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City Council Truth in Taxation Hearing Meeting Minutes
<br /> December 6, 1995 `
<br /> Page 2 •
<br /> 1 Franchise category was required to be included in the budget but is self supporting. The City
<br /> 2 actually has no expense in this category, as they receive a check from the Cable Company for
<br /> 3 $26,000, spend $17,000 to fund the cable franchise and distribute $9,000 to fund cable
<br /> 4 expenditures. He noted the major expense in the Finance, Assessing category was the Hennepin
<br /> 5 County contract for assessing services. He noted the Engineering, Planning/Zoning category had
<br /> 6 increased due to state mandate that all cities in the metro area utilize consulting/contracting
<br /> 7 services and $5,000 to redo the comprehensive plan. Mornson explained the Inspection,
<br /> 8 Building/Plumbing/Heating/Health was similar to the Cable Franchise category in that the
<br /> 9 building permits, plumbing permits, etc. funded the expenses of this category. The Public Works
<br /> 10 category included an increase of$1,200 due to state mandated CDL drug and alcohol testing for
<br /> 11 public works employees.
<br /> 12 Mornson explained the State Legislature determines resident's property tax by establishing
<br /> 13 property classes and class rates, determining the level of state aide the City receives, and
<br /> 14 imposing unfunded mandates to local government. The tax jurisdiction determines resident's
<br /> 15 taxes by determining the levy and the amount. The County assessor determines resident's taxes
<br /> 16 by determining market value of homes and assigning a property class.
<br /> 17 Mornson explained some of the factors affecting taxes include changes in the tax levy made by
<br /> 18 the city, county, school and special taxes, changes to the market value of your property, changes •
<br /> 19 in the market value of the area or a particular type of property. Also legislative changes to class
<br /> 20 rate, legislative changes to state aide, and new taxes approved by the referendum.
<br /> 21 Finance Director Larson outlined the major revenues for the City of St. Anthony for 1996. Total
<br /> 22 revenues for the year 1996 are $2,923,325. They include 4.5%LGA, 5.6%Liquor, 52.9%
<br /> 23 certified levy, 11.3%HACA, 14.9%Contracts, and 10.8%other. The composition of the 1996
<br /> 24 tax base is 12.4%commercial, 12.0%apartments, 73.9%residential, and 1.7%other. The
<br /> 25 composition of the tax rate is 76.033%school, 38.099%county, 28.055%city, and 6.799%
<br /> 26 other. The increase in tax rates from 1995 to 1996 is 10.243% school, .645%county, 2.286%
<br /> 27 city, and .180% other. The increase in the tax rate is due to $96,295 budget increase, $13,595
<br /> 28 loss of LGA, and $45,478 road levy and a slight increase in total local tax capacity. The increase
<br /> 29 in 1996 is only $82,596. In comparison, the increase in 1995 was $409,045. Finance Director
<br /> 30 Larson illustrated based on a$100,000 home with no increase in valuation, city taxes would
<br /> 31 increase by $29.26. Larson explained the Fiscal Disparities Contribution was up 20%from last
<br /> 32 year. This contributed to the slight increase in total local tax capacity. Apartment valuations
<br /> 33 dropped. This decrease also contributed to the slight increase in total local tax capacities.
<br /> 34 Larson explained in a fully developed community when the valuations of commercial and
<br /> 35 apartment properties decrease, the burden is shifted to the residential properties.
<br /> 36 Mr. Stan Nelson, 3504 Maplewood Drive, stated over the five year period from 1992 to 1996, his
<br /> 37 taxes have increased at a yearly rate of 10.1%. Even if no increase is assumed for 1996, the
<br /> 38 yearly increase would be 5.4%. He stated he felt this was still too high. He stated he suspected
<br /> 39 most people in the City were experiencing similar increases. Mr.Nelson commended the
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