12-19-2012 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL DECEMBER 19, 2012 The City Administrator stated that before beginning the Truth In Taxation presentation he wanted to commend the City's Finance Director on her work with the 2013 Budget. He noted that the Finance Director began her employment with the City at the end of July and had to learn the City's budgeting process and put together the 2013 Budget in a short period of time. The City Administrator began the 2013 Budget and Tax Levy presentation by reviewing the entities that determines property taxes in Little Canada. The first jurisdiction is the State Legislature in establishing property classes and class rates, determining levels of State Aid, and imposing mandates. Additionally the varying taxing jurisdictions determine their budgets and set their respective levy amounts. Finally, the County Assessor determines market values and assigns property classes. The taxing jurisdictions in Little Canada include the City, School District (623 or 624), Ramsey County, and special taxing jurisdictions made up of the Metropolitan Council, Metropolitan Mosquito Control, Regional Rail Authority, and Ramsey /Washington Metro Watershed District. The Administrator pointed out the key budget objectives focused on by the City Council and staff in setting the City's budget. These are: Balance the General Fund; Eliminate General Fund reliance on Local Government Aid; Maintain services and programs; Fund infrastructure repairs /replacement; Maintain facilities and equipment; Meet debt obligations; Maintain AA Bond rating; Preserve parks and open spaces; Position the City to address future challenges and opportunities; Stabilize the tax rate. The Administrator reported that there are several key factors that impact the City's tax rate. One factor is that the tax rate will increase from 28.062% to 30.855 %, a 9.95% increase. Therefore, despite the City's small levy increase proposed at 1.97 %, the tax rate is increasing due to a lower tax base (5.93 %) and a reduction in Fiscal Disparities Distribution of $25,899. However, even with those impacts, Little Canada's 2013 Tax Rate will continue to be the 7th lowest out of 19 municipal jurisdictions in Ramsey County. The Administrator then presented a chart comparing the City's proposed 2013 tax levy with the 2012 tax levy, net impact of which is a 1.97% increase. The next charge compared tax base and rate from proposed 2013 to 2012. The 2013 tax base shows a 5.59% decrease, the tax rate a 9.95% increase, and fiscal disparities a 6.80% decrease. 5