Minutes - Council - 12/05/2005 - Truth in Taxation

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TRUTHIN TAXATION CITY OF RAMSEY ANOKACOUNTY STATE OF MINNESOTA The Ramsey City Council conducted the annual Truth in Taxation public hearing on Monday, December 5, 2005, at the Ramsey Fire Station Number I, 15050 Armstrong Boulevard NW, Ramsey, Minnesota. Members Present: Mayor Thomas Gamec Councilmember Todd Cook Councilmember Mary Jo Olson Councilmember A1 Pearson Councilmember Sarah Strommen Members Absent: Councilmember David Elvig Councilmember David Jeffrey Also Present: City Administrator James E. Norman Finance Officer Diana Lund CALL TO ORDER Mayor Gamec called the Truth in Taxation hearing to order at 6:02 p.m. He commented that this meeting often gets confused with the Local Board of Review. This meeting does not deal with individual assessment but relates to taxation. The meeting in April will be for valuation review. This hearing is an opportunity to look at the budget for the next year - 2006. The City makes a formal presentation and after the presentation, citizen comment will be taken. Finance Officer Lund presented information on the property tax levy. She stated that the City reduced the levy by $239,000 from the proposed levy on November 13, 2005. She used the example of a home valued at $200,000, whereby property owners should receive a reduction of about $26. She noted that the tax capacity rate in 2005 for the City of Ramsey overall, including the County and School District was 97.71. For example, on a $200,000 home, the total taxes would be $2,051. In 2006, the City is proposing a tax capacity rate of 98.38. On that same $200,000 home total taxes would be $2,066. She stated the increase in taxes on a home valued at $200,000 would be $15. Ms. Lund explained that tax increases were due mainly to classification changes, Limited Market Value, market value, and tax rate increases. She explained the changes to Limited Market Value for assessment year 2007. She stated that previously the cap on increased market value was 8%. However, since the market value of homes has been increasing over the past five years, there has to be a catch-up so that taxable value equals the market value. She noted that market values have been increasing approximately 20%o, and because of this the Minnesota legislature has changed the law so Limited Market Value will not be phased out this year. Instead, the legislature has extended the Limited Market Value to another two years. Ms. Lund explained that Limited Market Value formula calculated to be 15% of the market value increase or the greater of 50% of the valuation from last year and this year's assessed market City Council Truth in Taxation/December 5, 2005 Page 1 of 13