4A, Draft Minutes 12-10-12 Regular

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ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2012 4 With no one coming forward to speak, Mayor Grant closed the public hearing at 7:22 p.m. B. Truth-in-Taxation Hearing Director of Finance and Administrative Services Iverson noted a Truth-in-Taxation Hearing would be held this evening. She discussed why property tax bills vary on a year-to-year basis due in part to market value changes, special assessments, budget and levy changes, and changes to Federal and State mandates, in addition to State legislative changes. She explained the median market value on a single family home in Arden Hills went down by 5.6%. Apartment values increased by 3.6% and commercial/industrial values fell by .64%. Director of Finance and Administrative Services Iverson discussed the effect of adding a 3% City levy increase would have on property taxes. These increases were due to a 1.8% increase in public safety, and a 1.2% increase in salary, benefits and various other costs. She noted fiscal disparity dollars were reduced by 8.2% and the local tax capacity value fell by 4.5%. This would result in a City tax increase for median homeowners of $12.97 in the coming year. She then reviewed a property tax notice in further detail. Director of Finance and Administrative Services Iverson compared Arden Hills' tax rate to other cities in Ramsey County stating Arden Hills was 15th out of 19 cities (with 1 being the highest, 19 the lowest). She discussed the 2013 key budget elements with the Council and discussed the proposed budget transfers. She reviewed the proposed general fund revenues and expenditures projected for 2013 and compared these numbers to previous years. Staff recommended the Truth-in-Taxation Hearing be held noting the 2013 budget and levy would be approved this evening. Councilmember Holden commented the Mounds View School trail should be removed from the 2013 CIP budget as it is being programmed for 2015. Mayor Grant opened the Truth-in-Taxation hearing at 7:41 p.m. Mark Johnson, 3124 Hamline Avenue, thanked the Council for keeping the increases as low as possible, however his property taxes were still increasing given the tax shift over the past several years. He commented his taxes have increased $1,000 over the past several years and would again raise another$1,000 in 2013. Director of Finance and Administrative Services Iverson stated this was due to the market value exclusion changes made at the State level, which was affecting Arden Hills' homeowners greatly. Mark Kelliher, 3712 Chatham Court, understood there was a 3% levy increase from the City. He requested clarification on how the City tax increase was then 9%. Director of Finance and Administrative Services Iverson explained this was due to market shifts in home values and the City's tax base was shifted. She encouraged Mr. Kelliher to speak with her after the meeting where she could provide further clarification.