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Charter Commission May 31, 2012 Page 2 --.� 45 higher interest rate and the bonds have to be sold on a taxable basis. The City's proposal would 46 eliminate tax exempt zones. 47 MOTION by Commissioner Bretoi and seconded by Commissioner Gunderson that the Chair 48 requests a formal response from the Lino Lakes City Council providing a full explanation of their 49 rationale for including exempt zones as part of the amendment rather than having it changed by 50 ordinance. 51 Motion passed with Commissioner Timm voting no and Commissioner Sutherland abstaining. 52 53 Commissioner Gunderson noted that while Mr. Grochala was offering the Council's thoughts to 54 the Commissioners she did not want to tie him to representing them and that it would be 55 beneficial to hear directly from the Council. 56 Mr. Grochala responded that back in 1992 there was a purpose for tax exempt zones because they 57 would allow for specific treatment of areas that needed to be treated differently which would be 58 consistent with Chapter 429. He noted that under the existing charter there was merit in keeping 59 them in place. 60 Commissioner Bretoi questioned why what had appeared to be agreed to by the City Council and 61 the Commission was not moved forward 62 Mr. Grochala agreed that the City did approach the Commission about removing the exempt 63 zones. In 2008 a task force was struck to develop a Charter Amendment as part of a 64 comprehensive reworking of Chapter 8 of the City Charter. He cited the memo in the meeting 65 packed (July 18, 2008 memo from the Chair of the Commission, Ms. Duffy to the Mayor, Mr. 66 Bergeson) that contained partial but not complete agreement with the City's position. He 67 referred to three photographs that were distributed at the meeting and noted that the three zones 68 are zoned commercial. He stated that the intent of the City is to do infrastructure projects that are 69 consistent with Chapter 429. 70 Commissioner Helgemoe asked what the percentage cost difference is for the higher interest rate. 71 Mr. Bubel indicated a one to two percent additional cost but it depends on the size of the bond 72 issue. 73 Commissioner Bartsch indicated his understanding was that the Commission and Council were 74 in agreement to eliminate the tax exempt zones and wondered why the Council wants to amend 75 Chapter 8. 76 Mr. Grochala said the Council is looking at a bigger issue which is the financing of any public 77 improvements and is the city going to continue to use special assessments to do public 78 improvements. Under 429 it is possible to level special assessments. 79 Special assessments can be levied if they lead to the improvement of the affected properties. It is 80 difficult to completely justify the benefit with street improvements and therefore generally has 81 had to go to ballot for approval by all voters. 82 83 COMMISSION REQUEST FOR $1400 FOR LEGAL REVIEW ON COUNCIL 84 PROPOSED CHARTER AMENDMENTS 85 Chair Lyden said that he had not received a formal response. He referenced the audio clip from a 86 Council meeting provided to Commissioners in advance of the meeting, noting that it seemed to 87 be an indication from the Council that the Commission would not be given additional funds. 88 [The position of the Council members was that the Commission had its full $1500 budget 89 available and there were therefore adequate funds to cover the review]. Chair Lyden noted that 2