05/28/1991 Council Minutes - Laserfiche WebLink

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164 COUNCIL WORK SESSION CITY OF LINO LAKES COUNCIL MINUTES MAY 28, 1991 DATE • TIME STARTED : TIME ENDED • MEMBERS PRESENT: MEMBERS ABSENT May 28, 1991 5:35 P.M. 6:35 P.M. Bisel, Bohjanen, Neal, Reinert Kuether City Engineer's, Dan Boxrud and Darrell Schneider; City Planner, John Miller; City Administrative Assistant, Dan Tesch; City Administrator, Randy Schumacher and Clerk- Treasurer Marilyn Anderson were also present. CONSIDER LETTER FROM ANOKA COUNTY REGARDING 1/2 CENT SALES TAX Mr. Schumacher read a letter from Anoka County regarding a 1/2 cent sales tax passed in the last legislative session. In order to protect the municipalities participation in Local Government Aid (LGA), the county is required to ratify the sales tax increase. If the county does not ratify the sales tax increase every municipality will see a substantial property tax increase or a significant reduction in services. Ratification will enable the county, municipalities and special taxing districts within the county to receive state aid, including HACA and LGA. If the county does not ratify the sales tax, municipalities representing a majority of the county's population would be placed in a position of deciding whether to retain this tax and the state aid. Anoka County would like each municipality to present their position on this matter to the county by June 10, 1991 so that the County Board can make an informed decision. There was discussion regarding the implication of this matter on Lino Lakes. Mr. Schumacher explained that the present plan is to distribute this tax to each municipality using the same formula as the LGA was distributed. Since Lino Lakes does not have a large commercial /industrial base, Lino Lakes will benefit from the commercial /industrial base of the larger communities. Mr. Schumacher also explained that municipalities will not receive all of the 1/2 cent sales tax increase. It will be distributed PAGE 1 1 1