CC MINUTES 09271988 - Laserfiche WebLink

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City to Levy $4.770 Less in Taxes in 1989 Than in 19886 2 The meeting had been recessed at 8:23 P.M. and resumed at 8:31 P.M. when 3 the public hearing to consider the proposed 1989 City budget was opened. 4 Notice of the hearing had been published in the September 14th Bulletin. 5 Mr. Childs reported the above decrease in the amount to be levied had 6 been based on the new Tax Capacity Rate formula established by the 7 State Legislature during their last session. Because the 1988 levy had 8 been based on mill rates, the City Manager indicated he had been unable 9 to estimate what the average St. Anthony taxpayer would have to pay in 10 actual taxes which would depend on the amounts the other governmental 11 bodies like the counties, school district and taxing agencies levy. Mr. 12 Childs said further: 13 *one of the key reasons for the decrease had been the increase in 14 state aids to local government which, barring state revenue shortfalls 15 such as occurred in 1981-82 and 1983, should cover some of the cost 16 increases the City experienced in 1988; 17 *most cities consider the year 1990 to be an unknown because that's 18 the year the legislature would be taking away the Homestead Credit; 19 *some municipal officials he's talked to expect that not to be a 20 problem but he personally has some concerns which won't be erased until 91 he's seen the actual numbers for state aids and levying limits for 1990; t2 *the 1989 budget shows the Water and Sewer Funds as at least breaking 23 even or perhaps even with some minor profits, which would reverse a 24 multi-year trend of running deficits in those funds in the past. 25 The City Manager advised the Council that they had until October 20th 26 to adopt the budget but since no major changes are expected before that 27 time, there would probably be no reason for putting off that decision. 28 He added that the Council would be able to make modifications to the 29 budget in the future but the amount of taxes levied cannot be changed 30 after October 20th. 31 Possibility of State Aids Again Being Reduced by Legislature Haunts 32 Council 33 Mayor Sundland indicated he perceived a possibility that the Homestead 34 Credit removal might be reversed during the next session, noting that 35 most of the candidates running for the legislature had reopened the 36 issue during their campaigns. Councilmember Ranallo reported the issue 37 of State Aid to Local Governments and the substitution of Transition Aid 38 for Homestead Credit for one year had been generating a lot of 39 conversation during the regional meetings of the League of Minnesota 40 Cities he had been attending throughout the state. The Councilmember 41 said he had gotten the same impression as the Mayor had, that ^2 modification of that legislation was quite possible during the next 10