12-21-11 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL DECEMBER 21, 2011 The Director then reviewed 2012 General Fund expense highlights noting that expenses are proposed to increase by 1.2 %. These increases reflect a 2.7% increase in the Sheriff's contract, 2012 election expenses added to the budget, a decrease of 59.4% in Little Canada Fire Relief Pension costs, a decrease in the Fire Marshall area of 18.3% due to a decrease in hours, an increase in the Animal Control contract costs as this service is being taken over by the Sheriff's Department, and the re- opening of the Demont skating rink. The Director noted that 56% of expenditures are for Public Safety, 17% for General Government, 14% for Community Services, and 13% for Public Works. The Director next reviewed a comparison of per capita spending based on the most current information available from the State Auditor (2009). Little Canada ranks 8'1' lowest of the Ramsey County cities. In comparing tax rate with Ramsey County cities, Little Canada is the 71h lowest, and has been 7'h lowest 6 of the past 7 years. The Director noted that this points to the City's efforts to maintain a stable tax rate. The Director then reviewed the impact that State tax law changes are having on Little Canada properties. She noted that the MVHC program provided tax credit to homeowners and was to reimburse local governments for lost property tax dollars. Given State budget problems, cut were made to the MVI-IC program which resulted in cities not receiving the credit reimbursement. The Director noted that the MVHC program has now been eliminated and replaced with the HMVE program. The HMVE program reduces the tax capacity for lowered valued residential properties and is designed to provide similar credits as the MVI-IC. The impacts of this new program are a reduction in taxable values on lower valued homes, elevation of tax rates, and a shift in the tax burden to higher valued homes and non - residential property. Next reviewed were 2012 residential property tax changes. Based on the City's tax rate and the 0% levy increase, 22.6% of property owners will see their total tax decrease or remain the same, 72.5% will see an increase of .1% to 10 %, and 4.9% will see an increase of 10.1% or more. The Finance Director noted that the City's median valued home is $199,300 which reflects a 10.3% decrease from last year's valuation. The Director then reviewed slides showing the impact on homes of varying values relative to Little Canada's share of the tax bill as well as relative to the total tax change. The Finance Director reviewed a slide showing the allocation of City taxes on a $199,300 median value home. City taxes are $504.40 annually, or $42.03 per month. Services that are provided for these dollars include public safety (police and fire), general government, public works (snowplowing), community services, infrastructure improvements, and capital improvements. In looking at the distribution of the tax dollar based on a median value home of $199,300 for 4