12-01-2003 Council Special Minutes

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MINUTES CITY COUNCIL DECEMBER 1, 2003 The Administrator reviewed 2004 General Fund expense highlights noting that expenses are projected to increase by 5.8%. Impacts to expenses include increased Fire Department costs, the fact that 2004 is an election year, an increase in Public Works expense of 6.9% and an increase in law enforcement costs of 5.5%. Expense increases average 4.76% over the last several years with the City absorbing some large increases in the area of public safety. The Administrator compared per capita spending of Ramsey County cities for all basic services. That comparison shows Little Canada as the lowest, with a per capita rate of $213. The Administrator reviewed the components that made up the total 2004 proposed budget of $8,465,298. These include the General Fund at $2,301,172, Parks & Rec/Cable TV Funds at $200,194, Sewer & Water Funds at $2,312,270, Capital Improvement Funds at $3,157,329, and Debt Service Funds at $494,333. The Administrator next reviewed the allocation of City taxes on a $161,500 home (Little Canada's median value) which amount to $423.94. He also reviewed the impact of City taxes on various valued residential and commercial/industrial properties in Little Canada considering a 0% valuation increase. In both comparisons, these properties would see a 4.69% decrease in the City's share of their property tax bill. The Administrator noted that a 12% increase in the valuation of a residential property would result in a 6.75% increase in the City's share of property taxes. The Administrator reviewed the taxing jurisdictions in Little Canada which include the City, School District (623 or 624), Ramsey County and special taxing jurisdictions that include the Metropolitan Council, Metropolitan Mosquito Control, Regional Transit Board, and Ramsey/Washington Watershed District. He noted that the distribution of the property tax dollar on a median valued home is 44% County, 29% School District, 22% City, and 5% special taxingjurisdictions. Taking into account the total tax bill, residential properties with no valuation increase will see a 2.59% reduction in their property tax bill. Residential properties with a 12% valuation increase will see a 9.10% tax increase. Commercial properties with no valuation increase will see an approximately 2.3% decrease in taxes. The Administrator noted that some of the impacts to future property taxes might include increasing residential property values, the continued phase out of limited market value cap, tax reform where a shift of burden to