06-22-99 Council Workshop Minutes

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MINUTES CITY COUNCIL JIINE 22, 1999 Morelan asked about the General Fund growth allocation in the year 2002. The City Administration reported that additional dollars were allocated for staff increases. He also noted the Postscript comment in the report relating to General Fund Growth. The Administrator reported that the 2000 Bud~et looks promisin~ at this point given that there are no increases projected in the Sheriff"s contract. Also fees for building inspection services will be stable in 2000. In emphasizing the fact that tax stabilization is tax reduction, the Administrator reported that in 1998 to get a tax rate below that of Roseville's, the budget would have had to be cut by $135,000. i-Iowever, this amount dropped to $80,000 since Roseville had a net levy increase for 1999 and Little Canada did not. The Administrator pointed out that as Little Canada retains a 0% net levy increase and Roseville's, Vadnais Heights', and Arden Hilis' levies increase, Little Canada will drop below these cities. Little Canada's tax rate will be in the middle or near the bottom of the Ramsey County cities. He also emphasized that the committee's initial recommended reduction put us below Roseville. The final plan puts us near Arden Hills. Morelan asked why the committee projected out five years and not ten. Finegan replied that the committee discussed this and felt that a five-year time period was reasonable. Ten years would have been too long. Morelan asl<ed how long the infrastructure replacement program is projected out. The Administrator replied that it was projected out for six years. Fahey noted that as the City's valuation increases, it can maintain the tax rate at the current level while more dollars will be ~;enerated. The Administrator indicated that as the base ~;oes up, it doesn't mean the City will have more money. The tax rate will decrease. Other variables that come into play are class rate compression and the fact that some of the City's TIF Districts are coming off line. Morelan pointed out that the City's mix of uses and valuations are similar to Roseville's. Therefore, compression will effect other cities the same way. Garske listed various reasons the committee chose to compare to the City of Roseville and shoot for a tax rate lower than Roseville's. Garske indicated that the committee felt the best use of debt levy reduction dollars was to meet this goal as well as be able to do some long-ran~e planning for the City. Scalze pointed out that Maplewood, Roseville, and Shoreview are larger cities and are able to offer their citizens large community centers, etc. Scalze pointed ~