HomeMy WebLinkAboutCity Council - 12/01/2003 - Truth in Taxation APPROVED MINUTES
TRUTH-IN-TAXATION HEARING
EDEN PRAIRIE CITY COUNCIL
MONDAY,DECEMBER 1,2003 7:00 PM, CITY CENTER
Council Chamber
8080 Mitchell Road
CITY COUNCIL: Mayor Nancy Tyra-Lukens, Councilmembers Sherry Butcher,Ron Case,
Jan Mosman, and Philip Young
CITY STAFF: City Manager Scott Neal, Parks & Recreation Director Bob Lambert, Public
Works Director Eugene Dietz, City Planner Michael Franzen, Finance Director Sue Kotchevar,
City Attorney Ric Rosow and Council Recorder Theresa Brundage
I. ROLL CALL/CALL THE MEETING TO ORDER
Mayor Tyra-Lukens called the meeting to order at 7:00 p.m. All members were present.
II. PLEDGE OF ALLEGIANCE
III. PUBLIC HEARING
A. OVERVIEW OF 2004 PROPOSED BUDGET AND TAX LEVY
Tyra-Lukens reminded the audience that this meeting is held to hear concerns about
the city's proposed 2004 budget. She said Council chose to conduct the public
hearing although for cities where the total proposed property tax levy does not
exceed the previous year levy by 3.3481%, a hearing on the budget is not
necessary. She said Eden Prairie's levy is proposed to increase by 1.9%.
City Manager Scott Neal introduced Finance Director Sue Kotchevar who
presented charts to illustrate the proposed 2004 budget. Kotchevar said the budget
total property tax levy increased by 1.9% over 2003. She said with the median
home value at$287,800, there is an increase of$43 or 4.9% annually in City taxes
for property owners. She said based on the median home value of$287,800,the
City property tax would increase$43 or 4.9%; and total tax increase, including
Hennepin County and the school district,would be$134 or 4.1%.
Kotchevar said objectives include developing and implementing a balanced budget,
maintaining current service levels, complying with tax legislation,maintaining Aaa
bond rating, continuing funding the Capital Improvement Plan and planning and
budgeting for Fire Station A.
CITY COUNCIL AGENDA
December 5,2000
Page 2
Kotchevar noted that there is a change in levy limit calculation and the Market
Value Homestead Credit will not be funded by the state for 2004. She said
$172,000 in local government aid was also eliminated for the City of Eden Prairie.
Kotchevar explained the City's average taxable value increase for residential and
apartment properties, and decrease for commercial properties. She said, although
residential properties increased by 4.1%,the total property tax will also involve a
13.9%decrease for apartments and a 4.7% decrease for commercial properties.
She said property tax distribution includes City of Eden Prairie,27%; ISD 272
(school district), 26%,Hennepin County, 38%; and Other, 9%. Kotechevar gave an
overview of General Fund revenues and expenditures,noting that expenditures
include the development of a fourth fire station in 2005.
Kotchevar stated that Utility Fund objectives are to maintain financially stable rate
structure and retained earnings,to review utility rates annually,have no rate
increase for 2004, and meet or exceed safe drinking water standards. She said the
Utility Fund budget is basically flat and fluctuates depending on the weather.
Kotchevar also explained the Liquor Enterprise Fund objectives and budget that is
projected to increase by nearly 2%.
Mosman asked how much taxes on a median priced home would increase.
Kotchevar said 4.9% and that takes into account a 12.9% increase in value of a
median priced home.
B. PUBLIC COMMENT AND DISCUSSION
The public offered no comments.
IV. CLOSE OR CONTINUE PUBLIC HEARING
MOTION: Butcher moved, seconded by Case,to close the Public Hearing.
V. ADJOURNMENT
Mayor Tyra-Lukens adjourned the meeting at 7:20 p.m.