Jane B. McWilliams, LWV Observer
All members were present.
Now that the council has decided to annex the property in Greenvale Township, development agreements will be negotiated between the city and the township and the city and the landowners. Staff prepared a list of issues for the council to consider in preparation for the discussions and asked the council for guidance on these.
The council agreed that the staff should discuss the following with the township:
*Because the land is largely agricultural and not served by the city, the property owners may receive a “rural service district” tax designation which lowers the city tax rate applied to the annexed property by 70%.
*State statute requires no less than two years’ and no more than eight years’ reimbursement to the township. This is to offset the loss taxes the township received prior to annexation. Staff recommends that the reimbursement be for the shortest period.
*Municipal services will be provided by the city at its discretion.
*There should be no limitation of the city’s ability to levy special assessments for the extension of municipal infrastructure.
*A moratorium should be put on issuance of building and development permits until the city approves a master plan for the development of the entire annexed area. The master plan regulations will be part of the comprehensive planning process, to be adopted by the council later this year.
*The township will maintain Garrett Avenue from North Avenue to 320th Street during the time the city reimburses the township for taxes.
In discussions with landowners, the council agreed an agreement with may stipulate:
*The city will not assist in funding infrastructure installations.
* Property owners and developers will waive right to appeals of special assessments for infrastructure and improvements of any kind.
*All buildings will be connected to standard municipal infrastructure.
* A master plan will be created based on the principles of the 2008 Comprehensive Plan and Land Development regulations. It will describe the phasing of how, when and where development could occur.
* There will be no residential component; commercial uses are limited to accessory retail and restaurant uses supportive of business and light industrial park.
*Prior to approval of a preliminary plat, an agreement documenting transportation improvements and the financing of these will be documented.
*Prior to application to the city for development certain studies must be submitted including an Environmental Assessment Worksheet; traffic study; delineation of wetlands, floodway districts; greenway corridors; study of maple-basswood forest on Lysne property.
Community Development Director Brian O’Connell reported that he and Public Works Director, Joel Walinski will meet with the Greenvale Township supervisors on July 15 to lay out the issues for discussion.
Councilman Jim Pokorney noted that the council needs to keep this
“at the top level - that it must move forward if the development of the area is to help with the financial problems of the city.”
Earlier in the meeting, the staff outlined the preliminary outlook for next year’s budget, the overall property tax level and utility rate increases. The state established levy limits of 3.9 percent growth for each of the next three years for the general fund. This results in a potential increase of $390,351 over the current year, which staff supposed would offset projected in wages and operating expenses, including fuel.
Special levies are not covered by the limits. The city’s tax base is projected to be flat next year and any dollar increase in the levy, therefore, would result in an increase in the tax rate.
In considering the 2009 budget, staff provided the council several discussion points:
*To balance the budget, council may increase property taxes or reduce expenditures or decide on some combination.
*As a service industry, staff reductions reduce services. Staff will examine costs of vehicle and equipment usage for potential savings.
*Subsidies to other operations, namely the NCRC and Transit Operation could be reviewed. Could there be another source of funds for repaying the NCRC debt? Should it be repaid earlier? Should transit fee increase be considered?
There are no significant increase in utility enterprise operations and rates.
The League of Minnesota Cities’ Gary Carson said in a memo explaining recent legislative decisions, “The future looks bleak.” The precarious financial condition of the state for the current biennium is troubling. “Looking further ahead, the state’s financial picture for the upcoming 2010-2011 biennium already looks ominous . . . every area of the state could be impacted, including local government aid and market value homestead credit payments to cities.”
The picture for the city may not be quite so drear, but clearly, the city has its work cut out for it in preparing for the 2009 budget. City Administrator stressed that the key is a long-range financial plan which is under construction.
The council reviewed revisions of the recently adopted rental ordinance necessitated by a recent state Supreme Court decision. The new document will come before the council in July and will be subjected to the same public hearing process as the current one.
