11-26-2003 Council Agenda - Laserfiche WebLink

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MEMORANDUM TO: Mayor Fahey & Members of the City Council FROM: Joel Hanson, City Administrator DATE: September 5, 2003 RE: Suburban HRA Levy Attached is correspondence from the Ramsey County Board /HRA dealing with the possible enactment of an $805,800 levy over suburban communities to generate funds for economic development /housing initiatives within each community. The proposed distribution of the levy dollars is also attached. To that end, Little Canada would get $35,000. I believe this issue has gained increased attention by the County due to an initiative this past legislative session by members of the I -35W Corridor Coalition. It is my understanding they attempted to gain levy authority to address the needs of their group. Some members of the County Board felt the County HRA could better serve that role by addressing the needs of all suburban communities. In reading the minutes from the August 4th meeting, it appears consensus has not been attained. From our perspective, we would appear to be a slight gainer in terms of the $35,000 we would receive versus what would be collected from our property taxpayers ($35,000 is 4.34% of the suburban tax capacity while our tax base is 3.82% of the suburban total.) I feel the concerns with this concept are as follows: • Impact to taxpayers, especially in today's environment. • Each jurisdiction has the ability to do this on their own. • The County is proposing 4.34% administrative fees on the money collected that would be avoided if we did this on our own. ($35,000 of the $805,000 collected.) • 2000 population figures are being used. We are very close to the 10,000- population figure and should exceed it in the next couple of years yet we will likely not receive an adjustment in the formula. A growing city will contribute more in terms of taxable value as time goes on but may not see a corresponding increase in the funding level. • The per capita allocation seems to penalize us a bit when compared to the group of cities in the next largest category. (See hand written figures on distribution sheet attached.) It appears the County is going to include this levy in their preliminary certification and then continue discussions before deciding if they will certify it as part of the final levy process. I thought we should have an initial discussion so I know how you would like me to react to this concept. cc: Commissioner Wiessner 2