12-05-05 Council Special Minutes

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MINUTES CITY COUNCIL DECEMBER 5, 2005 The Director next reviewed the allocation of City taxes on a $213,000 home, which is the 2006 median value for Little Canada. Total City taxes would amount to $490.32, with that dollar amount allocation between public safety, general government, community services, public works infrastructure improvements, and capital improvements. The Director noted that Little Canada's 2005 median value was $185,700, an increase of 12.9%. The Director reviewed a graph showing median value increases from 1996 ($1.01,950) through 2006 ($213,600), an increase of 110% over 11 years. The Director then reviewed the City tax impact to residential properties that had no value increase from 2005. She noted that these homes will experience a decrease in the City's share of taxes from 9 to 10%. For homes with a 10% increase in value, the City's share of taxes will rise by less Chan 2%. Homes with a 15% increase in value will see City taxes rise by 5% to 7%. The Director reviewed City tax impact to commercial/industrial properties with no value increase from 2005 levels. These properties will see a 9.72% decrease in City taxes. The Director reviewed the taxing jurisdictions in Little Canada, pointing out that the City of Little Canada is responsible for approximately 20% of the tax bill; School District taxes account for about 30%, Ramsey County is responsible for 43%, and the miscellaneous taxing jurisdictions total 7%. Those special taxing jurisdictions are the Metropolitan Council, Metropolitan Mosquito control, Regional Transit Board, and Ramsey/Washington Watershed Dishict. In reviewing total tax impact to residential properties with a 0% valuation increase, property taxes will decrease by 3% to 5%. For residential properties with a 10% valuation increase, total property taxes will increase by 6% Co 8%. Properties with a 15% valuation increase will see property taxes increase 1 I% to 14%. The Director noted that commercial/industrial properties with a 0% valuation increase will see a decrease of approximately 3.7% in their total property taxes. With regard to the future, the Director expected that residential property values will continue to increase. There will also be the continued phase out of limited market value which will impact property owners' tax bills. The Director concluded the Truth In Taxation presentation, and indicated that the proposed 2006 Budget will be adopted at a budget hearing 4