CCAgenda_04Sep22 - Laserfiche WebLink

Home Browse Search

FALCON HEIGHTS CITY COUNCIL MINUTES -5- • September 8, 2004 Information on Fiscal Disparities (continued) A brief discussion followed. In response to a comment, Finance Director Olson reminded everyone there was class rate compression last year. This year will present a very different picture. Fiscal disparities are very complicated and he worked with the League's finance staff for two days on this. Mayor Gehrz said the problem now is a mathematical one. What levy do we set for 2005? Council member Lamb said she is absolutely right and he would rank the options she offered in this order: Option 4-#1; Option 1-#2; Option 2-#3; Option 3-#4. The City Council spent a lot of time on this two years ago and again this year. The Council is gaining experience with this. The City did not come close to transferring the amount for 2005 had we strictly adhered to our Reserve Policy. Tap into reserves to the extent it is necessary to keep the levy flat. The City has the money to do Option 4. There is a philosophical issue: If we raise local property taxes in order to get more fiscal disparities money, we really are penalizing our residents in order to qualify for more benefit. There should be incentive and reward for keeping taxes low. We need to make noise at our State Representative and State Senator to point out what this rule does to us. • Council member Kuettel said she would go with Option 4. She appreciates that there will be workshops about this. Mayor Gehrz said the Council needs to have workshops before lobbying at all levels. We need to be sure who the decision makers are. Council member Lindstrom said that every year the League asks cities what their legislative priorities are. He supports Option 4, mainly because he thinks it would be difficult to look into the eyes of our citizens to say we support a tax increase because of the goofy governmental money shift. Council member Talbot said that he supports Option 4. We need to identify who is in power with regard to fiscal disparities and tell them the City is being adversely affected. Mayor Gehrz said that one thing that has been frustrating is that there is an attitude that because the City isn't taxing its citizens at a higher rate, the City doesn't have the right to complain. We need to get the message out there that there are systemic problems here that are creating disincentives. Council member Lindstrom said that higher levels of government have used the City as an example for doing the right things in terms of sharing services, etc. The City should be rewarded • for what it has been doing, not penalized. S