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MINUTES <br />CITY COUNCIL <br />SEPTEMBER 8, 1999 <br />1.2%. <br />The City Administrator reviewed the City's tax rate analysis that was <br />recently revised using updated tax rates received from Ramsey County. <br />Based on those rates, the City may drop from a rank of 16 to 9 out of 22 <br />cities with the ranking being lowest to highest. This will put Little <br />Canada's ranking just below Arden Hills. <br />The Administrator reported that the proposed budget has a deficit of <br />$4,184. He reported that he has put together a list of options the Council <br />can consider to eliminate this deficit. <br />The Administrator reported that the City's State mandated levy limits is <br />$1,671,670. The proposed budget is below these limits by over $250,000. <br />He went on to explain that while the City's HACA payment will increase <br />by $13,648, the City's net aids decrease by $6,157. LPA was eliminated <br />and rolled into LGA. A new aid, Low Income Housin~ Aid, was added <br />totaling $13,738. LGA after the addition ofthe LPA amount decreased by <br />$8,314. Part of that decrease is attributable to the LGA/HACA penalty the <br />Presbyterian Homes project is subject to. This amount, $1,617, will <br />continue to rise over the remaining life of the TIF District. However, it is <br />offset by the reserve account that was established when the project was <br />initiated. <br />The Administrator projected a General Fund tax collection rate of 97%. <br />General Fund revenue are up by 6.7%, the bulk of this is attributable to <br />property taxes. <br />Scalze asked about the General Fund Reserve transfer of $53,962. The <br />Administrator reported that for 1999 the CounciPs decision was to set <br />aside reserve funds to offset the budget increase without raising taxes. <br />This amount is not being used in 1999. The need for it is eliminated in <br />2000 by following the DLRC's recommendation. In doing our General <br />Fund reserve calculation, this amount is now freed up. Pursuant to past <br />Council policy, it would then be transferred to the General Capital <br />Improvement Fund. Scalze su~~;ested using additional reserves to <br />eliminate the deficit. The City Administrator pointed out that these are <br />one-time transfers that do not provide an on-going source of funding. The <br />DLRC recommending eliminating the use of reserves and providing on- <br />going stable sources of funding. <br />Scalze pointed out that the City appears to have General Fund surpluses <br />every year. <br />The Council began a section by section review of the 2000 Bud~et. They <br />