12-04-2024 Council Packet - Laserfiche WebLink

Home Browse Search

rate is estimated to be the 3rd lowest in Ramsey County. Ramsey County generates an Assessor’s Report that measures the percentage change in estimated market for value for residential homestead properties from year to year. Using a 0.35% estimated increase in assessed value Little Canada median value home increased from $376,000 to $377,300. As a result, a median home will pay approximately $113.51 or 12.16% more in city property taxes in 2025 when compared to 2024. State Budget Conditions and Aid Distribution The state budget includes approximately $664 million for the Local Government Aid (LGA) program which provides financial aid to approximately 90 percent of Minnesota cities including Little Canada. The 2025 Operating Budget includes LGA of $412,432 which is a 0.52% increase from 2024 LGA. The City allocates 40% of the LGA to the General Fund and the remaining 60% has been budgeted in the General Capital Improvement Fund. The City receives Municipal State Aid (MSA) funds that help with the maintenance and construction of certain roads in our community. The maintenance portion of these funds are included in the General Fund Budget and the construction portion of these funds are included in the Infrastructure Capital Improvements Fund. MSA funds are derived from the state’s gas tax. It should be noted that the State of Minnesota, through the Department of Revenue, does provide various tax relief programs intended to assist individual homeowners and renters. These offerings include the Homestead Credit Refund, the Renter’s Property Tax Refund, and the Property Tax Deferral for Senior Citizens programs. Additional information on these programs is available at https://www.revenue.state.mn.us/property-tax-refund. Property Taxes and Property Tax Levy The State has granted local municipalities with the authority to levy taxes to fund operations and debt payments. For the City of Little Canada, the property tax levy accounts for approximately 77.16% of the General Fund revenues. Per the City’s Financial Policy, “the total sum appropriated for the General Fund shall be less than the total revenue by a safe margin”. It is the policy of the City that this “safe margin” will allow for property tax collections of 97.5% in any given year”, however at its discretion City Council can adjust the safe margin. Based on historical data for the last ten year, where the average collection rate has been 99.01%, for the 2025 Budget City council elected to set the safe margin at 99%. The following shows a historical perspective of the City’s property tax gross levy collection rate for the last twenty years: 5