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City Council Truth in Taxation Hearing Meeting Minutes • November 30, 1994 Page 2 1 A St. Anthony resident asked what the annual income to the Police Department will be from 2 Lauderdale. 3 Councilmember Enrooth stated that the General Fund will receive $140,240.00 annually from 4 Lauderdale for Police Department services. 5 Roger Larson, Finance Director, stated that the City of St. Anthony has a balanced budget of 6 $2,812,370.00. He explained where the revenues in the City of St. Anthony come from. He 7 stated that the certified levy makes up a significant portion of the revenue of the City. He then 8 explained the community tax base for the City of St. Anthony. He stated that 71% of St. 9 Anthony's tax base is residential, 14.3% is derived from apartments, 13% is derived from 10 commercial and industrial, and 1.8% is from other sources. He explained that this shows that 11 the residential portion of the tax base in St. Anthony is a significant factor in the overall tax 12 base. 13 Fire Chief Richard Johnson asked how the percentages have changed since the State of 14 Minnesota changed it's formula 5 years ago. Larson displayed a pie chart which illustrated that this had no effect on residential or q61 apartments but the reduction in L.G.A. did effect the tax burden. He explained that the State 17 basically changed the tax structure for industry and commercial by gradually decreasing their 18 tax rate in an effort to keep business in Minnesota. 19 Larson explained that based on the current levy proposed to be certified, the tax rate has 20 decreased from 26.442% in 1994 to 25.932% in 1995. He displayed a chart which illustrated 21 what taxpayer's money is used for in the budget with the highest contributions going to the 22 Police Department and the Fire Department. 23 Mayor Ranallo explained that without commercial and industrial developments to increase the 24 tax valuations, there would have to be cutbacks made. He explained that at the current time, 25 two full-time firefighters employed by the City would have to be cut and the calls handled by 26 part-time reserves. He stated that 75%-80% of the fire department's calls are medical and it is 27 crucial to maintain these full-time employees. 28 Fire Chief Johnson indicated that 93% of the fire department's expenses are personnel costs. 29 If any budgets cuts were made, they would involve personnel cuts. 30 Larson explained that there has been no change in the commercial tax capacity. The City's 31 goal for the past two years has been to increase the commercial and industrial tax base. At the present time, the City of St. Anthony is highly dependent on the residential taxpayer. Increasing the commercial valuations would decrease the residential tax base.