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<br />Streets Fund 450. Eliminating these expenditures from Fund 450 will positively impact the
<br />fund’s ability to use its resources primarily for street improvement projects. Further, fund
<br />450 has been funded partially through a tax levy. For 2025 this levy continues to remain low
<br />(proposed at $200,000) partially due to stormwater CIP projects funded by the Stormwater
<br />Utility Fee.
<br />
<br /> Personnel Cost – The implementation of the Stormwater Fund also allowed for revised
<br />allocations of the City’s staff time. As noted in the above table $232,478 of personnel staff
<br />time has been allocated to the Storm Water Fund. Before the Stormwater Fund, these
<br />expenditures were allocated between the General Fund, Water and Sewer Fund.
<br />
<br />PRELIMINARY TAX CAPACITY UPDATE
<br />
<br />Ramsey County recently provided preliminary Tax Capacity values. These values are used to
<br />analyze and predict the 2025 tax rate. As can be noted in the table below City’s tax capacity value
<br />decreased by 2.55%. This is not a positive outcome since a lower tax capacity results in a higher tax
<br />rate. The tax rate is important since it is used in the annual calculation of property tax. The lower
<br />the tax rate; the lower the tax.
<br />
<br />Final Final Final Est. Final
<br />Tax Capacity %Tax Capacity %Tax Capacity %Tax Capacity %
<br />Values Change Values Change Values Change Values Change
<br />2021/2022 2022/2023 2023/2024 2024/2025
<br />TAXABLE VALUATIONS:
<br /> Real Estate 15,748,259$ 1.61% 17,378,323$ 10.35% 19,414,661$ 11.72% 19,413,456$ -0.01%
<br /> Personal Property 108,410 -47.44%112,262 3.55%119,182 6.16%145,518 22.10%
<br /> SUBTOTALS:15,856,669 0.97% 17,490,585 10.30% 19,533,843 11.68% 19,558,974 0.13%
<br /> Fiscal Disparities:
<br /> Contribution (2,321,589) 13.03% (2,268,439) -2.29% (2,317,381) 2.16% (2,762,485) 19.21%
<br />
<br /> Tax Increment (715,299) -0.50% (803,036) 12.27% (916,269) 14.10% (912,213) -0.44%
<br /> TOTALS:12,819,781$ -0.87% 14,419,110$ 12.48% 16,300,193$ 13.05% 15,884,276$ -2.55%
<br />
<br />There are a few factors that can increase or decrease the tax capacity. In the above table for Little
<br />Canada, the primary two reasons for the decrease relate to the “City’s Fiscal Disparities
<br />Contribution” which increased by 19.21% and is a reduction of our tax capacity, and a minimal
<br />increase in Real Estate/Personal Property category of only 0.13%.
<br />
<br />How Fiscal Disparities tax-base sharing program works:
<br />Fiscal Disparities is a tax-base sharing program run by the Metropolitan Council that began in 1975.
<br />Local tax jurisdictions contribute 40% of growth in commercial, industrial, and public utility
<br />property tax base into an areawide shared pool of tax base. Local property tax administrators
<br />distribute the shared pool of tax base. Communities with below-average property tax value per
<br />person receive a somewhat larger share of the area-wide tax base, whereas communities with above-
<br />average property tax value per person receive somewhat a smaller share of the area-wide tax base.
<br />The program calculates tax-base from the prior year's valuations. The 2023
<br />commercial/industrial/public utility increased from 5,869,482 (payable 2023) to 6,877,580 (payable
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