Minutes - Council Work Session - 12/06/2011

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Councilmember Elvig agreed it is challenging to explain without a diagram. Finance Officer Lund displayed the slides that would be presented to the public that included the sample property tax statement, 2012 total levy of $8,413,798 and 2012 general fund budget of $9,648,075 showing a net levy impact of zero dollars. Councilmember Backous stated the press release seems misleading because while the slide shows the general fund budget increasing by $198,675, the press release says the levy was reduced. He noted that reduction was because of the TIF 1 decertification, not aggressive reduction of costs. Councilmember Backous supported an honest portrayal that the zero levy was the result of the TIF 1 decertification. Acting Mayor Wise noted staff has worked hard at getting to a zero net levy increase but agreed the press release could be reworded to include the TIF 1 decertification. City Administrator Ulrich stated staff will add language to the press release to better explain that the TIF decertification actually benefits property owners. Finance Officer Lund continued presentation of the budget slides describing the 2012 general n for the past six years, tax capacity fund budget and levy, expenditure comparison p y P y rate comparison from 1999 to 2012, and total levy including the general fund, EDA, debt service, taxable market value questions, special taxing districts, breakdown of proposed tax rates, and tax capacity for the Anoka and Elk River School Districts. Finance Officer Lund displayed a slide of the 2012 preliminary levy summary between 2011 and 2012. Overall the change in the levy is $285,189 representing a 3.51% increase; however, the TIF #1 decertification comes back on line in the amount of $285,189. She also displayed a handout explaining the 2012 legislative change in market value homestead credit. Councilmember Elvig questioned whether presenting both the video and slides relating to homestead market value exclusion is "overkill." Councilmember Strommen noted staff can refer back to the video if it is shown before the slide presentation. The City Council agreed with the suggestion of City Administrator Ulrich to imbed the video into the PowerPoint at this point in the presentation and remove the redundant PowerPoint slides. Finance Officer Lund completed the slides that will be presented to the public identifying an example of the homestead market value calculation that will follow the video, ranking of Ramsey's tax rate in the metropolitan area and with Anoka County cities, and 2012 notable budget items and highlights. Finance Officer Lund displayed a pie chart identifying the source of general fund revenues and expenditures as well as expenditures by function. She indicated consideration of the budget and levy will be before the City Council on December 13, 2011, and staff's presentation will be City Council Work Session / December 6, 2011 Page 2 of 12