Minutes - Council - 12/01/2003 - Truth in Taxation

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TRUTH IN TAXATION CITY COUNCIL CITY OF RAMSEY ANOKA COUNTY STATE OF MINNESOTA The Ramsey City Council conducted the annual Truth in Taxation public hearing on Monday, December 1, 2003, at the Ramsey Fire Station No. 1, 15050 Armstrong Boulevard NW, Ramsey, Minnesota. Members Present: Mayor Thomas Gamec Councilmember Todd Cook Councilmember David Elvig Councilmember Patti Kurak Councilmember A1 Pearson Councilmember Gerald Zimmerman Members Absent: Councilmember Sarah Strommen Also Present: Assistant City Administrator Heidi Nelson Finance Officer Diana Lund Director of Public Works/Fire Chief Dean Kapler CALL TO ORDER Mayor Gamec called the Truth in Taxation hearing to order at 6:02 p.m. He pointed out that this hearing is an opportunity to look at the budget for the next year - 2004. The City makes a formal presentation and after the presentation, citizen comment will be taken. Vinancc Officer Lurid presented information on the property tax levy, 2004 general fund budget, property tax statements, and how the tax dollar is broken out. She explained that the total levy for 2004 proposed by the City for this year is $5,082,764, which is a $291,860 increase from last year. That includes the lost $t73,930 in market value homestead credit which is the credit residents receive on their homes. Ms. Lund talked about and explained State mandated class rates for cities. She presented information relating to where the City of Ramsey falls with regard to taxes in comparison with other cities of similar size. Out of 21 cities, Ramsey ranked the 8th lowest. She showed prices of City services - police and fire, streets, etc. She explained about the 100% cut of Local Government Aid (LGA). Ms. Lurid explained how all budgets have to balance - the total General Fund budget equals $7,785,449. The revenue portion includes property taxes, investment earnings, payment for services, permits, etc. The property tax dollar is the biggest portion of the revenue (59%). The license and permits amount is based on 500 new homes - which include townhomes. State aid decreased the City's revenue by $203,000. The City needed to implement the franchise fee to balance expenditures to revenues. Ms. Lund referred to the expenditure side and the overall breakdown. The general fund budget is five categories: general government - 28%, public safety - 38%, public works - 17%, park and recreation - 8% and other - debt service interfund transfers. She continued through the general Truth in Taxation/December 1, 2003 Page 1 of 4