Truth-in-Taxation Special Meeting

CITY OF MARSHALL TRUTH IN TAXATION MINUTES Tuesday, December 6, 2022 The Truth in Taxation meeting of the Common Council of the City of Marshall was held December 6, 2022, at City Hall, 344 West Main Street. The meeting was called to order at 6:00 P.M. by Mayor Robert Byrnes. In addition to Byrnes the following members were in attendance: Steve Meister, Craig Schafer, John DeCramer, Russ Labat, James Lozinski, and Amanda Schroeder. Absent: None. Staff present included: Sharon Hanson, City Administrator; E.J. Moberg, Director of Administrative Services; Jason Anderson, Director of Public Works/City Engineer; Jim Marshall, Director of Public Safety; Dave Parsons, City Assessor; and Steven Anderson, City Clerk. Truth in Taxation Public Meeting Mayor Byrnes explained the purpose of the Truth in Taxation (TNT) meeting and how it is an avenue for the city to explain the proposed budget and proposed tax levy for 2023 and to obtain public feedback on the proposed budget. The TNT meeting is not the venue for values, the appropriate meeting for that would have been the local board of appeal and equalization that had taken place in the spring and can no longer be changed at this point. Sharon Hanson continued the Truth in Taxation meeting by explaining the items that impacted the budget and levies. The city had finished a personnel classification and compensation study earlier in 2022 and the adjustments from the study added a large amount to the levy for 2023. Health insurance premiums for the city increased 8.8%, which compared to some other municipalities was on the smaller side for increases. Administrator Hanson also talked about inflation and how the city is purposefully not using reserves to lower the levy. City Assessor Dave Parsons and Director of Administrative Services E.J. Moberg gave a presentation on how property tax values and the levy are calculated and distributed amongst the tax base. Moberg explained that parts of the levy that are not easily shown are tax abatements that were issued to residential and commercial property to stimulate new construction and adjustments to the special assessment formula to lower the amount being assessed to property owners for projects. Staff showed summary budget information that is required by statute to be provided by the county for each municipality and is available on the Lyon County website. Councilmember Lozinski questioned the State General Purpose Aid and State Categorical Aid line items on the summary budget information. Moberg and Parsons informed the public that there is assistance available from the State of Minnesota in the form of a Homestead Credit Refund (Form M1PR) through the Department of Revenue. Two types of refund qualifications are in the form, one is income based and the other is dependent on how much your net property tax increases. Council and staff encouraged the public to apply for one of the refunds either directly through the Department of Revenue or through a tax preparer. Staff recommended a levy increase of 8.10% to be brought forward for final approval at the December 13 city council regular meeting. Mayor Byrnes opened the meeting up for public feedback. Three members of the community were present and asked various questions regarding market values. Parsons reiterated that the TNT meeting was regarding budgets, but he would be welcome to talk to the citizens about market values in his office. Comments were also mentioned that more people need to attend these types of meetings to be better informed. Councilmembers brought up that many of the concerns being heard need to be addressed at the state level and that citizens need to make their voices heard to legislators to have changes made. Adjourn At 8:33 PM Motion by Councilmember Lozinski, Seconded by Councilmember Schroeder to adjourn the meeting. All voted in favor. Mayor Attest: City Clerk