rates. He advised that the three major taxing jurisdictions are Ramsey County, the School
<br />District, and the City of Mounds View, and there are seven miscellaneous taxing jurisdictions.
<br />He explained that the taxing jurisdictions determine their needs, and then, based upon the total
<br />market value, a rate is determined. He indicated the average market value of a residential home
<br />in Mounds View in 2000 will be $105,000, which represents a $7,500 increase over the 1999
<br />market value, or 7.7 percent.
<br />Finance Director Kessel explained that the City's preliminary property tax levy was 1,769,652,
<br />which is an increase of $9,290, from 1999, or .5 percent. He stated the preliminary tax rate,
<br />• which is the tax levy divided by the tax capacity, based upon the market value, will decrease by
<br />4.9 percent in 2000, for an average residential house. He pointed out that with the increase in
<br />market value, and the decrease in the City's tax rate, the average home will see an approximate
<br />$12 increase in the City's portion of the property tax, or a 4 percent increase from the previous
<br />year, which is $316.35.
<br />Finance Director Kessel stated the general property tax in 1999 was $1,760,000, and this will
<br />increase approximately .5 percent in 2000, to $1,769,000. He explained that the property taxes
<br />comprise approximately 46 percent of the City's General Fund revenue. He indicated franchise
<br />fees are $195,000, which is approximately five percent of the City's revenue, and license and
<br />permit fees are approximately $119,000, or three percent of the City's total revenues.
<br />Finance Director Kessel stated Inter-governmental revenues, which are State aids, are
<br />$1,325,000, or approximately 35 percent of the City's revenue. He indicated that other
<br />miscellaneous revenues, which include charges for such services as copy fees, represent
<br />approximately $20,000, and fines and forfeitures, the majority of which come through the Police
<br />Department, are approximately $48,000. He noted there are also Other Revenues are $141,000,
<br />and the largest item in this area is interest earnings. He stated transfers from other funds are
<br />$213,000. He stated the total City revenues are $3,832,000, which is a 2 percent increase over
<br />the previous year.
<br />Finance Director Kessel provided the Council with a graph, which further indicated the origin of
<br />the City's revenue sources. He explained that the major sources of revenue are general property
<br />. taxes, at 45 percent, Franchise Fees represent approximately 5 percent, and Inter-governmental
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