Minutes - 2005/04/11 - Laserfiche WebLink

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Mounds View City Council April 11, 2005 Regular Meeting Page 13 • 1. Announce that the Mounds View Employee Appreciation Lunch will be on Wednesday, June 8, 2005 from 11 a.m. to 1 p.m. City Clerk/Administrator Ulrich announced the Mounds View Employee Appreciation Lunch will be on Wednesday, June 8th° from 11:00 a.m. to 1:00 p.m. He stated it was for the Council's attendance if they are available. 2. Long Range Financial Plan Finance Director Hansen stated he had not been able to attend the Apri14`" work session,. and he would be answering some questions that came up. He stated that in the long-range plan dealing with bond issuance, there was not a bond issue in the year 2009 related to this street project, and the question was why. The tentative plan he used in terms of the street reconstruction had a high percentage of municipal state aid for streets and roads being done that year, and so there was only going to be about $200,000 worth of costs that would be bonded for that and would be repaid at the property tax levy, and the financial advisor had advised him that is too small an amount to be bonded for and the bond issuance costs would be too much, so the plan is simply to hold that over to the year 2010 and then propose to issue a larger number of bonds in the year 2010. He stated the year 2009 was not missed, and it was just a small bond issue, so it was • carried over and lumped into the next year. Finance Director Hansen stated the other question that came up is a request for a projection of property tax bills that would occur in the future with the bond issues going on for the street program. He stated that due to the complexity of the property tax system in the state, that's extremely difficult to do a projection on, especially going out into the future with the bond issues. He stated he attempted to make a projection, with the caveat that it's not something you can rely on. He explained how he got to the figure of $141 or 7 percent on the home tax bill, but that if they do proceed on the street program, he was sure in nine years they would be looking at a tax levy that would be different than this. Brian Amundsen, 3048 Woodale Drive, thanked Mr. Hansen for attempting to make this projection. He asked what the median home value was that he used. Finance Director Hansen stated that the median home value for 2005 has an estimated market value of $178,000, and a limited market value of $162,000, which is what the tax is based on. Council Member Thomas cautioned that he was not able to build into this any county increases for valuation changes to the market, which is the number one inflationary issue they've been dealing with is the rising value in housing, and it's just not possible for him to figure that into those charts, so that's just a number they can work with for the valuation that they have. •