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I I I Council Meeting Minutes December 8, 1993 Page 3 Public Hearing:. continued Egan noted that bonds are used to finance major capital projects, and the borrowed money is repaid with interest over a period of years. That portion of the bonds are repaid through a tax levy, however, New Brighton has discretionary resources that help reduce the taxes required for bonds. Discretionary resources are: Liquor Fund, Environmental Restoration Fund and Closed Bond Fund. Discretionary resources will contribute $783,000 towards capital project costs. The tax need for 1994 capital projects will be $441,000, of that amount, $346,000 is related to the Family Service Center. Fulton noted that New Brighton's tax capacity rate of 17.564 remains one of the lowest in the area; and the City's overall expenditures are 7 % below the basic service need level, as determined by the CORE Study. Egan explained the breakdown between the four taxing jurisdictions: Ramsey County -33.8%; City - 13.2%; School District - 48.5%; and miscellaneous - 4.5%. Williams noted that the handouts show the changes made in the Mounds View School District #621. The St. Anthony School District #282 may show a different breakdown. A home's market value is the basis for determining property taxes, the higher the value, the higher the taxes. Minnesota's approach taxes non-residential properties at a rate higher than those used for residential properties. City property taxes for homes with market values of $75,000 and $150,000; would see annual tax amounts of $126 and $368, respectively. Fulton noted that the changes in Legislation and the valuation process caused a shift towards reducing taxes for commercial properties. Williams reiterated that this change is not a City policy. In regards to residential properties in New Brighton, 40% will see an increase in valuation, 40% will see a decrease. Property valuation changes are the driving factor impacting this years property tax. The Ramsey County Assessor's Office is responsible in determining market value. The tools which the assessor uses in determining values include: area sales, physical inspections, and a group of 25 conditions. As a result of these assessments, those residents with an increase in value will see significant tax changes. The State has an assistance program for property owner's with increases over $300 with at least a 12 % change. Egan showed examples of tax impact statements. Fulton added that if a resident's property valuation stayed the same, that resident would see a 2 % change in total property taxes. Benke noted that the Ramsey County Board had decreased their levy from what is listed in the staff report. Egan noted that the staff report includes the maximum levy amounts for each taxing jurisdiction. The three types of general fund expenditures include: personnel, material/supplies and contractual services. Between 1992 and 1994, that portion of expenditures have remained steady. Fulton said the 1994 budget provides for a 5.3 change in personnel levels. The additions include: Fire Marshal (general fund); School Liaison Officer (subject to third party aid); Maintenance worker (Army funded); Maintenance Helpers (general fund); Building Inspector (funded by customer fees); and Range Supervisor (funded by customer fees). Benke noted that the Fire Marshal position includes previous part- time expenditures received from the Fire and Civil Defense budget areas. Egan noted that contractor services are basically a replacement for City employees. In the 1994 budget there are six contraetors: janitorial, cable enhancement services, housing inspection, telephone study, electrical inspection, and building coordinator.