HomeMy Public PortalAbout12/01/93 Special CCM197
MINUTES
The City Council of Medina, Minnesota met for a special "Truth in
Taxation" hearing on December 1, 1993 at 7:00 p.m. in the City Hall
Council Chambers.
Present: Council Members John Ferris, James Johnson, Ann Thies,
Philip Zietlow and Mayor Anne Theis.
Absent: None.
Also Present: Police Chief Rick Rabenort, Public Works Director
Jim Dillman and Clerk -Treasurer Jeff Karlson.
Mayor Theis said the purpose of the public hearing was to hear
comments on the City's proposed 1994 budget and on the amount of
property taxes the City was proposing to collect to pay for the
costs of services the city would provide in 1994.
Council Member Ferris explained why the Truth in Taxation notice
mailed to each property owner showed a 40% increase in the city's
tax portion. Ferris said the county used the preliminary tax levy
certified in September to calculate the estimated property tax bill
for 1994. Ferris said the preliminary levy was certified before
the council had an opportunity to determine the actual spending
needs of the city in 1994. Ferris said the levy had since been
reduced by $275,000. Ferris said the final levy of $722,922 would
not increase the city's current tax rate of 15.25%. He added that
an increase in a property owner's tax bill would occur only if the
market value of the property increased.
Clerk -Treasurer Karlson said the preliminary levy included special
levies for debt repayment on three bond issues and other capital
expenditures. Karlson said the city had adequate reserves to cover
the bonded indebtedness and other anticipated capital expenditures.
One of the residents in attendance asked how much the city had in
reserves.
Karlson said the city had approximately 1.5 million in general fund
reserves of which $750,000 was designated for working capital and
$350,000 was designated for future bond payments. Karlson said the
remaining $400,000 could be used for capital projects.
Another resident commented that his property taxes had risen
considerably since he moved to Medina ten years ago.
Ferris pointed out that the city's tax rate had remained the same
for the past three years.
Mayor Theis said she asked the city assessor if any commercial/
industrial properties had been reduced in 1993. The assessor told
her that two business owners had apppealed their property
198
assessments. Theis added that residential property values had
increased city wide.
The following information was also presented at the hearing:
1. The percentage of the total proposed budget representing
compensation costs for employees (34%).
2. The number of full-time city employees (13).
3. The number of consultants and other independent contractors
used by the city and the budgeted expenditures for each.
4. The effect of budget increases and decreases on the proposed
property tax levy.
Mayor Theis said the tax levy and budget would be adopted at the
next council meeting.
Moved by Johnson, seconded by Thies, to close the public hearing at
8:05 p.m.
Motion carried unanimously.
Anne E. Theis, Mayor
ATTEST:
December 1, 1993 Special Meeting