08-11-99 Council Minutes - Laserfiche WebLink

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1VIINUTES CITY COUNCIL AUGUST 11, 1999 Mrs. Betty Davison, resident Mr. Bob Dolle, owner of D& T Trucking Mr. Tom Duray, resident and owner of Hoggsbreath Mr. Mike Finegan, resident Mr. Steve Garske, resident Mr. Jim Maahs, resident Mr. John Newstrand, resident and Slumberland employee Mr. Roger Schiltz, owner of All American Recreation Mr. Tom Vogt, owner of Gas N Go The committee members present this evening are Tom Duray, Chair of the committee, Mike Finegan, Vice Chair, Bob Do(le, and Jim Maahs. Duray presented the committee's report to the Council, assisted by Finegan. Duray began with a brief recap of the City's levy history. He pointed out that in the year 2000 the city's general obligation debt levy decreases by $256,400. The remaining $380,600 of debt levy disappears in the year 2003. This is a total decrease in debt levy of $637,000. Given these pending reductions, the City Council formed the Debt Levy Reduction Committee to study the various options presented by this significant reduction in tax levy. The Committee by reviewing the very complicated property taxation process and the multiple factors that affect property taxes. Next, the committee reviewed the City's debt levy history, levy buy down, and debt stabilization program. They also looked at how the city determines the amount it needs to levy for the General Fund, Bonded Debt, and Capital Improvements. The Committee then reviewed the 1998 and 1999 tax rates of other Ramsey County cities. It was pointed out that the City's rate is currently ranked #15 for taxes, with #1 being the lowest of the 21 Ramsey County cities. In applying tbe Debt Levy Committee's recommendation, Little Canada would rank #10 of the 21 Ramsey County cities. Finegan reviewed the percentage of the tax bill that goes to each jurisdiction, notin~ that School District #623 received 43%, the County receives 36%, the City 15%, and miscellaneous jurisdictions receive 6%. Finegan noted that the Committee's recommendation applies to the City's portion of the tax bill that is the only portion of the total tax levy the City has a chance to impact. Duray indicated that the committee looked at the dollar return to taxpayers if the entire debt levy reduction were returned to taxpayers. Using a 1999 median value home of $116,000, that return would be $160. The committee felt that while this was a significant sum to most taxpayers, returning it in its entirety would not be the most prudent course of action. Problems with returning the entire debt levy reduction were identified as the need for future levy increases to