Minutes - Council - 09/13/2004 - Laserfiche WebLink

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Finance Officer Lund replied these funds have been determined based on 2004 levies. Motion by Councilmember Elvig, seconded by Councilmember Kurak, to ratify the recommendation of the Finance Committee and adopt resolution #04-09-266 approving the recommendation of the EDA and approve the Proposed EDA Levy for Payable 2005 in the amount of $200,306, and to adopt resolution #04-09-267 approving the recommendation of the EDA and approve the Proposed HRA levy for Payable 2005 in the amount of $33,000. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Elvig, Kurak, Cook, Pearson, and Strommen. Voting No: CouncilmemberZimmerman. 3) Adopt Resolution Approving Proposed 2005 Payable Tax Levy Finance Officer Lund advised the proposed 2005 Payable Tax Levy is $6,037,237. Included in this levy is the EDA levy. With the EDA levy removed from the total, the levy represents a 14 percent increase from last year. Councihnember Elvig noted land values increased to 8.5 percent, which is what homeowners wou Id see on the tax statement. The Mississippi Subdrainage District Levy will only apply to 17 pin numbers. The other thing that is noteworthy is that this amount covers the loss of LGA, and there are no recommended franchise fees within the budget. Finance Officer Lund advised based on this levy amount of the $6,037,2376, subtracting the Mississippi Subdrainage District, and not including the EDA levy, a $200,000 home with an 8.5 percent market value increase for 2004 to 2005 would look at a $65 increase. With the addition of the EDA levy the increase would be $94 in City taxes on a $200,000 home. Councihnember Kurak stated it is important to understand the $72 that would have been paid on a fi~anchisc fee can be deducted from the $94. She noted the market value increase is set by the county; not by the City. Financc Officer Lund explained the homestead market value is being phased out, and the value will increase every year until the assessed value equals the market value. The value can actually be increased 12 percent to 14 percent this year and the homestead value should be phased out within the next five years. Councihnember Elvig stated first and foremost, this levy must be approved by September 15th. This is their first run at the budget and if they do not get enough dollars in this now they cannot raise it later; this has to be the highest amount they can approve. Also, the Council Update shows, in comparison with other cities, in 2004 the City of Ramsey is fifth from the bottom. This is a wonderful opportunity to raise a few dollars, but they are still staying very low in comparison to the cities in the metropolitan area. City Council/September 13, 2004 Page 13 of 29