12-12-90 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL DECEMBER 12, 1990 The Administrator reviewed the City's levy history over the past eight years pointing out that from 1984 through 1989 there is only a 1o difference in the levy amounts. However, in 1990 the City had to increase its levy by 26% and this was due to the State's shifting a large portion of Local Government Aids to the School District. The State then increased the City's levy limits to make up for the loss. Another factor in the 26% increase is the levy for the new fire station. Without these two levies, the City would have had a decrease of about 1%. The Administrator pointed out that while the City's levy percentage increase from 1984 to 1990 totalled 28.2%, the Consumer Price Index for this same time period was 26.9%. Therefore, the levy increase pretty much matched inflation in the Metro area. The City Administrator reported that the 7.12% increase proposed for 1991 is being minimized because the City will receive additional fiscal disparities distribution. Fiscal disparities is the pool established by the Legislature from commercial/industrial development. Previously, Little Canada has contributed to this pool, however over the past couple of years the City has become a receiver. It is also estimated that the City will receive $317,200 in Homestead and Agricultural Credits. These factors reduce the net impact of the 7.12% levy to 1.2%. After again considering we are only 16% of the tax bill, the net impact is only 2%. The Administrator reviewed the 1991 General Fund Budget Overview pointing out that revenues are projected at $1,381,998, which is a decrease from $1,396,698 in 1990. The Administrator then reviewed the Expenditures portion of the Budget pointing out that the Sheriff's contract increased by $69,000 from 1990. This increase is due to changes in their budget as well as reallocation of costs among the contracting cities. The Administrator reported that this past summer the City looked at alternatives for providing police protection and the result was that it was determined that contracting with the Ramsey County Sheriff's Department was still the most economical alternative for the taxpayers. The Administrator pointed out that a$21,000 increase in insurance costs has been budgeted for, however, staff is looking at this area to determine if insurance costs can be held down. A 10% increase is budgeted for in the area of parks, with this increase due to additional maintenance costs for the City's park system. Fahey pointed out that the City is budgeting nothing Page 3