02-11-1997 Charter Minutes - Laserfiche WebLink

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JOINT CHARTER COMMISSION AND CITY COUNCIL MEETING FEBRUARY 11, 1997 Council Member Kuether suggested the referendum be worded to create a pool that can be used from then on. She stated her support to develop a comprehensive plan. Commissioner Solfest asked if the Charter needs to be amended if the project is not specified. Mr. Hawkins read the portion of the Charter which addresses this issue and advised he will need to do further research. Commissioner Sullivan stated under the current Charter, roads can be budgeted. Mayor Landers explained the Charter needs to be amended so those funds can be used for road reconstruction. Commissioner Sullivan stated he has asked previously if there are funds available for roads and how Lino Lakes got to this point. Chair Montain explained the Charter was worded to eliminate problems caused by "leap-frog" development and assessing properties that lie in between to a point where the property is assessed away from the owner. Commissioner Trehus asked if the Charter is costing the City dollars. He asserted residents are already paying high taxes and inquired why funds are not available and on hand for roads. Mr. Schumacher explained that 12 to 15 years ago, Lino Lakes was number 1 (with regard to tax rank) but now it is 56 or in the middle and paying an average tax rate. He explained another consideration is that Lino Lakes has a high value housing stock which means paying more in taxes. Mr. Schumacher reiterated that Lino Lakes is currently in the middle of the seven county tax range and residents are not paying high taxes. Commissioner Trehus asserted this drop in ranking resulted from raising home valuations. He asked if less money is being received from developers and asserted other cities maintain their roadways without "sticking it to the tax payers." Mr. Schumacher explained the difference in comparing Lino Lakes to well-established communities versus growing communities and suggested the comparison must be equitable. He advised Lino Lakes is in a good financial position. Commissioner Solfest noted this issue has not been addressed for the past 15 years. Mayor Landers agreed and commented on the need to address it now. Commissioner Trehus asked about the amount of excess funds. Council Member Bergeson explained that additional funds were received without a levy increase due to the number of new homes, development, and increased valuation. Discussion ensued regarding the need to hold a carry-over of funds to pay City costs until tax dollars are received. Mr. Schumacher noted the City's costs increase each year, thus the need to increase the level of reserve. Chair Montain recapped tonight's discussion to consider Phase 2 as the first phase, suggested ballot wording by Mr. Hawkins, and schedule suggested by Mr. Ahrens with PAGE 10