07-23-1990 CC MIN - Laserfiche WebLink

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City Council Minutes July 23, 1990 Page 5 e the Elk River Landfill. Mr. Kreger informed the City Council that as a resul t of losing Hennepin County's waste, he had to close down the recycling center. He stated that if the City and the County refused to lower the taxes, he will be forced into keeping the recycling center closed and laying off thirteen employees. Discussion was held by the Council regarding the joint powers agreement between Anoka and Hennepin County and whether or not it was legal to enter into such an agreement. The Council reviewed the financial statement provided by Chris Kreger of the Elk River Landfill. Councilmember Kropuenske stated that it was impossible to analyze the financial statement without a detailed cost of sales. The Ci ty Administrator questioned Mr. Kreger as to how long he would require the reduction in landfill tax. Mr. Kreger indicated that a maximum of two months would give him enough time to investigate other options. e Mayor Tralle stated that if the City does not cut taxes, the community will lose 13 jobs and the recycling center will remain closed. He stated that the recycling center is not subsidized by the County or Ci ty and that a lot of other recycling centers have some type of subsidy. Pat Klaers stated that the County has in excess of $2,000,000 of landfill tax and further that the County has the responsibility for waste abatement. He indicated that if Chris Kreger closes the landfill, the County has to deal with the concern of what to do with the waste. Mr. Klaers further indicated that the City receives about $20,000 per month in landfill tax and that only 25% of that money goes to waste abatement purposes. He indicated that the City has in excess of $300,000 in the waste abatement fund. The other $.75 received from landfill tax can go for any General Fund purpose. He indicated that this is about $160,000 per year. Mr. Klaers explained that this money is divided up into the Library expansion fund and the future City Hall Fund. He stated that some of the money goes directly into the General Operating Budget and a percentage goes into Street Replacement Fund. He indicated that for the City to forgive 50% of the landfill tax would be giving up $10,000 per month. Chris Kreger indicated that the City is already losing 1/2 of the $20,000 per month with the loss of Hennepin County. He indicated that if they can get the tax break, they can add business which would potentially raise the monthly City income. e COUNCILMEMBER HOLMGREN MOVED TO ALLOW A 50% REDUCTION IN THE LANDFILL TAX TO ELK RIVER LANDFILL FOR TWO MONTHS SO THAT THE CITY WOULD HAVE TIME TO STUDY THE SITUATION. COUNCILMEMBER KROPUENSKE SECOND THE MOTION.