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City Council Minutes November 5. 1984 Page Eight 9. Urban Rural Tax Ratio The City Administrator indicated that as part of the budget process. the City Council is required to review the tax ratio between the urban and rural areas of the City. The City Administrator indicated that at the time of consolidation the tax ratio was established to reflect a difference of services between the urban and rural areas. The City Administrator indicated that the current ratio is 5 to 3, and further indicated that at the present time, the staff feels that there are few, if any. differences in services provided between the urban and rural areas of the city. Mayor Hinkle questioned the staff's discussion regarding the differences of services provided between the urban and rural areas of the City. Mayor Hinkle indicated that he felt fire protection was not the same as the insurance rates are higher in the rural areas because City water is not provided. Mayor Hinkle further in- dicated that he felt that with regard to police protection. it was toss-up between the urban and rural area. Mayor Hinkle indicated that he felt the urban areas receives more benefit than the rural area with regard to the street department. and cited the example of street sweeping. Mayor Hinkel indicated that he felt there was more activity in the rural area for the building and zoning department. Mayor Hinkle indicated that he did not feel that City services were equal between the urban and rural area and therefore, indicated that he feld he could accept the ratio that rural taxpayers pay seventy percent of" the tax that the urban area pays rather than the current ratio whereby rural taxpayers pay sixty percent of the amount that the urban residents pay. Councilmember Engstrom indicated that prior to serving on the City Council, he served on the town board and therefore. was aware of the concerns the rural people had re- garding the consolidation. Councilmember Engstrom indicated that the rural taxes have gone up three times as much and yet the rural people have not received three times the services. Councilmember Engstrom indicated that he felt the street and road maintenance is not done as efficiently as when it was the township. Council- member Engstrom further indicated that he did not feel fire protection had increased and therefore, he felt the ratio should stay at the 5 to 3. The City Administrator indicated that the township did not provide as many services to its residents as the City does and further indicated that the City's rural ratio is lower than other adjoining townships in the area. Discussion was carried on regarding comparable township tax rates. Discussion was also carried on regarding the quality of services and the type of services provided to the rural area that was not provided when it was a township. Councilmember Duitsman indicated that the reason for consolidation was to provide the City of Elk River with the United Power Association tax base. Councilmember Duitsman indicated that he felt the township had better services prior to the consolidation. Councilmember Schuldt indicated that he felt the fire department has the same firefighting capabilities whether it be the urban or the rural area and further indicated that the building and zoning department services are required in the rural area much more than in the urban area.