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120496 CC SP Min .I . . . COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD 7:45 P.M. CITY OF SHOREWOOD SPECIAL CITY COUNCIL MEETING WEDNESDAY, DECEMBER 4, 1996 MINUTES 1. CONVENE CITY COUNCIL SPECIAL MEETING Mayor Bean called the meeting to order at 7:55 p.m. A. Roll Call Present: Mayor Bean; Councilmembers Benson, McCarty, Shaw, Stover; City Administrator Hurm; City Attorney Tim Keane; Finance Director AI Rolek, Planning Director Brad Nielsen and Engineer Larry Brown. 2. TRUTH IN TAXATION PUBLIC HEARING Mayor Bean opened the public hearing at 8:15 p.m. Willie Jensen, 4880 Rustic Way, stated his disagreement with the market value of his property and asked for an explanation of the valuation process which is utilized. Finance Director Rolek explained the Board of Review which is held in the spring is the time at which property valuations are addressed. Hurm stated he would speak with the assessor and review this matter. Jeff Papke, 6180 Cardinal Drive, suggested a chart be included with the property tax statement indicating the rate of change from 1987 forward, with the rate of change on the valuation of the property to enable tax payers to project their tax rates five years forward. Mr. Papke commented the rate has increased much more than 4 percent. Hurm pointed out in the past several years, the municipal rate has actually decreased. Mr. Papke noted the rate of increase to be in excess of 10 percent per year. Mayor Bean pointed out this is affected by appreciation in the property. Mr. Papke felt the rate of increase should be limited to the growth of increased revenue from development or to no more than the rate of inflation. Mark Simanek, 22630 Murray Street, noted the value of his property increased 10 percent and the taxes increased 14 percent for the third consecutive year. He inquired why there is a tax increase, yet the value of the house has not increased as much. Rolek stated this would be determined by the class rate which applied to the property. He pointed out the Shorewood tax rate has stayed the same, however, if the overall rate were to increase, the property would be subject to an increase. Rolek suggested Mr. Simanek attend the Board of Review in the spring to address the valuation of his property. Duncan Storlie, 5375 Eureka Road, commented on the $5,000 assessment for municipal water. He felt the assessment should have been incorporated into the tax system because this has resulted in an increase of approximately 50 percent in the period of one year. Mr. Storlie asked if there would be any way to protest this tax. Mayor Bean stated the only appeal process would be with respect to the valuation of the home which takes place at the Board of Review hearing in the spring. ... . . . SPECIAL CITY COUNCIL MEETING MINUTES DECEMBER 4, 1996 . PAGE 2 Mr. Storlie questioned where the assessments funds would appear in the budget. Mayor Bean explained there is a separate water fund and the assessment charges do not become a part of the general operating budget. In addition, the water system has its own budget consisting of its own revenue source and expenditures. Mr. Storlie felt the assessment should be considered a tax and that it should be known to the public to ensure the residents of Shorewood are made aware of it. Hearing no further public testimony, Mayor Bean closed the public hearing at 8:39 p.m. Mayor Bean inquired how much of the 8 percent reflected in the property tax portion of the budget is from current residents versus new construction. Rolek stated of the 8.36 percent, approximately 4 percent is due to inflationary property increases. The other 4 percent would be derived from new improvements to properties such as garages, additions and new construction which have been built in Shorewood within the last year. Mayor Bean stated one concern he would express relative to the tax rate decreasing or remaining flat is that to some degree the City needs to be careful about preserving an appropriate amount of dollar reserve. The City currently carries approximately a six month cushion which is necessary because of the time of the cap rolls back from the State of Minnesota relative to the revenue collection process. Mayor Bean further noted to the extent Shorewood is looking longer term, there is a concern that the reserve does not become depleted too severely making it necessary to drastically increase the tax rate. Mayor Bean clarified that a large part of the increase in the police budget was related to the union contract which was negotiated during the past summer. It is anticipated Shorewood will utilize the department in a 50 to 52 percent range. Mayor Bean expressed his believe Shorewood has one of the lowest costs per capita, per individual, of any community in the metro area. Relative to the sewer payments, Mayor Bean inquired as to the percentage that is paid to Metropolitan Council and Rolek explained that amount to be approximately 70 percent of the total budget. Mayor Bean further explained that a large share of the sewer charges are a pass through back to the Metropolitan Council and Environmental Services in addition to Shorewood's allocation to the Regional Transit System. McCarty moved, Benson seconded canceling the December 12, 1996, continuation meeting and considering approval of the budget at the December 16, 1996 meeting. Motion passed 5/0. Finance Director Rolek encouraged anyone having questions relative to their property tax statement to contact him. . . . , SPECIAL CITY COUNCIL MEETING MINUTES DECEMBER 4, 1996 . PAGE 3 3. ADJOURN TO REGULAR MEETING Mayor Bean adjourned the Special City Council meeting and reconvene the Regular City Council meeting at 8:50 p.m. RESPECTFULL Y SUBMITTED, Cheryl Wallat, Recording Secretary TimeSaver Off Site Secretarial ATTEST: ! .) ,1 ' . r~.. i:l \<~~.Q~-1 CJ' ~\;------ ROBERT B. BEAN, MAYOR JA ,S C. HURM, V