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Finance Officer Lund explained that she received the billings from the City of Anoka from May <br />2002 to May 2003, and the 2002 billings from Connexus. The percentage was based on the total <br />revenue and how the City can achieve the $525,000 needed. <br /> <br />Mr. Parry stated that there has been a lot of discussion about the increase in gas costs that will <br />occur this year and inquired if the fee will increase as well. <br /> <br />Finance Officer Lund replied that that would be an issue that would have to go back before the <br />Council. <br /> <br />Mr. Parry stated that the local paper has ten pages of foreclosures in the area, and there has to be <br />a reason for that. He questioned if people were overextending themselves or was taxing <br />becoming a problem. He stated that the Ramsey Resident it states that school and churches don't <br />pay taxes, but they do pay for these additional fees, which are then just passed onto the people. <br /> <br />Jeff Uecker, 17121 Variolite Street NW, Ramsey, stated that he was confused as to how much <br />money the City has actually lost. <br /> <br />Finance Officer Lund reviewed the State cuts and what the City would be looking at collecting <br />from franchise fees. <br /> <br />Mr. Uecker stated that the City is looking at collecting $525,000 in franchise fees and levy an <br />additional $286,000. He questioned why they would not handle all of it at once. <br /> <br />Finance Officer Lund explained that the 2004 budget had not yet been discussed by the City <br />Council. <br /> <br />Mr. Uecker replied that it is a fact that the City will charge back the $286,000 lost in State aid. <br /> <br />Mayor Gamec replied that that is what the City is permitted to do, but no decision has been <br />made. <br /> <br />Mr. Uecker inquired if the gas prices go up will the Council reduce the fee. <br /> <br />Mayor Gamec replied that the Council would have to compare the fee with the revenue that was <br />being collected. <br /> <br />Mr. Uecker stated that he did not think it was likely that the fee would be reduced. He <br />questioned as to how much the City had in reserve. <br /> <br />Finance Officer Lund explained that the City is required to have 50 percent of next years budget <br />in reserve and currently the City has $4.1 million. <br /> <br />Mr. Uecker inquired if the City reserves were at the minimum level possible. <br /> <br />City Council/June 24, 2003 <br />Page 11 of 37 <br /> <br /> <br />