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05-07-91 CCM
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05-07-91 CCM
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local tax rates. It is not possible at this time for anyone to calculate <br />exactly how mtch.any one city's rate will have to go up: there are too <br />many uncertainties in just what those State tax policies will be. If our <br />tax rate stays below the rates of those other cities, I will be satisfied <br />to pay somewhat more than I do now, in order to keep the quiet, rural <br />lifestyle that I cherish. We should remember that EVERY candidate in at <br />least the last two elections promised to preserve that rural lifestyle. <br />3. As I have stated before, tax revenue is only one side of a two-sided <br />equation or balance beam. The other side is expenses. if the expenses are <br />kept low, then the tax rate can stay low even with a relatively small tax <br />base. Lake Elmo has historically had relatively low expenses per capita, <br />perhaps indicating a relatively low level of services. One might claim <br />that the level of services is too low, but where are the masses of voters <br />crying out for more services? Except for calls for more police to catch <br />speeders, there have been no such cries. Lake Elmo residents are <br />anoarently happy with the current level of services. Perhaps even some <br />service cuts are possible. Therefore, there should be at least an equal, <br />if not greater, effort toward reducing or controlling expenses as there is <br />toward increasing revenues. Please refer to my draft proposal for a "Cost <br />control Board". <br />4. The "slow growth" policies, which Lake Elmo and Afton, for example, <br />have followed over the last decade, are at least as valid a way to keep <br />City tax rates low as are the "fast growth" policies followed by Oakdale, <br />Woodbury and Stillwater over the same period of time. One needs only to <br />look at the figures to see that this statement is true. On the other hand, <br />the "strong growth" policies followed by some cities, like Eagan, have <br />resulted in that city's tax rate also being lower than those of Oakdale, <br />Woodbury and Stillwater. Therefore, there is no one "right way" to develop <br />a city and keep tax rates low. What makes a difference is the overall <br />atmosphere or quality of life desired. Lake Elmo has pursued a more rural <br />atmosphere, with relatively low development density, and has kept its tax <br />rate down. Eagan has pursued a more urban atmosphere, with relatively high <br />development density, and has kept its tax rate down. BOTH DEVELOPMENT <br />STRATEGIES AREyALID± I challenge anyone to prove this statement is false. <br />It appears that the REAL question before us is, "Will Lake Elmo continue <br />its historical "slow growth" policies with a rural atmosphere, or will it <br />fundamentally change its growth policy and atmosphere?" The development <br />board as presented by Mayor Johnson has only one.stated objective: <br />increase the amount of tax revenues to Lake Elmo by increased <br />non-residential development. This has been the traditional cry of <br />municipal officials over the years. However, it appears to be historically <br />shortsighted, and it appears to ignore the realities of today and the <br />uncertainties of the future. As a group of intelligent people we should <br />learn from the past and be wary of the future before we commit our City to <br />a course which might lead to increased tax revenues but also higher <br />expenses and overall higher, not lower, tax rates. <br />The Mayor's proposal is perhaps a starting point to get us thinking about <br />how Lake Elmo should be allowed to develop in the face of future changes <br />in State tax policy. However, before the proposal gets the support of this <br />Council, the above concerns and questions, as well as others which might f <br />come up, should be resolved in a rational, objective manner. <br />
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