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COUNCIL MINUTES September 13, 2004 APPROVED 97 fiscally responsible addressing the roads at this time. He stressed that the tax rate is not increasing, •98 even though the tax levy and overall budget amount is increasing. 99 100 Councilmember Dahl expressed concern over the amount of increase being designated for road 101 repairs, and reiterated her request for a list of how many roads would be addressed. She also asked 102 about TIF money that should be coming off of TIF and added to the tax rolls. She stated she had been 103 leaning toward voting no on this increase, and after listening to the discussion, will vote no. 104 105 Finance Director Rolek advised they did retire three TIF districts last year, and that valuation came on 106 line in 2004. He stated the City's net tax capacity increased by over 21 %, and as a result the tax rate 107 was 5% lower in 2004 than it had been in 2003. He noted for this year the proposal is to hold the tax 108 rates steady and capture the additional taxes available for road maintenance. He explained the City 109 has, to this point, budgeted $90,000 a year for road maintenance. He stated a study done recently 110 shows that the City needs $330,000 a year to maintain a steady maintenance and repair schedule. He 111 advised this year they have added an additional $140,000 to the budget, which is still below the 112 recommended amount but Staff feels is a good start, with additional increases taking place as it 113 becomes fiscally possible. 114 115 Mayor Bergeson stated he feels Staff has presented them with a responsible budget. He indicated it 116 provides the same services currently being provided, and since they have not heard residents want less 117 service, he feels it should go through. He stressed that the only addition to the budget is the added 118 $140,000 for road repair, which is something that has been demonstrated to be a valid need. He 119 stated Lino Lakes is a growing city, and it will cost more to provide roads, trails and services to more . 20 people. He noted it is easy to say the budget is too high, but if there is not a counter -proposal to 21 reduce it, it becomes a hollow comment. He believes the Council should support Staff s 122 recommendation. 123 124 Motion carried. Vote: 3:2 Councilmember Carlson and Dahl opposed. 125 126 Resolution No. 04-131 can be found in the City Clerk's office. 127 128 B. Consideration of Resolution No. 04-132, Adopting Preliminary 2004/05 Property Tax 129 Levy, Al Rolek 130 131 Finance Director Rolek summarized the Staff report, indicating Staff recommends approval. 132 133 Councilmember Stoltz moved to adopt Resolution No. 04-132 approving the 2004/05 Property Tax 134 Levy. Mayor Bergeson seconded the motion. 135 136 137 Councilmember Carlson noted the tax levy is partially based on the budget going up 19.68%. She 138 indicated if there were money coming in without having to raise taxes she would feel differently, or 139 even if they were raising taxes at the same rate as income was going up she would be okay with it. 140 She noted a newspaper article discussing average wage increases in the 3 to 4.5% range, noting 141 Staffs comments that this would result in a 5 to 10% increase for most residents. 142 S43 Councilmember Stoltz commented that unfortunately cost of goods is going up, and the City's budget 44 is based largely on those cost of goods. He added that Lino Lakes' tax rate is low in comparison to 3