07/11/1994 Council Minutes - Laserfiche WebLink

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262 COUNCIL MEETING JULY 11, 1994 Al DeMotts, 6265 Holly Drive - Mr. DeMotts asked if anyone could prove to him how increasing the City's tax base saves taxpayers money? He referred to his property as an example. He noted that his property value has not increased much in the past 16 years, however his taxes have increased many times. Mr. DeMotts said he felt that increasing the tax base did not lower property taxes. He suggested that if the City did not develop land, but just let it lay, it does not cost the City any money because there will not be a need for additional fire and police protection, additional roads and new schools. He said that the tax base increases when new homes are constructed, but the new homes require additional services. Mayor Reinert explained that the City Council could not answer the question this evening but would refer the question to staff for an answer. He noted that the school taxes in Lino Lakes are very high. However, he also explained that when he moved to Lino Lakes, the City taxes were nearly the highest in the entire state. However, this problem was addressed by the City Council and now the City portion of the taxes ranks about 34th in the state. Mayor Reinert felt that the Lino Lakes residents really are getting more for their tax dollar at this time. Mr. DeMotts again stated that by increasing the number of homes in the City the expenses are also increased. Mayor Reinert explained that is why the City is actively moving in the direction of strong commercial and industrial development. He also noted that it is difficult to bring in quality commercial and industrial businesses if there are few homes to support the businesses. Mayor Reinert explained that Lino Lakes is a fast growing community and taxes are high. It is a beautiful area and this will attract further growth. Mr. DeMotts said he felt that Lino Lakes needs to preserve the land and asked if the City is still committed to developing a certain number of residential lots to help make bond payments. Mr. Schumacher explained that the City is bound by law to pay its debts. He suggested that Mr. DeMotts was referring to a report that stated a certain number of connections to utilities were needed to insure that bond payment could be met. Mr. Schumacher explained that all funds are financially sound and all debts are being paid in a timely manner. Mr. DeMotts again asked about the report that said 70 to 80 new homes must be connected to utilities to pay the bond debt. Mayor Reinert explained that at times, utilities in new subdivision are constructed using bond funds. A certain number of connections would be needed to repay the bonds. Mr. DeMotts noted that state aid is used to pay for the construction of a new street. He noted that state aid is PAGE 2 1 1 1