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MINUTES <br />CITY COUNCIL <br />DECEMBER 9, 1992 <br />General Fund expenditures for various City departments, <br />and another graph compared General Fund revenues. The <br />Administrator pointed out that in 1989, property taxes <br />accounted for 440 of the revenue stream for the City, <br />while in 1993 property taxes account for 61%. The <br />Administrator noted that in 1989 State aids accounted <br />for 34% of the City revenue, while in 1993 State aids <br />account for 24%. <br />The Administrator next presented a debt service levy <br />comparison for the years 1992 through 2002, pointing <br />out the leve'ling of debt service levies for the years <br />1992 through 1999 due to restructuring of the some of <br />the City's bonded debt. The Administrator also pointed <br />out the dramatic drop in levies beginning in the year <br />2000. <br />The Administrator presented a comparison of City taxes <br />on various valued homes, pointing out that due to the <br />State's class rate change, City taxes for lower valued <br />homes would increase slightly, while City taxes would <br />decrease for homes valued at $150,000 or greater. <br />The City Administrator pointed out that the 1993 Budget <br />document also includes the Sewer and Water Budgets. <br />The 1993 Sewer Budget would remain constant for 1993. <br />The Administrator reported that the City recently <br />learned that the City of St. Paul intends to increase <br />the cost of water to the City by approximately 22%. As <br />a result of this information, staff has begun to <br />evaluate the City's options to address this large <br />increase. <br />The Administrator pointed out that the 1993 Budget also <br />includes the Cable TV fund at $39,000. This budget is <br />paid for entirely through Cable TV franchise fees. The <br />Administrator also noted the City's capital improvement <br />plans for 1993. <br />Steve Morelan asked if the increased tax burden on <br />lower valued homes versus higher valued homes was a <br />result of action by the State Legislature. <br />The Administrator replied that this is correct. The <br />State has many classifications of property. Under the <br />system in place it was felt high-valued residential <br />homestead property as well as commercial/industrial and <br />large multiple-family properties have borne too large a <br />share of the tax burden. To shift away tax burden from <br />these classifications has increased the burden on the <br />lower valued home. <br />Hanson asked if impact of the $48 million bond issue in <br />District #623 will begin with 1995 taxes. <br />Page 4 <br />