12-15-10 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL DECEMBER 15, 2010 amounts then received. She noted that for 2011, the City is can absorb a cut of $213,165 to the certified $324,966 of LGA should unallotment occur as a result of the current State Budget crisis. Montour asked the Director to explain LGA for the record. The Director indicated that LGA is provided by the State to help cities with basic needs. She noted that not all cities receive LGA, and suburban cities have been in an out of the program over the years, based on the application of an LGA formula. The Director noted that the Cities of St. Paul and Minneapolis receive significant LGA dollars as do most greater Minnesota communities. The Director then described the source of the City's 2011 revenues, noting that 70% comes from property taxes, 19% from intergovernmental sources, 8% from licenses and permits, 2% from miscellaneous sources, and 1% from fines and charges for services. The Director provided a highlight of 2010 General Fund expenses, noting that expenses are projected to increase by .5 which a Sheriff's Department contract increase of 3.9 Fire Department cost increase of 5.8 Attorney cost reduction of 9.9 and election cost bi- annual reduction of $8,915. Expenditures are comprised of 58% for public safety, 16% for general government, 13% for public works, and 13% for community services. The Director also noted that of the 19 Ramsey County jurisdictions, Little Canada is the fifth lowest in per capita spending. The Director reported that for 2011, the City's tax rate will increase from 23.389% to 26,502 or a 13.31% increase. Little Canada's tax rate will be 7 lowest out of 19 jurisdictions in Ramsey County. The Director noted that the City has been able to maintain a stable levy even in light of the State's LGA unallotment actions. The Director then reviewed the allocation of City property taxes on a median valued residential home ($197,950), noting that the City portion of taxes for 2011 will be $476.13. She reviewed historical changes in median values from 2001 through 2011. The Director then reported that residential properties that have valuation changes of 0% or less will see a decrease in property taxes, while properties with valuation increases will also see an increase in property taxes. The Director reviewed the County Assessor's report on median values for properties comparing 2010 and 2011, noting the shift in property tax burden to single family residential properties. She compared the City's portion of tax on residential properties with a 5% valuation decrease, a 0% valuation increase and a 5% valuation increase. The 4