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t Wf t <br />March 14,1997 <br />GITYof ORONO <br />Municipal Ofllces <br />Street Address: <br />2750 Kelley Parkway <br />Orono, MN 55356 <br />Mailing Address: <br />P.O. Box 66 <br />Crystal Bay, MN 55323-0066 <br />Senator Gen Olson <br />119 State Office Building <br />St. Paul, Minnesota 55155 <br />Dear Senator Olson: <br />THIS LETTER ALSO SENT TO; <br />Senator Edward Oliver <br />Representative Todd VanDellen <br />Representative Tom Workman <br />The city of Orono has been monitoring legislative proposals regarding tax reform, all of <br />which include local levy restrictions. The push for local levy restrictions is based on the false belief <br />that if the State takes over additional school funding to relieve the property tax burden, cities and <br />counties will quickly increase their levies dramatically and eliminate the initial savings to taxpayers. <br />This assumption ignores the fact that nearly two-thirds of the growth in the property tax since <br />1990 has been in school levies, while counties account for one-fourth and cities account for one- <br />tenth of the growth. <br />Taking more school funding off of the property tax is a much more effective method of <br />reducing property tax growth than imposing levy limits on other local governments. <br />On behalf of Mayor Jabbour and the Orono City Council, I strongly urge you to reject the <br />inclusion of local levy restrictions in any tax reform proposal. Thank you for your assistance. <br />Sincerely,-7 <br />Ronald J. Moorse <br />City Administrator <br />Telephone (612) 473-7357 • FAX 47341510