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TO: <br />FROM: <br />DATE: <br />Mayor and City Council <br />Ron Moorse, City Administrator <br />March 19,1997 <br />SUBJECT: Westonka Chamber of Commerce Survey <br />I have attached a copy of a survey the Director of the Westonka Area Chamber of Commerce is <br />requesting the Councilmeriil jrs to complete. It is important for Councilmembers to be careful both <br />in the decision about whether to complete the questionnaire and regarding answers to the <br />questionnaire. Although the questions are stated as simple yes or no questions, there are in fact very <br />comple.x and conflicting issues related to each of the questions. <br />For example, although it may appear that the answer to question #1 regarding the price of <br />government should be yes, it is important to remember that the price of government Uirgets are set <br />by the State with no input from cities and no flexibility for cities that may be experiencing unique <br />issues such as dramatic growth. It was only several months ago that the Commissioner of Revenue <br />blasted cities for exceeding the price of government target. <br />It may also appear that the answer to question #2 regarding business and rental housing property tax <br />relief should be yes. However, it is important to understand that any property tax relief provided to <br />business property and/or rental housing property shifts the tax burden to single-family residential <br />property unless the reduction ir > .''«”'*ss and rental housing property taxes is offset by an increase <br />in some other source of rever . -.» 'ment. <br />It also appears that the answer to questions #3 regarding reforming the property tax system should <br />be yes. This question probably has the least hidden political pitfalls. However, the ideas of the <br />business community in terms of how the property tax system should be reformed are significantly <br />different from those of municipalities. <br />Although each of the questions mcludes opportunity for comments to clarify the yes or no response, <br />it is most probable that the responses reported will only be the yes or no responses. Also, if this type <br />of questionnai.'e is being provided to city councils by all chambers of commerce in the metro area <br />and only the yes or no responses are reported, the information could end up being used against cities <br />by the business lobby in the legislature.