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MINUTES CITY COUNCIL NOVEMBER 1, 2000 The City Administrator pointed out that while the City's tax rate is decreasing, due to our tax base growth. However, he also noted that many homes in the City are seeing valuation increases between 10 and 20 per cent. Therefore, even with the lower tax rate, property owners will likely see increases in the City's portion of property taxes. The Administrator showed the impact on property taxes for a $160,000 house whose valuation increased by 20% to $192,000. The Administrator pointed out that the County has tried to maintain property values at 95% of market values. Given recent sales information, market values of residential property have increased dramatically. The Administrator indicated that commercial property values have not increased as much, therefore, given the decreased tax rate, the City's share of property taxes on commercial property is likely to decrease. The Administrator indicated that while a lot of cities focus on their tax rate, Little Canada has focused on the net levy and what the actual impact is on properties. Morelan pointed out that the City has control over the net levy, not the tax rate nor property valuations. Morelan asked if the Administrator is estimating the City's tax collection rate at 97% which includes HACA. The City Administrator replied that he was using a 97% tax collection rate for projecting revenues. (97.5% plus 100% HACA collections.) Fahey asked if there were any adjustments that could be made to the Sheriff's portion of the budget. The Administrator indicated that it did not appear that adjustments could be made, pointing out that the sentiment is to continue the DARE program. There has been discussion that the effectiveness of DARE could be increased by including a program as part of middle school. However, it does not appear DARE will be expanded into that age level within the next few years. It was also pointed out that the School District is using some of the funding that was originally used for DARE to fund community services officers in the schools. Scalze suggested that the City lobby the Legislature regarding the restriction of these funds to the DARE program. The Council reviewed the City Attorney's budget request noting the increased activity in prosecutions which is the basis of the City Attorney's request for an increase in his retainer. The City Administrator reported that he has requested additional information on prosecution activity over the past three -year period. Fahey instructed the City Administrator to ensure that the increased prosecution activity ties to the amount of retainer increase being requested. PAGE 2