07-08-2010 Minutes (2) - Laserfiche WebLink

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• Charter Commission July 8, 2010 Page 5 180 cap tax increases. Commissioner Trehus feels a cap is strongly needed with the pending end of 181 the state levy limits at the end of 2011. When looking at the adopted levy for 2008-2010, 182 Commissioner Trehus complimented last year's council for decreasing the 2010 levy. He also 183 stated that the Commission brought up this possible amendment for discussion at the previous 184 joint meeting and the Commission is looking to continue that discussion. 185 186 Council member Rafferty distributed a recent Letter to the Editor written by Commissioner 187 Trehus on the subject of the tax levy. He asked to use the letter as grounds for gaining more 188 information and he has noted that on the back of the handout. He has spoken with staff for 189 additional information on some of the elements — population, city budget ten years back, 190 comparison of dollars and cents over the years, and particular impacts on the budget over those 191 years. It's important to take a historical view of the information with clarity on what the budget 192 has had to support over the period in question. 193 194 Mayor Reinert noted that tax caps can look like a great idea on the surface but can sometimes end 195 up choking a city. For instance a cap could prevent an investment in maintaining roads that pays 196 off in the long run. He identifies himself as a fiscal conservative and understands a tax cap can 197 look like a great idea but the whole picture is important. The electorate can remove officials who 198 are not taxing appropriately. He doesn't see a problem to solve with tax cap right now. 199 200 Commissioner Minar noted that he has seen city employee salary information that indicates there 201 is a problem; the salaries are too high and there are people who would do the jobs for less. 202 Public employees should not be making more than their private sector counterparts. Regarding 203 road maintenance, it can be funded properly within a reasonably reduced budget. 204 205 Council member O'Donnell suggested that staff could be hired at a lower salary but the full 206 picture includes consideration of what staff brings to the city, i.e. the city's high bond rating 207 saves the city lots of money. Regarding a tax levy cap amendment, he has some concerns about 208 some entities could be more concerned about spending an alloted amount rather than spending on 209 needs. That being said, he does not have a problem seeing it considered if that is a goal of the 210 commission and it is best for the citizens. 211 212 Commissioner Gunderson suggested that the commission's goal isn't necessarily to go out with a 213 referendum on the question. The goal is to make sure there is a tax levy cap when the state 214 statute requirement expires to protect the taxpayers of the city. 215 216 There was discussion between the council and commissioners about the city's obligations, debt 217 service and tax -increment financing to the Legacy at Woods Edge area and the possibility of an 218 impact on city taxes. 219 220 A five minute recess is taken and the meeting is reconvened at 8:55pm. 221 222 Chair Dahl thanked the council for input on this item indicated that the commission will keep the 223 matter (tax cap) on their agenda. 224 5