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We were less successful in 2005 in funding the reconstruction of some of our most <br />deteriorated local roads. The Lino Lakes City Charter does not allow general fund dollars <br />to be used for local road reconstruction without voter approval. In 2005, for the second <br />time, a road referendum was defeated. <br />It is our role as elected city officials to provide basic services such as roads to our <br />citizens. We are dependent upon support of residents to do this. It is not in the best <br />financial interest of this city to continue to allow deterioration of our local road system. <br />The city is undertaking a financial analysis this summer to study, among other things, our <br />assessment policies, street maintenance and reconstruction schedules, outstanding debt <br />and financing decisions, and reduction of state aids. Periodic review and adjustment is <br />critical, and tough decisions, based on updated projections, need to be made. <br />Our city council makes decisions based on the needs of the community and its affect on <br />local property taxes. I'm pleased to say that the city portion of your tax dollar has again <br />decreased. In 2004 it was 36% of your property tax bill. In 2005 it was 35 %, and in 2006 <br />it was 34 %. It's not a huge decrease, but in light on the increasing demands for services <br />and amenities, I am proud that we are able to hold the line as we do. <br />POLICE DEPARTMENT <br />I want to again acknowledge and honor Officer Shawn Silvera. His death in the line of <br />duty in September 2005 truly moved us all and brought us together as a community in a <br />new way. While we grieved, we found strength in the many people who united with us to <br />7 <br />