CCP 09-13-2011 - Laserfiche WebLink

Home Browse Search

2012 enacted a new program called the Market Value Homestead Exclusion (MVHEX). For the 2011 budget, the City Council levied $7,395,708 in taxes. Under the Market Value Homestead Credit (MVHC) program the State of Minnesota would reimburse the City$280,400. Due to budgetary concerns, the State of Minnesota reduced or eliminated the Market Value Homestead Credit reimbursement from local governments over the past few years. In order to offset the loss of MVHC, the City of New Brighton reduced its general fund by$280,400 for an annual general fund budget of$12,185,700. In order to make up for the loss due to the State of Minnesota reduction in MVHC some cities decided to raise their tax levies to order to account for their anticipated aid loss in recent years. The City of New Brighton addressed this issue of losing MVHC by cutting $280,400 from there annual budget. Under the new MVHC-Exclusion program, the City of New Brighton will receive the amount it levies. The 2012 tax levy is projected to be $7,395,708. Under the MVHC-Exclusion project the City of New Brighton is expecting to receive the full tax levy amount of $7,395,708 in 2012. Staff recommendation for the utilization of the $280,400 is to allocate that funding into the fleet/non-fleet capital replacement program. The additional $280,400 in annual funding for the capital program would allow the City to cash flow projects for the first five years and allow the City to avoid issuing equipment certificates for purchases. Therefore no debt would be required during the first five years of the fleet/non-fleet program. This would save the City money in issuance costs and interest payments for equipment certificates. Council Member Phillips made a suggestion that the Council members, Mayor and staff visit a project by International Market Square that he has worked on to get some ideas for the New Brighton Community Center's locker room remodel. With the City looking at remodeling the locker rooms at the NBCC this could help the Council and staff obtains some new design ideas. Council Member Phillips stated that he would have to schedule the tour for a date prior to September 9t1'if Council is interested. City Manager recommended that Council Member Phillips set some dates and times for Council and staff to view this project if they are interested. Council Member Phillips commented: • He appreciates how staff handled the MVHC monies and how the City will not rely on that funding in the general fund. • He requested that City staff continue to evaluate the Capital Replacement program and process. • He is concerned that the projected permit revenue is a little high considering the current economy. It may be wise for the City to have a contingency plan in case the revenue is lower than expected. • He suggests that the City offer two Clean-Up Days in 2012. • He asked if the Public Safety Department had any concerns regarding the Ramsey County dispatch services?