03-21-94 Council Workshop Minutes

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MINUTES CITY COUNCIL MARCH 21, 1994 Pedersen agreed. Scalze pointed out that paying for improvements through general taxation would raise taxes, and felt property owners could be asked if they would support higher taxes to improve streets. The Administrator felt the questioned could be phrased so that property owners would understand that a direct assessment for a street improvement would be higher than an increase in taxes to support street improvements through general taxation. Pedersen felt that it would make a difference to property owners whether the tax increase was $30 or $100. Pedersen also pointed out that every year the amount would increase as existing debt is not paid off and more debt is added. Pedersen felt that at some point that increase could be $200 per year. Pedersen felt that the issue was a difficult one to decide without having the numbers. LaValle pointed out that the City has worked for many years to achieve as close to a 0% net tax levy as possible, and now the Council is discussing increasing that levy 4% or 5o to absorb road improvement costs. Scalze pointed out the Council's review of the budget each year, and felt that paying for street improvements through general taxation may cause other city programs to be cut in order for improvements to proceed. The Administrator asked if any Council Member felt that rehabilitated street improvements should be assessed at 100%, and there were none. The Administrator felt that some work was needed on Windrow Drive to maximize the life of that street. The Administrator stated that this past winter was very hard on the street, and many problems became evident. LaValle felt an assessment split of 50/50 may be reasonable, but felt that if a situation was unique that percentage split could change. Hanson indicated that the 50/50 split could change on a project that was very expensive. 11