Good evening and welcome to the city council truth and taxation public hearing on Monday, December 1st at 7 p.m. Please stand and join us for the pledge of allegiance if you are able. >> I pledge algiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. >> Looking for a motion to adopt this evening's agenda. >> So moved. >> Moved by Francis. >> Second it. >> Second. [laughter] Any further discussion? Hearing none. All in favor, please signify by saying I. >> I. >> Post same sign. Guys have it. Three to zero. Um item of business this evening is our truth and taxation hearing and I'm going to turn that over to staff. We'll start with Julie from ABDO. >> Thank you mayor and members of the council. Um tonight the purpose of this meeting is to review the budget and tax levy and request public input if um there are public to be heard at the meeting tonight. This budget will come back to the council in a few weeks for final approval of the budget and the property tax levy. After that, the um tax levy will be certified to the county and the department of revenue by the end of the year. We'll cover some key items, um tax levies, and look at the general fund revenues and expenditures. In this budget, um there was a decrease in the local government aid of $11,986 for 2026. Um the total revenue or LGA will be $254,411. This is set by the state each year. Um so we just look for that certified amount. The 2026 tax levy is proposed to increase $110,786 or 5.87% from 2025. This budget does include a 3% cost of living adjustment for all employees and the new Minnesota paid leave has been incorporated into this budget. Looking at the details of the property tax levy, we have a general levy of $1,582,91. That is an increase of $114,8001 or 7.82% from 2025. And then we have the debt levies. These are required levies based on the debt that's been issued by the city in the past. Um the city is required to levy 105% of the following year's principal and interest payments. So this takes all of that into account. Um based on the adjustments for um those bonds, we have a decrease of $4,15 or.96% in those debt levies. That gets us to a total levy for 2026 of $1,997,220. That is an increase of $110,786 or 5.87% from 2025. Looking at the tax rate, um the city's tax capacity has increased slightly from taxes payable 2025. The city does receive a fiscal disparities contribution to get to our net tax capacity. So this is um the tax capacity that residents in Maple Plane are responsible for or that that tax base from properties in Maple Plane. We have the certified levy of that 1,997,220 and then um we get a distribution of fiscal disparities. So the seven county metro area, each city contributes to um tax capacity to that pool and then each city gets some sort of distribution um depending on the industrial and commercial tax capacity within the city. And that gets us to the local levy. That local levy is 1 million811,111. And that's what will be spread across that net tax capacity for the city. That brings us to our city tax rate of 56.695% for taxes payable 2026. This next slide is a graph showing um a five-year history of your property tax levy. So we're increasing slightly each year. Um we see a jump in the green which is the debt levies in 25 and 26. That's due to new debt that was issued in um 2024. And then the general levies are slightly increasing each year. We also show the tax rate history for five years. Um the tax rate has varied between about 62% and about 45% and that gets us in 2026 to that 56.7% rounded tax rate. This next slide looks at a var various properties within the city or projected taxable market values. Um based on the levy increase and the change in tax capacity, we're projecting that properties will be impacted anywhere from $55 to about $160 for residential and about $297 to $941 for commercial. An averaging 6.01% increase in those city property taxes. This is just looking at the city tax. Um, I want to note that each resident, each property can have a different impact based on their taxable market value. Um, some may go up more in one year than another. So, that does play a factor into this, but this is kind of our static data for all of those properties. So each individual resident will experience something different. Looking at the general fund revenues and expenditures, we see the property taxes increasing here that $114,81. We um are projecting an increase in the budget for licenses and permits of $17,770. Uh we are projecting a decrease in that intergovernmental revenue. Um 11,000 of that is that decrease in the local government aid. The remaining is just some miscellaneous um grants that the city receives. And then we are not budgeting a transfer of funds of $9,000. This was gambling funds that we um transferred in 2025. The net change in revenues from 2025 is an increase of $14,487. Next, we'll look at the general fund expenditures. We have some slight increases here, um, some decreases. three lines that I want to point out where the majority of the variances are are in that police department and fire department lines. The city does contract police services with West Henipin public safety and that number is coming from the city's share of their budget. And then the fire department is an increase of about 42,000 and that is coming from the budget discussions for the fire merger. We are seeing a decrease in parks and that's just due to shifts in um projects and um tree removal. So again, the expenditures are increasing for 2026, $104,487. This is a pie chart showing kind of that distribution among departments within the city, specifically in the general fund. Um the red here is um your police department that makes up 39.4% of the budget. The dark green is the fire department that makes up 12.4% of the budget. And then the lighter green is financial administration which is 18.5% of the overall expenditure budget. With that I will stand for questions. Questions Francis >> of our levy right now is like five is it 5.79%. But when we look at the property tax and the implications it's 6.01%. Shouldn't those numbers be the same? they won't be the same because we are factoring in an increase in taxable market values um and that shift in tax capacity as well. >> Okay, >> so tax capacity oftentimes will shift between residential and apartments or commercial. So that does impact um the tax burden on properties as well. Okay. Okay. Thank you. Other questions for staff? Thank you for that update. Um I would just like to share that it's taken us a long time to get here. Um we've had multiple budget meetings. I want to thank staff for their work on that. I believe our first budget came in with almost a proposed 14% increase. Then we were able to work at that and met again and we got it down to 8 something and then met again, sharpened our pencils, really looked at things and were able to get it down to this which is um very re respectable and um appreciate everyone's help and work in making that happen while still providing all of the services and not making cuts. With that, I am looking for a motion to open the truth and taxation public hearing. >> So opened. I moved by >> second. >> Second by Francis. All in favor? >> I post same sign. Okay. The truth and taxation public hearing is open. Is there anyone here to speak for the hearing? Anyone here to speak for the hearing? Anyone here to speak for the hearing? Right. I am looking for a motion to close the truth and taxation public hearing. >> I'll make that motion. >> Moved by Francis. >> Second. >> Second by Vizo. All in favor? >> I >> I was same sign. Motion carries three to zero. Is there any other business to come before us this evening? >> No, Madame Mayor. >> Okay. Uh, with that, I'd just like to do a reminder that Saturday is our beloved View Sant event. So, hope to see you at the park or around town. Right. With that, oh, Administrator Schillinder. >> Thank you, Madam Mayor. Uh, one thing, too. Um, the EDA meeting for Monday, December 8th, um, is cancelled, but in its place, we will have a special business meeting at 7 p.m. >> Okay. Thank you. All right. With that, looking for a motion to adjurnn. >> I'll make that motion. >> Moved by Francis. >> I'll second. >> Second by Vizo. Any further discussion? All in favor? I I >> oppose. Same sign. Motion carries three to zero. The meeting's adjourned at 7:13.