11-26-2003 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL NOVEMBER 26, 2003 The Administrator indicated that Little Canada's housing stock is in pretty good shape. There are, however, some isolated properties that are in need of assistance. Blesener asked if the Council opposes the program and the County votes to proceed with it, if Little Canada property owners will still be taxed this additional levy. Fahey suggested that the Council inform the County that Little Canada wants to be excluded from this program and that only the cities choosing to participate should be taxed the additional levy. Fahey felt that Little Canada would be a net loser in the program, pointing out that Little Canada has less need in this area than other cities. LaValle and Blesener agreed. Blesener indicated that it appears the program is a good one, but he noted that the City does not have the staff necessary to assist in the administration of the program. .Fahey felt that in times such as these when cities are struggling with budgets, it is inappropriate for the County to impose an additional tax on property owners. 2004 LEVY The City Administrator reported that stafl'has been reviewing the final REDUCTION 2004 budget numbers in preparation for the Truth In Taxation hearing. Based on that review, staff is recommending that the proposed levy be reduced by ~3Q000. The reduction is possible given additional revenue from the City of Falcon Heights associated with our Building Official contract as well as increased building permit revenues projected for 2004. Fahey felt that any action the Council can take to reduce the levy should be taken. LaValle agreed. Anderson suggested that an alternative would be to reduce the franchise fee and retain the levy as proposed. He noted that property taxes provide a tax benefit, while the franchise fee does not. The Administrator noted that relying on increased building permit revenues can be risky as economic downturns can impact that revenue source. Therefore, staff is recommending that the increased building permit revenue projection apply to 2004 only, with other revenue enhancements or expense reductions making up the difference in 2005 and beyond. I-Ie also noted that another fallback options is that City support of the Fire Relief Fund can be handled as a special levy outside of the City's levy limitations.