2016.09.27 CC Combined - Laserfiche WebLink

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September 13, 2016 Page 5 of 7 Councilmember Bauman believed that children living in poverty should be considered tax payers due to the fact their parents have a hard time paying their taxes. It was her opinion that the unemployment numbers were skewed and that more people were unemployed or underemployed than was reflected by the recent numbers. She believed that the majority of the community would find a 6.31% increase in the tax levy to be excessive. Mayor Johnson reviewed the impact the proposed tax levy would have on the median valued homeowner. She found the budget and tax levy to be relevant and commended staff on their efforts. She believed the City Council was acting in a responsible manner while providing the necessary core services at an affordable rate. Councilmember Jacobsen pointed out the positive financial steps the Council was taking through the 2017 budget and tax levy. He was pleased the Council would be paying down debt while also placing funds into reserves for the future. While he had an issue with the percentage increase within the tax levy, Councilmember Jacobsen stated he would be supporting the tax levy due to the fact it would be providing for the future of the City. Mayor Johnson commended the previous Council on their forward thinking within the CIP. She strongly supported the proposed tax levy stating it would assist the City in sustaining its financial goals. 4 Ayes, 1 Nay (Bauman)-Motion Carried 2. Consideration of Resolution Authorizing Early Decertification of TIF District No. 28 – Rice Creek Center. Motion by Councilmember Jacobsen, seconded by Councilmember Burg to adopt a Resolution Authorizing the Early Decertification of TIF District No. 28 – Rice Creek Center. City Manager Lotter indicated Finance Director Davitt would be presenting this item to the Council. Finance Director Davitt explained on April 28, 1998 the City established TIF District 28 to assist with the development of a 97-unit market rate senior housing facility and the renovation of 20,000 sq. ft. of retail space within the Development District. By decertifying TIF District No. 28 as of 12/31/2016, the City’s overall tax capacity will be increased. For taxes payable 2017, the anticipated tax capacity of the district is roughly $210,500. Pursuant to M.S. 469.1763 Subd. 2, a district is required to spend at least 75% of the increment received on activities inside the district. In 2016, this cumulative test was applied to TIF District No. 28 and found will not be met. Thus the City’s public financial advisor, (Ehlers) and staff recommends that TIF District No. 28 be de-certified. Mayor Johnson thanked staff for the thorough presentation. 5 Ayes, 0 Nays-Motion Carried 3. Consideration of Resolution Adopting the Proposed Tax Levies for Taxes Payable in 2017 for Lake Diane and Bicentennial Pond Storm Sewer Improvement Taxing District. Motion by Councilmember Strub, seconded by Councilmember Burg to adopt a Resolution approving the Proposed Tax Levies for Taxes Payable in 2017 for Lake Diane and Bicentennial Pond Storm Sewer Improvement Taxing District. City Manager Lotter explained the City has established Storm Sewer Improvement Taxing Districts within the City for Lake Diane and Bicentennial Pond. A Storm Sewer Improvement Taxing District is an area within the territorial limits of a municipality. The municipality may acquire, construct, maintain, and otherwise improve storm sewer systems and related facilities within the district for the benefit of the district. The Public Works Department works with the residents of each district to determine specific projects and courses of action. The costs involved are recovered by levying tax on all taxable properties within the district. These tax 2. Consideration of Resolution Authorizing Early Decertification of TIF District No. 28 – Rice Creek Center. 3. Consideration of Resolution Adopting the Proposed Tax Levies for Taxes Payable in 2017 for Lake Diane and Bicentennial Pond Storm Sewer Improvement Taxing District.