Minutes - Council - 12/04/2006 - Truth in Taxation

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City going to do because the City will have to increase levies, but house valuations won't be going up. Mayor Gamec stated that it is going to depend on what the Council decides to do. Obviously this is something the Council has to take seriously. The City used money from the Landfill Trust Fund to help reduce some costs on the building, but seeing an $880,000 cutin building permits really put the City in a turmoil, so they had to make some cuts. Michelle Stout, 15400 Elam Street NW, Ramsey, stated that her property values have increased so significantly and yet the County hasn't been out to her house or her neighborhood. Mayor Gamec explained that the County will typically do a property evaluation every three years, but an increase can be made even if the property is not physically assessed. That is an issue she could bring forward at the Board of Review in April or suggested she could contact the County directly. Ms. Stout noted that she did contact the County and they indicated they had not been out to her neighborhood in six years. Councilmember Elvig stated that they are in the same situation, their house values go up each year also. He cautioned that if you contact the County to come out and physically assess the property you might end up with a higher valuation. He explained that during the Ventura time period it was decided that property taxes valuation should closely match the market value of a property. Mayor Gamec noted that housing valuation has to be handled by the County; the City has no control over that. Ms. Stout stated that she thought the City could have some control over spending the resident's money on a massive building. She stated that there are a lot of hard working families that are struggling to make it. Mayor Gamec replied that the City Council had to deicide whether or not to remodel the old City Hall at a cost of $6 to $8 million that would only last them two years or build a new facility. City Administrator Norman noted that the property tax increase has to do with the valuations of properties not the building of City Hall. Mayor Gamec replied that was correct. He explained that the big increase people are seeing has to do with their property valuation increase, which again is determined by the County. Those valuations are determined by the sales of homes in the area. Ms. Stout replied that houses aren't selling. Mayor Gamec explained that they are not selling now, but housing valuation is based on last year sales. City Council Truth in Taxation/December 4, 2006 Page 4 of9