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CITY COUNCIL WORK SESSION OCTOBER 21, 1998 <br /> and there is adequate money in the General Fund to so that inter-fund borrowing will not <br /> be necessary. Mr. Shannon noted City received a double upgrade in its bond rating this �.. <br /> year from Juran and Moody. The City rating is A2. <br /> Mr. Shannon stated the City had significant expenditures that were unplanned, however, <br /> money is available to pay them. Adequate planning in the future will enable the City to <br /> avoid those expenditures or at least allow the City to be better equipped to handle them. <br /> The market value of the City is growing. However, the tax capacity is not keeping pace <br /> with the market value because of what the Legislature is doing. Mr. Shannon indicated <br /> the City is in decent financial shape. <br /> Chris noted that the City has the highest tax rate in Anoka County. Mr. Shannon stated <br /> there were three(3)communities in 1997 that were higher than Lino Lakes. He said that <br /> Lino Lakes should be compared to their neighbors in Ramsey and Washington Counties <br /> with similar growth concerns. Chris stated the Council must be able to answer residents <br /> questions regarding the tax rate. Andy added that Lino Lakes has its own Police <br /> Department and Fire Department and that costs money to operate. Other cities in Anoka <br /> County used as comparisons contract these services with Anoka County or other nearby <br /> cities. He noted that quality services such as those in Lino Lakes are expensive. <br /> Kim noted the City is now paying expenses that were not planned. In addition, city hall <br /> is under staffed and many roads need maintenance. John added that at one time Lino <br /> Lakes was rated#1,the highest taxes city in the metropolitan area. Kim stated that no <br /> one likes the current tax rate but nothing can be done about it at this time. <br /> TIF/LGA, HACA UPDATE,MARK RUFF <br /> Mary Alice explained that the City received a request for tax increment financing <br /> assistance from three(3)businesses interested in locating on the G.M. Development <br /> property in the Apollo Business Center. Staff is asking Council authorization to prepare <br /> the modification of Development District No. 1 by deleting the remaining G.M. <br /> Development parcels and the Rehbein Business Park parcels on the southwest quadrant of <br /> the 35 W interchange from TIF District No 1-7, and reconstitute them into a new TIF <br /> District No. 1-9. TIF District No 1-7 was established in 1995 and no longer has the <br /> capacity to provide a competitive incentive. The Council will also be asked to set a date <br /> for a public hearing on this matter. <br /> Kim asked about the recommendation regarding a 10% local contribution or paying a <br /> penalty. Mr. Ruff stated he highly recommends making a 10% local contribution. The <br /> contribution could be in each of the development contracts. There are several different <br /> options for the contribution. The contribution is 10% of the tax increment received. <br /> Mary Alice noted the values of the properties will be increasing next year. The properties <br /> need to be in the district before that happens. Mr. Ruff added that the Legislature clearly <br /> states that a developer can not pay the local contribution. Brian stated that Mr. Ruff will <br /> 2 <br />