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MINUTES <br />CITY COUNCIL <br />DECEMBER 3~ 1996 <br />tax reduction for property owners, Fahey was not sure. <br />The major concern with the Rice Street area was <br />declining property values which would result in <br />increased property taxes for other property owners in <br />the City. <br />Scalze pointed out that should Rice Street be <br />redeveloped with TIF assistance, it will be several <br />years before property taxes are collected on that <br />redevelopment. <br />Schwalbach indicated that he has never seen his <br />property taxes decrease. <br />It was pointed out that Little Canada is 14% of the <br />property tax bill. Therefore, even if the City were <br />able to pass on a significant tax decrease, the reality <br />may be that this decrease would be offset by whatever <br />actions the School District and the County takes. <br />The City Administrator pointed out that the City's levy <br />has remained pretty flat for a number of years and has <br />been at or under the rate of inflation. The big <br />problem is that residential property values have <br />increased dramatically over the past several years, <br />while commercial values have not. This means that the <br />tax base is shifting and residential properties are <br />payinq a larger share. <br />Fahey pointed out that if taxes increase on a property <br />by $100, the City gets $14 of that increase. Cutting <br />the City's share in half results in a$7 savings to <br />taxpayers. Fahey reported that Little Canada has tried <br />to maintain low increases. Fahey also pointed out that <br />more and more programs at the Federal level are being <br />turned over to states, which results in programs being <br />passed on to the cities. These are added costs that <br />cities must bear. <br />Scalze pointed out that the biggest increase in costs <br />is in the area of public safety. The City has limited <br />control over 5heriff's Department costs. More homes <br />doesn't necessarily mean lower taxes, but rather <br />increased public safety needs. <br />Schwalbach suggested that the City look to the Cities <br />of Roseville or Maplewood for police protection. <br />Fahey reported that the recent community survey showed <br />that the public is willing to pay more taxes for <br />increased police protection. <br />6 <br />