Minutes - Council - 09/21/1989 - Special

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construction taking place. As a result, the value of property in the City is increasing. The increase in dollars is 4.7%. The City has no way of predicting whether that will result in an increase, maintenance or decrease in the property taxes. The impact to property taxes as a result of proposed revisions to the property tax system cannot be predicted. Robert Steele - Noted that the ad in the Anoka Union indicated it was a property tax increase of 4.7% but what it really means is that a 4.7% increase in revenue is needed to balance the budget. Robert Steele - Inquired as to how 4 in 40 density zoning will affect property taxes; noted that limiting development will result in less people in the city to share the tax burden. Mr. Hartley replied that the bulk of the property that is affected by the 4 in 40 policy will not decrease in value because it is already at it's lowest classification. Mr. Hartley reported that for the City to grow at urban densities, it must maintain the 4 in 40 policy; City Staff and City Council do not agree with 4 in 40 density zoning and intend to change it at Metro Council. Michael Powers - 8015 142nd Avenue N.W. - Stated that his taxes have increased from $49.00 in 1947 to $3,081 this year. Mr. Hartley stated that the 4.7% increase represents an increase in revenue dollars needed by the City of Ramsey. Michael Powers - Stated that his accessory building is assessed based on what a contractor would build it for, not what he built it for. Mr. Hartley noted that the purpose of tonight's meeting is to discuss the City's budget; property values are discussed at the Board of Review in May of each year. Jack Ippel - 16447 Jaspar Street N.W. - Noted that the Economic Development Commission and Economic Development Company provided City Council with a letter requesting that the City seriously consider providing a staff person whose sole responsibility would be in the area of economic development. Such a staff person should be viewed as an investment and not an expense. Mayor Reimann stated that the request for an economic development staff person will be reviewed at the time staffing proposals are reviewed. Jim Connally - 16235 Kamacite Street N.W. - Inquired as to how much funding the budget calls for to establish an engineering department and what percent of the budget that figure represents. Councilmember Cich replied that $255,000 is being budgeted to establish an engineering department; the City spent $460,000 in engineering consulting fees last year. Mayor Reimann noted that most of the engineering fees are recovered by billing those that benefitted from the service. Mr. Hartley provided an itemized cost breakdown for establishing an engineering department which in summary is $250,000 start up costs and $17,000 for rental space. City Council Public Hearing/September 21, 1989 Page 2 of 3