December 4, 2006
A special meeting of the Albert Lea City Council was called to order at 7:00 p.m. in the City Center Council Chambers by Mayor Aaron Summers.
ROLL CALL
Present were Councilors Vern Rasmussen, Randy Erdman, Jeff Fjelstad, John Severtson, Al Brooks, and Mayor Aaron Summers. Absent was Councilor George Marin. Also present were City Manager Victoria Simonsen, Finance Director Rhonda Moen, and Acting Council Secretary Allison Folie.
INITIAL TRUTH-IN-TAXATION MEETING - PUBLIC HEARING
Mayor Summers opened a public hearing on the proposed 2007 budget and tax levy. The necessary notice for this hearing was published on November 27, 2006.
Mayor Summers asked the City Manager to explain the purpose of this meeting and proposed 2007 budget. Ms. Simonsen reported that this hearing is held to accept public input regarding the City’s proposed budget and tax levy for 2007 and is commonly called the Truth-In-Taxation initial hearing.
City Manager Simonsen presented a PowerPoint presentation comparing the 2007 General Fund budget with the 2006 budget, which showed an increase of 7.9 percent. She further broke down the increase, which is comprised of an 11.5 percent increase in health insurance costs, a two (2) percent increase in wages, a State-mandated PERA increase, funds for purchasing new library shelving and books, funds for the airport expansion project, funds for the stabilization of Katharine Island and the replacement of its bridge, a Comprehensive Plan update, and the City’s share of the high school’s new tennis courts.
City Manager Simonsen cited increases to revenue including a proposed tax levy increase, federal airport aid, franchise fees for utilities and cable services, interest earnings, and both County and State aid.
City Manager Simonsen advised that the taxes per household should not increase although there may be individual homes with a slight increase in their taxes due to other factors, such as a market value change. She explained that this is caused by the ability to spread the costs over a larger tax capacity. She advised that the average household should actually see a slight decrease in the City portion of their property taxes due to the larger tax capacity.
Next, City Manager Simonsen explained the impact of Local Government Aid on the City of Albert Lea. She explained that the City of Albert Lea was receiving the highest amount of LGA back in 2002. She reported that although the cost of providing services is continuing to increase the 2007 LGA is still $762,804 below the level it was in 2002.
City Manager Simonsen reported on where citizens’ tax dollars are spent and the General Fund expenditures. She also provided an overview of the proposed tax levy for 2007. She explained that several budget workshops were held by the Council and that the Council has made some adjustments to the proposed budget.
No one appeared to be heard and there was no Council discussion.
Mayor Summers informed the Council that as a result of the completion of the hearing the Council will not need to conduct a continuation hearing. He reminded the Council that the budget and tax levy would need to be considered and voted on at a hearing subsequent on December 11, 2006.
ADJOURNMENT – 7:10 P.M.
Councilor Severtson moved, Councilor Brooks seconded, that there being no further business, the special meeting of the Albert Lea City Council be adjourned until the next regular meeting of the Council on Monday, December 11, 2006. On roll call vote, all councilors voted in favor of said motion. Mayor Summers declared the motion carried and the special of the Albert Lea City Council adjourned.
Filed and attested December 5, 2006.
/s/ Allison Folie /s/ Aaron Summers
Acting Secretary of the Council Mayor