Star Tribune from Minneapolis, Minnesota • Page 71

no I i ,.,11.. (1) UvMI" i 'hutmv i II vf" Jr Minneapolis Star and Fetfi 7, 198 it fl mt 3 If C7 Quitting MTC becomes tool in tax dispute By Ellen Foley Staff Writer A newly discovered tax break for cities that "opt out" of metropolitan bus service has given Savage, Shakopee and Prior Lake another weapon to fight high taxes. A recent state attorney general's letter says that if communities opt out or withdraw from the Metropolitan Transit Commission (MTC) service area, current law requires them to pay only 10 percent of their transit taxes to the MTC. The remaining 90 percent could be used for other transportation projects, or simply refunded to taxpayers. The news came as a pleasant surprise to the three communities, which have been fighting state, county and regional taxes for a year.

Together the three cities paid $519,000 in transit taxes this year. But they said their good feelings disappeared when the MTC told them last week it will seek to change the law to allow the MTC to keep whatever transit taxes a city doesn't spend on transportation. In response. Prior Lake and Savage officials say they will immediately express interest in the opt-out program so they can qualify under the existing law. David Lee, MTC's director of planning and development, said the MTC is supporting a repeal of the law because with every community that opts out, the resulting tax loss will force the MTC to cut bus service somewhere else.

Lee said the opt-out law was not Intended to give tax relief to communities. It was designed, he said, to give com will force discussion of what they call an inequitable taxing system. "Our goal is not to tear up MTC; it's equity," said Savage City Administrator Hank Sinda. Shakopee City Administrator John Anderson said his community has been working toward setting up Its own bus system for a year and would continue even if the law is repealed. But he said Shakopee supports plans to equalize fiscal disparities.

They all agree that a regional transportation system is important. "We're not saying we're not willing to pay anything. But should we pay at the same rate as Minneapolis, where a bus goes past the corner every five minutes?" asked Prior Lake City Administrator Mike Mc- munities funds to provide more and different kinds of transportation. But Shakopee, Savage and Prior Lake officials said the move is another attempt to charge outlying communities a disproportionate share of taxes. Unlike Plymouth, which is proposing an lntra-city bus service, Shakopee, Savage and Prior Lake are not planning to add new kinds of services but to substitute their own for current MTC commuter runs.

Prior Lake and Savage officials say the communities prefer to maintain the current commuter service provided by MTC rather than start their own systems under the Metropolitan Transit Service Demonstration Program. But they say that signing up for the opt-out program Guire. Shakopee and Savage are served by two MTC commuter buses to and from downtown Minneapolis daily; Prior Lake has one. Their officials say that their transit taxes are some of the highest In the metro area. To equalize service and payment, the three communities recommended to MTC a new taxing plan with districts defined by concentric circles starting in downtown Minneapolis.

For example, Sinda said, Minneapolis residents in the first ring would pay $1 in transit taxes because their bus service is most frequent and varied. Those In the second ring, such as Richfield, would MTC continued on page 1 0 PLYMOUTH: Intracity line proposed collects two mills in property taxes to support the MTC. Plymouth officials say that opting out of the MTC service will require them to pay only 10 percent, or $100,000, of Its 1983 projected mlllage of $1 million to the MTC. The remaining $900,000 can be refunded to Plymouth taxpayers or used for other transportation projects. MTC officials said that until recent- in MTC services elsewhere.

Lee said the Plymouth application has merit but MTC staff members are preparing comments in case there is no delay; he expects them to be critical of the application. The central issue Is the newly discovered provision of the "opt-out" law that reduces a city's tax obligation to the MTC. Each city in the MTC service area Plymouth continued on page 10 AMERICA WORKS IN KNAPP SHOES umsmp Sale ends February 28th. Continued from page 1 plans: That the MTC would lose state funds if Plymouth starts its own system. A recent letter from the state attorney general's office indicates the MTC could lose anticipated revenues of $623,000 from the Plymouth area If the application is granted.

The MTC had expected to lose $277,000 that Plymouth would use to pay for Its opt-out program. But a newly discovered financing provision indicates that the MTC could lose the additional $623,000, making its total loss about $900,000 next year. That compares to contributions from Plymouth of $834,000 In transit taxes last year and almost $1 million next year if the city does not opt out. That Plymouth Is Ineligible for the opt-out program. The law states that the Plymouth bus system's subsidy per passenger can be no greater than the MTC's average subsidy per passenger per trip.

The MTC says Plymouth's total subsidy per passenger as stated on Its application is greater than the MTC's figures. Plymouth officials say the MTC's questions are details that have been blown out of proportion. They say the MTC feels threatened by the so-called "opt-out" program and may be throwing obstacles In the way of Plymouth's application. David Lee, the MTC's director of planning and said the MTC was only alerting the state transportation department that central Issues are unresolved. Lee said last week that MTC officials had assured several communities that are considering opting out that the MTC Is not against the program.

However, he said, the MTC will try to change the levy provisions that would take tax money away from the financially ailing bus system. Without such a change, he said, the MTC might oppose an application to withdraw because the loss of its transit taxes would cause cutbacks i Why tpend 1 7,000 or mor for a Bukk or Oldt wagon whan you can select a luxurious Van Conversion and got much, much moro for your Plus higher rotate valuel This Week's Special: '83 El 00 THIS WEEK ONLY! ll.VHFariFiiMMiiifl Conversion Vqp with all Hie following options: Automatic, p. steering, AMFM stereo, speed control, tilt wheel, digital clock, 2 deluxe captains, rear On these seatbed combination, hi grade carpeting, snack troy and table, Olx. paneled walls. Continental tire kit, custom exterior graphics.

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