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MINUTES <br />CITY COUNCIL <br />DECEMBER 2, 2002 <br />cautioned that LGA is likely to disappear and the State has the <br />ability to make deeper cuts by cutting the Market Value Credit <br />which was put in place to address declines in taxes payable by <br />multiple family properties due to the 2001 Tax Reform Act. He <br />also noted that the Governor has the ability to unallot the second <br />half payment of LGA that the City is scheduled to receive <br />December of 2002. <br />The Administrator reviewed the amount of LGA that the various <br />Ramsey County cities receive. He reported that LGA is a <br />statewide program the purpose of which is to level the playing <br />field between property-poor and property-rich cities. The Council <br />noted the apparent disparities in LGA amounts between the <br />.Ramsey County cities. <br />The Administrator reported that State-imposed levy limits remain <br />in place for 2003 and are an artificial means by which the State <br />attempts to hold down property taxes. The Administrator pointed <br />out that Little Canada is approximately $350,000 under its levy <br />limit. However, many cities are up against the limits. Therefore, <br />the elimination of LGA will have a significant impact on those <br />cities. <br />The City Administrator noted that the City has no debt service levy <br />for 2003 as its General Obligation debt has been eliminated. He <br />highlighted the priorities that were established by the City's Debt <br />Levy Reduction Committee and are incorporated in the proposed <br />2003 Budget. These include tax stabilization with $219,550 of the <br />previous debt service amount used to keep taxes level for a number <br />of years (past and present), tax reduction with $102,000 allocated <br />for this purpose, and capital improvement needs with $315,450 <br />budgeted toward equipment and infrastructure needs. <br />The Administrator reviewed a comparison of city tax rankings, <br />noting that of the 19 cities compared Little Canada's tax ranking <br />was 13°i lowest in 2001, 10°' lowest in 2002, and 10°' lowest in <br />2003. It was further noted that elimination of LGA will have a <br />significant impact on these rankings, and that Little Canada is in a <br />much better position to absorb LGA elimination titan some of the <br />other cities in the comparison group. <br />Fahey asked if the League of Minnesota Cities would be <br />monitoring legislation relative to LGA. The Administrator <br />reported that the League is very involved in this issue, but noted <br />that the League represents all cities, and there are competing <br />