12-13-1993 Council Minutes2 - Laserfiche WebLink

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MINUTES OF THE 1994 BUDGET HEARING CITY OF ORONO HELD DECEMBER 1, 1993 assumed a portion of the cost of sewer project and that the amount that can be assessed against an individual homeowner is related to the increased value of the land as a result of the sewer installation. This sewer bond is Just beginning to be paid off. The 1989 sewer bond was for sewers planned for tlie area from Sixth Avenue Nonh to Highway 12. At the time the sewer was projected, it was believed there would be considerable development. The Highway 12 project, the new City facility and lands being taken over by the school district have changed the projected residential development for this area. As a result, the City has to bear the cost of these bond payments until development increa.ses. (#4) PUBLIC COMMENTS Ward Edwards, 2474 Carman Street, asked if the value of his home changes yearly. Mayor Callahan responded that the Assessor physically visits approximately 1/4 of the homes in the City each year. Those homes that are not acmally visited are still subject to recalculation of their values based on various assessing techniques. Mayor Callahan suggested Mr. Edwards attend the property tax hearings in April. He al.so indicated *.he tax information was readily available if Mr. Edwards contacted City staff with further questions. Hurr added that if there were building improvements, the value may change as the Assessor gets a copy of the building permits. Doug Hickey. 4301 Wayzata Boulevard, commented that the assessed value of his home has averaged a 12% increase each year over the past six years. Jabbour explained that tlie budget is determined by the City and then the amount of money needed is distributed among all the homes. Mayor Callahan continued that the budget is sent to the County for calculation as to how the ta.xes are spread. Homes are classified differently so each statement is different. The tax statement reflects the amount of money each entity receives from the taxes paid. Kelley explained that the State legislature changed the tax rate percentage of the value of homes and how the money is allocated. At one time there was a 3% and 2% rate. The 3% rate has been eliminated on the larger, more affluent homes. This resulted in the lower value homes paying a bigger percentage. Homes over $128,000 are now ta.xed at a rate of 2%. Carl Johnson, 3105 North Shore Drive, stated that when he received his first home valuation, it was 30% over the previous year. This was readjusted by the Assessor to 19/o. When he received his statement, the increase was 10%. He asked if there was a state law that limits an increase of market value to 10% per year. Mayor Callahan responded there was not such a law