12-19-2012 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL DECEMBER 19, 2012 In comparing tax rankings among Ramsey County cities, Little Canada is the 7th lowest out of 19 jurisdictions. The Administrator presented a chart and graph showing these comparisons. The Administrator then reported on 2013 residential property tax changes, indicating that 52.8% of Little Canada parcels will see a decrease or no increase in total tax, 44.4% will see a .1% to 10% increase, and 2.8% of properties will see tax increases of 10.1% or higher. Next the Administrator explained the allocation of City taxes on a median valued home in Little Canada ($205,350). The total City tax bill for a median valued home would be $633.61 in 2013, or $52.80 monthly. This tax covers the cost of public safety (56 %), general government (15 %), public works (11 %), community services (12 %), infrastructure improvements (6 %), and debt service (0 %). For residential properties with no valuation change, property owners will see a 9.95% increase in their property taxes given the corresponding increase in the City's tax capacity rate. Residential properties with a 5% valuation increase will see a 15.45% increase in property taxes, and residential properties with a 10% valuation decrease will see a 1.04% decrease in their property taxes. With regard to the 2013 total property tax distribution on a median valued home, the County accounts for 44.24% of the tax bill, the City 20.95 %, School District 27.11 %, and miscellaneous jurisdictions 7.70 %. hn looking at future impacts to property taxes, the City Administrator noted that the State's budget deficit is projected to be $1.1 billion. The result of this in time will likely be Local Government Aid (LGA) impacts and possibly reform. The Administrator also pointed out the City's goal to eliminate reliance on LGA and direct any LGA dollars the City might receive to its capital funds. The Administrator also pointed out the condition of the economy and its impacts on local governments. The Administrator concluded his presentation indicating that the 2013 Budget will be posted on the City's website. He indicated that if property owners have any questions, they can contact City staff. In addition to the information presented in the Truth In Taxation presentation, the Administrator noted that 2013 General Fund revenues are projected to decrease by .25% while General Fund expenses are projected to increase a little over 2 %. He noted that one factor that helped in the budgeting process is that the Sheriff's Department contract increase for 2013 is at only 1.17 %. The Administrator noted that the City Council will be reviewing and adopting the Water and Sewer Budgets in the first quarter of 2013. With 6