2011-12-05 CC Minutes TNT A�
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ALBERTVILLE CITY COUNCIL
December 5, 2011
Truth -in- Taxation
MINUTES
ALBERTVILLE CITY HALL 6:15 PM
CALL TO ORDER
Mayor Meehan called the Albertville Truth -in- Taxation Public Hearing to order at 6:17 p.m.
ROLL CALL
Council members present were: Mayor Mark Meehan, Council members Larry Sorensen, Dan
Wagner, John Vetsch, and Jillian (Schommer) Hendrickson
Staff member present were: City Administrator Larry Kruse, City Clerk Bridget Miller, and
Finance Director Tina Lannes
PUBLIC HEARING ON TRUTH -IN- TAXATION
Finance Director Lannes gave an overview of the 2010 Budget that was set at $2,979,997 for
2011. The first 2011 Preliminary Budget amount was $3,146,321, which was a 5.58% budget
increase. Lannes explained this was due to a levy increase of 11.90% because of the loss of State
Aid, increased Debt Service for CSAH 19, Street Maintenance increase, and SAC Fund
repayment.
Lannes went over a few key points that are related to the increase /decreases in Revenues:
• Loss of Market Value Credit in the amount of $113,170
• Decrease in Building Permit Revenue /Fees $90,000
• Decrease in Administrative fees $16,378
• Decrease in Fire Aid $9,000
• Decrease in Interest and Service Charges Revenue $12,000
• Decrease in Rentals of City Buildings $3,000
Lannes stated that the 2011 Approved Preliminary Budget amount of $3,053,009 was a.48%
Operations Budget decrease, which resulted in a Tax Levy increase of 5.32 %.
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City of Albertville
Truth -in- Taxation
City December 5, 2011
Page 2 of 4
Next, Lannes reported how the 2011 Budget Expenditures were increased and or decreased to
balance the budget.
• Increase in Street Maintenance of $60,000
• Decrease in Building Dept. Budget by $94,621 (retaining the Permit Tech at 1 /2 time and
changing the Bldg Official to 3 /4 time)
• Decrease in City Clerk Budget by $19,000 (changing the Clerk to 3 /4 time)
• Increase in Capital Reserves amount was $40,691
• Add New Branch Library Debt Service of $23,665
• Overall Debt Service Increase of $122,180
• Increase Sewer Access Charges (SAC) loan repayment amount of $50,000
Lannes demonstrated how the Total Tax Levy has decreased over the past several years
beginning with 2006 at 15.4% and the current year 2011 at 5.32 %.
Year Total Lew
2006 15.4 % (Full PW Bldg)
2007 13.1 % (Phase in City Hall)
2008 13.4 % (Phase in City Hall)
2009 4.6 % (CH Full, Phase in CSAH 19 1 time $)
2010 4.5% (CSAH 19 1 time $)
2011 5.32% (CSAH 19 Full move recycling to UB)
Lannes brought to the Council's attention that the City of Albertville has been decreasing its
operations budget for the last few years. The levy increases are due to loss of state aid and
increasing debt service. The total Tax Levy for 2009 decreased from 2008 due to a Debt Service
Bond being completed. The decrease in Tax Levy for 2010 is due to the use of $97,500 of
Municipal State Aid (MSA) to offset the CSAH 19 Debt Service Levy coming on. This was a
one -time only option for the City to use.
Lannes reminded the Council that the Minnesota Legislature repealed the Homestead Market
Value Credit (the HMVC homestead credit), and replaced it with a new Homestead Market
Value Exclusion (HMVE).
Lannes displayed an example for the Council to get a visual attempt to address other changes
between 2011 and 2012.
Payable 2011 Payable 2012
Properties:
1,000 homes @ $100,000 $1,000,000 $ 717,600
1,000 homes @ $200,000 2,000,000 1,807,600
Non - homestead properties 3 ,000,000 3,000,000
Total NTC $6,000,000 $5,525,200
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City of Albertville
Truth -in- Taxation
City December 5, 2011
Page 3 of 4
PUBLIC COMMENT
Mayor Meehan opened the meeting up for public comment.
Todd Zachman of 5584 Lambert Avenue NE shared that he recently received his proposed
property tax statement where it appears the City's portion went up. Zachman was asked to
display the tax statement for the Council to review.
Council member Sorensen shared his comments on the proposed property tax statement, which
the taxes were reasonable. Sorensen brought up the asterisk next to the STMA School proposed
taxes that states there is a possible change because of the recently passed STMA School Levy.
Council member Wagner confirmed that his statement had the same language on his. It was
about this point that Finance Director Lannes observed the Zachman Property Tax Statement,
which was for taxes payable this year. Zachman was encouraged to look through his mail as he
should have received a statement for 2012 Proposed Property Taxes. Lannes did offer to contact
the Wright County Assessor's Office to get an additional copy if Zachman was unable to locate
his.
Meehan asked if there were any other members present to discuss their property taxes. There
were no other property owners present.
OTHER BUSINESS
Council member Vetsch asked City Administrator Kruse if there was a Library Agreement that
was finalized.
City Administrator Kruse shared that at the December 7, 2009 meeting there was a motion made
as follows: CM Vetsch and seconded by CM Sorensen to approve the Joint Agreement between
the City of Albertville and the City of St. Michael entitled an Agreement for Construction and
Maintenance of a New Branch Library as on file in the Office of the City Clerk subject to
obtaining a positive opinion from the City's Bond Council that the Agreement complies with
State Statutes regarding Debt Obligations; further, conditioned on the City of St. Michael's
approval of this Agreement; further, that the City of Albertville be given equal recognition as St.
Michael in the name of the Library if any city's name is included in the library's name.
Kruse stated that Vetsch has been asking to see the signed agreement since the approval. Kruse
reported that staff has been in contact with St. Michael in obtaining a copy. The version received
was incorrect; therefore, City Attorney Couri reviewed the agreement and worked on including
the comments the Albertville Council approved.
Kruse concluded that the Agreement has been reviewed by the City's Bond Council and City
Attorney Couri, which meets the intentions of the Albertville City Council. The Agreement was
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City of Albertville
Truth -in- Taxation
City December 5, 2011
Page 4 of 4
signed by the current Mayor (Mark Meehan). The three (3) signed copies will be mailed to the
City of St. Michael for review and signatures. A fully executed copy will be returned for
Albertville's records. Kruse reassured Council member Vetsch that a Principal and Interest
spreadsheet has been included with the agreement.
ADJOURN
CMs Sorensen/Wagner motioned to adjourn the Monday, December 5, 2011 Truth -in- Taxation
Public Hearing meeting at 6:41 p.m. Motion carried unanimously.
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BriJFet Mille City Clerk (recording secretary)
MAPublic Data \City Council \Council Minutes \2011 Minutes \M 12 -05 -11 t -n -t approved bm.doc
Albertville City Council
Albertville
SnW1T...UW".11p« L.. TRUTH -in- TAXATION
December 5, 2011
Public Attendance Record
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