10/21/1998 Council Minutes - Laserfiche WebLink

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CITY COUNCIL WORK SESSION OCTOBER 21, 1998 and there is adequate money in the General Fund to so that inter -fund borrowing will not be necessary. Mr. Shannon noted City received a double upgrade in its bond rating this year from Juran and Moody. The City rating is A2. Mr. Shannon stated the City had significant expenditures that were unplanned, however, money is available to pay them. Adequate planning in the future will enable the City to avoid those expenditures or at least allow the City to be better equipped to handle them. The market value of the City is growing. However, the tax capacity is not keeping pace with the market value because of what the Legislature is doing. Mr. Shannon indicated the City is in decent financial shape. Chris noted that the City has the highest tax rate in Anoka County. Mr. Shannon stated there were three (3) communities in 1997 that were higher than Lino Lakes. He said that Lino Lakes should be compared to their neighbors in Ramsey and Washington Counties with similar growth concerns. Chris stated the Council must be able to answer residents questions regarding the tax rate. Andy added that Lino Lakes has its own Police Department and Fire Department and that costs money to operate. Other cities in Anoka County used as comparisons contract these services with Anoka County or other nearby cities. He noted that quality services such as those in Lino Lakes are expensive. Kim noted the City is now paying expenses that were not planned. In addition, city hall is under staffed and many roads need maintenance. John added that at one time Lino Lakes was rated #1, the highest taxes city in the metropolitan area. Kim stated that no one likes the current tax rate but nothing can be done about it at this time. TIF/LGA, HACA UPDATE, MARK RUFF Mary Alice explained that the City received a request for tax increment financing assistance from three (3) businesses interested in locating on the G.M. Development property in the Apollo Business Center. Staff is asking Council authorization to prepare the modification of Development District No. 1 by deleting the remaining G.M. Development parcels and the Rehbein Business Park parcels on the southwest quadrant of the 35W interchange from TIF District No 1-7, and reconstitute them into a new TIF District No. 1-9. TIF District No 1-7 was established in 1995 and no longer has the capacity to provide a competitive incentive. The Council will also be asked to set a date for a public hearing on this matter. Kim asked about the recommendation regarding a 10% local contribution or paying a penalty. Mr. Ruff stated he highly recommends making a 10% local contribution. The contribution could be in each of the development contracts. There are several different options for the contribution. The contribution is 10% of the tax increment received. Mary Alice noted the values of the properties will be increasing next year. The properties need to be in the district before that happens. Mr. Ruff added that the Legislature clearly states that a developer can not pay the local contribution. Brian stated that Mr. Ruff will 2 • • •