HomeMy WebLinkAbout12-08-08 CITY OF LAKEVILLE SPECIAL CITY COUNCIL MEETING
.....TRUTH IN :TAXATION PUBLIC HEARING
DECEMBER 8, 2008
Mayor Dahl called the meeting to order at 7:00 p.m: Roll call was taken.
Present: Mayor Dahl
Council Members Bellows, Swecker, Rieb and Wulff
Also present.:
Steve Mielke, City Administrator
Dennis Feller, Finance Director
Tom Vonhof, Police Chief
Keith Nelson, City Engineer
David Olson, Community & Economic Development Director
Steve Michaud, Parks & Recreation Director
Chris Petree, Operations & Maintenance Director
Charlene Friedges, City Clerk
Mayor Dahl opened the public hearing on the proposed 2009 budget
and tax levy. Finance Director Dennis Feller provided an overview of the
proposed budget and tax levy.. (The City of Lakeville 2009 Proposed
Bud et is on file. in the City Clerk's office.)
Mr. Feller explained that many commercial and industrial property
owners are seeing 10~ to 30% increases in their valuations and taxes for
the coming year. City staff held an informdtional meeting with
commercial and industrial property owners. in the Council Chambers on
Thursday, December 4th. Staff members from the Dakota County
Assessor's Office discussed market value trends and factors affecting
.market values. City staff provided information on how property taxes
are calculated, fiscal disparities, State property taxes (levied only on
commercial and industrial property) and the elements affecting local
taxes.
.Mayor -Dahl opened the public hearing to questions and comments
from the audience.
Ann Proudfoot, owner of Dancevvorks Performing Arts Center, asked
several questions regarding commercial property values and taxes on
commercial property in Lakeville. Mr. Mielke explained that residential
property values will likely continue to decline in the coming year. As a
result, the tax burden will likely shift from residential to commercial. Mr.
CITY OF LAKEVILLE SPECIAL CITY COUNCIL MEETING
DECEMBER 8, 2008
PAGE 2
Mielke explained that. the County Assessor's Office establishes
valuations.- The City controls the tax levy for only the.City's portion of
property taxes. He suggested that Ms. Proudfoot schedule a meeting
with the County Assessor to discuss the valuation of her commercial
proper#ies.
Marlow Illg, 17460 Highview Avenue, asked why his property valuation is
increasing when the housing values are declining. Mr. Feller explained
.that his property value had been increasing in previous years and did
decrease in value as of January 2008 (for taxes payable 2009). Mr. Feller
further stated that when property values were escalating, Mr. Illg
received the benefit of the limited market value, which limited the
increase in taxable market value to 15~ per year. He explained that. Mr.
Illg's property is no longer subject.to the limited market value for 2009
taxes and is based on the ful! market value of his property.
Todd Bornhauser, Executive Director of the Lakeville Area Chamber of
Commerce, asked about the adjustment that was made to the budget
for joining the transit taxing district. Mr. Feller explained that the tax
reduction was financed with the allocation of the State Aid Street
Maintenance funds and budget reductions.
Mr. Bornhauser also suggested that the City look at changing the
allocation of fiscal disparities. Council Member Wulff explained that
fiscal disparities is a state program, and the City has no control over how
that money is allocated.
Cindy Rollins, 17212 Idlewood Way, asked how the City intends to
address the potential loss of market value homestead credit and other
state aids. Mr. Feller explained that the City Council has identified in the
2009 budget approximately $2 miNion of potential ways to increase
revenues, transfer funds, and reduce programs in order to balance the
budget.
Bruce Rydeen, 16421 Gunflint Trail, asked the Council to do what it can
to continue to help the Lakeville businesses.
08.107 Motion was made by Bellows, seconded by Rieb to close the public
.hearing.
Roll call was taken on the motion. Ayes, unanimous.
CITY OF LAKEVILLE SPECIAL CITY COUNCIL MEETING
DECEMBER 8, 2008
PAGE 3
08.108 Motion was made by Swecker, seconded by Rieb to receive written
comments from John and Thein Myint, 7570-200t" Street, and Tefera
Kassa, 17866 Formosa. Court.
Roll call was taken on the motion. Ayes, unanimous..
Mayor Dahl adjourned the meeting at 8:00 p.m.
Respectfully submitted,
Charlene Friedges, y Clerk
~ ~
Holly Dahl, M y r