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HomeMy WebLinkAbout12-04-2006 Truth in Taxation Minutes PUBLIC ATTENDANCE MEETING DATE ❑ ������� ❑ PLANNING COMMISSION PLEASEEILLOUTTHEINFORMAT[ONREQUESTED BELOW FOR OUR C1TY RECORDS. ❑ PARK COMMISSION ❑ OTHER PRESENT FOR(from agenda) NAME (please print) ADDRESS NAME OR NUMBER � ' � �t' /'��Z �' � l=. 1. � `_ 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 1�. �����,.Admini.vati�c iuppnn`.�Furnd)APublic:A�tcndaucc.��pd H�N,�F P`� ._ � '!I-�• ::!�.' '�`E(' Q � 2Q06 �i`�i�` �''�_ _ v!" ��`-1�r�- � �-�r ,��E December 4, 2006 Dear Mayor, I am writing to express my opinion on the proposed property t� increase. Writing as a lakeshore owner, when we talk about double digit property tax increases, we are talking a lot of money. We are being taxed out of our homes. Property values have dropped and will continue to drop and so should the property taxes. With the high price of energy adding more taxes will just hurt even more. Please look into what can be done to drop expenses. Sincerely, Rick &Kim Klocek 1090 Loma Linda Avenue Orono, MN 55364 (952) 495-1058 , � � Cit of Orono y Tax Capacity Rates � 1998 - 2007 25% � 20% _ _ _ - - - 15% . - -- 10% - � 5% - 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Page 1 � Cit of Orono ' v Tota I Tax Levy 1998 - 2007 $4.5 ' $4.0 $3.5 $3.0 --- -- ___------___ , � � $2.5 --_ ___ ---- = $2.0 - � $1 .5 $1 .0 - $0.5 -- $0.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Page 2 � Cit of Orono y General Fund Levy �, 1998 - 2007 $4.0 $3.0 ------ � � � •� $2.0 - --- -- _ - - -- � i $1.0 I $0�0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Page 3 Cit of Orono y 2007 General Fund Expenditures by Department $5,584,240 Finance 4.4% i Administration � _ Fire 0 5.6% � � 4.9 /o Central Services Other 4 7% 15.5% \ � Planning & Zoning ' � 10.4% '�� Streets 10.0% Police � 44.6% Page 4 , City of Orono � ' 2007 General Fund Expenditures by Category Total: $ 5,584,240 Capital Outlay Transfers 2.4% �I � 4.3% Other Expenses � _ , 7 0°/ � , . o � �;, Insurances 1 .4% � � � Professional Services ` 14.2% � � Personal Services Supplies & Maint , 62.0% 8.7% �. Page 5a � City of Orono 2007 General Fund Expenditure Budget Summary Dollar % 2004 2005 2006 2007 Increase Increase % Actual Actual Bud�et Bud�et Decrease �Decrease� of Bud�et Personal Services 2,843,216 3,125,452 3,399,570 3,459,880 60,310 1J7% 61.96% Supplies & Maintenance 417,553 506,843 428,840 484,380 55,540 12.95% 8.67% Professional Services 864,256 871,831 884,940 793,750 (91,190) -10.30% 14.21% Insurances 78,250 80,480 80,480 80,480 0 0.00% 1.44% Other Expenses 310,371 470,912 386,950 391,850 4,900 1.27% 7.02% CapitalOutlay 115,335 98,704 123,960 133,900 9,940 8.02% 2.40% Transfers to Other Funds 45,000 125,000 240,000 240,000 0 0.00% 4.30% Total 4,673,982 5,279,222 5,544,740 5,584,240 39,500 0.71% 100.00% Page Sb 1 �� C it of Orono '��� y '� General Fund Revenues � �I Total: $5,584,240 Fines & Forfeitures Other 2.2% � 'r 1 .6% _,, Public Safety Charges � 16.9% � � , , , �� Charges for Service 8.7% �--%. - ,.. `���� �� Property Taxes Intergovernmental , 60.3% � 4.2% i � ���� ���u��a:�"'.�. :� � �, ��� Permits ��� 5.9% �, .. —...._ d�_. ..�_.t �A Licenses j 0.2% Page 6 City of Orono General f und Revenues For 2007 Dollar Percentage 2004 2005 YTD 2006 2007 Increase Increase Revenue Source Actual Actual thru 11/15/06 Budeet BudQet Decrease Decrease Property Taxes 2,635,6GG 2,970,220 1,G00,000 3,282,710 3,365,520 82,810 2.5% �1V[fC Orfsct (34 170) o . _- _____ _-_- - -- - --- --- -- _ _.._ 2,63i,G6G 2,97U,220 1,G00 000 3,2�8�4U 3,365,520 8�,810 2.5% Beer&Liquor Licenses 6,775 9,900 1,450 6,500 6,500 0 0.0% Cigarette Licenses I,IUO I,000 1,180 1,100 1,100 0 0•0"/0 Commercial Dock Licenses 0 0 0 0 0 0 -- Septic Liccnses 0 0 0 0 0 0 -- Garbage Hauler Licenses 700 700 670 650 650 Q �•�% Dog Licenses 1,410 6,770 730 2,000 4,000 2,000 IOOA`% Other Business Licenses 30? 1,340 1,590 I,500 I,500 0 0.0"/� _ . ___ . _ _ _ _ 'i'otal Businces Licenscs 10,787 19,71t) 5,620 11,750 ]3,750 2,0(10 17.(1"/0 Buildin�Permits 265,104 359,360 ?3�,680 293,450 257,750 (35,700) -12.2% General Permits 4L,b37 44,530 55,000 45,000 45,000 0 0•0% Other Pennits ?6960 28,220 23,570 21,000 2�,000 d,000 19.0"/0 _ _ _ __ _ "t'otal Yermits 338,955 -t32,160 314,250 3S9,4S0 327,750 (31,700) -R.8% _. _ ____. . _ Federal Grant-Emerg.Prep. 2,737 0 0 0 0 0 -- HACA Aid/MVC 164 0 0 0 0 0 -- Loc11 Government Aid-LGn 0 0 0 0 0 U -- Payroll Aid 0 0 0 0 0 � " Police Training Reimbursement 6,804 6,700 7,600 13,000 6,800 (G,20U) -47.7'% Police Stste Aid 102,596 108,540 l�I,850 102,000 121,000 19,000 13.6% PERA State Aid 7.219 7,220 3,610 7,000 7,220 220 3•1% State Grants/Aids-Other I 3.192 9,100 ?,890 0 � �� '- Federll Grant-COPS-Other 0 0 600 0 0 0 -- MSA-Strects 96,009 85,270 77,350 96,000 96,000 0 11.0% Counry Grant-Recycling 13,739 13,980 14,�30 13,800 4,600 (9,200) -- Aids/Grants from Odicr Govts 0 1,000 � � � � -- -- --- __ - _.. - -. ... _ _. - - _ 'i'otal Intergovernmen[al Kcvenue 232,i60 231,810 228,�30 231,800 235,62U 3,$20 1•b°�u - _ -- Plan Check&Site Exam Fees 190,OSd 215,350 137.000 180,000 I�0,000 (30,000) -1G.7% Conditional Use,Variance,R Subdivision 1 I�,034 64,450 57,040 93,000 70,000 (23,000) -2d.7% Engineering/Legal Fees U 0 0 0 5�,000 55,000 N!�\ On-Site Septic Program Fees i1,9�0 52,450 52,050 52,000 52,000 0 0.0% Recycling Program Fees 67,776 68,330 34,240 67,800 68,000 200 0.3'% Contracted Public Works Services 1,3U0 0 0 1,200 1,200 0 0.0% Inrerdepartmental Services-Public Works 10,171 0 0 �,000 �,000 �� �•��%� Administrative Charges for Services 74,600 74,600 55,950 79,000 79,000 0 0•0% General Taxable Sales 3,040 4,370 3,670 2,300 3,000 Z00 7.1% Assessment Searches 19� 250 60 I50 ��� � �•�% Building Permit Nlail-in Fees 3�4 440 320 350 350 0 0•�`�0 __ -- -- -- - _ _. _ _ _ _ _ T'otal Gcn Cuvt Scrvicc Chrgs Rcv 51�3.3�4 a80,240 340,330 491.300 �83,700 _ 2,�100 0.5% --_ _-- -. _-. --- - ---- -- -�.�`% Contr�cted Police Services 3�9,058 869,�50 83�,030 900,000 860,000 (d0,000) Contracred Animal Control 5enices 32,700 34,180 3?,270 33,700 33,700 0 0•0% Police Special Services 49,11"> 31,620 I 1,890 35,000 20,000 (15,b00) -�12.9'% Contracted Inspection Services 37.613 97,360 19,190 33,000 2�,000 (8,000) -2�•2% FalseAlarmFees IU,110 3,650 �,000 10,000 �,OU� (5,000) -50.0'% PoliceReports I,101 1,190 670 1,000 I,000 0 0•0% Police Reserve/DARE Program Receipts 0 30 0 0 0 �� Total Public Safety Serv ChrQ Rev 959,697 I,U37,G10 90�4,050 1,012,70U 9�{4,700 (6R,OOU) -G.7°/, Court Fines I>;.171 146.''�0 107,170 106,000 130,000 14,000 13.2%, City Share 309%Porfietures 3.166 4,390 4,270 I,000 I,000 (1 ��•��`�� Uog Impound Fees _ �,''-� �.��� 690 I,000 IA00 0 0.11% "('otal Fines and Por(eits Re��enue 1�4,(G2 151.G90 112,130 lU8.000 122,000 l�l,000 13.0°/, lnterestonln�estments Sd.3d9 47.9a0 0 70,000 70,000 O �•��%� NOW Interest 6�2 390 I,O60 _ S00 S00 0 . 0.0°/u _ - __ _ _- - -- Total Im-estment Revcnac i�,�171 48,330 l.UGO 70,3U0 70,300 0 0.0"/� ----. .. _ _ _._. __._ _ _ _ _.. __ _ _ --- Payments In Lieu oFTases 0 0 0 0 0 0 E:RR Miscellaneous Revenue 4.1 S2 10,990 8,310 4,000 4,000 �1 �•�% Rent Income i,dOU 'l,9�0 4,9�0 �,400 5.400 0 0.0% Contributions K Donations l) � 0 0 0 11 -- Sale uf Equipment R Land 11,1�7 5,j7p 13.490 I 1,000 I I,000 0 0•0'�u Transfer In 0 0 0 0 0 0 I�otnl���liscellaueou�i2evcnuc 20,739 21,510 27,2�0 10,d0U 20,�00 0 0.0% "1'otal Revenues and Transfers In 4,92Z.331 5,393.280 3,�33,120 �,��-1,?�11 S,�g4,2�10 SS,I�Q L6"/�� - �'t�r 7 CITY OF ORONO TAX LEVIES Actua12006 vs Proposed 2007 Proposed 2007 Increase(Decrease) Actual Proposed From Actual 2006 TAX LEVIES 2006 2007 Amount Percent General $3,282,710 $3,365,520 82,810 2.52°/o Infrastructure(PIR) 120,000 200,000 80,000 66.67% Park Land Acquisition and Development 5,000 5,000 0 . 0.00% Imp&Equip Outlay -- -- Total Levy for Non-Debt Purposes $3,407,710 $3,570,520 $162,810 4.78% 1999 Improvement Bond Debt Service 5,000 5,000 0 0.00% 2003 Imp Refunding Bond Debt Service 35,000 33,000 (2,000) -SJ1% 1998 HRA Refunding Bond Debt Service 250,000 250,000 0 0.00% 2003 Fire Facility and Equipment Bond Debt Service 73,250 134,080 60,830 83.04% 2004 Imp Refunding Bond Debt Service 16,000 15,500 (500) -3.13% Big Island Vets Camp Bond Debt Service 15,000 75,130 60,130 400.87% Total Lev,y for Bonded Debt $394,250 $S12,710 $118,460 30.05% TOTAL TAX LEVIES FOR ALL PURPOSES $3,801,960 $4,083,230 $281,270 7.40% Finance�Budge��2006\TaxO5v06.123 Page 8 City of Orono Tax Capacity, Local Levy, &Tax Capacity Rates 2007 Over(Under)2006 ___ Actual Estimated TAX CAPACITY 2006 2007 Amount Percent Net Tax Capacity (To calculate rate) $24,817,899 $28,628,129 $3,810,230 15.35% LOCAL LEVY General Revenue 3,282,710 3,365,520 82,810 2.52% PIR Infrastucture-Storm Sewer/Roads 120,000 200,000 80,000 66.67% Parks - Land Acquisition& Development 5,000 5,000 0 0.00% Improve& Equip - Capital Equipment 0 0 0 N/A Debt Service 56,000 53,500 (2,500) -4.46% HRA Building Bonds 250,000 250,000 0 0.00% Fire Facility & Equipment Bonds Debt 73,250 134,080 60,830 83.04% Big Island Vets Camp Bonds Debt 15,000 75,130 60,130 400.87% Total levy all funds $3,801,960 $4,083,230 �281,270 7.40% TAX CAPACITY RATES General Revenue 13.221% 11.756% -1.465% -11.08% PIR Infrastucture-Storm Sewer/Roads 0.484% 0.699% 0.215% 44.34% Parks- Land Acquisition& Development 0.021% 0.017% -0.004% -16.83% Improve& Equip- Capital Equipment 0.000% 0.000% 0.000% -- Debt Service 0.227% 0.187% -0.040% -17.67% HRA Building Bonds 1.007% 0.873% -0.134% -13.28% Fire Facility & Equipment Bonds Debt 0.295% 0.468% 0.173% 58.76% Big Island Vets Camp Bonds Debt 0.061% 0.262% 0.201% -- Total Local Tax Capacity Rate 15.316% 14.263% -1.053% -6.88% Page 9 Effect of 2007 Tax Levy & Budget on Homes Market Value for 2006 Taxes 300 000 800 000 2006 2007 2007 2006 2007 2007 0%incr 8% incr 0% incr 8% incr Estimated Market Value 300 000 $300,000 324 000 800 000 $800,000 864 000 Tax Capacity (Net) * 3,000 3,000 3,240 8,750 8,750 9,550 Tax Capacity Rate 15.316% 14.207% 14.207% 15.316% 14.207% 14.207% Net Tax $459.48 $426.21 $460.31 $1,340.15 $1,243.11 $1,356J7 $ [ncrease(Decrease) from 2006 ($33.27) $0.83 ($97.04) $16.62 % Increase(Decrease) from 2006 -7.2% 0.2% -7.2% I.2% * Tax Capacity (net)= 1%of first$500,000 market value, plus 1.25%of all value over$500,000 Finance\BUDG E712006\Ta xeffec.123 MINUTES OF THE TRUTH IN TAXATION HEARING HELD AT 6:00 P.M. ON MONDAY, DECEMBER 4, 2006 • IN THE ORONO COUNCIL CHAMBERS Members Present: Mayor Barbara Peterson, and Council Members McMillan, Murphy, Sansevere, and White. Staff Present: City Administrator Ron Moorse, and Finance Director Ron Olson. Mayor Peterson called the meeting to order, and noted all members were present. She opened the hearing at 6:01 p.m. Dean Griemann, of 3779 Casco Avenue was the only member of the public present. He was provided with a budget packet that outlined the proposed budget and tax levy increases, and summarized the reasons for the increases. Mr. Griemann indicated he believes the Hennepin County Assessor has property values higher than the market. He suggested the Assessor should be very conservative regarding property values for 2007. He also encouraged the Council to be conservative in their spending in order to limit property tax increases. The Council indicated they understand the importance of being fiscally conservative. Moorse announced that the final budget and levy will be adopted at the Final Budget • Adoption hearing, to be held at 7:00 p.m. on Monday, December 11. There being no further public comments, Mayor Peterson closed the hearing at 6:30 p.m. ADJOURNMENT Council Member Murphy moved, Council Member White seconded, that the meeting be adjourned at 6:31 p.m. Vote: 5 Ayes, 0 Nays. ATTEST: Linda S. Vee, City Clerk • Barbara A. Peterson, Mayor