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97 <br />1993 GENERAL FUND BUDGET HEARING DECEMBER 10, 1992 <br />Mayor Reinert asked for comments and suggestions from the audience. <br />Bruce Hanson, 6980 Lake Drive noted that the morning paper contained an <br />article regarding a windfall on sales tax that will be coming back to <br />the cities. Mayor Reinert explained that the sales tax had been <br />increased from 6% to 6.5% a couple of years ago. The purpose of the <br />additional .5% was to create a trust fund that would take the place of <br />Local Government Aid. The state has promised that all this money would <br />be given to the 1992 municipalities, however, the state is looking at <br />this trust fund to help reduce its expected deficit. At this time it <br />appears that Lino Lakes will realize approximately $11,000.00 from the <br />trust fund. At the same time it appears that Lino Lakes may lose as <br />much as $92,000.00 of Local Government Aid. <br />Mr. Hanson noted that the City has appointed a task force and is <br />proposing to hire a consultant to solicit new businesses. He asked how <br />the City is proposing to get new businesses into this area. Mr. Hanson <br />said he was sure that this City will never see tax dollars go down. Mr. <br />Hanson said he felt that just because some businesses located in Lino <br />Lakes does not mean there will be lower taxes. He said that the City is <br />wishing for something that is never going to happen. Mayor Reinert said <br />that he hoped this was not the case, however, if the City does not try, <br />we will never know. He noted that a home does not carry its "weight <br />"especially if young families are moving into the community. The taxes <br />realized from that home will not pay to educate the children and there <br />are still county, city and other taxing districts who must be supported <br />by taxes. Mayor Reinert noted that Lino Lakes is a "not sought after" <br />community. He said he felt that this City is on the verge of something <br />happening in the area of business and industry. Mayor Reinert felt that <br />the City Council was fortunate to have individuals available with 30 <br />years experience to seek out new businesses. He noted that commercial <br />growth will not happen overnight but he also said he did not want this <br />City to be bypassed. <br />Mr. Hanson asked how long range of the plan for hiring this new person? <br />Mayor Reinert explained that the City is not hiring a new employee but <br />is contracting with a consultant on a part-time basis. The City will not <br />be spending a "ton" of money but a key individual will be available. <br />The time frame appears to be about five (5) years. The consulting <br />arrangement will be on a year to year basis. <br />Doug Storms, 620 Andall Street explained that his property tax notice is <br />projecting a 19% increase in taxes. He said he understood from the <br />presentation tonight that this notice may not <br />Page 3 <br />