Laserfiche WebLink
<br />Councilmember Heineman stated residents with a home value of $336,000, or 81% of Ramsey <br />homeowners, will see no real difference in taxes. <br /> <br />Councilmember Heineman stressed the importance of having an honest conversation about this <br />issue. He requested feedback and comment from Finance Director Lund. He added it will be <br />important for residents to understand the implications of having a franchise fee, as opposed to <br />raising taxes by 15%. <br /> <br />Mayor Kuzma asked whether there would be assessments. <br /> <br />Councilmember Heineman stated there would be no assessments, as the burden of road funding <br />will be on the general levy, and not on the franchise fee. <br /> <br />Finance Director Lund reviewed the 2022 preliminary budget levy, with a general fund levy <br />increase of 5.45%, including roads, EDA and debt service. She added the 5% increase as proposed <br />by Councilmember Heineman would represent a further reduction in the general fund of $53,000. <br />She noted the road levy, or 15% of the general levy, would provide $1,673,227 for roads. <br /> <br />Councilmember Woestehoff stated the 15% road levy was in the CIP for next year’s roads projects. <br /> <br />Finance Director Lund stated next year's CIP is approximately $1.947 million, with $74,000 <br />reimbursed later for special assessments franchise fees. <br /> <br />Finance Director Lund reviewed three options for the general levy: <br />1. 5.45% general fund levy increase with no other funding, for an overall levy of 5.29%, <br />including debt service and EDA budget. <br />2. 5.45% general fund increase and an additional $1.637 million for roads funding, for a total <br />increase of 18% <br />3. Councilmember Heineman's proposal for a 5% general fund levy increase and $1.637 for <br />roads, for an increase of $2,311,471. <br /> <br />Finance Director Lund stated the difference between options 2 and 3 is $53,000. <br /> <br />Finance Director Lund stated the County provided a taxable value for 2022 of $30,936,000, <br />including $350,000 from de-certification of TIF District #8. She added this is a good estimate at <br />9.6%. <br /> <br />Finance Director Lund reviewed the pavement management fund, with an estimate of $1.5 million <br />by October if road projects are to be completed. She added the estimated $1.9 million in roads <br />projects leaves a balance of $300,000, for a total of $1,206,298. She added the roads levy for 2024 <br />is $1,846.170 with a 5% levy increase. <br /> <br />Councilmember Heineman stated the balance appears to decrease every year except 2024-2025. <br /> <br />Finance Director Lund confirmed that the fund begins to increase in 2024 or 2025, but roads <br />projects will be held constant at 1.9%. <br />City Council Work Session / August 24, 2021 <br />Page 2 of 19 <br /> <br />