12-21-11 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL DECEMBER 21, 2011 2012, 44% of the tax dollar goes to the County, 20% to the City, 8% to miscellaneous taxing jurisdictions, and 28% to the School District (623). With regard to issues that 2012 will bring, the Finance Director pointed out the issues of shifting LGA dollars to capital funds, LGA reform, and economic conditions. Blesener noted information presented on the City's share of taxes on a median value home, pointed out that the City provides services for $42.03 per month which include police, fire, and snowplowing. The elimination of the MVHC program and its replacement with the HMVE program was discussed. The City Administrator noted that under the MVHC the State paid directly to cities the offset of the credit that it granted on homes. However, tough budget times, the State continued to provide the credit to homeowners, but did not reimburse cities for these dollars. The Administrator indicated that elimination of the MVHC results in more budget controls for cities. The Administrator noted that the 2012 levy increase is at 0% and pointed out that the increase would have been 0% for 2011 except that the City levied an additional $100,000 for fire equipment replacement. The Administrator pointed out that the City is able to proceed with a 0% levy increase this year even though tough market conditions continue and the City's revenues are down due to dropping interest earnings and charitable gambling revenues, as well as decreased building permit activity. This is possible through the planning that has been done by the City Council and the City's strong financial condition. The Administrator also pointed out that budget surpluses have helped the City in times of uncertainty and allowed it to absorb the cuts that the State made in LGA. The Administrator noted that Little Canada is one of the lowest staffed communities in the Metro area and that City staff works hard and gets the job done. Two property owners appeared before the Council and expressed concern that since 2005 their property taxes have increased by 75.35 %, yet their property value has only increased by 9.3 %. One of these owners noted that given Little Canada's share of the tax dollar, their concerns should be directed to one of the other taxing jurisdictions. Concern was also expressed about the elimination of the MVHC, and its replacement with the HMVE program which shifts more of the tax burden to higher valued homes. The City Administrator agreed that the elimination of the MVHC shifted the tax burden to higher valued homes and commercial properties. He noted that the City sets its levy based on need, and explained that the City's tax rate is the result of dividing its levy by the tax base. 5