City Council Special Meeting

CITY COUNCIL SPECIAL MEETING MINUTES Monday, December 02, 2024 at 6:00 PM Baxter City Hall, 13190 Memorywood Drive, Baxter, MN “A Growing Community” CALL TO ORDER Mayor Olson called the meeting to order at 6:00 p.m. ROLL CALL Mayor Darrel Olson and Council Members Connie Lyscio, Zach Tabatt, and Jeff Phillips were present. Council Member Mark Cross was absent. City Administrator Brad Chapulis, Assistant City Administrator Kelly Steele, Assistant Finance Director Brenda Brooks, and Finance Director Jeremy Vacinek, were present. PRESENTATIONS 1. 2025 Governmental Funds Budget and Property Tax Levy Public Informational Meeting Finance Director Vacinek presented the 2025 Budget and Property Tax Levy information. The presentation included an overview of legislation affecting property taxes and the 2025 budget; a summary of market value and tax capacity; property tax levy; 2025 general, special revenue, capital project, and debt service funds budgets; next steps to adopt the final levy and 2025 budget; and to provide the public with an opportunity to comment. The pay 2025 estimated market values is comprised of 56% homestead residential, 24% commercial, with the balance of six other classifications. The 2025 net tax capacity is estimated at $18,735,935. The total 2025 levy is proposed to be $9,383,800. The 2025 preliminary tax capacity rate is 50.086%. The proposed levy increase from 2024 to 2025 is $487,100 or 5.5%. Finance Director Vacinek summarized various examples of levy impacts to different valued and classified properties. The council did not have any comments. OPEN PUBLIC HEARING Mayor Olson opened the public hearing at 6:44 p.m. Jon Ring, 10800 Red River Drive, inquired if there is anything budgeted for the Mississippi River Overlook Park or the proposed veteran’s trail. City Administrator Chapulis explained at this time those items are not included in the budget and explained the status of two federal grants. Warren and Ann Sunderland, 13023 Homestead Drive, explained their property taxes increased 33% and inquired if other Baxter property owners seen similar increases. The Sunderland’s explained they just finished paying a special assessment on a lot they own in Baxter and the value on the lot decreased. 12/2/2024 City Council Special Meeting Minutes Page 2 Finance Director Vacinek explained the county’s process to determine property values. CLOSE PUBLIC HEARING Mayor Olson closed the public hearing at 7:04 p.m. NEXT STEPS The council will review the governmental funds budget during the December 3rd work session. The adoption of the final levy and budget is scheduled for December 17th. The review of the water, sewer, and storm water enterprise funds will occur in January 2025. ADJOURN MOTION by Council Member Phillips, seconded by Council Member Tabatt to adjourn at 7:05 p.m. Motion carried unanimously. Approved by: Respectfully submitted, _____________________________ Darrel Olson Kelly Steele Mayor Assistant City Administrator