12-05-01 Council Special Minutes

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MINUTES CITY COUNCIL I)ECF,MBER 5, 2001 City's tax rate is up 73.81% from 17.07] to 29.67!. The Administrator reported thaC for 2002 the City's tax rankings (pre-tax reform) would have put Little Canada at the 4°i lowest taxed city in Ramsey County. However, post- tax reform, Little Canada is at ]0'~' lowest. Explaining City tax rate rankings, the Administrator reported that for 2002, Little Canada's City tax rate will increase from ] 7.071 to 29.671. Virtually all Ramsey County cities experienced increases in their net levies to compensate for the loss of HACA. Again, Little Canada's tax rate is 10°i lowest in the County for 2002 and would have been 4'~' lowest without the legislative tax reforms. The Administrator reviewed the tax levy amounts proposed for 2002 which represent a gross levy increase of 3.98% and a net levy increase of 41.76%. He further reviewed a graph showing the City's tax levy history from 1992 through 2002 which shows relatively flat amounts until 2002. Again, the reason for the sharp increase is the loss of HACA in the amount of $416,370. The Administrator presented highlights of 2002 General Fund revenues reporting that revenues are projected to be up by 5.37%. Property tax revenue is projected to be up by $426,340 that helps to offset a $326,665 decrease in State aids. Other revenue increases include an increase in charges for services of $25,000 and a decrease in fines and miscellaneous revenues of $21,000. In reviewing a graph of General Fund revenue trends from 1995 through 2002, the Administrator pointed out that revenue have been fairly flat, and that the portion of revenues coming from property taxes increases sharply in 2002 again as a result of the loss of HACA. A pie chart indicated that 74% of proposed 2002 General Fund revenues comes from property taxes, 9% from intergovernmental payments, 9% from licenses and permits, 5% from fines and charges for service, and 3% from miscellaneous. The Administrator presented highlights of 2002 General Fund expenses indicating that they are projected to increase by 5.3%. Major increases include a $6,000 increase in election expenses given 2002 is an election year, the Sheriff's Contract increased by 5.5% with a portion of that increase due to the hiring of another investigator, energy costs are projected to increase by 13.5%, health insurance rates are up 10.9%, and a PERA contribution increase was mandated by the State. The Administrator reviewed a graph showing General Fund expenditure trends from 1995 through 2002 showing a steady increase of about 5% per year. A pie chart showed that 52% of expenses go toward public safety, 21% toward general government, 12%toward public works, and 15% toward community services. The Administrator presented a graph showing 1999 per capita spending for all basic services which ranks Little Canada as the 2°`~ lowest in per capita spending 1'or all Ramsey County cities. This 3