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<br />. <br /> <br />established allover the City but if no storm sewer improvements are put into <br />those districts, nothing will happen; they will simply remain as lines on a <br />map. <br /> <br />Commissioner Ippe1 inquired as to the reason for subdistricts. <br /> <br />Mr. Hartley replied that originally the subdistricts were used for evaluation <br />purposes; at the present time, Staff is saying that the major districts will be <br />the only districts established. Ramsey's governing body and Staff have the <br />responsibility to make sure the public knows what can be done and what should <br />be done. Whether a project is proposed and financed through some other <br />mechanism other than taxing districts is a decision to be made by Council. <br />Installation of a storm drainage system is expensive and is usually designed to <br />serve a large area; it makes sense that the large area should pay for that <br />piping. If special assessments are used to finance a project, the City may not <br />be able to assess as large an area for the improvements and properties more <br />local to the improvements would pay for what benefits the larger area. <br /> <br />Commissioner Ippel stated that some people made a mistake in building in the <br />low lands and now the people who didn't will have to pay to correct those <br />mistakes. <br /> <br />. <br /> <br />Mr. Hartley stated that when properties were developed, one the criteria used <br />to determine buildability was published statistics regarding normal high water <br />levels. Now we have to decide whether or not we are going to develop a <br />drainage system to deal with runoff and high water in general. A great deal of <br />consideration has to be given to this matter because of the excessive amount of <br />wetlands in this community. <br /> <br />Commissioner Ippel stated that people that built by wetlands and rivers should <br />assume the responsibilty and problems associated with doing so. Massive runoff <br />problems will be in the urban area and developers of that area should pay for <br />the solution. <br /> <br />Commissioner Vevea stated that his real estate taxes on his property in the <br />industrial area are 6 times that of some residential properties and comparable <br />to what businesses in other full service communities are paying. If the storm <br />drainage project goes through, his taxes will increase even more to pay for <br />improvements that should be already there based on his current tax rate. <br />Commissioner Vevea stated that he is for establishing the districts and moving <br />forward but at this rate, Ramsey's commercial and industrial base will be <br />broken unless something like tax increment financing is used to pay for the <br />improvements in the commercial and industrial area. <br /> <br />Mr. Hartley stated that he can't defend a taxing system that bases the rate of <br />payment on commercial versus homesteaded residential. Tax Increment Financing <br />is a tool that freezes property values and as values grow, the increment from <br />taxes that would have been appropriate are funneled back into the area to pay <br />for the improvements. The percentage of your property tax that goes back into <br />the community to pay for these kinds of services is very small in relationship <br />to the rest of the taxing bodies. <br /> <br />. <br /> <br />Commissioner Ippel stated that many people are still paying assessments for <br />April 15, 1986 <br /> <br />Page 3 of 5 <br />