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12-07-98 PHCITY OF OTSEGO TRUTH IN TAXATION HEARING MINUTES DECEMBER 7,1998 - 6:30PM 1. Mayor Fournier will call Truth in Taxation Meeting to order. Mayor Fournier called the meeting to order at 6:30PM ROLL CALL: Larry Fournier, Mayor, Suzanne Ackerman, Mark Berning, Vern Heidner, and Virginia Wendel, Council Members, Mike Robertson, City Administrator, Elaine Beatty, City Clerk/Zoning Administrator and Gary Groen, City Accountant. Judy Hudson, Deputy Clerk/Treasurer was absent. 2 Meeting turned over to Mike Robertson, City Administrator for overview of 1999 Budget. Any other information needed from Gary Groen Mr. Robertson gave a brief overview of the budget. He said the tax levy will be $827,613, which is $21,558, or 2.7% higher than last years tax levy. However, because the City's property values have grown over 6.5%, the City's tax rate is actually decreasing. This means that if your property value did not change, the City portion of your taxes will go down. Expenditures are projected to be $1,281,422, which is $31,366, or 2.5% higher than last year. Increased Police hours from Wright Co. Sheriffs Department and increased Street Maintenance expenditures are the major changes. City Revenues are projected to be $1,281,422, 3.9% higher than last year. Building Permit revenues are projected to increase by $10,000.00 due to growth. Gary Groen, City Accountant. 1999 Budget Presentation: Mr. Robertson turned the meeting over to Mr. Groen who explained the report in more detail. Gary Groen noted that the City tax rate has decreased each year for the last four years. 31.127 is the 1999 proposed tax rate. CM Heidner noted that this is a 15% reduction in the tax rate over the last four years. Mr. Groen explained that the City share of the total tax bill is less than 25%, the County's is a little over 25%, the School District is about 48%, and the Hospital district is the remainder. 1999 Estimated Revenues were explained. Licenses and Permits are up from 5% to 6% of revenues this year, otherwise revenues are similar to last year. Mr. Groen explained where the increases in St. Maintenance and Patrol Services came from. He reviewed information from Wright County showing taxes in '97, '98 and '99. He noted that most Cities in Wright County have a higher tax rate than Otsego. Judy Blesi, a resident asked about the fire service amount. She was told this is a special assessment and is not part of the regular budget. CITY OF OTSEGO TRUTH IN TAXATION MEETING OF DECEMBER 7, 1998 - 6;34PM - PAGE 2 - Guy Rowe, a resident asked whether blacktopping gravel roads would cost less over time than continuing to do maintenance on them? CM Heidner explained it would take a long time for the City to save money if it blacktopped all gravel roads. Ms. Blesi asked why it is so much to buy a warning siren ($12,000.00). She was told that is what they cost. It has been on the list for a couple of years and we have not bought it yet. Mayor Fournier commended the Council for doing a very good job on the budget and noted that the City Council are good stewards of the taxpayers money. It was noted that the budget/levy will be adopted on Monday, December 14,1998 at 6:30PM Council Meeting for adoption. He thanked Mr. Groen for the good job. Mr. Robertson explained that we are scheduled on the MPCA Agenda for the December 15, 1998 LOAM Board subcommittee and 12:30PM Regular Board Meeting. Update on Sewer Agreement between Otsego and Dayton was provided by CM Heidner. 5. Adjourn CM ACKERMAN MOTIONED TO ADJOURN THE TRUTH IN TAXATION HEARING. CM BERNING SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. MEETING ADJOURNED AT T I OPM. CITY OF OTSEGO: Larry Fournier, Mayor ATTEST: Elaine Beatty, City Clerk/Zoning Adm. eb ME: CCTINTI,iN. GYPS