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HomeMy WebLinkAbout2008-12-01 AGENDA, �, • � -• � r �i; Persons wishing to address the Councii during this meeting are asked to sign the "Public Input Signup SheeY; which is located on a clipboard near the Council Chamber entrance. This information will aid in the accurate publication of the official meeting minutes. SPECIAL MEETING - 7:00 P.M. CALL TO ORDER — Mayor ROLL CALL — City Clerk 1�:7��iC�l�r�_�:I_��[�7��C1�_1:71�[e3 ADJOURNMENT City of Cottage Grove 2008 Truth in Taxation Hearing for Taxes payable 2009 ^ �.`.��___ __.__. Property Valuation 2 Year Process January 1, 2005 - property valued by 8SS2SSOf (includes assessor review in 2007) March 2008- Property Value notices sent to owners June 2008- Board of Equalization meets to hear valuation objections Nov 2008- Value used for preparing parcel specific notices for taxes of NEXT yr (2009) How Your Local Property Tax Dollars are Determined �Ywr PmOeM Value x times xnmes Propetly tax mte QaxCapaciryRate) = equals Budget/ Levy process May — Council provides direction on target rate and levy June / July— tlept. budget requests July — Admin reviews budget requests August - Council reviews Admin Rec. Butlget Sept 15'" — prelim. levy adopted Nov— Parcel specific notices sent Nov / Dec — Truih in Taxation Hearing held Dec — Final Levy adopted How the Tax Rate is Determined . st��e aas . ome� aevenues =� romi-rz.cz�dy � amidea ey: =-s �m�merp ess ea � TAX CAPAGTY — Pav 2009 TAXABLE MARKET VALUE 2006 2007 2008 2009 $$588,151,800 $4,008,502,600 E2,986,391,)00 E0,058,68q400 n s eese �s za�. ue � me�io� amcreese (i e��) a r,mi new muvun ro.��� n n�v au�racrenon. Taxable Tax CaoaciN ra ror �a. rera <aim 2006 2007 2008 2009 ,]31,0]3 52B,I08,341 iY9,]64,369 534d80,6d] % Change in Taxable Tax Capacity 25Y 20`/0 15Y 10% 5% 0% -5Y -00% 15% -20% Total TAXABIE Tax Capacity .- ry N t� tV tV N �N tV N N Taxable Value changes 2008 to 2009 � � �— ,��� �' • �,�,��, .... e-ioxe��ov { � ss.s%aaamsv � a.za,tammee . o-zsa�2a«w lA-6Xlnmatw � � • 34%ino-eeu � • ih.tOblmNn � 1P.15%rcmn t p ' � : t5-36MMSn WawBUn�uffxmw # Parceis Increasing in Taxable Market Value by: < . 3u, ' '% �aee � R3 36%ia]5%Mnvam .. '',.. � � o. s i I �reK. . i m ma�a= mwmuxien,n.. ' ...... . .��_.,-,,,.1...... ". . ,. �I ,sn{ rz � � �,�swame.0 �—x-.—;. J .._�� o su� i,cao isw zwo awo a�ow a� aow Limited Market Value _...._....._.. , Pay Pay2007 Pay Pay 2006 2008 2009 #homesteadetl 2,400 1,019 288 110 pmPerties w/ limitetl i MarketValue Status Metlianiimitetl value !�$4,600 $7,300 $5,300 $11200 Aversgeiimitetl value $9,849 $14,158 $21,87t in 2008, 20 properties made up $3.5 million of the resitleniial LMV . Residential �imited Marke4 Value — phase out— oav'09 is finai vear i For increase in the taxabie market vaWe residential property has been limited • 2002 it was 8.5% or 15 % of difference •2003is10% or15% ofdiR. •2004is12% or20% ofdiff. •2005,06,07is15% or25%ofdiff. •2008is15% or33%ofdiff. • 2009 is 15% or 50 % of diff. • 2010 LMV ts phased out Tax Extension Rate Trend Tax EzNnsion R<bs g 25�� 3 ����, ...J, zo �--_—.__ .__— � S � � m _ � CG's Relative Tax Rate Ranking Washington County City Tax Rates (population 2,b00 end above) �aa:oamiog cy.�a, ra�e� waoo:oa xm��. aooee� zoos vitiiaooerix sae �aer+)m Rank Cl�y Rete eenN Razo �artk 1 6�Ib.vYtt 4]Hib 1 E0.506 �d6% 2 NewpaR 4409] 2 �12.3 2 �6'/% OakParkHel9�' 3965] 3 963�8 3 9.1k C011aq¢GfnvC �4.8�6 < ]5.188 < �16Yo 5 Nugo 3439d 5 30941 5 -16% 6 6tPaulPah 3205< 8 32]3A 6 O�L% ] OakEale 3a5)9 ] 3030] ] 1.2% B Brypah 30403 0 30206 B 09% � Foeesl�ake d006 9 ]H439 9 2.0% 10 WooE�ury 18003 id 28.169 t0 9.95 11 MaM1�omeE1 ]69]] 11 2fi106 11 09b 13 AXOn 2d42B 1] R261 12 61% 13 LakeElmo 1901 1'� 20.6fi9 id 3.6% 1< VMNeBearLake 15�199 1d 1fifi]0 14 -]4% 16 O�ant 1� 15 9948 15 4�1% � Washington Co. City Tax Paid by Median Value Home (descending 6y tax tlollars paid & tiefore HACA) Maaia� weaa� v�o VaWe CM1enSeN 2W9tav 2W9ia': Rmk CTy 20�9 iMV Rale pollees 1 Stidwater 248]00 A]% LI.9i5$1,196 z n+m� aozzao as� zn.ozas sss 3 Newport 198fi00 -0'/% LG.03t$ 066 6 OakFa�kHelgMS ]1I 4]% 99.651$ 891 5 WootlEUry 381500 -08% 29409$ 8]0 8 HuBO 239�)DO -].5% 39.394$ B34 ] MaM1lometll 288 2.iY ]69)]$ B�4 8 I.akeElmo 991�G00 1.OM 19.810$ ]'/5 9 Lottage G�ove 3]f�WO DB% 34816 $]8> 1� Forec�Lake 253)00 -26°b 3009p$ ]6] 11 Oektlele RJ3�I00 -0.8% ]05]9$ 6BC 12 Baryort ZW>DO �39'£ ]0483$ 630 135fPaulPeik 181�500 3.�°b ]1055$596 W wert 45],WO AS% t0a485 4]< 15 WM1ReBemiake 231�W0 -41% 15.399$ 353 20 15 4 �10 x � 5 r a� 15 16 16 a � $ � s "s s # � � A � °s Washington County City Tax Rates (population 2.50o and above)(dascenaing by %in<intax2te) Rank Cry 1 Oak Patk HelgMs z ah , 3 Woo�uy 5 Fo e¢[Leke 8 Oaktlele ] Baypmt B MeM1bmMi 9 6tPeulPazk 10 Sellwamr ii rv�so 4 CoNBeGroae 13 I.akeElmo ii Nawpoh 15 Wnl�eBeerLake vropos:a zeasr�. F�.�s iooe Rale 2f108�ank iea'Ra's 200Bfank 9565] 3 3<] 3 2CARH i2 22SM10 12 ]8043 1� 28.169 1� 10348 15 B.903 15 3�0<G 9 29.0]8 9 30.518 ) 3�,2�> � 30.089 9 30,3W 9 Nr.9]i 11 26.I90 i1 9205d 6 33.]30 6 4]915 1 09.186 1 saesa s aasa s dd.815 6 ]5.iB9 d 19010 1H 2OS53 13 <aoav z a��ia z 15398 10 16.53< 14 W here your tax doilars go - (HOme valued at 221,600 w! 0.8 % decrease in TMV) � �� (e�1m �e�e 9.SM e �^n <d% 61% 20h 12Y 09b 09°b 04% -0fi% i6% 18a 36°A 6]4 16% Tvcin9 2008 .... ...��: 2009 � % Jurisdiction'� Amount �-: % '�.I Amount ��:'�. % . incr. City �� $ 723 :30.4% $ 705 .295%�� . County 533.��22.4%',' S43'21.8%.� 1.9% SChool �. 1036 i43.6% 1051 ��'�44.0%�. 1.4% Other 86 : 3.6% �.. 87 .� 3 6% � 12% . Total ...� $2,378 �... 100% � $2,386 � 0.3%....� m Tax Rate Comparison —35 metro cities (19,000 to fi1,000 pop ) Tax Dollars Paid - Differina Values ro�aiwx paia�a�ysn..�o�iy� (assume o 8/ aecrease n iaxabia Merket Vaiuei (netof Homesceatl Cretlit) f cnanqe � Taxb . cna�qe as / Pay I008 Pav P009 ,_, of MV . Taxable M11V Tax S Paid Tanab�e M1N�Tax S Paltl 151.200 � $ �45 � 150,000 � 434 (11J -2.5%� �029% 201,600 639 � 200,000 623 �� (i6)'� -2.5%���: b.31°b 223400 ]23� � 221600� ����]05 � (18).. -25% 032%. 252,��0 833 � 250,000 Bt2 (21)� -2.5% 0.32% 302.400 102] 300,000 1,001 �� (26)�. -2.5% 033% History of Samole Property valued currently at $235,800 (expenenced 2.4 % deGine in TMV) Tax Dollars Paid Past 10 years - � ��� �(AYe�age-inccease-of �� .. I � , n i-�� O N M V�(O I� W� O O O O O O O O O O N N N N N N N�N N N 1� 2009 Operating Budget (in 1oo0's) Fund Tvoe General Fund Special Revenue Enterprise Funtls Internal Service Revenues Expenditures � 12,979 $ 12,979 � 2,440 2,737 9,419 9,655 2,581 2,599 $ 27,419 $ 27,970 Significant Expenditure Increases PERAYate increase Coo�d. (incr. 6.5 % ta 6 ]5%, ]% Public Safety (t2 e k m �a,��) Fuel �a.00 to a.so � Workers Comp Health Insurance 2009 $53,000 ($44,000 G/F only) $115,000 $ 113,000 Staffing Increases in Budget Only increase in hourly PT positions i 0.54 FTE Additional Police Support i 0.52 FTE Storm-water and Sewer i 0.31 FTE Public Works Support Staff � Budget Additions > $7,500 2010 ImpaCt Adminisirabr �. Recommentletl . $pq p0p oe artment '�. � Cosi �'Descri tion � ($16,OOOG/F � Ciry-vdtlepavemen[conditlon � only� Engineeri�g : 35,000 �survey _ Ambulance � 18,200 Part-timeparemedicprogram $51,000 Co�ession stantl staffing ($ 36,000 GIF only) ice Arena 18,000 . e�enses - _.-.._.... .... . $ 32,�0� Communiry Programs �. 15,500 Annual Report � Installin-grountlsprinklersystem $1�2,��� Fire �. 8,OOO�aIFireStationl,2,and4 � Soflwareupgratlesfo�� Fiee� �,500 FuelMaster / 2609 Capitai Outlay included over $10,000 Gmnorel FYnd 4 Squatls wltF CM1angEOVef � 12,000 Vailous MIS EquipTEft[ 93�900 R¢place antl/or rapa�r Oallfialtl fanc ng at Hamlet an� 25.000 PM1asa III of tlic• 5 yoa� Pa�k antl Opon Spaca propef 20,000 SpaelalRavenuePVnds � Atlmin Ca� Pollw Fleat #342 28,000 B�ush Ch ppa� Flea[ #9 35,000 Tantlam Dump Fleet #4102 . �82�000 rraoior Fieco ueao2 �� � � eo,000 Bucket Tiuck Fieet N6004 � 10,000� R¢ple 36 glass In f n[ of North R k bleachats 10,000 MISG f d for Monu nt Focks antl S tl walk dlstp 20,000 EnCC�prlse tuntls Rcbuild Motor- Well it] 10,000 Adtl Valmaiic�5urge Prot¢ctor to Well #t0 35,000� Overley perking lot Rivei Oaks 1 O,OQO � All Budgeted Funds- Expenditures Multi Year Comparison (in $1000's) ExoentliWres 2008 >��..�;�ge g010 % C�hen e_ Personal Sa�vica $11 870 S 12,48b:^. b% S 13,160 6°h Supp§es 2,�92 �� 2;544:� 16k 2,650 4% CantrecWalServi �,499 .7;853 2% �,868 3°h Caplle�0uflay 1,329 M,�{73 42Y iy]3 5�% Miscellaneous 125 235 � 88% 182 -23% �epmciation 1,539 , '1,588:�. 3% 1,104 ]% �ebt Service 6�2 � 898 4% 691 4% AtlminFSe 483 ��� ���489�� 1% 495 1% T�ansk�s 891 1�132 2]_ t �81 4°h 26.598 D�9]0. 5% 29]02 6% %increase 14% 52Yo�. 62% Levy Limits (conYd) Current �evy limit $ 12,734,181 Preliminary Levy 2009 Levy Limit $ 287 All Budgeted Funds- Revenues Multi Year Comparison (in ��000�s) ftevenues � �� %�c� 2oID %ch�an e Propetlytaxes 9956 10;442� 49% 10,959 50% F2nchise&olhertares 41] ����i]3�� 13.4% 4]3 00% Licensesantlpertni(5 559 b62� iB4% 662 00% intergorernmental 695.��� 590' -iB0% Sfi9 -02'/< SaleslChargesfotservices 11,966 12,]�?'� l6% 13216 3.5'/e Finesandforteiis 268 .� 268�� -0]% 266 0.0% Mterest Revenue 1 016 .: , 832.. 48d % 829 -0.4% AtlminFee 484 490� 12% 495 1.0% Rents 1]5 200� 143% 200 00% Misc&Refuntls �144 YB]. 29.9% 183 -2d% Tansfers 506 525 38% 618 1]]% 39%� �Sd°h. 3.8% �evy Limits i Levy Iimits in effect for 2009 and 2010 • Levy can increase 3.9%, plus; • 50°h oi householtl gmwth, plus; • 50h oi rqmmercial 8rowth, pWS; ' A wmponent of pu�licsafery inaeases . • 2010 levy maximum not retluced if not levied to the max tor 2009 (Untler ourrent law) Levy Comparison (in $1,000's) Pinal Pinai Prelim Prelim zoo� -. zooe zoos zom . � Levy Levy Levy Levy GeneralFUntl Levy 9,175 9,620 10,083 t0,6W � Future impact levies 1,115 . 957 � 476 98 � SpedalRevenue 279 343i 226 226� DebtService 1253 1264' 1662. __1 11 822 12.184 � 12,447 —.. 12552 IncreaseinlotalLevy 6.4% 3.7%:� 22% 0.8%� Notable Items Included MVHC Impacts i A portion of the annuai property tax levy is paid by the State of MN in form of MVHC • Max cretlit is $304 •Reducetlby.o9%ofvalueover576,OW � • Zem cretlit by home valuetl at $414,000 i City received $616,000 in 2007 � i Subject to State discretion i Levyincreasededining-2.15% forpay'09 i PavementM9mtDebtServicecontinuesat$t.4M i GravelTaxesnowincludedassealcoatin9fundrevenue source (amowfs to increase from $t2K to -$70K ) i ContinuedlevysupportoflceArena&expansion-capital outlay continues i 800 MHZ Radio fees to be paitl from'OS budget savings Franchise Fee & Utility Rate i Franchise Fee remains the same $L25(mo. i Water Use Rate incr. $0.05 /1000 gailons . • (�1$OOOBallonspermoMh) i Sewer Use Rate incr. $0.10 / 1000 gallons • p�00,00oada'182o11000) i Street Lights remains the same, $4,15/mo i Storm water incr. $0.50 / month to $4/mo Average Monthly Utility Biil 2008 2009 Monthly Monthly % Utiliry Bill Utility Bill Change Water(9,OOOgalions) $75.00 $15.00 0.0% Sewer (5,000 gallons)� 1425 14.80 3.9 % StreetLight 3.30 3.30 0.0% St. Light Maintenance .85 .85 0.0% Storm Water 4_00 4.00 0_0% Recap of Taxes & Fees (based on avg. home valued at $221,600 experiencing [axable value decrease of 0.8 % antl averege utility use Per Monih .. ..�. . � 2068. �. 2009' % increase Property taxes . § 59.92 � ��. $ 58.92 ... . . -17%'�. Franchise Fees 2.50 . 2.50 �. 0.0 %�'�. WaterCharge � 15.00 � 15.00 . �� 0.0%'�: Sewer Charge 1425 14.80 � 3.9%'�� Streetlight Fee w/ , 4.15 � 4.15 '�. � 0.0%� Stormwaterfee 4.W '�. 4.00 ��� 0.0%0l . $ 99.82 �. �, $ 99.37 �. � -0.5%'�. Comparison of City Taxes to Other fvlonthiy Bills Property Taxes & City Services �auenesarery,a�miowo�r,wa�e.�seweceaJ $100 Electncity/Gas $ 150 Telephone Service $ 30 CabieTV(Digitap $ 65 Cell Phone $ 65 Broadbantl Internetservice $ 60 large Caribou coffee lwice/week $ 15 Action This • Conduct Truth in Taxation Hearing � Consider need for Continuation Hearing (MOnday Dec $ 2008 at 7 pm If needed) Ongoing Challenges Maintaining "Structurally Balanced BudgeF' Impacts of slowing housing market and economy State Fiscallssues • Consider adopting Final Levy & Budget at December 17, 2008 Meeting