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~aa ~ a tss~ <br />,• <br />E <br />• SENATOR MARK OURADA <br />District 19 <br />145 State Office Building <br />St. Paul, Minnesota 55155 <br />(612)296-5981 <br />Home: <br />1110 Innsbrook Lane <br />Buffalo, Minnesota 55313 <br />(612)682-5024 <br />Senate <br />State of Minnesota <br />April 10, 1995 <br />Hank Duitsman <br />Mayor, Elk River <br />13065 Orono Parkway, P.O. Box 490 <br />Elk River, MN 55330-1900 <br />Dear Ma~~~,~itsman, <br />I would like to take this opportunity and update you and the members of the <br />Elk River City Council on a controversial bill, SF 1570, that was recently <br />debated on the Senate floor. This bill would prohibit increases in <br />property taxes by units of local government during 1996, and would impose <br />levy limits in 1997. I voted against this proposal. <br />No legislation adopted in the past 15 years would create more havoc with <br />the operation of local government than this legislation. New school <br />construction is prohibited, and salary increases for staff would have to <br />come at the expense of programs. Responses to natural disasters could not <br />e made with any additional funds. In short, this type of heavy handed <br />regulation could restrict the ability of local governments to function. <br />This bill prohibits citizens from making decisions about the operation of <br />their local units of government. Under the bill's provisions, the voters <br />would be prohibited from authorizing an increase in property taxes to build <br />new facilities or expand services. It prohibits elected representatives of <br />the people from managing the affairs of the local units of government. <br />This proposal represents a total distrust of local governments. <br />Members of the Senate IR caucus and I agree that the funding system needs <br />to be reformed. The current system is burdensome to the tax-payer, but a <br />simple property tax freeze is not the answer. Creating a crisis is not an <br />assurance that the system will be reformed. More likely, the freeze will <br />result in a large tax increase in the future; be it on property, income, <br />services or the sale of goods. <br />As always, I am interested in hearing your ideas about what state <br />government can do to make your job easier. If I can ever be of assistance <br />to you, please contact me. <br />Sincerely, <br />~/ ~ G~'~` <br />MARK OURADA <br />State Senator <br />• <br />COMMITTEES: Education and Higher Education Division • Family Services • Transportation a z <br />~, printed on recycled paper <br />