12-02-97 Council Special Minutes (2)

Home Browse Search

MINUTES CITY COUNCIL DECEMBER 2,1997 With regard to General Fund Revenues, the City is projecting revenues of $1.74 million for 1998. This is up from the $1.55 million received in 1993, representing an average annual increase of 3.15%. The City Administrator reviewed a pie chart which showed that property taxes make up 58% of General Fund Revenues, intergovernmental revenues account for 27%, and the remaining 15% comes from sources such as fines, licenses and permits, interest income, and charges for services. The Administrator presented a graph comparin~ debt services levy from 1993 through 2003 including both pre-1991 levy amounts and 1994 revisions. The Administrator noted that debt services has been the other major factor in the City's tax levy for many years, accountin~ for 33% of the City's total levy in 1998. This amount would have been higher had it not been for the restructuring done in the early 1990's. The Administrator pointed out the dramatic fall in debt service levy in the year 2000, with elimination of the debt service levy in the year 2003. This will provide the City a unique opportunity in planning its future. The Administrator pointed out that all of this information means that for a residential property owner with no increase in valuation, the amount of City tax should decline in all cases. The higher the value of the home, the greater the decline due to changes in class rates made by the State. The same holds true for commercial and industrial properties. For these properties the impact is more favorable due to greater reductions in class rates versus other types of properties. The Administrator reported that if a property owner experienced an increase in the City's share of the tax bill, then the valuation on the property was increased. For those property owners who have experienced a large total increase, there are options to minimize the impact. These include the Circuit Breaker Refund, special refund for increases exceeding 12% and more than $100, as well as the 1997 property tax rebate. For more information on these options, property owners should contact the Minnesota Department of Revenue at 296-3781, The City Administrator reported that the Council will consider adoption of the 1998 Budget at a public hearing to be held on Wednesday, December 17, 1997 at 7:30 P.M. at the City Center. The Administrator thanked the public for their attention during the presentation, and asked of there were any questions from the generai public present. Mr. John Strohschein, 57 7essica Court, reported that he has lived in Little Canada for the past five years. When he moved to Little Canada in 1992,