Agenda - Council Work Session - 08/22/2017

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:es 24 percent property tax hike, says it's a cost s... http://www.startribune.com/st-paul-mayor-proposes-23-9-percent-tax-... The Minnesota Jobs Coalition had a different take. "Today's announcement is proof positive that Minnesotans can't afford Coleman's out of control spending," John Rouleau, executive director of the Republican -leaning coalition, said in a statement. Council members will consider Coleman's plan over the next few months and might make changes. The City Council adopts the budget and tax levy in December. The council has asked staff to analyze the impact of shifting all street maintenance costs to property taxes, which would further increase the levy. Council Members Amy Brendmoen and Rebecca Noecker said Tuesday they want all the data before them and wouldn't necessarily take that approach. Coleman's budget shifts $20 million of those maintenance costs to taxes. But he wants to continue to collect about $10 million through assessments that city staff say are legal under the state Supreme Court's ruling. St. Paul leaders' budget decisions are just one aspect of taxpayers' final bills. Ramsey County and the school district also make taxing decisions and the changing real estate market is driving up home values — and how much some people pay in property taxes. The median value of a single-family home in St. Paul is estimated to increase by $12,700 to $173,900 next year, according to Ramsey County budget documents. Hodges finalizing budget In Minneapolis, what Hodges' levy means for people's tax bills will vary by the type of property and its value. It is the second year in a row that Hodges has proposed raising the levy by 5.5 percent. For an owner -occupied home worth $166,500, Hodges' budget recommendation will raise the city portion of the property tax bill by $61, or 7.3 percent. An apartment building worth $5 million will pay $2,346 more in property taxes, or 6.5 percent. The police and public works departments will get 7.2 percent and 8.3 percent increases, respectively, in funding under the proposed budget. In a statement Tuesday, Hodges noted the city's continued funding for a 20-year street and parks maintenance plan. Hodges will share her full budget proposal and give a speech about it Sept. 12 at City Hall. "The fiscal health of our City is strong, but we have more work to do in order to fulfill the promise of One Minneapolis for all of our neighbors," Hodges said in a statement Tuesday. "I look forward to sharing more of my vision with Council Members and our residents." Jessie.VanBerkel@startribune.com adam.belz@startribune.com 612-673-4405 adambelz 2 of 2 8/17/2017, 8:39 AM