03-21-94 Council Workshop Minutes

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MINUTES CITY COUNCIL MARCH 21, 1994 The Administrator felt there was the opportunity to put improvement costs on general taxes without raising the levy, but that would result in the levy not dropping in the years ahead when the City's debt is reduced. The issue comes down to what is a fair approach. Scalze pointed out that Little Canada residents have high taxes and part of the reason is that the water tower and bulk of the water system costs were put on general taxes rather than being assessed. Most other cities assess for these types of improvements. Mrs. Parrish felt that road improvements would fit the same way. Parrish indicated that her road may need improvement this year and others might need improvement in the future. Parrish felt that paying the cost through general taxation was like an insurance pool with everyone contributing and benefitting when they had the need. Parrish agreed that the fact that property taxes were deductible was an important issue. Scalze pointed out that at budget time property owners in the City want to know how much taxes will be lowered rather than raised. Pedersen pointed out that some people on fixed incomes may not be able to itemize expenses and the deductibility issue would not affect them. Mrs. Parrish pointed out that some elderly could lose their homes as a result of high assessments. Paying for improvements through general taxation would be a leveler. Pedersen asked what the dollar effect would be to the taxpayer in paying for improvements throuqh the tax levy. LaValle pointed out that people living on a County or State road would never receive a benefit. Morelan pointed out that they get a benefit at the time their road is reconstructed and they are not assessed. Shannon felt the City needed to look at what other communities are doing and try to be consistent with the policies of surrounding communities. 8