12-09-92 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL DECEMBER 9, 1992 Distribution of tax dollars was reviewed by the Administrator using 1993 tax capacity rates, which are set by the County, for School District #623. It was pointed out that the School District receives 48.30 of the tax dollar, the County receives 31.9%, the City 14.6%, while Miscellaneous taxing districts receive 5.1%. Miscellaneous taxing districts include such agencies as the Regional Transit Board, Metropolitan Council, Mosquito Control, Light Rail Transit Authority, and Metro Watershed District. The Administrator reviewed the City's tax levy history from 1984 through 1993. It was pointed out that levies remained relatively constant from 1984 through 1989. A big jump was taken in 1990 as a result of the State's shifting of Local Government Aid (LGA) from cities to school districts. Approximately $253,000 in aid was shifted away from Little Canada during 1990, and that amount was made up by increased property taxes. Another factor was the debt for the new fire station. Increases in 1991 levies were due to additional debt service and another reduction by the State in Local Government Aid. In 1992 the City saw another decrease in LGA. The Administrator pointed out that there is a slight increase for 1993, which is attributed to a 3.9% increase in the General Fund levy, while the total levied for Debt Service remains virtually constant. The Administrator reported on the changes in the relationship between cities and the State of Minnesota relating to property taxes. There is discussion about the possibility of eliminating aid to local governments entirely. The City still receives approximately $64,000 in LGA. Also considered in this discussion is the potential for the elimination of HACA. This would have a significant impact on City taxpayers since it receives approximately $350,000 in HACA. The Administrator urged citizens to pay close attention to the upcoming Legislative session and to stay in close contact with Legislators to try to ensure that the State does not shift more of its budget problems on cities through the elimination of these aids. The Administrator pointed out that before the $1,827,708 is spread to the property tax bill, the City applies fiscal disparities and HACA. After those reductions, $1,192,087 is left to spread to the tax base. The 1,192,087 reflects a.14% increase to the tax payer over 1992 levies, or almost no increase. The Administrator presented a graph showing a tax capacity rate comparison between all taxing jurisdictions, namely the School District, County, City, and Misc. taxing districts for the years 1990 through 1993. The next graph presented compared Page 3