City Council - 12/04/2006 - Truth in Taxation APPROVED MINUTES
TRUTH-IN-TAXATION HEARING
EDEN PRAIRIE CITY COUNCIL
MONDAY, DECEMBER 4, 2006 7:00 PM, CITY CENTER
Council Chamber
8080 Mitchell Road
CITY COUNCIL: Mayor Nancy Tyra-Lukens, Councilmembers Brad Aho, Sherry Butcher,
Ron Case, and Philip Young
CITY STAFF: City Manager Scott Neal, Parks & Recreation Director Bob Lambert, Public
Works Director Eugene Dietz, City Planner Michael Franzen, Community Development Director
Janet Jeremiah, City Attorney Ric Rosow and Council Recorder Deb Sweeney
I. CALL THE MEETING TO ORDER
Tyra-Lukens called the meeting to order at 7:02 p.m.
II. PUBLIC HEARING
A. OVERVIEW OF 2007 PROPOSED BUDGET AND TAX LEVY
Tyra-Lukens said the hearing is one of many ways for residents to comment on the
budget and levy. This is the second year of a two-year budget cycle. Council will
vote on the budget December 191h, 2006.
Kotchever presented data on the City budget, which finances police, fire, parks and
recreations, streets, lights, and City buildings and vehicles to support 65,000
residents. Changes for 2007 include the new Fire Station #4, the transition to a
regional radio system, the reopening of Round Lake swim beach, the
Comprehensive Plan update, a new ladder truck, and new ball fields. The total
budget increase is 7.6%, which translates into a 3.6% City tax increase for a median
value residence. Key drivers for the increase include employee benefits, utilities,
and fuel costs. The total property tax paid by homeowners also includes a county
levy (34% of total), school levy (33% of the total) and 8% of the total in other
levies, in addition to the City levy which accounts for 25% of the total.
B. PUBLIC COMMENT AND DISCUSSION
Nancy Arieta, 10785 Valley View Road, said property taxes for the senior co-op
need to be adjusted for fairness. It is a limited equity co-op set by covenants, and
so property taxes eliminate almost all of residents' equity. Tyra-Lukens
acknowledged the problem and noted senior housing is regulated by the state. The
next Council could advocate at the legislature for change.
CITY COUNCIL AGENDA
December 5, 2000
Page 2
Tom Briant, 15560 Boulder Pointe Road, spoke on behalf of the Eden Prairie
Taxpayers Association. Briant stated City spending has doubled since 1994 and
could double again by 2015. Some is due to growth in population but that is now
slowing as the City is almost fully developed. The EPTA made several
recommendations for reductions in salaries, legal services, travel, heritage
preservation, and immigrant liaison services, which Council did not adopt. The
budget should be changed and residents should be more involved in the process.
Tyra-Lukens noted Briant's figures were not inflation-adjusted. Tax increases were
slightly below the rate of growth in population plus inflation. In the same period
that Eden Prairie's taxes increased 94%, taxes in several comparable cities rose by
300%. Reductions were considered in the areas highlighted but were ultimately
approved as valued services.
Laura Bluml, 10540 W Riverview Drive, called for taking a middle road in
regard for spending and asked for department heads to be alert for waste.
II. CLOSE OR CONTINUE PUBLIC HEARING
MOTION: Butcher moved, seconded by Aho, to close the public hearing. Motion
carried 5-0.
IV. ADJOURNMENT
MOTION: Butcher moved, seconded by Case, to adjourn the Truth-in-Taxation Hearing
and reopen the City Council meeting. Motion carried 5-0. The Truth-in-Taxation
Hearing adjourned at 7:32 p.m.