12-06-2004 Council Special Minutes

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MINUTES CITY COUNCIL DECEMBER G, 2004 becomes more severe each year. He further noted that I S% of Little Canada residential properties have had up to 15% valuation increases for 2005, 71% have had a 15% valuation increase, and 16% have had vahiation increases over I S%. The Administrator compared 2004 and 2005 City Tax Rankings, noting that in 2004 Little Canada was the 10'x' lowest of Ramsey County cities, and in 2005 Little Canada is the 9'~' lowest. The Administrator pointed out that for 2005, Little Canada's city tax rate will decrease from 26.89% to 23.751%. The Administrator compared the 2004 and 2005 tax levies, noting there is a 1.36% increase in the Gross ,Levy and a 1.65% increase in the Net Levy. (The Net Levy is higher due to a reduction in our fiscal disparities distribution.) The components of the levy include the Genera] Fund and Capital Funds, which include General Capital Funds and Infrastructure Capital Funds. The Administrator noted a^ approximately $3],000 decrease in the levy for the Infrastructure Capital Fund from 2004 to 2005. 'T'his decrease is attributed to the additional monies collected through our franchise fee on the electric utility. The Administrator pointed out that franchise fee was implemented to offset the loss of Local Government Aid and supplement the Infrastructue Capital Fund. The Administrator reviewed a graph showing the City's Tax Levy history from 1992 through 2005. He noted that levies have remained generally flat over the last several years. The most recent years' increases can be attributed to Property Tax Reform in 2001, the State's elimination of FIACA to cities that was shifted to education funding, and the 2003/2004 reductions in LGA and Market Vahie Homestead Credit. Next reviewed were highlights from 2005 General Fund revenue, noting that these revenues are projected to be up by 3.5%. In reviewing a graph of General Fund revenues from 7995 through 2005, the Administrator pointed out that revenues have increased an average of 3.95% each year for this period. I-towever, in that same period, the City's reliance on property taxes has shown a dramatic increase. In 1995 property taxes accounted for 55% of General Fund revenues, while propei~Cy taxes are projected to makeup 76% of those revenues for 2005. Highlights from 2005 General Fund expenses were reviewed, noting that these expenses are projected to increase by 3.5%. In reviewing a graph showing General Fund expense trends 8-om 1995 through 2005, the Administrator noted that expenses have increased an average of 4.75% over this 10-year period. During this period, the City has absorbed some large dollar increases in the public safety area, i.e. police and fire. 2