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arbitrators' award for the policemen gave them an 18% increase and
Mounds View had budgeted for only 9 %. Another problem is the present
court system. In 1974, under the Justice of the Peace system, we
had a surplus of $17,000. In 1975, we are going to have a deficit
of $15,000. If you spend a bushel you've got to find that buck
some place. It has to come from taxes or from services. Mayor
Johnson asked for questions from the floor.
Mr. Joe Hardinger - 2375 Highway 10 - The Council and you seem to
thinkthat the four or five business places in Mounds View should
pay for all of these. No one else is being penalized. I can see
why there is no new business coming in if you take the attitude
that the liquor end should take care of it. You okayed a $2,000
contract to work on Saturday, etc. How can you sit there and allow
this to happen. Who arrived at these figures?
Mayor Johnson: We took a look at the various sources of revenue
which the City has -- permit fees, realty taxes, liquor licenses.
How reasonable are they in terms of the services we are rendering
and in terms of what other cities are charging in comparable situations.
Administrator Achen did this checking and is qualified to do this.
Mr. Hardinger: Where did you arrive at the figures?
Administrator Achen: The new fees are based primarily upon the cost
of services the City is rendering such as police, courts and prose-
cution. Since 1973, when the on -sale intoxicating liquor license
was last raised, the City's cost for police, court and prosecution
services has increased from $159,126 to $285,684. This is an increase
of $126,558 or 79.5% in just three years. The additional license
fees proposed tonight will generate approximately $10- 11,000
additional revenue. The balance of the increased police, court and
prosecution costs is being paid by property taxes.
Mr. Hardinger: If I own a gas station, am I not entitled to police
protection?
Administrator Achen: The establishments affected by the proposed
license fee increases all require police protection services beyond
those normally provided the single family homeowner. Our police
handle numerous law enforcement and security problems at these
establishments. We estimate that without the need for such services,
two or three less policemen would be necessary.
Richard Johnson - 2400 Highway 10. I feel that the apartment
buildings take more of the police time than any of the clubs.
Mayor Johnson: My only response is that the multiple dwelling
units are paying for a portion of the increase through their real
estate taxes. How do you come up with a fair allocation? We took
what we consider the best shot and arrived at what we have here.