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MINUTES <br />CITY COUNCIL <br />NOVEMBER S, 2006 <br />was noted that if RFP's are done in 2007, savings would not likely be <br />realized until 2008. <br />Blesener noted that another option would be to re-negotiate existing <br />contracts. <br />The Council discussed the use of a portion of 2006 surplus funds to buy- <br />down the 2007 levy with the remaining surplus to go into reserves. <br />Blesener noted ChaC this surplus is the result of extra-ordinary income and <br />cost-savings that the City realized in 2006 given high building permit <br />revenue and cost control measures. Blesener also noted that the City is <br />currently paying for an extra traffic car during the Unweave the Weave <br />project to minimize traffic problems within the City. He anticipated that <br />this expense would continue in the future as the City will have become <br />used to tighter traffic controls. <br />The Finance Director noted that the key highlights that result from the <br />changes discussed are as follows: <br />The gross levy decreases by $10,042 which results in a 3.59% levy <br />increase. <br />The net levy decreases by $10,402 which results in a 3.49% levy <br />increase. <br />The City's tax rate will be 21.369% in 2007 compared to 21.373% <br />in 2006, which is essentially no change. <br />The Finance Director then reviewed some other Budget related issues. <br />She first noted that an additional reduction of $9,500 in the 2007 Budget <br />would result in a net levy increase of approximately 3%, <br />The Director reviewed the impact thaC the Limited Market Value Program <br />has had to soften property tax implications associated with the shift in Tax <br />burdens from commercial property to residential property that was part of <br />the 2001 Property Tax Reform. This Program has also held back a lot of <br />the impact associated with the rapid rise in residential property values that <br />occurred from 2000 through 2005. The Director noted Chat the Limited <br />Market Value Program is scheduled for completion in 2010, but the <br />impact of the phase out will be evident on 2007 property tax statements. <br />The Director noted that over 63% of residential homes in LitCle Canada <br />had limited taxable values well under their estimated market values in pay <br />2007, these homes will see approximately I S% increases in their taxable <br />values. Therefore, the impact of the City's levy increase will be higher <br />than the stated net levy increase percentage. The Director reviewed <br />4 <br />