12-02-97 Council Special Minutes (2)

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MINUTES CITY COUNCIL DECEMBER 2, 1997 The Administrator reported that the Le~islature has imposed levy limits on municipalities as a way to constrain local taxation. Little Canada's 1998 levy limit was set at $1,538,300. The preliminary levy certified by the City in September and on which property owner's Truth In Taxation Notice was based was $1,530,563. Since September, the Council has been reviewin~ the proposed 1998 Budget, and as a result of those deliberations, the proposed final levy amount is $1,517,138 -well below the levy limitation imposed by the State. After applying the deduction for the City's fiscal disparities distribution, the City has attained a 0% net levy increase versus the 1.07°/a used to calculate the City's share of property taxes shown on Truth In Taxation Notices. The Administrator pointed out that this is the third year out of the last five that the City has been at a 0% net levy increase. The City's average annual increase over this same five year period is less than 1%. The Administrator reported that the City has had a long history of nominal tax increases. A graph was reviewed which indicates that there have been only modest increases in the City's gross levy since 1990. The City's net tax levy has been virtually flat during this same period. The Administrator reviewed a pie chart which shows the break-down of property taxes paid on a median-valued home ($109,400) in School District #623. This chart showed that the School District accounted for 50% of the total tax bill, Ramsey County was at 31%, Miscellaneous Jurisdictions were at 5%, and the City receives the remaining 14%. For a home in School District #624, the percentages vary slightly, but are comparable, with the City's share at approximately 14.6%. The Administrator reported that the City's share of the total tax bill can approach 16% for higher-valued properties due to the School DistricYs market value-based referendums. The Administrator reviewed the City's total budget estimate for 1998 of $6,517,739. The amount consists of $1,776,670 for the General Fund, $111,040 for the Parks & Recreation and Cable TV Funds, $1,890,205 for the Enterprise Funds, $1,359,161 far the Capital Improvement Funds, and $1,380,663 for the Debt Service Funds. This total is projected to increase by just over 1% for 1998. The Administrator also pointed out that the total budget can vary dramatically from year-to-year depending on utility collections due to weather, chan~es in total debt service, and the amount of scheduled infrastructure improvements. The Administrator pointed out that the General Fund accounts for 27% of the total budget, but also 67% of the City's total levy with debt service