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ARDEN HILLS TRUTH-IN-TAXATION - DECEMBER 4, 1997 5 . Mayor Probst noted it should have no short-term effect. Longer term, there would be a positive effect because when the bonds are paid, the full tax collections percent will go to the School District and County, Roger Aiken, 4360 Hamline Avenue, inquired as to what the incremental amount would be, ML Post pointed out that numbcr is speculative at this time, because it would be dependent upon many factors such as the market value of the property, the tax capacity, etc. The projections are currently $500,000, but that would be shared by all the jurisdictions, 15% of which would be Arden Hills. ML Fritsinger noted when it was decided to use TIF, the City projections were based on a class rate of3,5%, so it was designed to minimize the risk to the City, Mr. Aiken expressed concern regarding the use ofTIF, Mr. Aiken noted perhaps there could be a return on investment for current residents, rather than to wait "down the road" when the Council and residents have changed, Mr, Aiken complimented the Staff and Council for all their hard work. He stated he did want to raise concern about the expense for the Gateway development. He wanted to know ifthe residents would see a return for this investment. . Mayor Probst indicated he was unsure ofML Aiken's questioning, He noted the fundamental logic was, once public improvements were in, it would set up the City for development of the remaining land so projects that come on board would have reduced additional costs for streets, etL to the City, ML Aiken continued to express concern regarding the annual increase of City property levies, when the City didn't seem to need it, and perhaps should have given the citizens a break. Although he did note that if no increase was given now, residents would complain in the following years when an increase was necessary, Mayor Probst stated he didn't believe the City would consider rebates as the answer. He noted the City has received the benefit of previous Councils who have set aside funds so the City is in the position to build facilities without additional levies or bond issues. Mayor Probst also noted as thc tax capacity is increased, everyone's taxes should start to come down. Mr. Aiken inquired as to street maintenance, how much is the actual increase and how much is just different allocations. Mr. Post pointed out from the operation standpoint there are no changes, but there are greater capital expenses. ML Aiken inquired if there was a tracking of the Gateway development. He noted again he was wondering if the citizens would see a return on their investment. Mayor Probst noted all funds . are identified in the City records and available for anyone to review, ML Aiken inquired if there was a concrete dollar amount expected on the investment for the Gateway development. Mayor Probst noted there is no such guaranteed amount and the City is doing everything possible to safeguard the City's investment.