Laserfiche WebLink
burden. Years ago the formula was set for how much tax could be taken from each category, and about 3 <br />years ago the State significantly changed the formula. The legislature decided that commercial and <br />apartments were taxed too high and residential was taxed too low. Now the distribution has changed and is <br />• collected differently between the 3 categories. Secondly, the market value of businesses and apartments has <br />not risen as fast as residences. The shift from the businesses and apartments onto residences explains why <br />the tax has gone up for residential homes. Due to the reserve fund, the City was able to smooth out some of <br />the tax raises by using some reserves and being fiscally conservative. With the current formula, individual <br />homes will continue to rise as compared to businesses and apartments; he stated the City will be looking at a <br />continued shift to residential for the tax burden. <br />Mr. DeLeo thanked Councilmember Lamb for his explanation. He stated that Ramsey County has their <br />hearing next week, and asked when the State changes rules what happens to the County and what happens to <br />them? Do they pass it on to us? Councilmember Lamb answered that Ramsey County uses the same <br />property classification and formula the City does. He answered the same phenomena applies to the County. <br />Mayor Gehrz added that some of the Ramsey County portion of the increases can be attributed to the light <br />rail initiative for the Central Corridor and establishment of the consolidated dispatch center and <br />implementation of 800 MHz. She encouraged Mr. DeLeo to attend the Ramsey County Truth in Taxation <br />Hearing. <br />The public hearing was closed. <br />A brief Council discussion followed. <br />The Truth in Taxation Hearing was adjourned at 8:06 PM. <br />. Respectfully submitted, <br />Stacey Kreuser <br />• <br />7 <br />~CHG02:40069922.v1 ~9/28/OS 11:33 AM <br />