12-02-99 Council Workshop Minutes

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MINUTES CITY COUNCIL DECEMBER 2, 1999 improvement needs. The Committee also made recommendations for allocation of available dollars for the years 2001, 2002, and 2003. The Accountant reported that the City Council accepted the Committee's recommendation in September of 1999. The Accountant pointed out that as a result of the Debt Levy Reduction Committee's recommendation, the City's 2000 overall levy will decrease by $102,000, which will result in a slight tax decrease for all property owners provided the property valuation did not increase for payable 2000. Also as a result of the net levy reduction and modest growth in our tax base, the City's tax rate will decrease by 1225% to 18.854. This drop in tax rate moves Little Canada five spots down the list from 7°i highest of Ramsey County cities in 1999 to 121~' highest in 2000. Little Canada now drops below Arden Hills, Shoreview, Roseville, New Brighton, and Maplewood all of whom previously had lower rates. The Accountant pointed out that there are many jurisdictions that affect the calculation of a property tax bill. These taxing jurisdictions are the State Legislature which establishes propeity classes and class rates as well as the level of State Aids that cities receive, as well as the County, School Districts, City, and miscellaneous jurisdictions. Finally, the County Assessor is involved by assigning property classes and determining valuations. The Accountant pointed out that the taxing jurisdictions in Little Canada are the City, School District (623 or 624), Ramsey County, and Special Taxing Jurisdictions compromised ofthe Metropolitan Council, Metropolitan Mosquito Control, Regional Transit Board, and Ramsey/Washington Watershed District. The Accountant began a review of the City's portion of the property tax bill. She pointed out that in 1997 the State Legislature imposed levy limits on cities. Little Canada's 2000 limitation is $1,671,670. Tbe City's preliminary certified levy was $1,404,209, which is approximately $267,000 below the State-mandated levy limitation. The Accountant pointed out that the City has levied below the levy limitation each year since the enactment of these limits in 1997. After applying the City's fiscal disparities distribution, the Accountant pointed out that the proposed 2000 Budget results in an 82% net levy decrease. She noted that in the past seven years, the City has a small increase in taxes in two years, a 0% change in four years, and an 8.2% reduction for 2000. The Accountant reviewed a~raph showing that the City has had only modest increases in its gross levy since 1990 and that the net levy has been virtually flat during the same period. For 2000 both the gross and net levies are decreasing. This is a direct result of the Mayor & Council's efforts to hold the line on property tax increases.