12/11/2000 Council Packet - Laserfiche WebLink

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COUNCIL MINUTES SEPTEMBER 11, 2000 Council Member Reinert stated the City is growing which resulted in more taxes being collected last • year. Circle Pines has no potential for growth and collecting more taxes. He stated it is not likely Lino Lakes will get in the same situation. The City will grow every year and continue to collect more taxes. He stated he does not see any reason for a tax rate increase. Council Member O'Donnell inquired about the implications of not approving a tax levy limit this evening. Staff advised that without Council direction, Anoka County will levy back to the 2000 rate. Mayor Bergeson stated that if a levy is not passed this evening, the City will revert to the 2000 levy that would result in $500,000 short of this year's budget. The City Administrator advised the tax levy is based on a lot more property this year. Staff advised the tax levy is at a higher tax capacity. Motion failed with Council Member O'Donnell and Mayor Bergesp vote no Council Member O'Donnell inquired about any additional w advised no further discussion has been held regarding cutt balance the budget. Staff Council Member Reinert stated the budget issue amo 3,000. The levy limit is a separate issue. Council Member O'Donnell expressed con -• di e_ locking the City into the 35.920% tax rate and leaving no options. If the City goes pre iminary l/% rate increase, there is the opportunity to go through the budget a s° igure out where it can be cut. He advised he is in favor of keeping the levy limit at t' z lye rat owever, cuts from the budget may cut services to citizens. Council Member Reinert , tated t. parison is that Circle Pines has no growth compared to the nice growth within Lino L p •' "city that is growing like Lino Lakes can't tow the line on taxes now, it will be very difficu o d• it in the future when growth slows down. There is no reason to raise taxes in the City at this me. There may come a day when it is necessary. Council Member O'Donnell indicated he agrees with Council Member Reinert. However, the Council has three (3) months to balance the budget. He stated he is uncomfortable passing the lower tax levy without knowing the impact to citizens. Council Member Dahl stated the impact is $63,000. Mayor Bergeson stated that if a tax levy is not passed, the City will be stuck with a budget that is $500,000 short. Staff advised that if the City maintains the 2000 tax rate, $64,000 must be cut from the proposed budget. 4 •