11-23-09 Council Workshop Minutes

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MINUTES CITY COUNCIL NOVEMBER 23, 2009 conditions should eliminate the additional Rice Relief Association payment that the City had to make for 2010. Other items include the possibility of increased building permit revenue, stabilization/restoration of LGA or further unallotments, the phase-in of increased policing costs ending in 2011, and inflation. The Director also noted that she just learned that Comforts of Home may be applying for a building permit in December of 2009, which will increase this year's building permit revenue. The Director noted that based on the County's Truth In Taxation information which was put out early last week, Little Canada is projected to haue the 6°i lowest tax rate in the County, based on preliminary levies certified in September. Lowering the City's levy from the 4.98% certified in September could drop the City's tax rate lower and possibly put Little Canada at 5`" lowest. 'This would be the lowest relative ranking achieved by the City in recent memory. However, the Director cautioned that other Ramsey County cities may be lowering their levies as well. The Director then noted the impact of tax rate changes by other taxing jurisdictions has on property owners' total tax bills pointing out that School District 623 is projecting a 9.8% tax rate increase and School District 624 a 8.8% increase. Blesener noted that decreasing property values result in an increase in the City's tax rate. The Director reported that this is correct and reviewed for the Council the County Assessor's report on median values for residential properties in Little Canada as well as County-wide. She also reviewed an exhibit showing a comparison of changes in Little Canada values fi•om 2007 to estimated 2010 by type of property. Blesener noted that one of the decision items this evening is whether or not to utilize the additional $8,702 in revenue increases/expense reductions to lower the gross levy. Blesener asked if the City is utilizing all its LGA (after unallotments) in the General Fund. 1 he Director reported that the City is utilizing about $200,000 in LGA in the 2010 Budget. Blesener noted that additional LGA formula changes or unallotments could result in additional LGA monies to Little Canada and could result in the need to make drastic budget cuts. The Director agreed, but noted that the City has revenue from the electric franchise fee as well as the potential that an improved market will eliminate the need for additional contributions to the Fire Relief Fund. The Administrator indicated that the City has absorbed $300,000 in LCiA cuts in the 2010 Budget. IIe also noted that the almost 5% gross levy increase certified for the preliminary 2010 Budget was slightly below average for Ramsey County cities. Additional steps taken to control costs include a pay scale salary freeze for 2010, and the fact that employees' 2