09-25-2017 Council Packet - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 11, 207 7:00 o'clock p.m. 13. 2018 BUDGET — Continued Olson stated the next slide shows how a person's property taxes are calculated. The Hennepin County assessor sets the estimated market value on someone's home. The County then takes the City's total tax capacity, which is all of the properties in the city added together, to get the City's tax capacity. The City Council then passes a tax levy. The property tax levy is divided by the city's tax capacity resulting in the tax capacity rate for someone's home. On a $500,000 property, the tax capacity is $5,000 times 16.882 percent, which is the City's calculated tax rate, resulting in city taxes on that property of $844.10. Olson noted taxes and how they are calculated will be discussed more in depth at the truth -in -taxation meeting in December. Olson stated before the decrease to the Pavement Management Plan, if someone's home did not change in value, that person's taxes would have increased .88 cents on a $250,000 home as a result of the preliminary levy, and on a $2 million home, they would see an increase of $8.93 for the whole year. If property valuation went up 5 percent on a $250.000 home, that would add $24 for the year, and on a $2 million home, they would pay an additional $220 in taxes for the year. Olson noted those numbers will decrease slightly because the City's preliminary tax levy was decreased by the Council at its work session. The City Council took no formal action on this item. PUBLIC WORKS/CITY ENGINEER REPORT 8. 2017 SANITARY SEWER REHABILITATION PROJECT AWARD Edwards reviewed his Staff memorandum dated September 11, 2017, regarding the awarding of the 2017 sanitary sewer project. Edwards stated each year the City performs Cured -in -Place pipe lining on a section of the City's sewer system. The amount budgeted in the City's Capital Improvement Fund was approximately $265,000 and Staff is recommending a project that would cost in total around $248,000. The lowest acceptable bid for this year's CIPP work was $213,338.40, which amounts to rehabilitation of 5,026 feet of the City's sewer pipe. Walsh noted the City developed a capital asset plan detailing when improvements and repairs are made to various assets and every year the City performs repairs on approximately 20 percent of the City's sanitary sewer pipes. Seals asked how long the pipe lining typically lasts. Edwards indicated 75 years. Printup moved, Seals seconded, to award the sanitary sewer improvements contract to Insituform for $213,338.40 and to approve the Bolton & Menk Construction Management proposal for a fee not to exceed $18,900. VOTE: Ayes 4, Nays 0. Page 4 of 17