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Engineer Raatikka explained that Allied Blacktopping has <br />requested they be paid in full with the understanding they will <br />complete the repair work in the Spring. Allied Blacktop has a <br />bond to cover the repair project. Engineer Raatikka stated the <br />attorney, Bill Goodrich, has suggested the City hold back 5%, or <br />$3,000, which would cover twice the cost of the repairs. <br /> <br />Motion by Councilman Cox, seconded by Councilman DeLuca, to <br />approve payment to Allied Blacktop minus 5%, or $3,000, which <br />will be held to cover the repairs that are to be done in the <br />Spring. <br /> <br />Councilman DeLuca asked if the City would need to pay interest on <br />this 5%. Administrator Hartley stated this was not necessary <br />since the contract itself which was entered into between Allied <br />and Ramsey provides for such a retainage. <br /> <br />Motion carried. Voting yes: Mayor Reimann, Councilmembers Cox, <br />DeLuca, Pearson and Sorteberg. Voting no: None. Absent: None. <br /> <br />Case # 2: <br /> <br />Consider Resolution Setting Levy for Payable 1988 <br />Taxes <br /> <br />Administrator Hartley explained additional information from the <br />County was received regarding the assessed value for Ramsey. <br />This new information affects the predictions that were made <br />regarding the impact of the property tax levy. Administrator <br />Hartley had asked Noel Graczyk, Finance Officer, to gather <br />information about this matter as well as the affect of reducing <br />the overall levy for the City of Ramsey. <br /> <br />Noel Graczyk, Finance Officer, gave a presentation to the Council <br />explaining the affect of the change in the fiscal disparities <br />contribution and how the mill rate is affected. <br /> <br />During the presentation Mr. Graczyk explained that if the fiscal <br />disparities distribution was reduced this year it results in a <br />1989 loss of at least $15,000 per mill. By reducing the <br />homestead credit you shift the tax burden away from State sources <br />and to the local property owners. It also increases the ability <br />of other City's to place additional tax burdens on the City of <br />Ramsey via the State. The State grants revenues to <br />municipalities through Local Government Aid. If Ramsey reduces <br />the levy it also reduces the fiscal need and therefore the local <br />government aid which in turn reduces the aid even further into <br />the future years. Mr. Graczyk explained that by reducing the <br />levy limit by one mill this year it would result in a total two <br />year loss of $80,490 and the permanent loss in levy or other <br />revenue ability for 1989. <br /> <br />City Council/October 6, 1987 <br /> Page 4 of 10 <br /> <br /> <br />