8-27-97 agenda• CITY OF RICHFIELD
WEDNESDAY, AUGUST 27, 1997
SPECIAL CITY COUNCIL MEETING
7:00 P.M.
COUNCIL CHAMBERS
AGENDA
CALL TO ORDER
ROLL CALL
• 1. CONSIDERATION AND DISCUSSION OF 1997 REVISED/1998 PROPOSED
BUDGET; 1998 PRELIMINARY PROPERTY TAX LEVY AND TRUTH IN
TAXATION HEARING DATES
COUNCIL LETTER NO. 225
ADJOURNMENT
AUXILIARY AIDS FOR INDIVIDUALS WITH DISABILITIES ARE AVAILABLE UPON
REQUEST. REQUESTS MUST BE MADE AT LEAST 96 HOURS IN ADVANCE TO
THE ADMINISTRATIVE SERVICES DIRECTOR AT 861-9702.
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CITY OF RICHFIELD, MINNESOTA
Council Letter No. 225
Agenda August 27, 1997
Issue Statement:
Consideration and discussion of 1997 Revised/1998 Proposed budget, 1998
preliminary property tax levy and Truth in Taxation hearing dates.
Background:
As required by the Truth in Taxation legislation (MS 275.065) each "taxing authority"
must certify its proposed property tax levy for payable year 1998 to the County Auditor
on or before September 15, 1997. "Taxing authority" includes all counties, all school
districts, all cities regardless of population, all towns and all special taxing districts. No
local units of government are exempted from this requirement.
In addition, each "taxing authority" must certify to their County Auditor the dates that
have been selected for the Truth in Taxation hearings by September 15, 1997. The
date for this hearing must not conflict with the hearing dates of the county or of the
school district in which the "taxing authority" is located. This Truth in Taxation public
hearing must be held between November 29 and December 20, 1996.
Before the City Council takes action on these issues, a presentation and discussion of
the 1997 Revised/1998 Proposed budget and 1998 preliminary property tax levy would
be desirable. -To that end, two special City Council meetings have been established,
pursuant to the City Charter, for this purpose. City staff will present the budget to the
City Council in a round table format to facilitate discussion. This is similar to the budget
presentation format that has been used in the past.
In addition to the 1997 Revised/1998 Proposed budget and preliminary property tax
levy, City staff is also recommending dates for this year's Truth in Taxation public
hearings. It is recommended that this year's hearings be set for 7 p.m. Wednesday,
December 3, 1997 with a continuation date of 7 p.m. Wednesday, December 10, 1997.
As Council Members are aware, at these public hearings, the tax levy may be reduced
from the preliminary tax levy, but not increased.
The August 27 and September 3, 1997 City Council meetings have been published and
posted according to all requirements and are Special City Council meetings at which
City business may be conducted. All official action concerning the preliminary tax levy
and setting dates for the Truth in Taxation hearings must be concluded before
September 15, 1997. One regular City Council meeting, September 8, will occur prior
to that deadline. Thus, action on these matters could be taken at any of the three
meetings.
Pursuant to City Council request, the August 27 and September 3 meetings will be
televised.
In addition to the proposed tax levy and Truth in Taxation public hearing dates, the
County has requested that the series of resolutions which cancel a portion of the ad
valorem tax levy for current special assessment bonds be adopted with the preliminary
levy instead of with the final levy at the end of the Truth in Taxation hearings. This will
assist the County in updating its records in a more timely manner.
Recommended Motion:
Receive the 1997 Revised/1998 Proposed budget, 1998 preliminary property tax levy
and proposed dates for the Truth in Taxation hearings and resolutions contained in the
budget canceling special assessment levies for consideration and discussion.
Basis of Recommendation:
1. The City Charter establishes September 1, 1997 as the last day for City staff to
present a 1997 Revised/1998 Proposed budget to the City Council. While the Truth
in Taxation statute has overridden the Charter process for budget adoption, City
staff still follows the Charter provisions which are not in conflict with the Truth in
Taxation statute.
2. Truth in Taxation timelines establish the process that must be followed to adopt a
preliminary property tax levy. September 15 is the deadline for cities to submit a
1997 proposed property tax levy and Truth in Taxation hearing dates to the County
Auditor.
3. The August 27 and September 3 Special Council meetings provide an informal
setting to discuss the proposed budget and tax levy prior to the deadline for official
City Council action.
Alternative Recommendation:
1. The City Council could continue or postpone discussion to another day in early
September, as long as adequate time exists to meet the September 15 submission
deadline.
2. The City Council could decide to adopt the 1998 preliminary property tax levy, 1997
Revised/1998 Proposed budget, adopt the resolutions canceling special
assessment levies and set the Truth in Taxation hearing dates after discussion at
one of the Special Budget Meetings.
City Manager
JDP:cak
3. The City Council could adopt either a greater or lesser 1998 preliminary property tax
levy, 1997 Revised/1998 Proposed budget or select other allowable Truth in
Taxation hearing dates.
Discussion/Decision Mode:
The August.27 and September 3, 1997 Special City Council meetings are set primarily
for the purpose of presenting and discussing the 1997 Revised/1998 Proposed budget
and the 1998 preliminary property tax levy. However, the City Council could decide to
take official action on the tax levy and Truth in Taxation hearing dates at the conclusion
of discussion. September 14, 1996 would be the last possible date for the City Council
to officially take action on these matters.
Respectf Ily submitted,
James . Prosser