Public Improvements are something of a challenge in Breezy Point. By this I mean the improvements of roadways and drainage in particular. The process under state law is found in Chapter 429 and involves a number of steps. This process is generally referred to as the assessment process. Accomplishing the steps is mechanical but provides for due process and the ability to allow those parties involved the ability to be heard.
The reason I state that it is challenging, is the building of improvements costs money. Doing so means property owner assessments. With the current state of the economy there are a good many parties who can’t afford the additional costs of an annual assessment. Typically assessments are spread between 10 and 20 years. Interest is charged on these assessments much like a loan for your mortgage. The annual payments are then split between the two tax payments that are made with your property taxes.
This summer we had one petition move forward with the paving of Owl Circle. Given the size of the project it didn’t attract many bidders, only 2 bids were received. Also due to the size of the project unit prices were not as attractive as we had hoped for. Never the less, even though the project exceeded the estimate some of the property owners were anxious to see the project move forward. The project was built and assessed.
Another project petitioned for was that of paving and drainage improvements to Violet lane. This project was larger in scale with an estimated cost of $236,000. The project included drainage issues and soils corrections which added to the cost. Looking at the project to find an equitable way to spread the costs resulted in a proposed front foot cost and two assessment rates depending on the extent of work involved. It is important to look at any improvement project with an eye towards fairness. Any process you use in assigning costs could be questioned as there is no perfect system but there shouldn’t be winners and losers in the outcomes.
A public hearing was held for this project and a good number of involved parties were at the hearing. Most spoke against the project citing a number of concerns, the largest being that of costs. After looking at how the assessments would affect them some of the property owners withdrew their petition for improvements. This brings the threshold for council action up to require a 4/5 vote as a council would then be ordering the improvements outside of a valid petition. Property owners can petition a project with 35% of the frontage being represented. Without that, the council can move the project forward but it takes a higher majority vote rather than a simple majority.
It was determined that the project would not continue towards construction. The city invested time and money in looking at the costs and project details but without that it is difficult to know what to tell people about expenses.
We have one other petition that has been presented for consideration, that of Papago Circle. This project also involves drainage in addition to paving. The process continues with the feasibility report which will help the council, as well as the involved residents, address the impact they may experience.
Tuesday, November 9, 2010
Thursday, November 4, 2010
election 2010
Election Day has come and gone. Believe it or not, it’s a lot of work. Training started in the summer with a session to understand the law changes and what we’ll be looking forward to. In August we had training for election judges. That means we contact election judges and others who may be interested in being a judge. Keep in mind we need to have a head judge who runs the day and is in charge. We then have 6-7 others working during the day. With two shifts that we had 12 judges, some working a double shift. They need to attend training and be certified as a judge.
There is the Primary Election which narrows down the candidates. This election is generally smaller in terms of turnout and the number of judges is typically less as well. Prior to this election there is public election machine testing that occurs at the courthouse. Here a testing procedure is used to make sure the voting equipment is operating properly. It also sets the equipment at zero so it is ready for the election. Following the testing the equipment is taken to city hall for storage until Election Day. Just prior to the Election Day another trip is made to pick up election materials and supplies.
The day begins at about 5 am but really starts the preceding day with setup of the room. In the morning the room is finished off with equipment setup, arranging of signs and posters and the sorting of materials. Ballots are setup for use having 2 judges initialing each. The ballot receiptss are also initialed by 2 judges. The registration books are readied for those who have preregistered and other materials are set up for those who wish to register on election day. Each judge has a part in the election fulfilling that function to provide for a smooth and orderly process.
For the General Election the process is the same but your judges have already been trained. Other than that, the procedure for the General Election involves the same amount of work but we see more voters. The day moves along rapidly with a somewhat constant stream of voters. This year we made some improvements in the process and room with added voter stations and better flow of voters through the building. We had very few issues during the day. Additional voting stations will be added for the next election, in 2012.
Turnout at the polls was 907 voters and another 90 absentee ballots were cast making the total 997. Turnout was less than expected with only 65.7% of registered voters making the election, but similar to the county average. In 2008 we had a turn out of 79.5%. 91 people registered at the polls on Election Day. Total registered voters now stand at 1517.
I have to give thanks for all of this to the great work accomplished by our election judges. A huge thanks goes to Clarice Blaeser as the head election judge. The election went well thanks to their efforts.
There is the Primary Election which narrows down the candidates. This election is generally smaller in terms of turnout and the number of judges is typically less as well. Prior to this election there is public election machine testing that occurs at the courthouse. Here a testing procedure is used to make sure the voting equipment is operating properly. It also sets the equipment at zero so it is ready for the election. Following the testing the equipment is taken to city hall for storage until Election Day. Just prior to the Election Day another trip is made to pick up election materials and supplies.
The day begins at about 5 am but really starts the preceding day with setup of the room. In the morning the room is finished off with equipment setup, arranging of signs and posters and the sorting of materials. Ballots are setup for use having 2 judges initialing each. The ballot receiptss are also initialed by 2 judges. The registration books are readied for those who have preregistered and other materials are set up for those who wish to register on election day. Each judge has a part in the election fulfilling that function to provide for a smooth and orderly process.
For the General Election the process is the same but your judges have already been trained. Other than that, the procedure for the General Election involves the same amount of work but we see more voters. The day moves along rapidly with a somewhat constant stream of voters. This year we made some improvements in the process and room with added voter stations and better flow of voters through the building. We had very few issues during the day. Additional voting stations will be added for the next election, in 2012.
Turnout at the polls was 907 voters and another 90 absentee ballots were cast making the total 997. Turnout was less than expected with only 65.7% of registered voters making the election, but similar to the county average. In 2008 we had a turn out of 79.5%. 91 people registered at the polls on Election Day. Total registered voters now stand at 1517.
I have to give thanks for all of this to the great work accomplished by our election judges. A huge thanks goes to Clarice Blaeser as the head election judge. The election went well thanks to their efforts.
Wednesday, October 20, 2010
Paying your Sewer Bill Online
On line sewer payments are now an option for the sewer users in Breezy Point. This new service will hopefully provide for more convenience to those people who prefer do their bill paying from home or even when traveling. The process is easy.
You start with a visit to the city webs site. If you found this blog you probably have already been there. On the left side of the page are a number of different options to choose from. The one that says ONLINE PAYMENTS powered by RevTrak is the button you use. This routes you to the City of Breezy Point Web Store welcome page. On this page there is a link “make a payment on line”. Click this and you’re in. The next screen can assist you with your account or other needs but if you click on sewer service a screen comes up to let you enter your name, account number and payment. It will also let you view your balance and once entered for payment you can view what’s in your cart. It seems a bit different that you fill your cart with a sewer payment but the program is set up much like other on line programs for purchasing. After the information on name and account are entered, click on the check balance. With that a confirmation screen appears and you see a “buy now” button on the bottom of the screen. Clicking that reveals the cart and allows you to go to checkout. The next screen asks for your email for payment confirmation. Click on the bottom where it states “sign in to secure server”, which brings up the billing page. Here you add in your billing information and a password. Once you have a password the billing information is carried forward for the next time when you sign in. The credit card information is not stored so each time this must be added when paying.
In the future we hope to expand the web store to provide for other things such as permits however in most instances you’ll still need to stop by to pick up materials, more on this later.
In any event we hope those who have a need to pay on line find it useful and it meets your needs.
You start with a visit to the city webs site. If you found this blog you probably have already been there. On the left side of the page are a number of different options to choose from. The one that says ONLINE PAYMENTS powered by RevTrak is the button you use. This routes you to the City of Breezy Point Web Store welcome page. On this page there is a link “make a payment on line”. Click this and you’re in. The next screen can assist you with your account or other needs but if you click on sewer service a screen comes up to let you enter your name, account number and payment. It will also let you view your balance and once entered for payment you can view what’s in your cart. It seems a bit different that you fill your cart with a sewer payment but the program is set up much like other on line programs for purchasing. After the information on name and account are entered, click on the check balance. With that a confirmation screen appears and you see a “buy now” button on the bottom of the screen. Clicking that reveals the cart and allows you to go to checkout. The next screen asks for your email for payment confirmation. Click on the bottom where it states “sign in to secure server”, which brings up the billing page. Here you add in your billing information and a password. Once you have a password the billing information is carried forward for the next time when you sign in. The credit card information is not stored so each time this must be added when paying.
In the future we hope to expand the web store to provide for other things such as permits however in most instances you’ll still need to stop by to pick up materials, more on this later.
In any event we hope those who have a need to pay on line find it useful and it meets your needs.
Tuesday, October 12, 2010
Change is Upon Us
Some of you may wonder what is going on at the airport? Large belly dump trucks hauled in dirt and dumped them on the north end of the airstrip. A good deal of fill was needed as the airport is extending its length another 600 feet. A total of 50 belly dump trucks were brought in to extend the run way. The new air strip extension has a base of 5 inches of class five and will have an additional 3 inches of asphalt installed. Paving is scheduled for next week. The runway will be 3250 feet long when completed.
The flyway has been improved with the removal of trees on both sides of Ski Chalet Drive. On the cemetery side of the road the high power lines are being buried. This additionally improves the safety of pilots by removing restrictions in the flyway.
Perhaps you recall the removal of trees along the cemetery last fall. A berm and new plantings were installed this spring to replace the area where the trees were removed in the cemetery. This area provides a natural division from the roadway and defines the cemetery to some extent. Low growth trees and scrubs were planted to give the area a unique look.
After the power lines are buried a split rail fence, which was donated, will also be installed along the roadway on the cemetery side by the cemetery. Split rail fencing is already installed along the other side. This will be installed shortly after the power lines are buried and will be back far enough from the roadway to allow for adequate snow storage. This area will be looking very nice for years to come.
The Co. Rd. 4 project is nearing completion for the year. The county anticipates that paving will commence the week of the 18th. Paving will be accomplished with one lift of asphalt being installed this fall and another being laid in the spring of 2011. Seeding is to occur this fall along the roadway. It certainly will be good to have this access again available to residents of Breezy Point. It has been a difficult year for some who use that road to get to their homes but worth the mess and disruption when it is all done.
Within Breezy Point we saw the completion of Owl Circle paving. We have received petitions from property owners who reside on Violet Lane for improvements. We also had some interest in another roadway for paving and drainage. These may a may not be something that happens next year but it seems there is always change upon us.
The flyway has been improved with the removal of trees on both sides of Ski Chalet Drive. On the cemetery side of the road the high power lines are being buried. This additionally improves the safety of pilots by removing restrictions in the flyway.
Perhaps you recall the removal of trees along the cemetery last fall. A berm and new plantings were installed this spring to replace the area where the trees were removed in the cemetery. This area provides a natural division from the roadway and defines the cemetery to some extent. Low growth trees and scrubs were planted to give the area a unique look.
After the power lines are buried a split rail fence, which was donated, will also be installed along the roadway on the cemetery side by the cemetery. Split rail fencing is already installed along the other side. This will be installed shortly after the power lines are buried and will be back far enough from the roadway to allow for adequate snow storage. This area will be looking very nice for years to come.
The Co. Rd. 4 project is nearing completion for the year. The county anticipates that paving will commence the week of the 18th. Paving will be accomplished with one lift of asphalt being installed this fall and another being laid in the spring of 2011. Seeding is to occur this fall along the roadway. It certainly will be good to have this access again available to residents of Breezy Point. It has been a difficult year for some who use that road to get to their homes but worth the mess and disruption when it is all done.
Within Breezy Point we saw the completion of Owl Circle paving. We have received petitions from property owners who reside on Violet Lane for improvements. We also had some interest in another roadway for paving and drainage. These may a may not be something that happens next year but it seems there is always change upon us.
Thursday, September 30, 2010
Voting
With all the campaign ads and lawn signs around we know it is election season. The general election is November 2nd from 7:00 am to 8:00 pm. For Breezy Point residents voting takes place at city hall. This is located at 8319 Co. Rd. 11, across from the airport and south of the Public Safety Building.
If you have recently moved or become eligible to vote you will need to register. Advance registration can be done at the county offices. There are forms available at city hall as well. You’ll need to provide some identification information such as a social security number or driver’s license number. The form can be mailed in. The last day to pre-register is October 12.
You can also register on Election Day at the polls. You will need to provide information such as a current MN Drivers license or MN Photo ID card showing your current address in the precinct. A tribal ID or prior registration with a change of address or name in the same precinct can also work.
If your ID does not show your current address someone who is registered in your precinct can vouch for you. You can also use a current utility bill and photo ID to prove residency.
If you can’t make it to the polls on Election Day you can vote in advance with an absentee ballot. Absentee ballots can be received at the county courthouse. If you are registered, an absentee ballot can also be sent to you if there is sufficient time to receive the ballot and mail it back. In any event you’ll need to contact the County Auditor’s office to arrange for an absentee ballot. The Auditor’s office is also open on Saturday October 30th from 10:00 a.m. to 3:00 p.m. for absentee voting. The last day an absentee ballot can be accomplished is Monday November 1st.
Election Day is November 2nd, please exercise your right to vote.
If you have recently moved or become eligible to vote you will need to register. Advance registration can be done at the county offices. There are forms available at city hall as well. You’ll need to provide some identification information such as a social security number or driver’s license number. The form can be mailed in. The last day to pre-register is October 12.
You can also register on Election Day at the polls. You will need to provide information such as a current MN Drivers license or MN Photo ID card showing your current address in the precinct. A tribal ID or prior registration with a change of address or name in the same precinct can also work.
If your ID does not show your current address someone who is registered in your precinct can vouch for you. You can also use a current utility bill and photo ID to prove residency.
If you can’t make it to the polls on Election Day you can vote in advance with an absentee ballot. Absentee ballots can be received at the county courthouse. If you are registered, an absentee ballot can also be sent to you if there is sufficient time to receive the ballot and mail it back. In any event you’ll need to contact the County Auditor’s office to arrange for an absentee ballot. The Auditor’s office is also open on Saturday October 30th from 10:00 a.m. to 3:00 p.m. for absentee voting. The last day an absentee ballot can be accomplished is Monday November 1st.
Election Day is November 2nd, please exercise your right to vote.
Monday, September 27, 2010
Housing Starts
We all have experienced the result of the declining economy but recently we have seen a small uptick in new housing starts. Building permits have creped along this year much like last year and we’re now seeing a few single family homes come in. We have 4 single family home starts so far but we also have 2 more in the wings with another 3 rumored to come in. Two 2 quad homes are in the works for construction adding to the building of housing in Breezy Point. A number of these single family homes are tear downs of seasonal structures with a rebuilding of a new year-round home. This sometimes means a change in population while it is an increase in taxable valuation.
Throughout the summer we saw a fair amount of decks, porches, garages, and additions. Remodeling of existing structures was also prevalent as property owners work to better their housing conditions. Construction typically picks up this time of year as builders need to get some things in the ground before winter freeze up. All this brings new hope for change and things to come.
This is truly good news as we haven’t anticipated the housing starts we have seen. The evidence of properties changing hands is apparent in assessment searches and septic tank certifications gives further pause to consider that perhaps things are stating to turn around. We’re a far cry from the housing boom of the past but seeing housing starts again is certainly welcome. We can only hope the change continues through next year.
Throughout the summer we saw a fair amount of decks, porches, garages, and additions. Remodeling of existing structures was also prevalent as property owners work to better their housing conditions. Construction typically picks up this time of year as builders need to get some things in the ground before winter freeze up. All this brings new hope for change and things to come.
This is truly good news as we haven’t anticipated the housing starts we have seen. The evidence of properties changing hands is apparent in assessment searches and septic tank certifications gives further pause to consider that perhaps things are stating to turn around. We’re a far cry from the housing boom of the past but seeing housing starts again is certainly welcome. We can only hope the change continues through next year.
Friday, September 17, 2010
Off Season Recreational Vehicles
Is it time to store your boat for the winter? If you’re like many fishermen that doesn’t happen until you have hard lakewater. There are however a great number of boaters who retire their boats after Labor Day or when the weather starts to turn. That brings up the question of storage. Where do I store the boat until spring?
Many of you take them to storage facilities. Some people have garages that are available and others store them outside. The outside storage issue was one that the Planning Commission and the City Council had worked on for almost a year but finally been adopted. This ordinance attempts to keep Breezy Point free of the clutter of boats and trailers but recognizes the need for common sense, use and storage of these. As a recreationally orientated community it can be hard to keep things in balance.
One stumbling block was that of storage. What is storage? Moving trailers in and out on a regular basis such as that of a contractor is not storage. Regular use of your boat parked in the driveway is not storage but when the use ceases for the season, parking becomes storage. Then we get into time periods and sizes of recreational vehicles. If it is over 30 feet in length outside storage is limited to 21 cumulative days per year. If it is under 30 feet in length, parking is limited to 21 consecutive days however storage of these types of recreational vehicles does have specific caveats and exemptions.
Storage over 21 days can occur if parked on the side or rear yard of a property but must be at least behind the front wall of the principal structure and must be less than 30 feet in length. The recreational vehicle must have a current license and/or watercraft registration.
Exceptions include units that are maintained for year round usages. Water craft under 9 feet do not have to meet regulations and if your property is in excess of 1 acre or there is no visibility from other properties, such as screening, these rules don’t apply.
This may seem confusing but if you have questions feel free to stop by. Copies of the change in ordinance are available. Questions are also welcome.
Many of you take them to storage facilities. Some people have garages that are available and others store them outside. The outside storage issue was one that the Planning Commission and the City Council had worked on for almost a year but finally been adopted. This ordinance attempts to keep Breezy Point free of the clutter of boats and trailers but recognizes the need for common sense, use and storage of these. As a recreationally orientated community it can be hard to keep things in balance.
One stumbling block was that of storage. What is storage? Moving trailers in and out on a regular basis such as that of a contractor is not storage. Regular use of your boat parked in the driveway is not storage but when the use ceases for the season, parking becomes storage. Then we get into time periods and sizes of recreational vehicles. If it is over 30 feet in length outside storage is limited to 21 cumulative days per year. If it is under 30 feet in length, parking is limited to 21 consecutive days however storage of these types of recreational vehicles does have specific caveats and exemptions.
Storage over 21 days can occur if parked on the side or rear yard of a property but must be at least behind the front wall of the principal structure and must be less than 30 feet in length. The recreational vehicle must have a current license and/or watercraft registration.
Exceptions include units that are maintained for year round usages. Water craft under 9 feet do not have to meet regulations and if your property is in excess of 1 acre or there is no visibility from other properties, such as screening, these rules don’t apply.
This may seem confusing but if you have questions feel free to stop by. Copies of the change in ordinance are available. Questions are also welcome.
Wednesday, September 8, 2010
Men in Tights
I generally have reserved this blog for city matters but have been getting a number of requests to post pictures of me at my daughters Katelynn's wedding. She had a grand idea that weddings should be fun and wanted something different. In keeping with that spirit she chose a theme wedding. A Renaissance wedding was her choice along with a picnic dinner of a hog roast, grilled corn on the cob, and cole slaw. The wedding was short, the dinner was great and a good time was had by all.
Lady Ginger and I are the proud parents.
Friday, September 3, 2010
Its been a Summer!
This summer season has been a bit different than many past summers. We have seen a good deal of rain which has helped address the drought conditions of many years and brought up lake levels. It has also created different sets of problems for city crews and their activities over the summer season.
With each rain, particularly large ones we see drainage issues. We have some areas with adequate paved roads and drainage but much of the city is served by gravel roads with little or no drainage facilities. Each rain brings erosion on these roadways that carry materials of sand or gravel to low lying areas. Public works spend a large amount of time dealing with these in some fashion all over the city. Roads are graded, shaped, and crowned. Ditches are installed and after a few years they fill up with sand or gravel and we start all over again. Gravel roads are less costly to install but far more costly to maintain. It does keep staff busy in many ways.
Another issue we’ve had this year with the rains has been mowing. Roadside mowing is a large task that occurs all season long but this year has been difficult to keep up with. We try to stay ahead of it but in the spring there are calls to limit mowing to save the wild flowers and then very quickly it gets out of hand. In most years we manage to keep pace but this year the rains just kept coming. Calls come in asking for mowing as we continued to mow with as much equipment and manpower we have. As I understand it in most years the rain relents in August and we finally catch up, but that didn’t happen this year.
Summer is the time we clean out, fix up, and expand facilities. The clean out and fix up happened but very little expansion occurred. A good part of this was budget constraints, but we also saw the reconstruction of Co. Rd. 4 occur which displaced some of our activity. This certainly falls into the fixed up category but was very disruptive for many people who rely on this roadway. As we always say “short term pain for long term gain”. This project as I understand it will have its first lift of asphalt installed by the middle of October. That will bring some relief to many.
With Labor Day weekend upon us, many of us focus on family, the end of summer, and the start of school. The city starts to focus on the coming season. Irrigation lines need to be blown out. Plows and equipment is readied for the “S” word. Final pumping of the wastewater at the plant occurs so that adequate storage exists for winter use. Those items needing repair and winter work are readied. We shift our focus and resources to a new season.
Have a great Labor Day Weekend and enjoy the last hurrah of summer as the seasons are a changing.
With each rain, particularly large ones we see drainage issues. We have some areas with adequate paved roads and drainage but much of the city is served by gravel roads with little or no drainage facilities. Each rain brings erosion on these roadways that carry materials of sand or gravel to low lying areas. Public works spend a large amount of time dealing with these in some fashion all over the city. Roads are graded, shaped, and crowned. Ditches are installed and after a few years they fill up with sand or gravel and we start all over again. Gravel roads are less costly to install but far more costly to maintain. It does keep staff busy in many ways.
Another issue we’ve had this year with the rains has been mowing. Roadside mowing is a large task that occurs all season long but this year has been difficult to keep up with. We try to stay ahead of it but in the spring there are calls to limit mowing to save the wild flowers and then very quickly it gets out of hand. In most years we manage to keep pace but this year the rains just kept coming. Calls come in asking for mowing as we continued to mow with as much equipment and manpower we have. As I understand it in most years the rain relents in August and we finally catch up, but that didn’t happen this year.
Summer is the time we clean out, fix up, and expand facilities. The clean out and fix up happened but very little expansion occurred. A good part of this was budget constraints, but we also saw the reconstruction of Co. Rd. 4 occur which displaced some of our activity. This certainly falls into the fixed up category but was very disruptive for many people who rely on this roadway. As we always say “short term pain for long term gain”. This project as I understand it will have its first lift of asphalt installed by the middle of October. That will bring some relief to many.
With Labor Day weekend upon us, many of us focus on family, the end of summer, and the start of school. The city starts to focus on the coming season. Irrigation lines need to be blown out. Plows and equipment is readied for the “S” word. Final pumping of the wastewater at the plant occurs so that adequate storage exists for winter use. Those items needing repair and winter work are readied. We shift our focus and resources to a new season.
Have a great Labor Day Weekend and enjoy the last hurrah of summer as the seasons are a changing.
Thursday, August 26, 2010
Funding the Sewer System
Funding of sewer systems is far more complicated than most people assume. I think the common belief is that we charge a user fee and that covers all the costs. The user fee approach generally only covers operations. Operations include running the system with man power, electricity, and repair and maintenance. There are two other generally accepted charges that are used by cities to pay for sewer systems but first we’ll talk about how the system operates.
As you know there are pipes that run in the ground for the collection system. These pipes are sloped to allow gravity to run wastewater to lift stations. They pump the wastewater to a higher level in the collection system to again run by gravity to the next lift or to the wastewater treatment facility. Lift stations have force mains associated with them as well.
These collection systems are funded, in part, by assessments for the pipe that runs along properties and a portion of the lift stations needed to serve an area. The other portion of the lift stations not assessed is paid by trunk fees. Trunk fees also pay for force mains, over sizing of sewer lines and for future improvements to the wastewater treatment plant.
The collections of trunk fees occur with every new or expanded building that uses the sewer system. The theory here is you are using the collection and treatment system and you should pay your associated costs in that system. Much like expanding a home with additional bedrooms you are required to have additional capacity in your septic system and drain field. The city installed and prepaid for this equipment and wants the users of the system to pay their fair share of the costs.
The method of determining the impact is through an “Equivalent Residential Unit” or ERU. There are established standards in use to determine what constitutes a residential unit for other types of uses. So uses such as gas stations, restaurants or any other non-residential use requires the calculation of equivalents to determine the number of ERU’s and trunk charge. Trunk charges are generally paid at the time a building permit is issued or when a use is connected to the sewer. Almost all cities use a form of this to address costs for sewer. In Breezy Point the present trunk charge per unit is $4,838.20.
Occasionally cities will use a tax levy to pay for wastewater given the high costs of treatment facilities. This is not the preferred method of payment as users of the system should pay the costs of the system. In Breezy Point there are no tax dollars supporting the sewer system. Only sewer users pay for sewer through the charges of line assessments, trunk charges and user fees.
As you know there are pipes that run in the ground for the collection system. These pipes are sloped to allow gravity to run wastewater to lift stations. They pump the wastewater to a higher level in the collection system to again run by gravity to the next lift or to the wastewater treatment facility. Lift stations have force mains associated with them as well.
These collection systems are funded, in part, by assessments for the pipe that runs along properties and a portion of the lift stations needed to serve an area. The other portion of the lift stations not assessed is paid by trunk fees. Trunk fees also pay for force mains, over sizing of sewer lines and for future improvements to the wastewater treatment plant.
The collections of trunk fees occur with every new or expanded building that uses the sewer system. The theory here is you are using the collection and treatment system and you should pay your associated costs in that system. Much like expanding a home with additional bedrooms you are required to have additional capacity in your septic system and drain field. The city installed and prepaid for this equipment and wants the users of the system to pay their fair share of the costs.
The method of determining the impact is through an “Equivalent Residential Unit” or ERU. There are established standards in use to determine what constitutes a residential unit for other types of uses. So uses such as gas stations, restaurants or any other non-residential use requires the calculation of equivalents to determine the number of ERU’s and trunk charge. Trunk charges are generally paid at the time a building permit is issued or when a use is connected to the sewer. Almost all cities use a form of this to address costs for sewer. In Breezy Point the present trunk charge per unit is $4,838.20.
Occasionally cities will use a tax levy to pay for wastewater given the high costs of treatment facilities. This is not the preferred method of payment as users of the system should pay the costs of the system. In Breezy Point there are no tax dollars supporting the sewer system. Only sewer users pay for sewer through the charges of line assessments, trunk charges and user fees.
Friday, August 13, 2010
Paying off the TIF
The use of Tax Increment Financing (TIF) is something that is done throughout Minnesota and other states to spur economic development. TIF stands for Tax Increment Financing. TIF is a means of capturing taxes to offset costs associated with development. There are a number of types of TIF’s.
How this works is a developer generally starts out with a property that is undeveloped. The property is then developed and the city captures the difference in taxes between the vacant undeveloped property and the developed property. That’s the increment. This increment is then used to write down costs of the development.
To accomplish this, the city is obligated to write a plan which includes both a development district (physical area) and a development plan. The plan includes what is going to happen in terms of development and what were the expected revenues (taxes) that will be created as a result. A public hearing is held prior to the adoption and notice is given to the school district and county. The plan captures their taxes in addition to the city’s. Setting this all up generally involves the use of a public finance consultant and sometimes a bond attorney. Establishing these documents and going through the process generates some expenses.
When you consider financing options, two approaches exist. One involves the bonding for the improvements the city will participate in and doing the construction. Construction can occur through the developer or through city efforts. So in this approach, the city bonds for costs to be incurred and then collects the increment and uses it to pay off the bonds.
The second approach is a pay as you go. What this means is the developer pays all costs associated with the development, which he’ll get reimbursed from the TIF. The city pays the developer the increments received as we collect them on an annual basis.
In either approach a development agreement is needed which specifies what conditions each party will observe. In many communities a developer is required to pay for all out of pocket expenses the city experiences. Some communities rely on the increment to reimburse itself for prepaid expenses. This was the situation with the TIF district the city recently decertified. The district was then decertified as the developer did not live up to his obligations. The city was then left with prepaid expenses that were not reimbursed.
We wanted to satisfy our books by removing the fund that supports this district. We did this with a transfer from the general fund to the TIF Fund. The fund will no longer show a negative balance so it can be removed from our accounting. The unfortunate part of this is the city chose to reimburse itself with an increment rather than demand upfront payments of costs associated with the development. This was a decision that didn’t pan out as expected but we’ll know better if there is a next time.
How this works is a developer generally starts out with a property that is undeveloped. The property is then developed and the city captures the difference in taxes between the vacant undeveloped property and the developed property. That’s the increment. This increment is then used to write down costs of the development.
To accomplish this, the city is obligated to write a plan which includes both a development district (physical area) and a development plan. The plan includes what is going to happen in terms of development and what were the expected revenues (taxes) that will be created as a result. A public hearing is held prior to the adoption and notice is given to the school district and county. The plan captures their taxes in addition to the city’s. Setting this all up generally involves the use of a public finance consultant and sometimes a bond attorney. Establishing these documents and going through the process generates some expenses.
When you consider financing options, two approaches exist. One involves the bonding for the improvements the city will participate in and doing the construction. Construction can occur through the developer or through city efforts. So in this approach, the city bonds for costs to be incurred and then collects the increment and uses it to pay off the bonds.
The second approach is a pay as you go. What this means is the developer pays all costs associated with the development, which he’ll get reimbursed from the TIF. The city pays the developer the increments received as we collect them on an annual basis.
In either approach a development agreement is needed which specifies what conditions each party will observe. In many communities a developer is required to pay for all out of pocket expenses the city experiences. Some communities rely on the increment to reimburse itself for prepaid expenses. This was the situation with the TIF district the city recently decertified. The district was then decertified as the developer did not live up to his obligations. The city was then left with prepaid expenses that were not reimbursed.
We wanted to satisfy our books by removing the fund that supports this district. We did this with a transfer from the general fund to the TIF Fund. The fund will no longer show a negative balance so it can be removed from our accounting. The unfortunate part of this is the city chose to reimburse itself with an increment rather than demand upfront payments of costs associated with the development. This was a decision that didn’t pan out as expected but we’ll know better if there is a next time.
Friday, August 6, 2010
A Different Arena
I know most of you have heard of Annexation. This is where a city brings property from a township into a city and expands the boundaries. If you’re from Breezy Point you have probably heard about Detachment. This is somewhat the opposite. A property owner petitions the state to remove their property from a city.
The statute that addresses this is a very brief one. This statute is a poorly written and accomplishes its goals but fails to address numerous concerns. I think the issue that generates the most concern is that of the lack of local control in the process. Here a property owner petitions the state and only the city and property owner are involved. There is no notice to the receiving township or the county. They have no formal say in the matter. After the “required” 3 meetings with property owners an administrative law judge makes a decision. This person only looks at the detachment law, doesn’t take into consideration the character of the community nor do they consider any other statute that may conflict with this action. This judge is only accountable to the governor.
This judge, in the absence of an agreement, allocates costs for the proceedings if a hearing is held. The last hearings held in Breezy Point resulted in the city paying 75% of the costs. The city didn’t petition to have land removed, the petitioner did. Does the judge think because we’re a city or have deep pockets we should have the majority responsibility for loosing tax base and part of the city? It just doesn’t make sense.
The law provides that only abutting property owners are eligible for detachment. The state office allows non-abutting property owners to petition for detachment. They do this by considering that combinations of property create the abutting situation. This abutting property clause seems to address limited situations where one jurisdiction may be better able to be served by a neighboring unit of government. The legislative intent was not to allow wholesale detachment of vast acreages in a municipality without good cause. A very different interpretation is being used.
There criteria for determining whether or not the property could detach is both vague and broad. Rural in character, doesn’t affect the symmetry, not commercial or industrial or have utilities. This could be said of many communities in Minnesota that have a rural flair.
Given legal expenses, hearing expenses, the actions of the past hearings and the lack of common sense with the state’s administrative law judge the city council considered our options at the last meeting. They reluctantly voted to end the proceedings and the expense by allowing for the detachment. They also acknowledged indirectly that the resolve for this matter isn’t found at this juncture but rather lies in the need for change in law. We will be diligently working in this arena.
The statute that addresses this is a very brief one. This statute is a poorly written and accomplishes its goals but fails to address numerous concerns. I think the issue that generates the most concern is that of the lack of local control in the process. Here a property owner petitions the state and only the city and property owner are involved. There is no notice to the receiving township or the county. They have no formal say in the matter. After the “required” 3 meetings with property owners an administrative law judge makes a decision. This person only looks at the detachment law, doesn’t take into consideration the character of the community nor do they consider any other statute that may conflict with this action. This judge is only accountable to the governor.
This judge, in the absence of an agreement, allocates costs for the proceedings if a hearing is held. The last hearings held in Breezy Point resulted in the city paying 75% of the costs. The city didn’t petition to have land removed, the petitioner did. Does the judge think because we’re a city or have deep pockets we should have the majority responsibility for loosing tax base and part of the city? It just doesn’t make sense.
The law provides that only abutting property owners are eligible for detachment. The state office allows non-abutting property owners to petition for detachment. They do this by considering that combinations of property create the abutting situation. This abutting property clause seems to address limited situations where one jurisdiction may be better able to be served by a neighboring unit of government. The legislative intent was not to allow wholesale detachment of vast acreages in a municipality without good cause. A very different interpretation is being used.
There criteria for determining whether or not the property could detach is both vague and broad. Rural in character, doesn’t affect the symmetry, not commercial or industrial or have utilities. This could be said of many communities in Minnesota that have a rural flair.
Given legal expenses, hearing expenses, the actions of the past hearings and the lack of common sense with the state’s administrative law judge the city council considered our options at the last meeting. They reluctantly voted to end the proceedings and the expense by allowing for the detachment. They also acknowledged indirectly that the resolve for this matter isn’t found at this juncture but rather lies in the need for change in law. We will be diligently working in this arena.
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