12-02-2002 Council Special Minutes

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MINUTES CITY COUNCIL DECEMBER 2, 2002 interests about LGA between cities depending on the amounts they are receiving. The Administrator indicated that the Little Canada would be discussing this issue with its legislators. The Administrator reported that for 2003, the City's tax rate would decrease from 29.694 to 27.576. He also noted that the Gross Levy amount proposed for 2003 is $2,006,507, an increase of 4% over 2002. The Net Levy amount is proposed at $1,736,581, an increase of 3.28%. Gross levy components include the General Fund at $1,691,057, General Capital Improvement Funds at $87,000, and Infrastructure Capital Improvement Funds at $228,456 for the total $2,006,513. The Administrator reviewed the City's tax levy history over aten- yeat~ period, showing that levies have remained generally flat. The increase in 2002 was attributable to the elimination of HACA when the State shifted it to education funding. The Administrator reviewed General Fund revenues pointing out that they are projected to be up by 8.44%, with property tax revenues to be up by $64,083, the addition of $67,997 in State Aid for Market Value Reductions in multi-family housing, and fine revenue projected to be down by $5,000. The Administrator noted that the City's reliance on property taxes as Genera] Fund revenues is increasing and make up over 70% for 2003 as compared to 55% in 1995. In reviewing General Fund expenses, the Administrator noted a proposed increase of 5.8%. Expense increases are attributable to an increase of 9.6% in the Fire Department contract, attorney costs are up by 11.9%, health insurance rates are estimated to increase 12.5%, Fire Marshall expenses are increasing 24.7%, and Public Works expense is up 7.6%. The Administrator noted that the average increase in General Fund expenditures over the last seven years is 4.91 %, and noted that during this period the City has absorbed some large increases in the public safety area. The Administrator compared per capita spending of Ramsey County for the year 2000 which is the most recent data available from the State Auditor. He noted that Little Canada ranks second lowest at $217 per capita spending. Falcon Heights is the lowest ranking city with $215 per capita spending. The Administrator reviewed the allocation of City taxes on a median valued home ($162,200). The City's share oftaxes would 3