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Mayor Gamec responded that there were actually more requests but they were cut and added that <br />people are the most expensive part of the budget. <br /> <br />Mr. Stanius expressed concern that the City may be in the same situation next year. <br /> <br />Mayor Gamec again compared Ramsey to other cities and the fact that Ramsey gets by with <br />fewer employees than other cities the same size. Ramsey has finally had to "bite the bullet" and <br />spend the money to get some help. <br /> <br />Councilmember Anderson explained that Ramsey was under levy limits for years and this is the <br />first year we were out from under that. There is a chance that levy limits will be put back on <br />again. <br /> <br />Mayor Gamec agreed that if we had not had the levy limits placed on us, we could have done all <br />this in stages. <br /> <br />Winslow Holasek, Andover, (has property in Ramsey), recalled a comment that Councilmember <br />Hendriksen made about tax increment financing. He asked where the money goes from the <br />financing. <br /> <br />Councihnember Hendriksen replied that it goes into that TIF District and can be used for roads, <br />etc. <br /> <br />Mr. Holasek inquired if any of that money could go for public safety. <br /> <br />Ms. Lund explained that you cannot use any of that money for anything in the General Fund. <br /> <br />Mr. Holasek commented on nothing coming out of TIF. <br /> <br />Mayor Gamec pointed out that without TIF, we would not have that revenue ever. The TIF <br />entices businesses to come to Ramsey. <br /> <br />Mr. Holasek agreed that in the long run, probably nine years, the businesses will be paying their <br />own way, but for that time, the residents subsidize them. <br /> <br />Mayor Gamec added that without these businesses, the taxes would be higher. <br /> <br />Councilmember Hendriksen stated there are benefits for the City and the water tower and a <br />major portion of Highway #47 are examples. <br /> <br />Ms. Lund reiterated that a major portion of Highway #47 improvements was done with TIF, <br />therefore, it did not have to come out of the taxes. <br /> <br />Mr. Holasek figured there has been a 430% increase in the City's share of taxes. It was revised <br />so it went down to 350%. He said it has to be realistic. <br /> <br />Ms. Lund pointed out that Mr. Holasek was being levied for subdrainage. <br /> <br />City Council Budget Public Hearing (Truth in Taxation) - December 4, 2000 <br /> Page 4 of 5 <br /> <br /> <br />