05/03/1999 Park Board Packet - Laserfiche WebLink

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i TRUTH IN TAXATION HEARING NOVEMBER 30, 1998 classifications and class rates which also had the effect of increasing the city's tax rate. Mr. Sulander noted that the State Legislature felt the high value home owners, apartment owners and commercial property owners were paying more than their fair share of property taxes. To compensate for this disparity, rates on these properties were reduced. The change in the formula resulted in a 1.3% increase in the 1999 Lino Lakes tax rate. Additional bond payments resulted in a 5%increase in the levy and additional budget requests added another 2.1% increase in the levy. Mr. Sulander explained how much of each tax dollar goes to each taxing entity noting that the school districts get approximately 45% of the dollar. He also explained how the Lino Lakes portion of the tax dollar is used in Lino Lakes. Mr. Sulander noted that the City uses Certificates of Indebtedness to purchase specific capital equipment each year. The Certificates are funded internally. Mr. Tesch explained that because Lino Lakes financial position is very good, Moody's Investors has increase the City's bond rating to A3. Mayor Sullivan explained to the audience again that Council is taking comments about the 1999 proposed budget and tax levy tonight and opened the public hearing at 6:22 p.m. She asked that persons with questions, come to the podium and state their names and address. Don Dunn, 6885 Black Duck Drive said it appears that the tax rates are close to being set. He said he was concerned about where Lino Lakes moves forward. He felt the City Council has to change. He noted staff level will not change. Mr. Dunn suggested five(5) things have to change to achieve a constant tax levy: 1. Appoint an Executive of Interest Person. Long term commercial and industrial tax base must be managed. Mr. Dunn suggested that Council Members Dahl and Lyden be appointed to this position. 2. Support Village Civic Center. Mr. Dunn noted that staff had presented a plan for the Village that would pay for itself. He asked Council to show how items fit together and show how it all comes together to pay for itself. 3. Road Improvement Plan. Mr. Dunn explained that there is no money in the 1999 budget for street improvement. He asked the Council to dedicate a portion of the 3.5 million dollar reserve to a street improvement fund. He suggested that the Council start by designating one million dollars to this fund. Mr. Dunn explained that there will always be a need for street improvement funding. Ignoring the situation creates large variances in the tax levy from year to year because each improvement project must be approved by a referendum and the entire cost is then assessed to the entire City. PAGE 2