1995-12-07 - Laserfiche WebLink

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I I I Budget Hearing Minutes December 7, 1995 Page 4 Bud~et Hearinv. continued Fulton said the original estimate for the FSC 1996 tax need was to be $25,000; however, the addition of senior activities increased this to $56,000. The FSC's operating budget is $485,000, and annual customer fees total about $400,000 which means the FSC is 80 % self-supporting through customer fees. Being this type of facility is very unique, staff is learning more about the level of operational support needed. Staff found that generally most facilities are about 20-30% tax supported or about 70-80% self-supporting. A resident asked if this information was available before the FSC was built. Benke said it was difficult to attain fmancial comparisons being that the FSC is a very unique operation. Benke noted the City decided against amenities such as a swimming pool because of its high maintenance costs, but decided to install the indoor playground area which has been very popular. Joe Leon, 2973 Valerie Lane, said his will rise 12% in 1996. Gunderman acknowledged Leon's concerns because his assessed value increased to a point that he questions whether the home could sell for that amount.. The City does not have responsibility over what the County determines the assessed value should be, but the videotape of the Assessor's presentation may answer some questions about the process. Egan believes that the reason for Leon's increase pertains to the assessed base value. Benke said the valuation process begins with properties taxed at 1 % for values less than $72,000; but then that amount jumps to 2 % for properties valued more than $72,000. The back of the tax statement may offer some explanation of this process. Larson and Samuelson acknowledged that their tax valuations increased also. Alice Olson, 1491 - 18th Ave. NW, said any property owner who questions their assessed value should contact the Assessor's Office to have their property reevaluated. However, you are taking a chance that the valuation may be increased. Jack Forest, 2333 Walnut Court, said his property valuation has increased $10,000 in the last two years. He feels that eventually seniors will not be able to afford to live in New Brighton because of inflated taxes. Benke agrees this is one concern expressed by the Council that property taxes will become too much of a burden for residents. Benke noted that commercial properties have also seen large increases. Mrs. Cole, 77 - 32nd Ave. NW, asked why neighboring cities who have increased their levies, do not show increased dollar amounts. Egan said the tax levy is associated with the number of properties a City is able to assess. For example, Arden Hills shows a 2.94% increase, but because the number of assessable properties have increased this past year, the tax rate is reduced because more properties are participating. Dean Johnson, 350 Oakwood Dr., said homeowners who have received tax increases more than 12% can apply for a circuit breaker. Johnson asked what drives these increases. Benke noted that many line items were removed from the original budget to reduce its amount. Council believes additional revenue is warranted, and the proposed enhancements will eventually decrease costs by eliminating the need for staff hours. Joe Leon, 2973 Valerie Lane, feels the valuation system is confusing. Benke noted that sometimes the assessor may fInd things in your home which were not previously accounted for which could then increase your valuation. A property owner needs to be aware of this possibility . Public HeariI~ Truth in Taxation Report 95-229