07-23-2013 Speical City Council Minutes

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SPECIAL MEETING OF THE PEQUOT LAKES CITY COUNCIL � TUESDAY, JULY 23, 2013 COLE MEMORIAL BUILDING Members Present: Mayor Adams, Council Members Akerson, Gardner, Pederson, and Sjoblad Staff Present: Sandy Peine, City Clerk; Nancy Malecha, Finance Administrator/Deputy City Clerk; Dawn Bittner, Zoning Administrator/Administrative Assistant; Eric Klang, Police Chief; and Clyde Ahlquist, City Attorney Call Meetinq to Order Mayor Adams called the special meeting of the Pequot Lakes City Council to order at 6:30 p.m. 1.1 Pledqe of Alleqiance Mayor Adams led with the Pledge of Allegiance. 2. Public Hearinq on Urban and Rural Taxing Districts � Mayor Adams thanked everyone for coming. Mayor Adams acknowledged the members of the Economic Development Committee and explained the public hearing process. 2A. Openinq Statement Mayor Adams explained that on June 4, 2002, an orderly annexation resolution was adopted by Sibley Township and the City of Pequot Lakes because these communities believed that one combined entity would lead to a stronger residential and business community. Mayor Adams noted that the orderly annexation resolution divided the City into an urban service district and a rural service district with a 2:1 tax ratio. The rural service district included all of Sibley Township except those parcels classified as commercial which were phased-in over a six year period. Mayor Adams stated that for the past eight months the City has contacted a multitude of organizations to research the orderly annexation resolution. The Economic Development Committee was directed to study the tax ratio issue and make a recommendation to the City Council. Springsted Incorporated was hired to assist in a tax rate phase-in study showing the impact on the two service districts. At the June 4, 2013 City Council meeting, the Council moved to equalize the service districts over a three year period and tonight's presentation will illustrate this proposal. Mayor Adams further clarified the following. �'" 1. The tax issue only relates to the City portion of property taxes. 2. Current property classifications will remain the same. 3. Not everyone in Pequot Lakes has water and sewer services and these are not part of the property taxes.