Agenda Packets - 1997/09/29 - Laserfiche WebLink

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City of Mounds View Staff Report September 26, 1997 Page 2 sale of anyequipment would result in a one-time ment q p cash inflow to the City. The long term impact of such action would need to be evaluated in great detail to determine its impact on the level of service and the cost of such service. • Decertify existing tax increment districts or return portion of increment received. If all or a portion of the existing tax increment districts are decertified, the tax capacity rate for the city would be reduced slightly, however, the amount the City is able to levy would not increase (the City is required to set a dollar levy from which a tax capacity rate is established). Also, since approximately 82% of the taxes collected on property in Mounds View is paid to other jurisdictions, the impact on the tax capacity rates would be minimal. The City would not have these funds available for future development or redevelopment projects and if future districts would be established, they would be governed by new statutes which are more restrictive than those that govern our existing districts. Another option is to return some of the increment collected to the County which then distributes such funds back to the City, County and School District. Any amounts returned do not affect tax levies therefore increase funds available for general fund uses, however, the City only receives approximately 20% of any amount returned. We reserve, however, the district and the increment for future years. • Eliminate programs and services. Staff has prepared a listing of various services that could be considered for reduction or elimination. Most of the items on the list need additional discussion to adequately explain the long term impact on the city if such reductions are adopted. Some items are postponements for the replacement of items and . would still need to be replaced within the next several years; until the item was replaced, the City may spend as much or more on maintaining the item as it would have cost to replace it. Some items will impact other areas or services or may result in an increase in complaints against the City. Some items could affect property tax values, the ability to attract new businesses, quality employees, etc. • Expand the City's tax base. Attempt to expand the City's tax base through aggressive economic development projects. While this will not increase the amount the City is able to levy, it will lower the tax rates which will lower the amount of property taxes individual properties pay. • Keep the franchise fee in some form. Consider keeping the franchise fee at the existing rate, at a lower rate, or establish a phase out of the franchise fee over a period of time. This would allow more time to plan for changes in operations, and to allow for more input from the community relating to the level of services they desire and the preferred methods to fund such services. • Combination of several of the above. Most of the above suggestions are not mutually exclusive and it may be prudent to consider several of the above items to effectively deal with the long term needs of the community. •