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TRUTH IN TAXATION HEARING NOVEMBER 30, 1998 <br />• 4. School District Impact on Taxes. Mr. Dunn noted that the school districts take <br />more than 50% of each tax dollar. Everyone needs to be actively working with the <br />school districts to reduce their level of need. Mr. Dunn suggested that Council <br />Members Bergeson and Neal be appointed Executives of Interest for this matter. <br />• <br />Mr. Dunn said that he had difficulty analyzing the 1999 budget. He noted that 1997 data <br />was used for comparison and felt that data was too old. He suggested using the actual <br />figures through November, 1998. <br />5. Remember Basics of Mathematics. Mr. Dunn suggested that a larger tax base <br />would lessen the impact of the tax need on everyone in Lino Lakes. He asked the <br />Council to look real carefully at speeding up growth in the City. He also asked <br />Council to "mitigate" spending. <br />Mary Ann McDougal, 6116 Baldwin Lake Drive said that the information accompanying <br />the notice of this meeting was not clear. She noted that the taxes she will pay the City in <br />1999 has risen 38%. Mr. Tesch explained that the city portion of the taxes will go up <br />5.7%. Ms. McDougal explained that according to her statement, her portion of City taxes <br />will go up 38%. Mr. Sulander explained that part of her increase is due to the increase in <br />the value of her property. He also noted that a large portion of her increase is due to the <br />City's bonded debt which will require a large payment in 1999. <br />Ms. McDougal asked if every tax payer in Lino Lakes is receiving a 38% increase in their <br />taxes. Mr. Sulander said no and explained that lower value property owners will see less <br />of an increase than the higher value property owners. <br />Ms. McDougal said that she feels that the City is growing to much and to fast. She felt <br />that the more people who move here the more facilities will be required to support them. <br />She also said that a 5% increase in the City's tax capacity rate is too much. Mr. Tesch <br />told Ms. McDougal that if she had further questions she should speak to Mr. Sulander. <br />Ms. McDougal said that this is typical of government, "they pick your pocket and you do <br />not know why". <br />Tom Farm, 6209 Centerville Road asked when will revenue from the Town Center "show <br />up". It was explained that the Centennial School District will make their first payment in <br />1999. <br />Mayor Sullivan asked Mr. Shannon when he would expect to see tax benefits from new <br />commercial and industrial projects. Mr. Shannon explained that this depends on how <br />rapid commercial development comes to the Town Center. Typically, it takes about five <br />(5) years before increased tax revenues are received. Something constructed in 1999 will <br />be on the tax rolls in 2000. The first tax receipt from that construction will be received in <br />2001. <br />PAGE 3 <br />