12-19-07 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL DECEMBER 19, 2007 The Administrator repotted that for 2008, the City will be the recipient of $225,000 in Local Government Aid (LGA). He noted that this was a total surprise as the City has not been on the receiving end of this aid for a number of years. The Administrator indicated that the chief concern is the volatility of this aid, given concerns with the existing formula. He noted that the City of St. Paul is losing $3 million in LGA. The Administrator felt that this will be a topic that is addressed by the Legislature in its next session. Therefore, the Administrator expressed concern with becoming dependent on these dollars. The goal of the City in the 2008 Budget process has been to set aside some of the LGA dollars for one-time capital costs which would alleviate a future tax burden. One example was to set aside dollars for the replacement of a fire truck. The City Administrator noted that even with the 4% net levy increase to the City's Budget, Little Canada's tax rate is dropping from 21.155 to 20.953. This will put Little Canada below North St. Paul and at the 7°i lowest taxing jurisdiction of the 19 in Ramsey County. The Administrator pointed out that several years ago, Little Canada held the dubious distinction of being the highest taxing City. There was no one present from the general public wishing to comment on this matter. Upon motion by Montour, seconded by Keis, the public hearing was closed. Ms. Allan introduced the following resolution and moved its adoption: RESOLUTION NO. 2007-12-327 -ADOPTING THE 2008 BUDGET AND TAX LEVY FOR THE CITY OF LITTLE CANADA IN THE AMOUNT OF $2,387,488 AS PRESENTED BY CITY STAFF The foregoing resolution was duly seconded by McGraw. Ayes (5). Nays (0). Resolution declared adopted. The City Administrator noted that for the first time in a number of years, the City has bonded debt that is levy supported. The debt is the result of the Viking Drive Project. He indicated that it was not the City's intention to support this debt tluough the tax levy, therefore, he proposed an equivalent reduction. The Administrator noted that the debt will be supported through grant dollars, County funds, MSA funds, as well as eventual land sale proceeds. The Administrator noted that with this action, the City will have no bonded debt that is tax levy supported. 10