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Home My WebLink About12-15-92 s z CITY OF LAKEVILLE SPECIAL COUNCIL MEETING DECEMBER 15, 1992 The meeting. was called to order at 7:00 p.m. by Mayor Zaun. Roll call was taken. Present: Councilmembers Ruhmann, Sindt, Mulvihill, Harvey and Mayor Zaun. Also present: R. Erickson, City Administrator; D. Feller, Finance Director;. B. Kempa, Accountant; S. Michaud, Parks & Recreation Director; C. Friedges, City Clerk. ITEM 3 Mayor Zaun opened the public hearing on the proposed 1993 budget. The City .Clerk. attested that legal requirements have been met by publication of the Truth in Taxation Notice on the Messages Page of the Lakeville Life & Times on December .7,1992. Mr. Feller presented the information concerning the 1993 tax..levy. The truth in taxation notices were based on the preliminary tax levy of $5,585,056 approved by the City Council on September 15, 1992. The City's preliminary tax capacity rate reflected a 9.4% increase for 1993. Mr. Feller went on to explain that there are five primary factors which influence the City tax capacity rate and property taxes to individual • parcels. Those five factors are as follows: L Tax Levy 2. Market Value 3. Tax Capacity Value 4. Fiscal Disparities 5. State Aids The 1993 preliminary tax levy was based on a City Council directive not to increase taxes more than the 1992 tax levy of $196 per capita. The City of Lakeville has had one of the lowest per capita tax levies in the state. The second factor, market value,. increased .from $912,000,000 in 1992 to $987,000,000 'for 1993. This increase of 8.1% is primarily due to new residential construction. Agricultural market values decreased, however, by $15,Q00,000. The decrease m agricultural property is due to the platting of property for residential use in calendar year 1991, and the County Assessor's reclassification of parcels from agricultural to residential. Even though there was an 8.1% increase in market value, there was only a 2.8% increase in tax capacity values. The State Legislature changed property tax class rates for a number of property classes, including vacant land, commercial/industrial and high value residential property. Changes in tax capacity values inevitably mean that there is going to be a significant shift in tax burdenbetween various property tax classes. • ~ 1 CITY OF LAKEVILLE SPECIAL COUNCIL MEETING DECEMBER 15,1992 PAGE 2 The fourth factor affecting tax capacity rates is fiscal disparities. Fiscal disparities distribution for Lakeville dropped 14.8% from $733,883 in 1992 to $625,466 in 1993.. If the distribution had increased in direct proportion. to residential growth, (8%), the tax capacity rate would .only have increased 2.5% rather than 9.4%. The fifth factor which influences the City's tax capacity rate is the amount of state aid for property tax relief. State aids will increase from $1,642,531 in 1992 to $1,842,089 for 1993. The increase in state aids, however, was not sufficient enough to offset changes in property class rates approved by the State Legislature. The final 1993 tax levy is proposed to be $5,428,717, which is $156,339 less than the preliminary levy adopted in September. The estimated 1993 tax capacity rate is .198363, which is an approximate 3.9% increase over the 1992 rate. City Administrator Robert Erickson identified areas which would contribute to the reduction in the City's property tax levy. They are as follows: 1. Local Government Aid $25,479 2. Worker's Compensation .30,090 3. Fund Balance 23,415 4. Growth Task Force 15,000 5. Manufactured Home Program (3,345) 6. Engineering Revenue 65,700 Total $156,339 Mr. Erickson went on to provide several performance based indicators by department, which emphasized increased levels of service without a corresponding increase in personnel. The City of Lakeville continues to operate at 3.2 employees per capita, which ranks among the lowest in the State. Mr. Erickson stated the proposed 1993 budget includes a 2.89% salary increase for all employees. Mayor Zaun opened the public hearing to questions and comments. Councilmember Sindt stated property owners have expressed concerns regarding the increased market valuations of their homes, which result in an increase in their .property .taxes. She asked what control the City has over market values. Mr. Erickson explained that the City Council serves as the Local Board of Review .each year and, at that time, and inequities that may exist in market values are brought to the County Assessor s attention by the Board of Review. • There were no questions or comments from members of the audience. 4 - CITY OF LAKEVTLLE SPECIAL COUNCIL MEETING DECEMBER 15, 1992 PAGE 3 92.315 Motion was made by Harvey, seconded by Ruhmann to receive a letter from Russell G. Hoffman, 16204 Logarto Lane (letter on file in the City Clerk's office). Roll call was taken on the motion. Ayes, Ruhmann, Zaun, Sindt, Mulvihill, Harvey. 92.316 ..Motion was made by Ruhmann, seconded by Harvey to close'the public hearing. 8:00 g.m. Roll call was taken on the motion.. Ayes, Zaun, Sindt, Mulvihill, Harvey, Ruhmann. ITEM 4 92.317 Motion was made by Sindt, seconded by Mulvihill to approve Resolution No. 92-197 approving the 1992/payable 1993 tax levy. Roll call was taken on the motion. Ayes, Sindt, Mulvihill, Harvey, Ruhmann,. Zaun. CONSENT AGENDA 92.318 Motion was made by Harvey, seconded by Sindt to approve the consent agenda items as follows: a. Resolution No. 92-198 approving the 1993 General Fund Budget. b. Resolution No. 92-199 approving the 1993 Cable TV Fund Budget. c. Resolution No. 92-200 approving the 1993 Environmental Recycling Fund Budget. d. Resolution No. 92-201 approving the 1993 Drug Enforcement Fund Budget. e. Resolution No. 92-202 approving the 1993 Employee Benefit Fund Budget. f. Resolution No. 92-203 approving the 1993 Insurance Fund Budget.. g. Resolution No. 92-204 approving the 1993 Motor Vehicle Fund Budget. h. Resolution No. 92-205 approving the 1993 GIS Fund Budget. i. Resolution No. 92-206 approving the 1993 Certificates of Indebtedness Fund Budget.. j. Resolution No. 92-207 approving the 1993 Building Fund Budget. • CITY OF LAKEVILLE SPECIAL COUNCIL MEETING DECEMBER 15, 1992 . PAGE 4 k. Resolution No. 92-208 adopting the position classification and pa plan for exempt and non-exempt positions and setting forth the policy .for the administration of the plan. 1. Resolution No, 92-209 amending the 1992 General Fund Budget.. m. Resolution No. 92-210 establishing rules and rental fees for the use of City parks and property. n. Resolution No. 92-211 accepting donation from the Lakeville Men's Softball Association. o. Approve agreement with the Department of Natural Resources for a time extension for completion of the shoreland management ordinance. p. Renew engineering contract with Tolz, King, Duvall, Anderson and Associates per the fee schedule dated December 1, 1992. q. Renew engineering contract with Orr-Schelen-Mayeron & Associates, Inc. per the 1993 fee schedule. r. Renew engineering contract with Strgar-Roscoe-Fausch, Inc. per the fee schedule dated November 19, 1992. • s. Renew engineering contract with Barr Engineering, Inc. per the fee schedule dated December 9,1992. t. Final acceptance of utility improvements for Royal Woods 3rd Addition. u. Approve Resolution No. 92-212 supporting legislation to enable cities to establish a Transportation Utility. v. Approve. payment to GAB Business Services, Inc. for legal costs associated with an inverse condemnation lawsuit involving .Queen Anne Courts, Roll call was taken on the motion. Ayes, Mulvihill, Harvey, Ruhmann, Zaun, Sindt. UNFINISHED BUSINESS None. NEW BUSINESS None. Next Regular Council Meeting, December 21,1992. Mayor Zaun adjourned the meeting at 8:05 p.m. Respectfully submitted, CITY OF LAKEVILLE SPECIAL COUNCIL MEETING DECEMBER 15,1992 PAGE 5 harlene Friedges, Ci erk D ane Zaun, Mayo •