12-05-05 TRUTH IN TAXThe Hopkins City Council held a truth in taxation public hearing on December 5,
2005, in the Council Chambers of the Hopkins City Hall.
Present were Mayor Maxwell and Council Members Brausen, Thompson, and
Rowan. Also, present were staff members City Manager Rick Getschow and
Finance Director Christine Harkess.
Mayor Maxwell opened the public hearing at 6:37 p.m.
Christine Harkess, Finance Director, reviewed the budget process, the assessment
process, how the property tax is determined, and the budget for 2006.
In response to Mayor Maxwell's question, City Manager Getschow explained the
shift of tax revenue from commercial properties and apartment buildings to
residential homes, the phasing out of the limited market value, how some
classifications of property are appreciating at a faster rate than others and the
factors that affect appreciation.
Ms. Harkess and Mr. Getschow explained the tax rate, which has decreased to
48% in 2005 from 56% in 2004.
Mayor Maxwell opened the hearing to the public.
Don Roesner, 618 Park Valley Dr W, voiced a concern about tax increment
financing of commercial property when values on commercial property are falling
and about the Hopkins Center for the Arts. Mr. Roesner asked how much the City
is subsidizing the facility. Ms. Harkess answered that the city is contributing
561,000 to the facility for the year. The funds are from cable franchise fees and
no tax dollars are used to fund the Hopkins Center for the arts.
To answer Mr. Roesner's concern about the value of the use of TIF, Council
Member Thompson stated that without TIF, nothing would happen. City Manager
Getschow stated that when the State changed the class rates in 2001, many cities
were unable to pay of the TIF bonds. Any increase in a property value goes back
to the property, which would not happen without TIF. In the past few years, the
redevelopment projects included high numbers of owner occupied residential units
and this is good.
John Stepanek, 238 15`h Ave N, stated concerns about the increasing value of his
home. People on fixed incomes are having a hard time paying the increases in
taxes due to the increased valuations. He did not feel that his home is worth the
high value set on it.
December 5, 2005 City Council Truth in Taxation Hearing Page 1
Fred Mulvany, 106 18'h Ave S, asked if the budget would be on line. Ms. Harkess
said that the department budgets would be on line. Mr. Mulvany also had
questions abut franchise fees. Staff explained the way franchise fees are assigned.
Mr. Getschow mentioned deferment programs for seniors.
Council Member Brausen moved and Council Member Rowan seconded a motion to
close the public hearing. The public hearing was closed by unanimous consent at
7:40 p.m.
Respectfully Submitted by
Rick Getschow, City Manager
ATTEST:
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Eug e J axwell, Mayor
December 5, 2005 City Council Truth in Taxation Hearing Page 2