01-13-2020 Council Packet - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 9, 2019 6:30 o'clock p.m. ROLL CALL The Orono City Council met on the above-mentioned date with the following members present: Mayor Dennis Walsh, City Council Members Richard Crosby II, Matt Johnson, Aaron Printup, and Victoria Seals. Representing Staff were City Administrator Dustin Rief, Finance Director Ron Olson, Development Director Jeremy Barnhart, City Planners Melanie Curtis and Laura Oakden, Public Works Director/City Engineer Adam Edwards, and City Attorney Soren Mattick. Mayor Walsh called the meeting to order at 6:30 p.m., followed by the Pledge of Allegiance. TRUTH IN TAXATION PUBLIC HEARING 1. 2020 Budget Hearing a. 2020 Budget Information b. Adopt Final 2019 Levy Collectible in 2020 — Resolution No. 7049 c. Adopt Final 2020 General Fund Budget — Resolution No. 7050 d. Adopt the 2020 Special Revenue Funds Budgets — Resolution No. 7051 e. Adopt the 2020 Enterprise Fund Budgets— Resolution No. 7052 Olson stated the law requires a public hearing before the adoption of the budget and public input, if any, must be accepted. As far as how taxes are calculated, it starts with the Hennepin County Assessor's valuation of each property in the City. The value is multiplied by a tax rate that applies to each class. 90% of Orono's properties are residential. The tax capacity rate is calculated by taking the total property tax levy of the City divided by the City's total tax capacity, the value the Assessors put on each property multiplied by the property's tax rates then added together. Olson said the Council is asked to approve a $6,007,450 Property Tax Levy. The City's Tax Capacity is $36,417,706, a tax capacity rate of 16.498%. Orono has the third lowest tax capacity rate in the county. He used a sample Property Tax Statement and explained the components of it and how to calculate the net City tax. For the average property tax distribution throughout Minnesota, school districts equal about 29%, the county is 27%, and the city is 29%. For the City of Orono, the school takes 39%, the county takes 39%, and the City is 15% of the property tax bill. He said this is a reflection of the Orono Councils, who have had to try to keep the property taxes as low as possible while funding needed infrastructure and services. Seals asked whether schools in Hennepin County tax at a higher amount compared to other schools. Olson said he has not looked at school data throughout the state, but Orono schools tax higher than Mound Westonka. The information is based on District 278. Walsh said part of the reason the school and county number is so much higher is because the City's number is so much lower than normal. Seals said that is why she asked what the school was taxing percentage -wise compared to other areas. Walsh said you would have to look on average. If the city is normally 29 and Orono is 15, it's a 14% difference, while the school is 10% higher and the county is 12% higher. He said the other entities are making up the difference of what the City is not taxing because of its governance. Page 1 of 34