2008-12-01MOUND CITY COUNCIL MEETING
DECEMBER 1, 2008
The City Council of the City of Mound, Minnesota, met in special session on Monday,
December 1, 2008 at 7:00 p.m. in the council chambers of city hall.
Members present: Mayor Mark Hanus; Councilmembers John Beise and Greg Skinner
Members absent: Councilmembers David Osmek and Mike Specht
Others present: City Manager Kandis Hanson, City Clerk Bonnie Ritter, Finance
Director Catherine Pausche, Bill & Pauline Thorson, Bea Amidon, Larry & Connie
McCall, Schelly Young, Connie Szarke, Ruth Gray, Scott Thomn, Gary Parendo, Todd
Hovren, Jack & Shirley Evans, Steffen Madsen, Sue Pilling, Ron Johnson, Vince
Forystek, Amy Renner, Gary Dennison. Jim Dustrude, Craig Goodrich, Robin Mackell
1.Open meeting
Mayor Hanus called the meeting to order at 7:04 p.m.
2. Truth In Taxation Hearing
Mayor Hanus explained the process of property taxation on the City level and Hanson
explained the City's budget process, followed by Pausche's review of the 2009
Preliminary Budget Summary.
Mayor Hanus opened the public hearing at 7:30 p.m.
Jim Dustrude, 2001 Arbor Lane, asked how the 34.3% tax rate works. Hanus explained
that that number is used as a guage, but that the rate isn't established, the dollar amount
is established and then the tax rate is the result of plugging that dollar figure into a
formula. Dustrude then asked if the taxable market value is supposed to be approaching
the estimated taxable market value and Beise stated that supposedly next year those
figures will be equal.
Bea Amidon, 1909 Lakeside Lane, stated that she lives in very old house and asked why
there isn't a cap for senior citizens like California and Florida. Her taxes are up 21
without any improvements, just maintenance and repair. She asked why the City
doesn't do something about all the city tights on in the Public Safety Building at night.
She also commented on wanting the gas and electric franchise fees to sunset, and
wanted to see the contract for that. She also made comments about her dislike of the
recycling process.
Sue Pilling, 3005 Brighton Blvd, stated she has been in city for 10 years and appreciated
the presented information on how the tax is derived. She stated she is all about less
spending and less government. She suggested sharing more services with other small
neighboring cities and stated that she would like to challenge the city to evaluate that
and do more with less. She also feels that the dock program should pay for itself and
feels that the city should do more to bring people into the city, like provide tax incentives
for industry. Hanus stated that the City has no ability to provide tax incentives unless
there was a separate system for those particular properties. State law dictates what
gets applied to what property.
Mound City Council Meeting -December 1, 2008
John Evans, 2025 Arbor Lane, stated he was socked big time with an 18% tax increase.
He stated he sweeps the streets more than the city does, cleans the lake and the city
doesn't spend a dome on cleaning the lake. He questions what he is getting for his 18%
increase. He feels that Mound will be good destination when it gets done. He also
stated that the City should get commercial rates for a dock near his property. He will
contact Fackler on that.
Connie Szarke, 1956 Shorewood Lane, stated she's been there since 1971 and quietly
paid her taxes. She is taking on representing lakeshore people that aren't millionaires.
She was told by a real estate agent that she lives in livable tear-down. The Assessor
assured her that lower value would be reflected, and asked how much influence the city
has to help people on fixed income not get taxed out of their homes. Hanus stated that
Hennepin County determines home values and that is not a City function.
Scott Thoma, 4679 Wilshire Blvd, stated that a lot of people are frustrated by their taxes,
and he is hearing that's out of the City's control, it's the County Assessor. He
challenged the City to help keep Mound a charming lakeshore community that embraces
retired people that have lived on the lake a long time and have history here. Since 2005
his taxable market value has gone from $306,000 to $600,000 and it went up this year
by $80,000. If the two values come together, it will go up another $80,000 next year. He
asked what the City is going to do, that the Council is the leadership and he feels that
they need to embrace and take ownership of the community and help with this problem.
He asked the Mayor what they're supposed to do and Hanus stated they have heard for
quite a few years that people are being taxed out of their home. This year more than any
that statement is more true, and unfortunately the tax system is governed by the County
and State. The only thing that the Council can control is how many dollars are being
brought directly to the City. He and others are trying to control this and bring it down.
The only way to change this system is to change it at the state and/or county level.
Skinner stated that the city has made great strides in the budget. He hears people
asking what can we do, and the answer is to go the County and State and they can
assume that the City will support anything that the people want to do. Hanus agreed
with this and offered to help in any way that he can.
Craig Goodrich, 1776 Lafayette Lane, stated he met with the Hennepin County assessor
because of a 22% increase in property value. He sat with them for 2 hours and asked
them for comparables and was given ones from Orono and Wayzata and told they had
no comparables in Mound. He asked for a list of houses sold in Mound and Beise said
he would. help get that information for him.
Gary Parendo, 5001 Avon Drive, stated he was aggressive with assessor and also went
in front of the Hennepin County panel. He paid $500 for an appraisal and they only
knocked off $150 of a $200,000 increase -over 20%. He suggested aggressively
working with Hennepin County as a group.
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Mound City Council Meeting -December 1, 2008
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Robin Mackell, 3207 Charles Lane, feels that having different properties in a unique area
affects your taxes as well. To get to her home she drives by houses with junk all over,
uncompleted housing projects, garages without garage doors, etc. and it's disgusting
that she has to drive through those areas to get to her Lakeshore home. Hanus stated
that incomplete projects should be reported to city staff. She continued by stating that
the redevelopment is not happening and more business is needed to offset the taxes.
Ron Johnson, 4416 Dorchester Rd., asked Pausche if the homestead benefit is being
phased out and was told that properties $450,000 won't get any benefit. He suggested
that some properties are receiving the benefit that shouldn't, and that maybe this would
benefit the city.
Vince Forystek, 3131 Inverness, stated that the state dictates what the assessor is
doing and they could say it's mandatory to raise everything, say, 10%. A homeowner
doesn't stand a chance fighting with the county.
Pausche presented the formula that demonstrates how City and County portions of
property taxes are determined.
Mayor Hanus called for a recess at 9:03 p.m. and meeting reconvened at 9:07 p.m.
Hanus asked for any additional comment and upon hearing none, closed the hearing at
9:07 p.m.
Hanus thanked all for attending.
MOTION by Beise, seconded by Skinner to cancel the December 8, 2008 meeting that
was to serve as a continuance of this hearing if needed. All voted in favor. Motion
carried.
3. Adiourn
MOTION by Beise, seconded by Skinner to adjourn at 9:09 p.m. All voted in favor.
Motion carried.
Attest: Bonnie Ritter, City Clerk
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Mayor Mark Hanus