12-06-1994 CCMMINUTES
SPECIAL MEETING - HUTCHINSON CITY COUNCIL
TRUTH IN TAXATION PUBLIC HEARING
TUESDAY, DECEMBER 6, 1994
The public hearing was called to order at 5:00 P.M. by Mayor
Torgerson. Present were: Mayor Marlin Torgerson, Council Members
Bill Craig, John Mlinar, Kay Peterson, and Don Erickson. Also
present: City Administrator Gary D. Plotz, Finance Director Kenneth
B. Merrill, and City Attorney G. Barry Anderson.
Finance Director Merrill explained the 1995 property tax statement
to the citizens in attendance at the hearing. He noted the
increase in property value and how that increase reflects in their
proposed 1995 taxes. He stated the property value was determined
by the County Assessor, and the City Council only had jurisdiction
over the City of Hutchinson's taxes.
Director Merrill commented on the formulas that are applied to the
market value of homestead and commercial property and the tax
capacity that is formulated. He reported on the two divisions of
the City tax, namely: (1) general fund and (2) debt service.
It was pointed out by Mr. Merrill that the state mandates put into
effect by the Minnesota Legislature has an impact on the City and
the taxes paid by the citizens.
A gentleman inquired if the 40 percent went to pay for debt. Mayor
Torgerson responded it was for building structures and for
improvements.
Earl Fitzloff, 615 Merrill Street SW, asked about the debt
retirement and if some were being retired. He questioned if there
would be tax dollars freed up when the bonds are retired. Mr.
Fitzloff reasoned that with the taxes going up, there should be
more money available. He was told this was not true. Mr. Fitzloff
recommended the City "tighten its belt" and require the persons who
use the facilities to pay a user fee.
An unidentified gentleman stated he could understand the property
values going up, but he thought the government had decided to
continue to tax the residents. He inquired if a study had ever
been done to evaluate reducing the budget and reducing the taxes.
Otto Rettig, 705 Oak Street, read a letter regarding taxes that he
had sent to the Mayor.
The motion to close the hearing at 5:58 P.M. was made by Council
Member Erickson, seconded by Council Member Mlinar and unanimously
carried.
The meeting adjourned at 6:00 P.M.
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