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Mary, a resident, stated that she understood that the City needs more money, but she had a <br />problem with the fact that the City was losing $426,000, but they are looking at collecting <br />$525,000 in franchise fees and that in 2005 they will still be paying the fee. <br /> <br />Mark Broberg inquired if it was a set amount of money the City needed then why is it going to be <br />a percentage on an undefined source of money. <br /> <br />Mayor Gamec replied that if for some reason the rates increase, the franchise fee may be able to <br />be reduced. It will probably be an issue that the Council will have to review every six months. <br /> <br />Mr. Broberg inquired if there was a limit on the amount that the City can collect in property <br />taxes. <br /> <br />Mayor Gamec replied yes, which is why the City has to look at other funding options. He stated <br />that he would prefer to have one tax for the people rather than having to charge all the additional <br />fees. <br /> <br />Mr. Broberg inquired if the City was not able to increase their levy limit even with all the growth. <br /> <br />Mayor Gamec replied that that was true. <br /> <br />Mr. Broberg stated that as new houses are built in the City, that increases the value of the <br />property, which creates more revenue. <br /> <br />Mayor Gamec explained that it does not increase revenue for the City, but it does increase the <br />valuation of the City. <br /> <br />Finance Officer Lund gave a brief review on how levy limits impact the City. <br /> <br />Erika Sitz, 6521 164th Lane NW, Ramsey, stated that typically she is willing to pay taxes and <br />firmly believes in paying taxes, but she felt that adding franchise fees was too much. The City <br />tax and City expenses are too much. She felt that there were still cuts that the City could make. <br />Ms. Sitz explained that she moved into the City of Ramsey in 1977, and there were few services <br />and Iow taxes. She did not see any reason why they should be providing new services when they <br />are chasing growth. Two contradictory things are occurring because when they have growth it <br />increases the tax base so taxes go down but it creates more expenses. She stated that she was <br />opposed to the franchise fee and thought that the City Council should be looking at additional <br />cuts. She suggested researching the possibility of sharing expenses with other communities, or <br />other units of government. <br /> <br />Motion by Councilmember Pearson, seconded by Councilmember Cook, to close the public <br />hearing. <br /> <br />Motion carried. Voting Yes: Mayor Gamec, and Councilmembers Pearson, Cook, Kurak, <br />Strommen, and Zimmerman. Voting No: None. <br /> <br />City Council/June 24, 2003 <br />Page 15 of 37 <br /> <br /> <br />