03-21-94 Council Workshop Minutes

Home Browse Search

MINUTES CITY COUNCIL MARCH 21, 1994 stated that the Council has to come up with what is fair for Little Canada. Pedersen suggested that the Council would have to look at a report which shows the impact on assessment rates varying from 20~ assessed to 80~ assessed, for example, to see what the actual impact on the levy would be. Pedersen felt it was hard to decide on a percentage without seeing the numbers. LaValle pointed out that paying for improvements through general taxation would have a mushrooming effect in that improvements would occur year after year and the debt would continue to build. The Administrator pointed out that current debt drops dramatically in the year 2000 and is paid off in the year 2003. At that point, property taxes would go down. Pedersen asked if it were fair to assess improvement costs against the property owner or spread the cost over the entire City. Pedersen stated that the fairness issue stays the same, the question is the impact of spreading the cost over the entire City. The Administrator pointed out the issue of commercial property and the fact that commercial property would be subsidizing residential property if improvement costs were paid through the tax levy. Shannon felt that a 100~ assessment indicated that the City was not interested in maintaining roads, therefore, property owners should pay for a new street. However, paying the cost of a new street through general taxes without any assessment may cause everyone to request new streets when a new street was not necessary. Shannon felt there should be ownership on each side, however, was not sure what the percentage should be. Shannon felt that 100% either way was not fair because then ownership was not being shared. The Administrator felt a survey question on this issue would be good. Morelan was concerned that this would be a difficult question to ask without a great deal of explanation. 10