08-23-1999 CC - Laserfiche WebLink

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David Jahnke, 8428 Eastwood Road, stated he had spoken with some of the residents of the City, regarding the tax on the utilities,which was promised to expire. He inquired if the expiration was to occur this year. City Administrator Whiting stated that Mr. Jahnke was referring to the franchise fee. He stated the original franchise fee agreement was a five-year ordinance,which had expired two years prior. He stated the last City Council had re-authorized it for one year at a time, therefore, it sunsets every year,He stated this was to provide the City Council and the residents the opportunity to debate the merits of the franchise fee during the budget discussion. He stated, if agreed to, this would allow the City to either commit to the expiration of the franchise fee by early October, or make changes to the budget to do without that source of revenue. Mr. Jahnke stated another of his concerns was in regard to TIF. He stated the previous Council and Mayor had conducted a study,which indicated the average income of the citizens in Mounds View to be fairly low. He stated he had heard discussion regarding the removal of a home, and replacing it with a $180,000 home, which would raise the taxes. He stated he felt strongly about TIF applications to business. He stated,within his neighborhood, there were five widows, all living on fixed incomes, who inquired if this action represented that the City was going to tear down their houses. He inquired if the City was attempting to get rid of the middle income houses, construct these beautiful homes,and raise the taxes,thereby driving the residents into the government housing along Highway 10,which he so opposes. He stated he realized this example was extreme,however did have concerns in this regard. Mayor Coughlin stated the City's housing program is completely and utterly voluntary. He stated it is simply a tool for those people who wish to upgrade their houses. He stated if a property was known to be substandard, this program provided a variety of options. He stated that some individuals have requested funds from the City through this redevelopment fund to demolish and old, substandard house, so they could redevelop their lot and construct a nicer house upon it, and continue to reside on that property. Mayor Coughlin stated that he had not heard anyone state that the City would start marching through the town and drive widows from their homes. Mr. Jahnke stated he realized this example was extreme. He clarified, in looking at the big picture, if the middle income houses are removed, there would be no housing available for a middle or low income resident. Mayor Coughlin stated this was a valid point to raise,however, he doubted that in the foreseeable future, Mounds View would have any deficit in the area of low to moderate priced housing. Mr. Jahnke stated that the City of Mounds View was currently 15 to 17 million dollars in debt. He stated,with the upcoming budget discussion,the City should review every department to determine how they can lower the deficit. He stated it seemed to him the departments were not looking into this matter. Mayor Coughlin stated the City was not running a deficit. He explained that he had debt,in the form of the mortgage, and he was meeting that obligation, and living in it as well. He stated he took on that debt with the knowledge that he was obtaining something in return. He stated it could be argued 8 C:\ADMIN\MINUTES\CC\8-9-99.CC