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`We're
<br />~ TA%ES FROM AS
<br />passing ontaxes that Ithinkare
<br />way too high;' he said. "People
<br />aze very afraid."
<br />Council Member Rob-
<br />ert Lilligren, who repre-
<br />sents neighborhoods south of
<br />downtown, also has noted the
<br />change of tone.
<br />"In my ward, there are
<br />many people who would say,
<br />'T.ax me mote if I get a cop
<br />on the street. Tax me more B
<br />my street gets better lighting.
<br />Tax me more if my street gets
<br />paved; " he said. "They see a
<br />value in being taxed for some-
<br />thing if they get something in
<br />return. But I think now we're
<br />at a breaking point"
<br />Neazlyadecade inthe mak-
<br />ing, thesitvatipPhas been
<br />shaped by forces partly be-
<br />yond the city's control.
<br />It started with a change
<br />in classification rates by the
<br />Legislature that resulted m a
<br />shift of t~e prti8e[tytax bur-
<br />den from cgmrdercial a¢d~m•
<br />dustrial properties to residen-
<br />tial. Arun-up in home valves
<br />followed, bringing a steady
<br />climb in property taxes. On-
<br />going cuts N state aid to local
<br />governments, along with the
<br />city's financial commitment
<br />to sports and entertainment
<br />venues and its obligation to
<br />pay into public pension funds
<br />added to the burden
<br />Then came the recession,
<br />job lasses, wagecuts and [he
<br />housing crash City, county and
<br />school districts have struggled
<br />looking m tax increases as pan
<br />of the solution.
<br />Even so, public jobs and
<br />services are being cut, mak-
<br />ing the tax increases sting
<br />even more.
<br />"I was born and raised
<br />here and have meverleft the
<br />city and I don't particulaz-
<br />ly want to. But the tax situa• '
<br />tion is something they need
<br />to address;' said Joyce Suek,
<br />59, who faces adouble-dig-
<br />it percentage tax increase on
<br />her home near Lake Nokomis.
<br />'9 can afford i0. Some people
<br />can t. AndIwon't beable td af-
<br />forditforever." '
<br />trapped'
<br />~T~T~ several closedpensioHfunds
<br />Commerc' ,industrial andxesidential shazes ofthe citys taxbase. fox police andfuefighters in-
<br />1996 P YABLE IN 1899 2010 PAYAHLH IN 2011 toastatewide fond also could
<br />Apanme t Commercial/ Apartment Commercial/ have along-term impact.
<br />Knowing the squeeze may
<br />33% industrial
<br />`..~'~+,,idi 56% 9sz -_ ;,,n„~r.ial
<br />S% well get worse, the mayor
<br /> t --J
<br />~ A-± plans to meet with neighbor-
<br /> 1 j,
<br />, hood groups incoming weeks
<br /> .
<br />~f{~ totalkaboutbudgetandtaxis-
<br /> + sues in hopes of fmding solu-
<br /> tions to ease the pam.
<br />Residenti "There aze no easy answers
<br />33% to holding down property tax-
<br /> es and continuing to Fight to
<br /> lower crime and Fix the pot-
<br /> holes in aperiod where all the
<br />TR8N0 IN MARHET VA LOH AND TAXES buildings aze worthless and
<br />Taeu trend inmazket value andtaxes paid forahome on there are huge cuts from the
<br />E.SOth St, est of Lake Nokomism south Minneapolis. state and there are huge pen-
<br /> Taxable Total Percent lion debts;' Rybak said."But
<br />Year martial value ]oral taxes diange part of my job is to get the
<br />"
<br />;;2$~-= lai400=- -, ,.-
<br />-, $Of,^ 52,438 n/a. right balance.
<br />'
<br />2004 .
<br />$164,600 52,730 12.0% The mayor
<br />s long-term
<br />205 82].2,500 52,375 3,0%.' strategy is to attract business-
<br />2006 $294,300 53,297 10.8% es downtown to fill up office
<br />:?OSJ7 $25,6,000 ; $3;326 '.. p,9%'<' buildings and increase their
<br />2008 5260,000 53,577 7.5% market value, boosting the
<br />~2A1~6 'u ~R64.~t1 r 43 .: 6' t~
<br />
<br />20 0
<br />5264400
<br />$3,710 -14% The more people in the
<br /> ~ t $~6rk~d0 , ~ 8 d - 1i4'( gtty, the more they share the
<br />b d "Sit d
<br />rental
<br />home
<br />neighb
<br />Oth
<br />can'tial
<br />"I di
<br />out qf~
<br />ing,'In
<br />accept
<br />cal go
<br />Moves
<br />who al
<br />percen
<br />souN 1
<br />'fhe
<br />other ci
<br />Tens
<br />ern cor
<br />Bs each
<br />ues
<br />Beyondolty Bxriits ..Whit
<br />The frustration bubbled care of tl
<br />over that December night at common
<br />thepacked City Ha]I budget Rybak'sc
<br />hearing that ran past midnight. alarm N
<br />Seventy-five people signed up neapolis
<br />to speak; two-thirds addressed ing to ri
<br />the tax issue. to a Two
<br />Manyscoldedthe mayorand heart pa
<br />councBmembers forwha[they paramed
<br />saw es poor management and to regpor
<br />for not cutting deeper atatime accident
<br />whenhomeowmers azemaking apolis co
<br />their own tough choices. "Then
<br />"I think there has to be a to hostii
<br />more creative way [o not only the buxd
<br />cut the rate ofgmwth,but to al- olis prop
<br />
<br />Mirreapotis
<br />starm6we m en, t es saz .
<br />There aze signs the down-.
<br /> town business climate is im-
<br /> proving. Vacancy rates down-
<br />cutthebudge[;'said Ttvo taus town dedlined slightly in 2010
<br />ek, 32 a Realtor and ACter hours of testimo- while emp4uymept was up,
<br />>erty owner whose ny that December night, the according. to SardGrabazski,
<br />i the East Calhoun City Council approved 0$1,36 presidentandCEOOftheMin-
<br />>od. billion 2011 budget that rain- neapolis Downtown Council.
<br />said they simply es citywide tax collection by "We're not out of the woods
<br />I to pay more. 4.7 percent, down from the ZS yet;' Grabarski said. "But
<br />lose myjob.I'm not percent maximum increase Rybak is correct - if down-
<br />[ButI'tnjustth'ink- .proposed i¢ August The town thrives, it really helps
<br />,wn economy, this is council also cut the city work- in sustaining the neighbor-
<br />behavior by my lo- force by BO people, including hoods and the police and the
<br />mart[?"' said Steve 32 firefighters and 24 police fire protection throughout the
<br />7-yeaz-old engineer officers. whole city."
<br />aces adouble-digit The vote offered no reas- Fox Steve and Rachel
<br />tax increase on his surances. Maven, good news can't come
<br />ieapolis home. "There are.two feazs here;' soon enough. They bough[
<br />i will be felt outside Becker said. "One is that we're [belt Phillips area home for
<br />is, too. getting screwed. And the sec- about $180,000 eight yeazs agog
<br />don't stop at the and tear is that ic's going to get seeing it as the perfect place to
<br />idMazk Haveman, worse:' raise their four children.
<br />fuector of the Min- The city projects its ta3aeed "We ryst love the diversi-
<br />payers Association. will increase by 5.5 percent to ty;'said Rachel Moves, astay-
<br />ishas "benefits that 6.7 percent in each of tlKnext at•home mom. "The city is. a
<br />take advantage of" five yeazs ve[y rich place for families
<br />thousands otwork- in an economy where few to he;'..'
<br />ute to Mvmeapo- can dream of annual salary Their home's value has
<br />y. Thousands more
<br />` increases of that magnitude, droppedfxom a high of nearly
<br />it night xo
<br />take in some owners aze feeling that $200,000 toabout $165,000~ia
<br />entertain{nent van-. the math is agahutthem: 2030.'173eirproperty taxes atie
<br />taurants, "You can't pay you[. wort- st8l rising:,
<br />hey're here, we take gage, you can't pay foryour Steve Moves said some
<br />n;' said John Stiles, utilities. You can't pay for your neighbors }lave told him [hat
<br />ations director for food, "said BeckeFwho was theyd be gone if not for the
<br />ice."If there is a fire laid off f[om her job mfinance-. - slug$ish teal estate market.
<br />xeir building, Min- at the University of Minnesti-' He;tmd his wife have thought
<br />iefighters are go- to in September. She-:gold she about moving, too.
<br />>ond, If you come feels "closer andeloser to that "We ie feeling trapped,"
<br />game and you have buzz saw." Moves said.
<br />nations, you get a `Tt makes me think'Do we
<br />from Minneapolis No easyanswers believe it's going to get any
<br />And if you have an How bad. it gets over the better?'Ifit's no4Ishould just
<br />i the street, Minna- next gear depends on how take my huge lossand leave
<br />will respond ... much the Legislature cuts now instead ofstickingaround
<br />ue a lot of benefits from the current $SZ5 mil- and, in Five yeazs, being in an
<br />these people. But ]ion in Iocalgovemment aid even worse situation:'
<br />falls on Mirmeap- to the city The outcome ofthe
<br />ty owners." cit}'s ongoing effort to merge amna.amerynew•stas7s-oars
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