HomeMy WebLinkAbout2005 [11] Nov 29 Truth & Taxation
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November 29, 2005
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Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in special session
on Thursday, November 29, 2005 at 7:00 PM in the St. Joseph City Hall.
Members Present: Mayor Richard Carlbom, Councilors AI Rassier, Ross Rieke, Renee Symanietz, City
Administrator Judy Weyrens
City Representatives Present: Leslie Valiant, Finance Director
Others Present: Jacque French, Mike McDonald, Kathy Doyle
Public Hearinq - Truth & Taxation: Mayor Carlbom called the Truth & Taxation hearing to order at 7:10
PM. Weyrens began by giving a brief overview of the City's budget. She stated that staff began working
on the budget in August. In general, Weyrens stated that if the property value increases, then there would
be an increase in the taxes for that piece of property. Also, those areas that were annexed into the City
would have higher taxes this year, as City taxes are generally higher than in the Township.
Weyrens stated that the Tax Capacity rate for 2006 is projected at 52.438%, whereas in 2005 it was only
45.051 %. She stated that the biggest change in real estate taxes was in 2006. According to Weyrens, the
City experienced a growth rate of 19.65% from 2005-2006 compared to the average of 18.76%. Although
the levy increased by 30%, the higher growth rate helped to offset that amount.
Weyrens then broke it down as to where the budget money is spent. She explained that the ideally the
City needs to have a balanced budget or better yet to have revenues a little higher than expenditures.
The following is a list of areas where the budget money is spent:
· General Government - Administration, City Council
· Public Safety - Police, Fire
· Public Works - Streets, Street Sweeping, Snow Removal
· Culture & Recreation - Maintenance of Parks, not improvements
· Capital Outlay - Payments made towards equipment. This amount will remain constant as each
department recently completed a five-year capital improvement plan.
· EDA - Economic Development Services, Commercial growth of the City.
Weyrens stated that the Council doesn't always need to active a full levy, which would allow the Council
to make some cuts. In researching the current bonds that the City has, it was determined that there are
two places where the Council can make some adjustments.
· 1998 Street Improvements - If the levy remains constant, a surplus will develop in the bond fund.
This amount can be decreased by $2,500 annually.
· 2003 Bond - When the levies for this bond were scheduled, the levy was not carried out through
the last two years of the bond. By carrying this out over the full length of the bond, the City can
reduce that payment by approximately $25,000, which is a 1.64% drop and amounts to a
difference of roughly $15.00.
In conclusion, Weyrens stated that the biggest increase in the budget for 2006 is due to the addition of
staff, which will amount to $170,000. The following positions will be added:
· 1 - Full-time Police Officer
· 1 - Full-time Administration Staff
· Police Secretary - Change in status from Part-time to Full-time
Michael McDonald, 213 13th Avenue SE, approached the Council to state his concern about his 2006 tax
statement. He stated that his value increased by 4.6%; however the City portion of his taxes increased by
approximately 24%, which would result in an increase of $179. He noticed that increase was mainly due
to the increase in bond payments. According to McDonald, the City needs to be more financially
responsible and also needs to have a bigger commercial/retail tax base to offset these costs to the
residents.
November 29, 2005
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Jacque French, 121 4th Avenue SE, also approached the Councilors with the same concern. According to
French, the value of her home rose by only $2,000, but yet she had a 24% increase in her taxes as well. I
She was concerned as to why there was such a large increase in the budget for Public Safety. Carlbom
stated that the Police Department will be adding another full-time officer and also that the Police
Secretary will be changing from part-time to full-time. French's main concern with the increase was that
with the growth of the town, she didn't expect this much of an increase. She stated that the City needs
some more Commercial growth to add to the City's tax base.
The public portion of the hearing was closed.
Carlbom stated that the Council cannot act on the budget for 3 days after the Truth & Taxation hearing;
however they will consider the comments that were made when approving the final budget.
Adiourn: Rassier made a motion to adjourn the Truth & Taxation Hearing; seconded by Symanietz
and passed unanimously.
Judy Weyrens
Administrator
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