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. . Oct 17 04 02:01p Burr-ell 703-723-6151 To Roseville Citizens, Roseville Mayor Craig Klausing has recently been misinforming citizens regarding at least two significant financial details regarding the proposed Twin Lakes redevelopment. Mr. Klausing states (1) that tax increments to be dedicated toward subsidizing the 'proposed Twin Lakes redevelopment are not public funds, and (2) that there are no general property taxes going toward the Twin Lakes project. The facts are exactly the opposite. On the first issue, tax increments are, under state statutes, actually property taxes. Property taxes and most other city revenue sources are defined as public funds by State Statute lI8A. 0 1. Minnesota auditors consider that fiduciary and statutory care is required for all public funds. On the second issue, if the City Council proceeds with a tax increment subsidy to the developer, there will be a general tax dollar shift to the rest of the community. Currently the proposed district generates approximately 2.1 million dollars in property taxes. Nearly 570/0 of those dollars ($1,200,000) are produced by the current buildings on the proposed redevelopment parcels. When taxable structures are cleared for development, property taxes cease, and those funds are lost to the city, schools, county, and state. It is doubtful that the taxing entities will reduce their collective levies by 1.2 million dollars. The more likely effect will be a shift of over 1 million dollars to the general taxpayer to make up the lost funds. With the Mayor and some of the Council members operating at this level of naivety, the citizens of Roseville should be aware that the fiscal stability of their community is being threatened. t:awJ I 6AP"vuf/ Edward Burrell Former Roseville Director of Finance Former Acting Roseville City Manager