Minutes - Council Work Session - 07/31/2007

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Councilmember Dehen questioned why high speed internet is not being left to the private sector, rather than creating a countywide internet system. Ms. Skepper replied in a community like Ramsey they have been able to think ahead. and have the conduit laid for new developments. If a provider of this service wants to come in they will build those areas first; it is very expensive for them to go back into fully developed areas and do the same thing. Also, on the northern end of the County where the homes are very far apart, if someone wants a home based service it is likely that they cannot get the service. Anoka County Commissioner Berg indicated a consultant would be hired to complete the feasibility study. They have received feedback from a lot of the cities that they see this hampering their ability to move forward with economic development. Ms. Skepper stated in many areas if the government initiates this process, competition will pop up from the private sector that in many cases will step forward and build the system. This is a way to get the harder to service areas tied in. Councilmember Look stated he sees this as every community has their issues and this is a taxation vehicle to generate money. He asked what the tax amount is that is being discussed. Anoka County Commissioner Berg replied the EDA levy is 0.018% of the taxable market value. Ms. Skepper indicated the property tax department has said that the Anoka County average countywide is $216,000 on a home. The incremental difference between the current HRA levy and the maximum EDA levy on that home is $11.86. The HRA has set a budget and only levied to that budget amount. It would be very unusual to levy the maximum amount. Councilmember Look stated the high speed internet service benefits businesses, but the residential aspect is carrying a portion of it. He asked what return on investment the Council is to tell to their constituents they are receiving on this. Ms. Skepper replied by growing the local tax base it shifts some of that tax burden to the businesses, and with additional job opportunities for persons living in Anoka County there is the opportunity to work closer to home. Economic Development Coordinator Sullivan indicated last year the EDA levy for the City was at the maximum of 0.1813% of the market value. The maximum is $393,000 within Ramsey. The $11 difference would be the difference from the County HRA to the EDA standard. The impact on a $200,000 home for the maximum levy is $36. He advised the HRA levy allowed is 0.0144% of the taxable market value. Anoka County Commissioner Berg stated the County HRA levy is a long ways from the maxImum. Councilmember Look asked what prevents the levy from going to the maximum. City Council Work Session / July 31, 2007 Page 5 of 18