12-07-98 Council Special Minutes

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MINUTES CITY COUNCIL DECEMBER 7,1998 year's final levy, and below the levy limit imposed by the Legislature. After applying the City's deduction for fiscal disparities, a 0% net levy increase was attained resulting in no increase in City taxes payable for 1999. The Accountant presented a graph that showed that there have been only modest increases in the City's ~ross levy since 1990 and the net levy has been virtually flat during this same period. The Accountant next discussed the distribution oftax dollars based on a median value home of $116,600. It was noted that 46% of the total tax bill goes to School District #623 (virtually the same percentage for properties in School District #624), 34% goes to Ramsey County, 6% to miscellaneous taxing jurisdictions, and 14% to the City. The Accountant then explained that the City's tax rate is 21.427 of the total tax rate of 135.620. The total tax rate combines the individual rates for each taxing jurisdiction. Property taxes are then calculated and dividing the City's portion by this total resuhs in the City's share of the total tax bill bein~ 14%. The Accountant next reviewed the total estimated 1999 budget, pointing out that General Fund is proposed at approximately $1.8 million, Park & Recreation/Cable Funds at $120,000, Enterprise Funds at $1.7 million, Capital Improvement Funds at $3.2 million and Debt Service Funds at $1.2 million. The General Fund accounts for 23% ofthe total budget and 67% of the total levy. Debt Service makes up the remaining 33% of the levy. User charges, assessments, or other non-property tax services support other funds. In reviewing the General Fund, the Accountant pointed out that expenses are up by 4.3%. A portion of this increase is due to an increase of $31,850 in Ramsey County Sheriff's Department expenses, an increase of $7,720 in Attorney's prosecution fees, and an increase of $16,806 in Protective Inspections. General Fund revenues are projected to increase by 1.12% with fine revenue increases projected at $15,000 and license/permit increases projected at $9,805. The Accounting noted that the increase in projected revenues would not offset the projected increase in expenses. Therefore, staff is proposing that approximately $65,000 of the 1998 General Fund surplus be used to balance the bud~et. The Accountant reviewed a graph showing General Fund expenditures trends from 1993 throu~h 1999 and noted that increases have averaged about 3.8% per year. In reviewing a pie chart reflecting 1999 expenditures, it was noted that 53% of the General Fund operating budget is for public safety which includes police, fire, building, electrical, mechanicai, code inspections, and animal control. Included in the public 2