12-03-18 CC Special Mtg Truth-in-Taxation MinutesCITY OF SHOREWOOD
CITY COUNCIL SPECIAL MEETING
MONDAY, DECEMBER 3, 2018
MINUTES
1. CONVENE CITY COUNCIL SPECIAL MEETING
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
7:00 P.M.
Mayor Zerby called the meeting to order at 7:05 P.M.
A. Roll Call
Present. Mayor Zerby; Councilmembers Johnson, Labadie, and Sundberg; Administrator Lerud;
and Finance Director Rigdon
Absent: Councilmember Siakel
B. Review Agenda
Lerud said the bid for agenda item 2C was not yet received so it will be moved to the December 10 meeting
for consideration.
Labadie moved, Johnson seconded, approving the agenda as amended. Motion passed 4/0.
i
A. Staff Presentation
Finance Director Rigdon walked through the presentation for this hearing.
The Truth -in- Taxation requirements are to present the City's 2019 General Fund Operating Budget and
2019 property tax levy, discuss the budget and tax levy, and to take public comment. Council will be asked
to adopt a property tax levy and balanced budget during its December 11 meeting.
The City's portion of the property taxes pay for a number of services funded out of the General Fund. They
are four major main operational areas — administration (including finance, planning and zoning, elections,
and other miscellaneous services); public safety (police and fire protection); public works; and, parks and
recreation.
The assumptions used in preparing the 2019 General Fund Operating Budget are as follows.
A 3.0 percent tax levy increase over 2018 for General Fund operations and transfers out to reserve
funds.
One new half -time administrative position to be part administration and part planning.
Other staffing levels remain the same as 2018.
3.0 percent cost of living increase
A time study for public works employees was conducted and department /fund budgets were
modified for 2019.
CITY OF SHOREWOOD SPECIAL MEETING MINUTES
December 3, 2018
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The City's General Fund 2019 combined revenues and transfers total $6,273,532 reflecting an increase of
$213,997 (or 3.5 percent) when compared to 2018. Property tax revenues are $5,530,322. The breakout of
the revenues and transfers is 88 percent from property taxes, four percent from licenses and permits, four
percent from miscellaneous revenues, two percent from intergovernmental, one percent from fines and
forfeitures, and one percent from charges for services.
The property tax assessment and levy timeline for property taxes payable in 2019 was as follows. The
market values were established on January 2, 2018. Valuation notices were sent out in March 2018. The
Board of Review process to hear appeals on property values took place during April and May 2018. Council
discussed the 2019 General Fund Budget and property tax levy from July through September 2018, The
City certified its maximum tax levy increase of three percent for 2019 to Hennepin County in September
2018. The County mailed out Truth -in- Taxation notices to property owners in November 2018, The Truth -
in- Taxation hearing was being held that evening. The City will certify its final tax levy to the County by
the end of 2018.
He clarified that this presentation is about the City of Shorewood's portion of total tax bill which is
approximately 28 percent. He highlighted some trend graphs. The taxable market value payable in 2019
will be $1,752,900,982. Tax capacity, a derivation of market value that is calculated by applying a class
rate to the market value of a property, with the resulting number is used in calculating tax rates and tax
dollars to the property owners will be $19.476,995 for 2019. The City local tax rate for taxes payable in
2018 was 28.635 percent. The 2019 tax rate will decrease to 28.537 which means that the levy increase is
less than the valuation increase.
Rigdon noted Council will be asked adopt the 2019 General Fund Budget and property tax levy during its December
10 meeting. Council will also be asked to approve the 2019 Enterprise Fund. Budgets and the 2019 Capital
Improvement Program during that same meeting.
Councilmember Sundberg said she appreciated the detail of the presentation.
B. Public Comment
Mayor Zerby opened the public comment portion of the hearing at 7:22 P.M.
Joe Schneider, 21125 Christmas Lane, asked with the recent issues surrounding recycling collection state and
nationwide if there would be an increase in the city's recycling fee. Lerud said that the single hauler for recycling
approached the city about an increase, but because the city is not an equity partner with the hauler, the haulers have
been concentrating on rates in communities where the city is an equity partner. He said the contract was up in a couple
of years and the issue would be visited at that time.
Mayor Zerby said the council has been discussing the budget since July and the documents tonight reflect that
discussion but asked if there were any questions. There were no questions.
• 1 ,L
Sundberg moved, Johnson seconded, Adjourning the City Council Special Meeting of December 3,
2018, at 7:30 P.M. Motion passed 410.
CITY OF SHOREWOOD SPECIAL MEETING MINUTES
December 3, 2018
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ATTEST:
A
/F
Sandie Thone, City Clerk
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