1989-12-18 - Laserfiche WebLink

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I I I Council Meeting Minutes December 18. 1989 Page 3 Public Hearing, continued Mr. Dahms asked if Council has taken action to purchase an 18 acre site owned by John Miller. Benke said the Council is involved in discussion of several issues associated with this property and has not taken formal act; on. I f the Ci ty dec i des to purchase the property, the financing of the purchase would be funded through the sale of bonds or internal budget funds which would be repaid. Childs explained that cities use tax increment financing as a way. to attract developers and prevent decay of downtown areas which eventually cause erosion to the tax base. The State allows cities to acquire deteriorating properties in an attempt to attract new development and create a new tax base. Regarding a question from a resident of 1521--14th Avenue NW, Benke requested a copy be made of the literature the resident provided on the light rail transit system. State Senator Steve Novak feels these pub li c heari ngs gi ve the public an opportunity to interact and give feedback to their elected offi cia 1 s about the proposed budget. The property tax changes reflect the outcome of the Legislative Special Session tax bin which was passed a few months ago. A major item on the tax bill was the local governments I restrictions on taxing outside their 3% levy limits. Each property tax statement breaks down the tax amount per classification. The "other" classification refers to a mixture of the seven Metro Area agencies and represents 5% or more of the total tax bill. The School District portion represents 50% or more of the tax bill. The County portion represents 30% or more, and reflects the heavy cost of the health, welfare, and criminal justice programs. The City portion represents 10% or less. The large property tax increases during the 80ls can be attributed to the Federal Income Tax supported domestic programs which were shifted to local governments and paid for by local property taxes. The tax rates for homes valued at $68,000-$100,000 and $100,000 and up have been reduced 2% and 3%, respectively. Novak said the Metro Area IS di sproporti onate tax burden refl ects the higher economic activity and escalating property values in the Metro Area, as compared to the decl ining economic conditions in rural Minnesota. Pub 1i c Hearing Review of the 1990 Budget Report 89-303