12-04-00 Council Special Minutes

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MINUTES CITY COUNCIL DECEMBER 4, 2000 changes in total debt service obligations, and the amount of scheduled infrastructure improvements. The Administrator presented a graph comparing Little Canada with neighboring cities on a per capita basis for expenditures. Based on the most recent information compiled by the State Auditor's Office, Little Canada has the lowest per capita spending for suburban Ramsey County cities at $177 per resident for five basic services which include police, fire, parks and recreation, street maintenance, and general government. He further noted that for a median valued home, City taxes are approximately $300 per year, or $25.03 per month. To show what all this means to the individual taxpayer, the Administrator presented a slide showing the City's tax for a range of homes valued between $100,000 and $250,000 for the years 2000 and 2001. He noted that the City's portion of tax decreased by almost 10% for 2001 provided there was no increase in a home's valuation. However, valuations have increased on many homes. Therefore, the same comparison was done projecting both a 10% valuation increase and a 20% valuation increase. Homes that had a 10% valuation increase will see a net increase in the City's share of property taxes ranging from 3% on a $100,000 home to less than'/~% on a $250,000 home. Homes that had a 20% valuation increase will see a net increase in the City's share of property taxes ranging from 15.9% fora $100,000 home to 12.6% fora $250,000 home. The Administrator pointed out that for commercial/industrial property with no valuation increases, a 9.85% tax reduction will be seen on the City's portion of the 2001 property tax bill. The City Administrator pointed out a recent article in the Pioneer Press comparing selected cities in Dakota, Ramsey and Washington Counties. Little Canada's percentage change in property taxes on a median family- home of $] 36,800 is -3.6% which is the most favorable position of the cities compared especially when compared to a number of double digit increases listed. The City Administrator also noted that credit must be given to the School District given reductions in their levy. The City Administrator indicated that this concludes the Truth In Taxation presentation for the proposed 2001 Budget. Formal adoption of the 2001 Budget will occur at a public hearing to be held on Wednesday, December 20, 2000 at 7:30 p.m. at the City Center- The Administrator indicated that, in the meantime, should anyone have any questions regarding the proposed 2001 Budget and property taxes to contact him at 766-4040.