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93 <br />1993 GENERAL FUND BUDGET HEARING <br />DECEMBER 10, 1992 <br />be accurate. Mr. Storms said he understood that the population <br />is increasing rapidly and he said it seemed that this along <br />should cover the additional expenses. He said he felt that the <br />increase should be tied to the inflation rate. Mr. Storms said <br />19% seemed high, his salary will not go up 19% and probably not <br />even 5%. He asked why the City should have to raise the taxes <br />19% when inflation will be about 5%? Mayor Reinert explained <br />that the notice Mr. Storms received in the mail is based on <br />preliminary information and is not accurate. The City Council <br />has now revised the proposed budget and the proposed tax levy and <br />both have been reduced. Mr. Storms noted that even after the <br />reduction, there still will be a 17% increase in his taxes. Mr. <br />Schumacher noted that the proposed increase in Mr. Storms taxes <br />could be because of an increase in Mr. Storms property value or <br />because of another taxing entity, not the City. Mr. Storms <br />explained that his property value did go up approximately 5% and <br />if his property taxes go up 5% he could live with that. However, <br />the statement he has received seems to indicate a much higher <br />increase. <br />Council Member Bergeson explained that property taxes are <br />calculated based on certain rates and based on property <br />valuation. He again noted that the state has increased the <br />formula for homes valued at $72,000.00 or less. Mr. Storms said <br />he is looking at a situation which is indicating that he will <br />have a 14% or more increase in his taxes and he will only be <br />getting a 2% or 3% increase in salary. He asked that the City be <br />careful about this. <br />Mr. Schumacher noted that although taxes are high in Lino Lakes, <br />this City has not increased taxes in the past seven7 <br />This is the first time in seven (7)years at taxes C are <br />) years <br />osto be increased. Mr. Storm asked where doesthisCitystand <br />ined <br />comparison to other municipalities in the metro area. It was <br />indicated that Lino Lakes has dropped in the rating and is now <br />about 16th. Mayor Reinert noted that this compares to other <br />developing municipalities. New residents expect a variety of <br />services and it is difficult to deal with the magnitude of <br />demands. Mayor Reinert explained that this City is gambling that <br />the portion of the budget devoted to economic development will <br />pay off. <br />Mr. Storms asked if Lino Lakes is a Star City. Mayor Reinert <br />said no. Mr. Storms asked if there were advantages to being a <br />Star City. Mr. Schumacher said that this City looked at this a <br />couple of years ago.- It is costly, however some key ingredients <br />of the Star City plan such as marketing have been used by this <br />City. If Lino Lakes did want to get into the plan, about 50% of <br />the work is already done. The Economic Development Committee <br />PAGE 4 <br />1 <br />1 <br />