09-07-95 Council Workshop Minutes

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MINUTES CITY COUNCIL SEPTII~SBER 7, 1995 Scalze suggested that an option may be to raise all license fees each year by a certain percentage. Fahey stated that he would be more inclined to do that. Fahey asked if there were other cities that generally increase fees by a certain percentage each year. Morelan pointed out that it has been suggested that government should be run more like a business. Morelan pointed out that businesses charge what the market will bear; therefore, City fees should be comparable. Scalze questioned whether the property taxpayer should bear an increase in property taxes in order to keep license fees lower than what other cities are charging. Scalze did not believe the residential property taxpayer should have to pay extra in order for license fees to remain low. Fahey pointed out that businesses pay a commercial tax rate. Scalze indicated that this is true in surrounding cities as well. Morelan pointed out that most taxes are based on your ability to pay. Scalze pointed out that the community survey shows that taxpayers want to see lower taxes. Fahey suggested that taxpayers understand that some increase may be necessary. Last year the City achieved a 0% net levy increase and has kept the tax rate flat except for the year aids were shifted from cities to school districts. Scalze stated that she would like to have a 0% net levy increase for 1996. Morelan felt that the issue of license fees should not be tied to the budget, but should be set at the fee that all agree is best for the City and its citizens. Morelan stated that he would like to see a reduction in the net levy amount, but that is not possible. Morelan suggested that there is nothing magical about the 0% fiqure. The Administrator pointed out that the City could evaluate increasing its tax collection rate assumption from 97o to 97.5%. We will know the actual collection rate for 1995 later in the year. Fahey felt that the Truth In Taxation Notice should 6