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I I I Council Meeting Minutes December 15, 1992 Page 2 Public Hearing. continued is the last and proposes to set its levy tonight. Based on the 1993 tax levies being certified from the school district, the county, and the City of New Brighton, property owners in the City should know their total property tax approximate increase/decrease for 1993. The 1993 annual budget is an official statement of the services that the City intends to provide. It also includes the sources of revenues to be used to finance those services. In addition to property taxes, other sources of revenue in the budget are local government aid, other state aids and service fees. Based on current figures, the average taxes for the City share of the total tax levy on an average ($100,000) New Brighton home amounts to approximately $240.00/annually or $20.00/monthly. A recent study by the Citizen's League shows the City of New Brighton to be in the upper level insofar as total tax rate if compared to neighboring cities, however, if only the City's tax rate is used, we are in the lower level. Finance Director Margaret Egan announced the services anticipated to increase in 1993. An investigator is proposed to be added in the Police Department, as is a part-time community services officer. The public works department proposes to increase staffing to permit proper maintenance of streets and utilities. New fleet and equipment acquisitions include a total survey workstation for the Engineering Department, a pick-up truck for the Forestry Division, and another pick-up truck for the Public Works Department. The final item proposed to increase is the "contingency". The purpose for this increased amount is to cover any substantial reduction in state aids so we would not be forced to decrease any services or raise fees and charges. Egan reviewed the impact the proposed 4.9% or $150,000 increase would have on residences with various 1993 market values. Due to the method of computing tax capacity, 1993 will show a lesser dollar increase for the more expensive homes. Prior to 1991, the tax capacity of a $150,000 home was over 3 times more than that of a $75,000 home. In 1993 that highest tax rate for the more expensive homes is eliminated, thereby, permitting the decrease on higher valued homes. This is in accordance with state law and essentially means that Minnesota is moving away from relying on the more expensive homes paying a larger portion of taxes. In response to Questions from the Council, Egan advised that if the 4.9% levy increase is approved, it would result in an $8.00 increase for a $72,000 home; $7.00 increase for a $131,000 home; and a $21.00 decrease for the $180,000 home. These are annual figures. Egan noted that the services proposed increase is $195,400, however, of that amount approximately $150,000 is raised from property taxes. The remaining would be obtained from other sources, i.e., service fees, etc. Public Hearing Annual 1993 Budget and Certification of Levy