12-16-09 Council Minutes - Laserfiche WebLink

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MTNUTT?S CITY COUNCIL DUCEMBER 16, 2009 certifying LGA to cities and subsequently unalloting that aid. The Director pointed out the City Council's aotions in not completely depending on LGA for budgeting purposes. She indicated that it appears that LGA will continue to be volatile in the future given work on an LGA formula change as well as the State's continuing budget problems. The Director reviewed additional information that included the City's historical tax rankings over the past 20 years going from 18°i lowest tax rate in 1990 to 5`~' lowest in 2010 out of 19 jurisdictions. Little Canada's per capita. spending in 2007 as based on the State Auditor's Summary, was 4°' lowest in the County at $327 per capita. The Director then reviewed the allocation of City property taxes on a median valued residential home ($209,800), noting that the City portion of taxes for 2010 will be $435.02. She then compared City property taxes for residential properties receiving no valuation change, a 10% valuation decrease, and a 5% valuation increase. The Director noted the City tax impact on commercial/industrial properties with a 5% valuation increase. The Finance Director reported that the taxingjurisdictions in Little Canada are the City, School Districts (623 or 624), Ramsey County, and Special Taxing Jurisdictions. The City portion of the property tax bill on a median valued home is 22%. The County makes up 48%, School District 22%, and Special Taxing Jurisdictions 8%. The Director then reviewed the allocation of total property taxes on a median valued residential home, a residential home with no valuation increase, a residential home with a 10% decrease, a residential home with a 5% valuation increase, and a commercial/industrial property with a 5% valuation increase. 'The Director concluded her presentation noting that issues that will require continued attention next year and future budget years include the State budget deficit and its impact on cities, the slow recovery of the economy, and fluctuating energy prices. She again noted that the proposed 2010 Budget calls fora 3.41% Gross Levy increase. The Director indicated that staff will continue to monitor the State Budget situation and the potential for additional LGA cuts. Blesener reported on his discussions with the Finance Director on the State Budget deficit and the potential for futm•e unallotments. He noted that the Governor has indicated that he would not ma]<e additional unallotments in 2009. However, given the projected deficit in the State's budget, Blesener felt the City needed to take a proactive approach and ` prepare for additional unallotments. The City Administrator noted the confusion to property owners when a property's valuation decreases and their property tax bill remains the same or increases. He noted the combination of decreasing property values and 9