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Mounds View City Council Page Eight ~egular Meeting August 24, 1992 to Mounds View and also stated that the City is overtaxing the people employed now. Councilmember Quick pointed out to the residents how much of the burden is being shifted from the County to the City with regards to road turnbacks. It was further pointed out the Ramsey County dispatch services will increase by $13,000. Starting in 1993 there will be an approximate increase to the City of $5,000 more to process prisoners. These costs are all out of the City's control. orduno stated that there was an excellent group of well informed people at the meeting. The City has only hired four new staff people in the last five years. The City took over snowplowing to save funds. The City is trying to save money. Orduno stated that the City will now have to pay sales tax and it is not clear on what sales tax will have to paid. The ADA law will cost the City lots of money. AWAIR law making sure cities have a safety commissions and to do safety audits. The City is mandated to make sure all residents have an environmentally safe garbage collection service. The franchise fee is a way to make revenues to meet the needs of the residents with affecting the homeowners property taxes. general discussion evolved regarding who will be paying the most in dollars with the implementation of the franchise fee, commercial, industrial or residential. Bill Lang, resident, commented that the franchise fee is tax deductible for the businesses as a business expense and will save quite a bit of money. This would be a tax savings of approximately 400. 34~ is the statutory tax rate for corporations and 90 on Minnesota state tax. Mr. Lang further stated that he did not realize that there was going to be a street light utility and a franchise fee. He stated that he understood it would be on or the other. Laurie Schley, 8423 Knollwood Drive, stated that everyone should be asking the Council and the County Commission and members of the School Board to promote clarity on the system. The problem is that it is a difficult property tax system to understand and most people, unless they have a PhD can't figure it out. Schley stated that she is in opposition to the fee because she does not want to pay NSP to buy down her property taxes. Ms. Schley stated she would rather pay the taxes and know what she is paying. Mayor Linke stated that there are three ways to raise revenues for the City. One is property taxes, another would be enterprise or user fees and the other would be franchise fees. oe Foss commented on ways to create funds through more energy efficient ~ays of using fuels which are less damaging to the environment.