10-14-09 Council Workshop - Laserfiche WebLink

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MINUTES CITY COUNCIL OCTOBER 14, 2009 McGraw suggested that if LGA is lost the City would not be looking at a large levy increase, but rather a reprioritization. The Administrator agreed, but noted that it will depend on how deep the State cuts. Ile noted that in addition to eliminating LGA, the State can reduce or eliminate the Market Value Homestead Credit. He further noted that the City's building permit revenue is down, however, the City always budgets this revenue conservatively. The Administrator felt that 2010 and 2011 will be manageable for the City, but expressed concern beyond that point. He noted that the City is already running very conservariveiy. Keis noted that Little Canada is in a much better position than a lot of cities. The Administrator agreed, noting that the City is proposing a levy increase of just wider 5%, while the Ramsey County average is over 5% and some substantially so. There may be the need for cities to re-evaluate service delivery options. Blesener noted the Parkland Acquisition Fund balance, and suggested that future park projects may have to be paid for from that fund. The Administrator noted that acquisition needs include the remaining Round Lake properties the cost of which is easy to estimate. "there are also trail right-of-way needs which are more difficult to cost estimate. Keis noted that while the preliminary levy amount is just under 5%, the goal is to work toward reducing that amount for the final budget. Keis asked the cost of a 1 % reduction. The City Administrator estimated it at $25,000 to $26,000 and suggested that there may be sufficient savings in areas such as the Sheriffls Department contract as well as a League of MN Cities insurance dividend, that will help to achieve the 1 % reduction. Blesener suggested that another budget workshop meeting be held prior to f nal budget adoption which will occur at the December 16, 2009 Council Meeting. The City Administrator also noted that given the property valuation changes for Little Canada, even a 5% increase in the levy will result in most residential property owners seeing a reduction in City property taxes. The Administrator indicated that the City is in a unique position because of this value reduction which provides some additional flexibility. He agreed that the goal is to get the levy as low as possible without negatively impacting the City. The Administrator indicated that the next budget workshop will likely be held in late November. 5