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MINUTES <br />CITY COUNCIL <br />December 13, 1989 <br />Fahey also pointed out that the 26.9% City tax increase <br />should not increase property taxes since the shift in <br />local government aids should reduce school district <br />levies and offset the increase in City taxes. <br />Blesener pointed out that the Legislature, at its <br />September session, voted to shift local government aids <br />from cities to school districts. Blesener also <br />reported that as a result of the shift of local <br />government aids, the City Council went back and <br />decreased the City's budget by $50,000 in order to keep <br />the increase as low as possible by delaying City <br />programs. Blesener again pointed out that the portion <br />of the budget over which the Council had control <br />increased by only 6.6%, while the remainder of the <br />increase is due to the State's shifting local <br />government aids. <br />Fahey agreed, and pointed out that for the past four or <br />five years City budgets have either decreased or <br />remained the same, while increases in property taxes <br />were the result of increased tax levies by the School <br />District and County. <br />A1 Faldesac, 3085 Ontario Road, questioned the increase <br />in the City's maintenance portion of the Budget. <br />Blesener explained that the increase of approximately <br />$255,000 in the City's budget is the result of the <br />shift of local government aid from the City to the <br />School District. <br />Fahey pointed out that based on past formulas, the City <br />had expected to receive $441,000 in local government <br />aid from the State in 1990. However, based on the <br />action taken by the Legislature in September, the <br />City's local government aid was reduced by $255,000, <br />with these funds shifted to the School District. <br />Faldesac questioned the public hearing notice that the <br />City published announcing the Budget hearing. <br />Blesener replied that the public hearing notice format <br />was mandated by the Legislature. Blesener again <br />pointed out that the City is only responsible for 15 to <br />20% of property taxes levied, while the School District <br />receives 50% of property tax dollars. Blesener again <br />pointed out that due to the additional local government <br />aids that the School District will receive, their tax <br />levy should be reduced, thus offsetting the additional <br />amount the City was forced to levy. <br />PAGE 3 <br />