HomeMy WebLinkAboutCC MINUTES 12082008 TRUTH IN TAXATION4
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CITY OF ST. ANTHONY
TRUTH IN TAXATION MEETING MINUTES
December 8, 2008
I. CALL TO ORDER.
Mayor Faust called the meeting to order at 7:00 p.m.
9 II.
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11 Mayor Faust invited the Council and audience to join him in the Pledge of Allegiance.
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13 III.
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15 Present:
16 Also Present:
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18 CONSIDERATION, DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING
19 ITEMS.
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21 IV.
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PLEDGE OF ALLEGIANCE.
ROLL CALL.
Mayor Faust; Councihnembers Gray, Roth, Stille, and Thuesen
City Manager Mike Morrison and Finance Director Roger Larson
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OPEN TRUTH IN TAXATION PUBLIC HEARING
Mayor Faust opened the public hearing at 7:01 p.m. He stated the purpose of the meeting is to
review the 2009 budget and conduct a Truth in Taxation public hearing.
PRESENTATION OF 2009 CITY BUDGET AND TAX LEVY BY MIKE MORNSON
CITY MANAGER, AND ROGER LARSON, FINANCE DIRECTOR
City Manager Morrison presented the highlights of the 2009 budget for the City of St. Anthony.
City Manager Morrison explained the distribution of property tax dollars. He pointed out that tax
dollars are divided into four parts: 32.6% goes to the City, 26.4% goes to the County, 33.7%
goes to the School District, and 7.3% is allocated for other districts.
City Manager Morrison explained the General Fund Budget stating there is a 5.58% increase of
$278,800 over 2008, resulting in a 2009 budget of $5,277,400. He stated to fund the budget, the
Levy increased by 5.31% or $148,611 over the 2008 levy for a total General Fund levy of
$2,945,511 for 2009.
The Capital Equipment Budget for 2009 consists of a Police Department allocation of $121,000,
a Fire Departments allocation of $35,200, a Public Works Department allocation of $217,000,
finance and administration's allocation of $26,800.
The City had some debt activity in 2008. They issued a $1,910,000, 15 year Road Improvement
Bond for the Silver Lake Road Project and paid off the 1999A and 2003D Road Improvement
Bonds, which reduced the levy by $87,000. This offset the Silver Lake Road Levy by $37,000
and the Emerald Park Tax Abatement by $50,000. The City has $12 million dollars outstanding
in Road Improvement Bonds, $10 million dollars funded through the increment, G.O.
Assessment Bonds for 39`h Avenue equaling $670,000, storm water bonds in the amount of
Truth in Taxation Public Hearing Meeting Minutes
December 8, 2008
Page 2
1 $945,000, outstanding State Aid in the amount of $460,000, tax abatement of Central Park in the
2 amount of $400,000, liquor revenue bonds for $350,000, utility revenue bonds in the amount of
3 $1.8 million dollars and public facilities lease bonds in the amount of $4.75 million still
4 outstanding at December 31, 2008. The total outstanding debt at the end of 2008 is $32,195,000.
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6 City Manager Mornson indicated they have had some good partnerships with surrounding
7 communities and have received support from businesses. Over the last ten years the City has
8 received over $8.3 million in grants and $1.3 million in community partnerships for a total $9.7
9 million.
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11 Councilmember Stille stated one of the things they do is to get rated by Moody's in terms of their
12 rating which puts it in a perspective in regard to if they have too much debt or not and if they are
13 doing enough things correctly.
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15 Finance Director Larson stated their rating is A -1, which is a very high rating for a City of their
16 size. They are at the top of the chart and in good financial shape.
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18 City Manager Mornson stated they got notified by the Minnesota Government Finance Officers
19 Association that they did receive, for the second year in a row, a Certificate of Achievement for
20 Financial Reporting and this represents a significant accomplishment for the City.
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22 Councilmember Stille noted they did change audit companies two years ago so they could get a
23 better idea and picture and felt that was a good move.
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25 Mayor Faust stated they have also had numerous meeting throughout the year regarding the
26 budget with the Department Heads.
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28 Mayor Faust invited members of the audience to approach the podium to make comments.
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30 Ms. Pat Howell, The Cottages, 3913 Roosevelt, stated her property tax increase for 2009 was
31 mind boggling and she would not have moved to the Village had she known the amount would
32 increase so much. She indicated she cannot afford it and was not told it would increase this
33 much when they purchased the property. Ms. Howell stated she was very disappointed in St.
34 Anthony Village and would not recommend to anyone to move to the Village because now she
35 cannot retire because of this increase.
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37 Mayor Faust stated he did not know if Tax Increment Financing (TIF) was responsible for the
38 increase in property taxes. He reviewed the process for determining property taxes each year.
39 He noted the City's web site indicates what the City's taxes are and he did not think they have
40 ever intimated that St. Anthony is a low tax city. He explained people do not realize that when
41 downgrading from an older, larger home to a newer, smaller home they are actually upgrading to
42 a higher value home.
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44 Ms. Howell wondered why it was just The Cottages and condos that were included in the TIF
45 District and why they are paying for the bonds to build these homes.
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Truth in Taxation Public Hearing Meeting Minutes
December 8, 2008
Page 3
1 Mayor Faust explained the TIF District to the audience, how it works and that property taxes
2 would be the same for a TIF property or a non TIF property with the same valuation in Ramsey
3 County.
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5 Ms. Pat Keise, 2407 391h Avenue N.E., Silver Lake Village Condos, thought they were
6 shouldering the burden of TIF and others were not. She stated her taxes will go up 18.4 percent.
7 She has talked to a number of people in the condos and she has the highest tax increase yet the
8 smallest condo in the complex. She wondered why this was the case because the statement
9 indicates no change in the assessed market value. She stated when she looks at the amount of
10 her increase, 82 percent goes to pay for TIF.
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12 Mayor Faust stated she is not paying TIF more than others. He stated his taxes went up 34.1
13 percent and he does not live in the TIF District. He thought, if requested, the Assessor could
14 help and indicate there is a State program for seniors, if needed, to pay property taxes.
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16 Councilmember Roth explained his taxes also went up significantly from last year and he is not
17 in a TIF District.
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19 Mr. Al Berg, 3912 Roosevelt, Silver Lake Cottages, stated he moved to the City from Roseville
20 where he was paying $2,700. He stated that Roseville has more services than St. Anthony,
21 school districts just like St. Anthony, and a shopping center. He stated he was told by the
22 Assessor that the middle rate for St. Anthony was 137 but for Roseville it is 90.
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24 Mayor Faust stated the reason for the difference is Rosedale. He explained how the taxes are
25 calculated on commercial versus residential properties.
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27 Mr. Berg asked how this compared to other communities that do not have a shopping mall.
28 Mayor Faust indicated St. Anthony is considered a wealthy community and does not get any
29 Local Government Aid.
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31 VI. SET DATE FOR ADOPTION OF THE 2009 BUDGET AND TAX LEVY FOR MONDAY,
32 DECEMBER 15, 2008, IMMEDIATELY FOLLOWING THE TRUTH IN TAXATION
33 HEARING.
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35 Mayor Faust requested the Council set the date for the adoption hearing.
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37 Motion by Councilmember Stille, seconded by Councilmember Gray, to set the date for adoption
38 of the 2009 Budget and Tax Levy for Monday, December 15, 2008.
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40 Motion carried unanimouslv.
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42 VII. CLOSE PUBLIC HEARING.
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44 Mayor Faust closed the public hearing closed at 7:49 p.m.
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Truth in Taxation Public Hearing Meeting Minutes
December 8, 2008
Page 4
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Mayor Faust adjourned the meeting at 7:49 p.m.
Respectfully submitted,
Susan Osbeck
Timesaver Off Site Secretarial, Inc.
ATTEST:
City Clerk
ayor