Some International Falls city councilors want to explore establishing a taxing district that would collect money from residents outside the city limits to help fund the operations of the Falls International Airport.

The council discussed the idea when it met Monday, despite a 3-2 failed vote to do just that last week by the local airport commission. The council took no action on the idea.

The airport is jointly owned by the city and Koochiching County and is guided by an airport commission made up of county, city and an at-large representative through a joint powers agreement.

A taxing district would need to be created by the county board. Board Chairman Brian McBride, a member of the airport commission, told The Journal that the city has not brought a request to establish a district to the board.

The idea of a taxing district was brought to the council by Councilor Cynthia Jaksa, who attended last week’s commission meeting in the absence of Councilor Gail Rognerud, a member of the commission.

Rognerud supported Jaksa’s idea of exploring a taxing district and suggested that “experts” on taxing districts funding airports provide information to the council.

“The whole issue is fairness and equity for the city taxpayer,” said Rognerud.

Jaksa, who serves as the chair of the city’s Finance and Legislation Committee, said that city taxpayers fund the airport at nearly five times more than county taxpayers. She later added that the city’s tax capacity is one-quarter that of the county, but the city is paying half the airport funding.

Mayor Tim “Chopper” McBride said Monday that “more innovative” ways to finance the airport must be explored. He added that the arguments of airport use versus benefits from the airport must be considered.

Brian McBride said he did not have enough information about whether a taxing district would be beneficial to give comment about the idea.

“We are partners and share equally in the expenses and funding,” the county board chairman said. “So that would definitely be a change from the airport agreement.”

Rognerud told the council Monday that she values the airport and would not want to jeopardize its success. “I just want to see if there’s a better way to fund it than we are now,” she said. “We’ve never gone down this path... What we have now does not feel fair to me.”

Jaksa added that should the community consider constructing a new airport terminal at an estimated $7 million, “we need a taxing district.”

Councilor Paul Eklund said the city and school district revised the funding for the International Falls Recreation Commission and people have benefited by that change.

Airport Commission Chairman Bob Anderson, who is also International Falls mayor-elect, told The Journal he does not support establishing a taxing district.

“The city council is saying there is an imbalance in what the city of International Falls pays for the airport and what residents contribute through taxes,” he said. “I agree there is probably some difference, but I don’t support establishing a taxing authority.”

Anderson said his reasons for not supporting a district are twofold.

“Citizens that live outside the corporate boundaries of the city, many of them work in the city and pay income taxes to the state, and shop in the city and pay sales taxes to the state,” he said. “The state gives the city of International Falls local government aid, LGA, that comes from sales and tax revenues. So the residents of the county pay and the city ends up getting money from them through their state income and sales taxes that are paid here.”

He also said that the city fathers who in 1962 set up the commission believed a partnership with the county was good for the citizens of International Falls “and I certainly agree with that and don’t look to see that change.”

Anderson cited past court challenges brought by the current city council against the county over a road and the city of Ranier over its previous annexation as examples of the council’s “record of working with others.”

As the city’s newly elected mayor, he said he would work with other government entities for the good of the larger community and hopes residents outside the city limits say with pride they are from International Falls.

“I view the citizens who live outside the city who work in the city of International Falls, who shop in this city, who go to school in the city, and while legally they can’t be citizens of International Falls, to me are all honorary citizens of this city of International Falls,” he said. “We’re all in this together and let’s get over this stuff.”