07-23-2013 Speical City Council Minutes

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� City Council Minutes July 23, 2013 Page 2 of 4 -------------------------- 2B. Sprinqsted Presentation of Urban and Rural Taxinq Districts Paul Steinman from Springsted Incorporated gave an overhead presentation based on a three year phase-in period. Mr. Steinman explained that the purpose of the study was to analyze the phasing together of urban and rural tax rates, measure impact to residents on the City portion of taxes based on property tax classifications, and to complete the phasing over a multi year period. Mr. Steinman stated that the presentation is based on the assumptions that the tax rates equal in three years, that the levy remains stable, and that the taxable market values and net tax capacities remain stable through the phasing period. Mr. Steinman presented three resulting impact scenarios for rural taxpayers and urban taxpayers. 2C. Citv Attornev Review of the Process Clyde Ahlquist discussed the City's authority to repeal the orderly annexation resolution. Mr. Ahlquist stated that the City has the power to create ordinances and make ordinance amendments. Therefore, per � Minnesota Statute 272.67 subdivision 1, the urban service district and rural service district may be changed in the same manner that an ordinance or amendment is changed with a majority vote of the City Council. Furthermore, Minnesota Statute 272.67 subdivision 2, states that by amendment of the ordinance the benefit ratio may be changed and lands may be added or removed from the rural service district. Therefore, the City Council has the authority to repeal the service districts entirely and equalize the tax rates. 2D. Open Public Hearinq Mayor Adams opened the public hearing and stated that the City Council was here to listen and that no decision by the Council will be made at this time. David Kennedy, 29064 Voyagers Pass, Pequot Lakes — Mr. Kennedy stated that he owns properties in both the urban and rural service districts and that Sibley Township would have remained a separate entity if they knew this tax equalization would occur. He noted that the preservation and protection of the rural atmosphere is valuable and that this is less about reducing the unfair tax burden of the urban property owners as much as it is to remove the limitation that exists in taxing rural properties. � Mr. Kennedy is opposed to the phase-in proposal. Curt Cogan, 31368 County Road 112, Pequot Lakes — Mr. Cogan stated that he is an original resident of Sibley Township and that he made a