CC RES 03-102 A RESOLUTION SETTING THE CITY OF ST. ANTHONY 2004 TAX LEVY AND BUDGET IN COMPLIANCE WITH THE TRUTH IN TAXATION ACT

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MEMORANDUM • DATE: December 1, 2003 TO: Mayor and Councilmembers FROM: Mike Mornson, City Manager ITEM: CERTIFICATION - 2004 BUDGET AND TAX LEVY State mandated truth in taxation laws require Cities to provide Hennepin and Ramsey Counties with a certified 2004 Budget and Tax Levy. This years General Fund budget totals $3,776,400 compared to $3,844,600 for 2003, which represents a $68,200 dollar decrease or 1.77% less. It should be noted that the 2004 budget consists of no new staff positions or programs and was modified to adjust to a ($267,348) reduction in Local Government Aid. The changes and adjustments in the Budget include: 1) Budget Cuts and Adjustments $ 26,500 2) Permanent reduction in P/W position $ 30,200 3) Eliminate 1 Community Service Officer $ 10,400 4) Additional Expenditure Reductions $ 64,700 • 5) 60% Levy Back for LGA Loss $160,409 To insure that Cities would not simply pass on their LGA reductions, the State imposed levy limits for all Cities. St. Anthony's levy limit for 2004 consists of taking last years budget levy and adding 60% of the loss in State Aid. A breakdown is as follows: 2003 Budget Levy $2,168,627 60% LGA Loss $ 160,409 2004 Levy Limit $2,329,036 The City portion for a property with taxable value of$200,000 is equal to $942.80. This represents an increase of$172.24 for a property whose taxable value last year was $183,900. A review of the increase is as follows: 1) Budget $40.23 2) Roads ($ 5.04) 3) Fire Truck $24.41 4) Public-Works Facility $66.04 5) Fire Station $46.85 6) Tax Abatement ($ .23) • 7) PERA Rate Increase ($ .02) When looking at a breakdown of the 2004 increase, the majority of the increase($137.30 or 79.7%) is for the debt issued for new fire truck, the new public works facility and the new fire station.