Minutes - 1996/06/10 - Laserfiche WebLink

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• Page 3 June 10, 1996 Mounds View City Council Ace Solid Waste -Renewal Waste Management of Blaine -Renewal • • MOTION/SECOND: Hankner/Quick to approve the Consent Agenda as presented. VOTE: 5 ayes 0 nays Motion Carried RESIDENTS REQUESTS AND COMMENTS FROM THE FLOOR: Mayor Linke explained that this portion of the meeting was designated for anyone who wished to speak to the Council on items that were not on the Agenda. Ron Schmidt, 8456 Groveland Road, asked about the 4% franchise fee that was enacted on the businesses and residents of Mounds View in 1992, and what the date of the sunset clause on this. franchise fee was. He also asked what the franchise fees have been used for. Mayor Linke stated that he believes the sunset is in 1997. This was a five year franchise fee, which began in 1993. However, he noted that he could not recall that this franchise fee was ever mentioned as "short term" ,but rather a permanent addition to the taxing system. Without incorporating the franchise fee, an average resident would likely have paid more in tax increases that it did on an average franchise fee, as the fee has not changed, but property taxes have. Mayor Linke explained that the franchise fees raised an average of $200,000 per year for the city. Approximatley $170,000 to $180,000 went to buy down property taxes. A portion also went into the Golf Course Management fund to help defray the first years operational costs. Most of the funds however have gone towards property tax buydowns. Ms. Hankner noted that $80,000 of the fee last year was appropriated over to the building of the pedestrian bridge. What concerns her is that the city does not have a firm policy on the use of the franchise fees. She however also understood that this was a temporary revenue source. Most residents have indicated to her that they would rather see an increase in their property tax than to have a franchise fee, as property taxes can at least be used on their income taxes as a deduction. Mayor Linke noted that unless the franchise fee is re-adopted during the budgeting process, it will continue only through 1997. Mr. Schmitdt also stated his concern in regard to many of the expenditures authorized by the City Council over the past several months. He stated as a member of the Economic Development Commission, he did not feel the decision process in regard to the city's purchase of the Bel-Rae Ballroom was handled appropriately. He did not feel the EDC really had an opportunity to thoroughly look at the issue before the Economic Development Authority made a decision, and with the amount of diversified knowledge of those serving on the Commission, they could have provided perhaps some valuable information. Dan Nelson, President of the Economic Development Commission, was also present and discussed his concern about the apparent lack of communication between the Economic Development Commission and the City Council. In regard to the Bel-Rae Ballroom purchase, he can fmd no mention in the minutes of the meetings as to the EDC's recommendation. He noted that the members of the EDC take their roles