Minutes - Council - 12/05/2005 - Truth in Taxation

Home

increase in use of parks. He stated the City is fortunate that RYAA program has donated money to help with the parks budget and has provided assistance. Mayor Gamec stated that City Hall did not receive increases in many areas. He stated that if the City had to, they would contract for some things. He stated the City's goal is to have roads cleared within 4-6 hours through the use of an equipment revolving fund. He stated that not unlike most people, the City is no different in seeing changes in health insurance costs. He stated the City is looking at unions and trying to stay within the market. He acknowledged that everyone knows salaries do increase. He explained that 3% is not always the case but that becomes kind of an average. Mayor Gamec stated that gas and utility payments cannot be projected. Mayor Gamec stated that the City used to receive money from sales tax in terms of Local Government Aid. He explained that the State completely wiped out homestead credit and LGA to the tune of about one half million dollars in the budget. He acknowledged that he is not completely unhappy about that, because the City should be able to run itself. However, he noted that neighboring cities are still receiving LGA because they are older. He stated that Ramsey's Local Government Aid cut wasn't as severe as other cities because the City is growing and revenues are coming. He explained that other things have been taken away from cities such as plan check fees of approximately an additional $300,000 in revenue for town homes. He stated that cities have continued to lobby the Minnesota Legislature and other elected officials to see what can be done to level this off. Mayor Garnet stated that the City has simply attempted to maintain the status quo. Bill Wright, 7884 142na Avenue NW, stated that he understood what was happening with gas increases, and expenses rising. He stated that as a retired person he doesn't get income increases. Mr. Wright stated he has been watching for the past six years and the City's overall valuation has gone up around 100%. However, Mr. Wright stated that in the past five years the average tax has gone up 6% per year. Mr. Wright stated that this year average taxes went up 18%. Mr. Wright stated that when he looks at the City of Ramsey, the increase was 23%. He explained that as a retired person on a fixed income this is difficult. He felt he would be in his house until someone took him out, but is now afraid of the future increases. Mr. Wright asked for clarification about how overall valuation of the house increases and increase in tax rates relate to each other. He also asked for an explanation about the overall monies coming into the City, which he felt had to be significant, given that his house was worth more. Ms. Lund stated that the amount that the City levies is what the City will collect. Ms. Lurid explained that tax capacity is based on what the City, County, and School District levied. She explained how tax capacity rates are calculated. Mr. Wright asked if the levies ever went down. Ms. Lund explained the City of Ramsey's tax rate was reduced between the years of 2004 and 2005. Mr. Wright asked for clarification about how the market values could increase bringing more money into the City, requiting an increase in the tax capacity rate. He also asked for clarification about why the percentages didn't match up. Ms. Lund explained that there is more money coming in but it gets distributed out. Ms. Lund stated that the valuation is bringing property values up closer to selling prices. City Council Truth in Taxation/December 5, 2005 Page 6 of 13