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Department budget is about 3% of the general fund budget which means this City spends <br />less per capita for its fire department than any other city. <br /> <br />Ms. Lemke stated she sees these answers as scare tactics; it's regressive and she won't <br />cheer for additional taxes. <br /> <br />Councilmember Hardin stated that to save money, the City is working with a reduced staff <br />and that it has put off purchasing needed equipment for the Police and Fire Departments. <br />He stated that if there are some services that the City is providing now that the residents feel <br />they can do without, please let Council know. <br /> <br />Brad Thorud, 7826 - 161st Avenue N.W., Ramsey - inquired why there was no public <br />hearing regarding the franchise ordinance. <br /> <br />City Attorney Goodrich stated that a public hearing was not required. <br /> <br />Mr. Schroeder stated in gaining a franchise fee there are choices to be made such as would <br />a fee be assessed against all utility customers in the community or would there be varying <br />rates of fees based upon the goal the community wants to reach. He stated that Staff is <br />recommending a 3% fee be assessed against residential customers only and 0% against the <br />schools and churches and 0% against commercial/industrial customers. He stated the <br />commercial/industrial properties have paid four to five times more taxes on a parcel as a <br />single family home has. He stated he doesn't feel that $3.00 a month average charge will <br />negatively impact persons buying a house in Ramsey. <br /> <br />Mr. Thorud inquired if the 3% would deter businesses from locating in Ramsey. <br /> <br />Finance Officer Helling stated she doesn't have the value for commercial accounts but if the <br />additional dollars were added to the property tax, it would be 3.5 times the average home. <br /> <br />Mr. Thorud commented it was a coincidence this issue didn't come up until after election. <br /> <br />John Lucia, 14341 Uranium Street N.W., Ramsey - stated he has no problem with the <br />relationship being established between the City and the public utilities and no problem with <br />the tax to increase revenue, but feels it is unfair for the City to say only residents should <br />pick this up and not businesses, especially since businesses use more utilities. He felt if he <br />has to pay a 3% increase, there is no reason a business should not be made to do the same. <br />If the businesses are also taxed, the percentage of the fee could be lowered. He stated that <br />the businesses having to pay 4% more in taxes is "State stuff" and the State should have to <br />deal with that and he shouldn't be penalized for that. He added that the City could reduce <br />its parks if it is looking for somewhere to cut expenses. Police Department, Fire <br />Department and City Staff has to come first, parks can come second. He suggested it is up <br />to the parents to find a safe place for their children to play. Parks are an auxiliary service. <br />He added he is in favor of getting new equipment for the Police and Fire Departments. <br /> <br />Ms. Dahlgren inquired what amount is projected to be raised with this tax to which Mrs. <br />Helling replied a 3% fee on both gas and electricity amounts to about $144,000. <br /> <br />Ms. Dahlgren inquired what percent of property tax comes back to the City to which Mrs. <br />Helling replied approximately 16%. - <br /> <br />Ms. Dahlgren commented that the City will be losing $231,000 in LGA and the difference <br />between 1993 and 1989 is stated. She inquired what the difference is between 1992 and <br />1993. <br /> <br />City Council/November 10, 1992 <br /> Page 6 of 10 <br /> <br /> <br />