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Mounds View City Council Page Eight <br /> Regular Meeting August 24, 1996 <br /> to Mounds View and also stated that the City is overtaxing the people <br /> employed now. <br /> Councilmember Quick pointed out to the residents how much of the burden is <br /> being shifted from the County to the City with regards to road turnbacks. <br /> It was further pointed out the Ramsey County dispatch services will increase <br /> by $13, 000. Starting in 1993 there will be an approximate increase to the <br /> City of $5, 000. more to process prisoners. These costs are all out of the <br /> City's control. <br /> -rduno_stated- that—thererias—am excellen roup of well informed people at <br /> the meeting. The City has only hired four new staff people in the last five <br /> years. The City took over snowplowing to save funds. The City is trying to <br /> save money. <br /> Orduno stated that the City will now have to pay sales tax and it is not <br /> clear on what sales tax will have to paid. The ADA law will cost the City <br /> lots of money. AWAIR law making sure cities have a safety commissions and <br /> to do safety audits. The City is mandated to make sure all residents have <br /> an environmentally safe garbage collection service. The franchise fee is a <br /> way to make revenues to meet the needs of the residents with affecting the <br /> homeowners property taxes. <br /> A general discussion evolved regarding who will be paying the most in <br /> dollars with the implementation of the franchise fee, commercial, industrial" <br /> or residential. <br /> Bill Lang, resident, commented that the franchise fee is tax deductible for <br /> the businesses as a business expense and will save quite a bit of money. <br /> This would be a tax savings of approximately 40%. 34% is the statutory tax <br /> rate for corporations and 9% on Minnesota state tax. Mr. Lang further <br /> stated that he did not realize that there was going to be a street light <br /> utility and a franchise fee. He stated that he understood it would be on or <br /> the other. <br /> Laurie Schley, 8423 Khdllwood Drive, stagthat everyone should—be—asking <br /> the Council and the County Commission and members of the School Board to <br /> promote clarity on the system. The problem is that it is a difficult <br /> property tax system to understand and most people, unless they have a PhD <br /> can't figure it out. Schley stated that she is in opposition to the fee <br /> because she does not want to pay NSP to buy down her property taxes. Ms. <br /> Schley stated she would rather pay the taxes and know what she is paying. <br /> Mayor Linke stated that there are three ways to raise revenues for the City. <br /> One is property taxes, another would be enterprise or user fees and the <br /> other would be franchise fees. <br /> Joe Foss commented on ways to create funds through more energy efficient <br /> ways of using fuels which are less damaging to the environment. <br /> 411 <br />