12-01-08 Council-TNT Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL DECEMBER I, 2008 Blesener asked if much of the increase in property values was the result of the Limited Market Value phase-out process. The Finance Director replied that this is correct and noted that next year is the last year in the phase-out process. Therefore, the Limited Market Value phase-out process will be essentially complete for parcels in Little Canada. The Director next reviewed 2008 City Tax Rankings, noting that of the Ramsey County cities, Little Canada is the 7th lowest of 19 cities. Based on the proposed 2009 Budget set in September, Little Canada will be 7th lowest of the 19 Ramsey County cites. Keis asked where Little Canada ranked on a broader scale. The City Administrator reported his recollection of the Citizens League Property Tax Survey, Little Canada ranks around 70`x' out of 130 taxing jurisdictions. The Director compared 2008 and 2009 tax levies, noting an increase in the Gross Levy for 2009 of 5.00% and in the Net Levy of 3.93%. The 2009 Gross Levy is projected at $2,506,854 and the Net Levy at $2,167,998. It was noted that Fiscal Disparities increases for 2009 to $338,856, the fourth year in a row that the City has benefited from an increase in Fiscal Disparities. The Director reviewed the various components of the City's tax levy, and noted that total levy for 2008 was $2,387,488 and proposed 2009 is $2,506,854. The Director then reviewed a graph which depicts the City's tax levy history from 1999 through 2009, noting that the State's elimination of HACA in 2002 narrowed the gap between the net levy and the gross levy. This gap is the fiscal disparity distribution the city receives, and that gap has been fairly consistent over the last several years. The Director indicated that the City does not anticipate any significant fluctuations in fiscal disparities down the road; however, changes to the current LGA formula could have a significant impact on the City's gross levy in the future. Changes in the City's tax base and changes in other LGA formula factors impacted the LGA calculation and produced $225,000 and $527,000 in aid for 2008 and 2009, respectively. Modifications of this formula are being reviewed with a report due to the Legislature in 2010. The Director indicated that given the political nature of this process, it is hard to predict how Little Canada will be impacted by formula revisions. Therefore, the City is taking a wait and see approach with LGA and is not fully relying on it for levy support. The Director reviewed 2009 General Fund revenue highlights, noting that revenues are up by 5.5%, property taxes revenues are down 2.86%, and LGA revenues are up from $225,168 in 2008 to $527,649 in 2009. Levy limits are in place for 2009 through 2011 based on 2008 legislative action. 2