11/30/94 Budget Public Hearing - Laserfiche WebLink

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of a new Police Officer and the new Public Works facility, plus the anticipated slowing down in building permit revenues. Ms. Hart presented a detailed breakdown of tax capacity rates and a flow chart of how the property tax is determined. She showed the actual class rates and the percentages they are based on. She detailed what the 1994 taxes were area-wide, and the City's share, and the 1995 taxes with no change in home value. If there are no increases or decreases or no class change you would have seen a base increase of 5.08 percent in the City's share. She commented that she used a 7 percent value increase as an example based on the phone calls she got - values increased from 3 percent up to 12 percent. That shows a 16.57 percent increase in overall taxes with the City's share being 18.4 percent, Based on the original estimate, we can only estimate based on the valuation we currently have. Ms. Hart called attention to the comparison of standard residential service charges and noted that the charge for refuse service had gone down. She estimated!that each resident receives about $700 in services for $250 in taxes. She briefly described the background of the aids the City receives. Ms. Hart also called attention to the personnel:complements which are full time equivalents. She commented that these are the basis for the City to anticipate its budget. Ms. Hart called attention to a single sheet handout with estimated property taxes - based on 1995 proposed tax levies. Ramsey rates 6th which is about in the middle. Ms. Hart stated that the last packet she handed out is a synopsis of the general fund budget. She stated that in preparing the 1995 Proposed General Fund Budget, the following objectives were established: Recognize the limitations placed on City activities resulting from limited revenue growth, maintain or increase the existing level of City services and programs, increase the tax capacity rate to a level adequate to provide for ongoing services and programs while continuing taxing levels comparable to or below that of surrounding communities, position the City financially such that stable revenues are identified for current and future capital programming and equipment replacement, and avoid deferring costs to future years. It is Staff's opinion that these objectives were considered and met in the preparation of this budget. She stated that the 1995 Proposed General Fund Budget, as presented, totals $3,186,676, with a proposed tax levy of $l,156,659. When combined with the debt service levy, the taxes proposed for collection in 1995 total $1,181,590, and equate to a tax capacity rate of approximately 19.4183 compared to 18.684 for payable 1994 taxes. Ms. Hart continued that the total dollar increase in taxes proposed is $200,957, of which $156,279 is generated by the increase in the tax base. The levy request includes an additional $44,678 generated by budgetary needs, including the addition of one full-time police officer in 1995. Various budget delays and reductions in certain areas were recommended by Staff to meet a balanced budget at this level of taxes. Ms. Hart stated that the parcel specific notices that were prepared and mailed by the County were done so utilizing the maximum levy as certified on September 15, 1994. Based on the maximum levy, the total taxes proposed for collection in 1995 would be $1,215,043, which equates to a tax capacity rate of approximately 19.968 as compared to the 19.4183, at the lower levy. The maximum levy would generate an additional $33,453 in tax dollars. She stated that the rest of the handout goes through the general fund budget major categories. Councilmember Peterson stated that Council has scheduled December 7, 1994, as a reconvene date for this public hearing if needed, otherwise on December 13, 1994, City Council will adopt the budget and levy rate. He stated to the audience that even if they do not have questions at this time, they are welcome to come in with questions at any time and also suggestions. Rick Mevisson, 8502 - 164th Circle N.W., Ramsey, wondered why his taxes went up 20 percent and inquired if that's the plan - to have taxes go up about 20 percent each year. Ms. Hart stated that the City's needs increased the property taxes by 5.08 percent. What caused the additional 15 percent increase was an increase in property value. That amount is not driven by the City. We certify a dollar amount and it is based on the value as given by the assessor. City Council/Budget Public Hearing/November 30, 1994 Page 2 of 6