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01-06-1998 Council Packet Special Meeting
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01-06-1998 Council Packet Special Meeting
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r <br />7. <br />Orono j 63.61 <br />Long Lake 16.19 <br />Spring Park 15.35 <br />Minnetonka Beach 4.84 <br />8. <br />Orono 69.75 <br />Long Lake 13.05 <br />Spring Park 10.86 <br />Minnetonka Beach 6.34 <br />9.Market Value <br />Orono <br />Long Lake <br />Spring Park <br />Minnetonka Beach <br />75.89 <br />9.9 <br />7.84 <br />6.37 <br />10. <br />Orono 73.5 <br />Long Lake 10.7 <br />Spring Park 8.1 <br />Minnetonka Beach 7.7 <br />Studies have shown that high value single-family residential property is the lowest user of city <br />services such as police services. Given the characteristics of Orono with its high single-family <br />residential value, any formula that includes market value as a significant factor without any <br />balancing for actual service need will result in the amount of police costs allocated to Orono being <br />higher than the amount of police services used. <br />It has been suggested that the cost allocation formula be based on market value, because if Orono <br />and Long Lake were one city the police service costs would be shared by the citizens on the basis <br />of market value not on the basis of service need or service usage. Although the example was cited <br />of the wealthier, lower crime areas of Minneapolis paying the taxes that pay for the police service <br />that serves the high crime and lower income areas of Minneapolis; cities and other governmental <br />agencies have, for many years, been moving to methods of funding city services other than general <br />property taxation. The focus is to charge residents directly for the services they receive in the form <br />of user fees. User fees are being used in all types of services including police st rvices. When user <br />fees are used correctly, they can themselves serve as a mechanism for allocating scarce service <br />resources. Residents pay for the level of service they desire. <br />A-5
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