11-30-1992 Truth in Taxation MinutesSTATE OF MINNESOTA The Truth in Taxation Hearing
COUNTY OF WRIGHT for the City of Otsego was
CITY OF OTSEGO conducted by the City Council this
30TH day of November, 1992 at 7 . 30PM
Norman F Freske, Mayor, Doug Lindenfelser, Floyd Roden, Larry
Fournier and Ron Black, Council Members, Jerome Perrault,
Clerk, Elaine Beatty, Deputy Clerk/Zoning Adm., Judy Hudson,
Secretary, and Andrew Merges, Assessor, were present.
The Hearing was called to order by Mayor Norman F
Freske.
Norman F Freske explained to the residents in attendance
that the assessed market value for the City of Otsego in 1992
was $112,129,600.00 and is $118,761,800„00 for 1993. The tax
capacity rate for 1992 was $1,413,242.00 and for 1993 is
$1,488,483.00. The levy increase from $424,510.00 in 1992 to
$545,000.00 in 1993 resulted in 6-1/2% overall increase in
taxes for 1993. The levy increase and tax increase should
have been gradual over the least three years, but the City
was under a levy limitation in 1991 and 1992.
Assessor Andrew Merges explained that the first
$68,000.00 of a person's valuation is homestead and taxed at
a 1% rate, from $66,000.00 to $150,000.00 at 1-1/2% and above
$150,000.00 at 2%. The State sets the property values that
he as the Assessor must use and he must be from within 90% to
105% of the State set valuations. He said the price people
are willing to pay for property determines the going market
value
Norman F Freske commented that the bottom line an the
tax proposals for 1993 shows a 1O% increase,
Niel Gorder said his valuation keeps rising and is now
higher than he could sell it for.
Another resident said in the past six years his taxes
have increased from $400.00 to $800,00.
Ron Black explained that the City has had to budget an
additional $50,000.00 for police protection, $20,000.00 more
for another Street Maintenance Person, and $20,000.00 to
$25,000.00 for recycling.
Bruce Danks said his taxes went up a total of 304, that
he was concerned how the money was being spent and how much
is being wasted on lawyer fees.
Ron Black explained that houses do not pay enough taxes
to cover City expenses created by the houses. We are having
problems with the DNR in getting commercial development along
Highway #101.
Bruce Danks asked if the Council had tried negotiating
with the DNR? Ron Black said that we have tried, but they
will not negotiate and just stonewall us.
Larry Fournier said the City has set up an EDA to help
attract business to increase our tax base and lower taxes„
Most businesses require 90% impervious lot coverage
(buildings and parking lots) to be successful and the DNR is
only willing to grant 50% along Highway #101.
Vern Heidner asked how much tax base the Council
anticipated from businesses. The Council replied that they
STATE OF MINNESOTA, COUNTY OF WRIGHT, CITY OF OTSEGO, TRUTH
IN TAXATION HEARING FOR THE CITY OF OTSEGO AT 7:3OPM
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had not attempted to project this as yet.
Ron Black said one of the main reasons we become a City
was to have our own control of Planning and Zoning. We are
now getting the revenue from building permit fees where
before the County kept most of it.
One resident asked about the difference in Rural and
Urban Taxing Districts. The Council replied that they were
doing a study of this at present, but was not completed as
yet. Items such as police protection time and street
maintenance time were being studied. Another item to
consider would be street lighting in Urban and not Rural
areas.
One resident asked how much her tax would increase on a
$100,000„00 house? Andrew Merges replied that it would be
around $70.00.
Niel Goarder said that at the Hearing before we became a
City, Attorney Bill Radzwill said taxes would go down if we
became a City.
The Council explained that expenses would have risen
whether we became a City or not because of the demand for
more police protection, for recycling and increased street
maintenance service. Ron Black replied that we are mandated
by the State and County to provide recycling, but they
provide very little financial assistance.
Julie Randall asked about the 85TH Street project. The
Council replied that 85TH ST from Page Avenue to Co #42 will
be constructed as an MSA project using funds received from
the State MSA Fund which will be about $312,000.00 for 1993,
Floyd Roden said that we were able to purchase a new
$80,000.00 truck this past year using MSA Maintenance Funds
and at no cost to the residents of Otsego.
Ron Black commented that we need input and participation
from Otsego residents on such items as recycling, garbage
collection and police protection. We also need volunteers to
serve on the Planning Commission; the Park and Recs.
Commission and on the EDA Advisory Board. We are now taking
applications from people willing to serve on the EDA Advisory
Board.
Motion by Doug Lindenfelser to adjourn the Truth in
Taxation Hearing. Seconded by Ron Black, all Council Members
voted in favor of the motion.
NORMAN F FRESKE, MAYOR
FLOYD RODENT COUNCI
RONALD G
JP/eb
.ACK, COUNCIL
DOUG LINDENFELSER, COUNCIL
LARRY FOURNIER, COUNCIL
ATTEST: JEROME PERRAULT,CLERK