CorrespondenceI
Correspondence
Mailing to residents re: public hearing on trail easements dated May 8, 2001.
:
Fire/Rescue Calls-Week of April 30 - May 6, 2001.
AMM Fax News dated May 7 - I 1,2001.
May 8, 2001 Fax from League of Minnesota Cities re: Shooting Range Legislation.
Memo from Todd Hoffinan re: Rec. Center/Bluff.Creek Elementary Tennis Courts dated May 7, 2001.
League of Minnesota Cities Friday Fax dated May 4, 2001.
AMM Fax News dated April 30 - May 4, 2001.
Article re: The Voice of the Public - May Issue Public Management.
League of Minnesota Cities Memo re: Hous6 Omnibus Tax Bill dated April 30, 2001.
Letter to M-Con, Inc. dated May 3, 2001.
May 2, 2001 League of Minnesota Cities Fax re: Local Ordinances Nullified: Legislative Alert.
May 2, 2001 League of Minnesota Cities Fax re: Addendum Local Ordinances Nullified: Legislative Alert.
AMM Fax News dated April 30 - May 4, 2001.
AMM Fax News dated April 30 - May 4, 2001 (no. 2).
Memo from Todd Hoff.man re: Commendation dated April 30, 2001.
Fire/Rescue Calls - Week of April 23 -29, 2001.
AMM Fax News dated April 30 - May 4, 2001.
Article titled "Muni Days are Here Again" - May issue Governing.
League of Minnesota Cities 2001 Awards Program.
League of Minnesota Cities Friday Fax dated April 27, 2001.
AMM Fax News dated April 23 - 27, 2001.
League of Minnesota Cities memo re: Board of Directors Vacancies dated April 24,'2001.
Letter to Carol Egyhazi re: traffic concerns of Powers Blvd. Dated April 25, 2001.
Fire/Rescue Calls- Week of April 16 -22, 2001.
Lettex from Chanhassen Chamber of Commerce dated April 17, 2001.
League of Minnesota Cities Friday Fax dated April 20, 2001.
AMM Fax News dated April 16 - 20, 2001.
Letter from Carver County Health Partnership dated April 17, 2001.
CITYOF
HANHAS EN
690 CiO, Core. Drive, PO Box' 147
Cha~hassen, Minnesota 55317
Phone 612.93Z 1900
General lax 612, 937. 5739
&~gi, ee~i,g Fax' 612.93Z9152
Public Safety Far 612.93(2524
Web www. ci.c/.~anhasse,.mn, us
May 8, 2001
Dear Resident:
In 1988, a permanent easement for a trail connection between Fox Chase and
Carver Beach was recorded against Lots 19 and 20, Fox Chase. This
connection has never been officially improved as a public trail. However,
those residents aware of its existence have routinely used it as a public
walkway. In 1998, a neighborhood mailing regarding a separate issue
prompted an inquiry requesting that the public easement be improved.
In response, the City's Park and Recreation Commission held a public
meeting on January 26, 1999, to present options' for constructing a bituminous
trail connection at this location. After hearing from those residents in
attendance that evening, considering the written correspondence they had
received, and discussing the options amongst themselves, the commission
tabled action on a pedestrian trail connection for further investigation.
Specifically, the commission directed staff to work with the owners of
Lots 19 and 20, Fox Chase to identify a "preferred" trail alignment.
An alignment calling for a ten foot permanent trail easement along the western
side of Lot 19 and a five foot permanent trail easement along the east side of
Lot 20 has been proposed. Within that easement, the city would construct a
six-foot concrete walkway. While the final location might be slightly
modified as proposed, the trail would be constructed on Lot 19 within six
inches or so of the lot line separating Lots 19 and 20. If the walkway were to
be widened in the future, it would expand toward Lot 20.
In order to record these new easements, the city must hold a public hearing on
the vacation of the existing trail easementS over i.ots 19 and 20 Fox Chase.
Please find a copy of the public hearing announcement attached to this letter.
If you are unable to attend the public hearing but would like to forward
comments to the City Council, please mail them to my attention or send them
by e-mail to thoffinanOci.chanhassen.mn.us
Sincerely,
Park and Recreation Director
THins
c: Scott Botcher, ~ity Manager
g:\park\th~residentnoticefoxchase
NOTICE OF PUBLIC HEARING
CHANHASSEN CITY COUNCIL MEETING
TUESDAY, MAY 29, 2001 AT 7:00 P.M.
CITY HALL COUNCIL CHAMBERS
690 CITY CENTER DRIVE
PROPOSAL: Vacate a Trail Easement
APPLICANT: City of Chanhassen
LOCATION: Lots 19 & 20, Fox Chase
NOTICE: You are Invited to attend a public hearing about a proposal in your area. The applicant, City of
Chanhassen, is requesting vacation of the trail easement described as the easterly 15 feet of Lot 20,
Block 1, Fox Chase and the southerly 10 feet of Lot 19, Block 1, Fox Chase.
What Happens at the Meeting: The purpose of this public hearing is to inform you about the applicant's
request and to obtain input from the neighborhood about this project. During the meeting, the Mayor will lead
the public hearing through the following steps:
1. Staff ~n'll give an overview of the proposed project.
2. The applicant will present plans on the project.
3. Comments are received from the public.
4. Public hearing is closed and the City Council discusses the project.
Questions and Comments: If you want to see the plans before the meeting, please stop by City Hall during
office hours, 8:00 a.m. to 4:30 p.m., Monday through Friday. If you wish to talk to someone about this project,
please contact Sharmin at 937-1900 ext. 120. If you choose to Submit written comments, it is helpful to have one
copy to the' department in advance of the meeting. Staff will provide copies to the City council.
·
NolJce of this public hearing has been published in the Chanhassen Villager on May 10, 2001.
LI
_i
j \
Trail Easement Proposed
to be Vacated
Moil
Tues
Tues
Tues
Tues
Tues
Weds
Weds
Weds
Weds
Sat
Sat
Sat
Apr 30
May 1
May 1
May 1
May 1
May 1
May 2
May 2
May2
May 2
May 5
May 5
May 5
2:03 PM .
3:54 AM
9:39 AM
12:09 PM
4:55 PM
11:46 PM
6:18 PM
6:31 PM
10:36 PM
11:06 PM
3:55 PM
8:10 PM
9:23 PM
CHANHASSEN FIRE DEPARTMENT
FIRE/RESCUE
WEEK OF APRIL 30, - MAY 6, 2001
Highway 5 & Highway 41
Chippewa Trail
Chanhassen Road
Lake Drive West
Santa Vera Drive
Lake Lucy Road
Highover Drive
Watertown Fire Dept
Watertown Fire Dept
Greenbriar Drive
West Lake Court
Chan View
Car accident, cancelled, no injuries
Medical- person in convulsions
Medical - person fell
Medical - chest pains
Weather watch
Medical - cut hand
Medical - person fell
Fire alarm - false alarm, no fire
Mutual aid - dive team
Assist with boat, cancelled
Medical - unknown problem
Medical - unknown problem
Medical - person fell
AMM FAX
May 7 - 1 1,2001
Association of
Hetropoijtan
Municipalities
Senate Omnibus Tax Bill
On Monday the Senate Tax
Cemmittee released drafts of
their Omnibus bill. It will be
marked up Wednesday, on the Senate
floor Thursday, and possibly in confer-
ence' Friday or Saturday.
,The major difference between the
Senate and House is the overall
spending level. The Senate has $609
million ii] permanent spending
compared to twice that for the House.
The Se~ate's rebate is $425 million,
half that of the House.
.~The Senate bill does not have levy
limits a~s of yet nor reverse referen-
dum. The LGA formula is modified,
HACA is rolled into LGA and $30
million is added. According to Tax
Chair Pogemiller, the changes are tO
get most cities on formula. No city
will get less LGA than current LGA
plus HACA.
,The Senate targets the average house
($70,000 to $200,000) for property tax
relief, benef~ng metro homeowners
significantly. The 1" tier (with a
class rate) is increased from $76,000
to $200,000 and the 2~ tier rate
drop.~; from 1.65% to 1.5%. The
ma×imum homestead property tax
refund is increased to match the
renters' credit. A new homestead
~g~'~ and ad~nistr~o~, legisl~pe
conta~'; ~d Bo~d ~mb~. Pl~e share
thZg f~ wffh your ~o~, aoun~~ers
and alq~ to ke~ them ~reast
~t ~tro ~
ff45 Universlty Avenue West
St. Patti: MTV 55103-2044
Phon~ (651) 2I ~4000
cred!t is created to replace the
current education credit and agricul-
ture credit programs.
, State Education levy buy down is
$100 million compared to House at
abo ut $800 million. Education per
pupil spending is increased.
.'Limited Market Value (LMV) is
phased out over three years com-
mencing with assessment year 2002
by adding one-third of the LMV to full
market difference each year. The
House plan phases LMV out over 5
years.
, Other class rates are reduced and
tiers adjusted. Single family rent:al is
th(: same as homestead 1% up to
$200,000 and then t .5%, Duplex/
Triplex will be the same in pay 2003,
Apartments drop from 2.4 to 1.8%,
and C/I goes to 2.0 from 2.4% and
3.0 from 3.4% with the lower tier
increasing from $150,000 to
$300,000.
.Gas tax is indexed annually by
inflation starting January 1,2003.
· S ales Tax P..~ ~ h.e{¢ (~-~25
million) of surplus becad~e ~he
Senate spends about $300 million on
one-time transportation projects and
the rest in education and other areas.
Tax Increment Financing (TIF)
,Amendments to the tax increment
financing act and special TIF laws are
included in the Local Government
Aiticle. The article also includes
provisions related to tax abatement,
airport noise abatement, and border
city development and continuation of
~ Richfield redevelopment. Tne TIF
s~=,ct, ions:
~, Include the technical TIF bill
· Transfer the annual TIF reporting
function from the Office of State
Auditor (OSA) to the Department of
Revenue.
e Transfer the enforcement of the TIF
law from the OSA to the county
attorneys.
· Provides for a ten-year rule for
~edevelopment and soils districts.
The provision is effective for districts
certified afferApri130,1996. The
provision can not be implemented
until the county board approves the
city's request.
· Makes the housing replacement TIF
district general law. Therefore a city
would not need to obtain legislative
authorization to establish a housing
replacement district.
· Authorize special laws for Aurora,
Brooklyn Park, Duluth, Minneapolis,
Gaylord, and St. Paul.
The article does not include a new
definition of substandard building nor
does it propose a time limit for pre -
1 .~_~0 dist~cts.
Metropolitan Council
The Metropolitan Area Financing and
Governance Article relates to the
governance of the Metropolitan Council.
The article contains Senator Orfield's
elected Metropolitan Council/county
commissioner bill. The article provides
for a twenty-five member Metropolitan
Council. The article also includes a
provision that permits the Metropolitan
Council to issue bonds or other obliga-
tions to finance transit capital improve-
rc~s. The lim~ for the first year is
$45~0 million. ~n sub~equ~ y~ars the
limit amount is adjusted for inflation.
2001 14:34:27 ~iet Fax
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->
fl12 937 5739 fidninistratnr Page 881 Of tiff3
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May 8, 2001
SHOOTING RANGE LEGISLATION: IN BLACK AND WHITE
It has been brought to my attention several legislators are telling their cities that the LMC is distributing
misleading information regarding the shooting range amendment. The following is the text of the amendment as
,adopted by the House. Please read it.
A simple reading of the amendment will let you know whether the amendment simply prohibits cities from
adopting an ordinance to close down a shooting range, or whether the amendment is far more broad than that
simple concept.
While many legislators may have voted for the simple concept of protecting shooting ranges from local
government ordinances, the effect of the amendment is much more complex. It exempts shooting ranges from
every single, future local ordinance a city may choose to implement. It prohibits any public or private nuisance
lawsuits. It sets the noise standards to those established by the MPCA, only. It requires the DNR to be the sole
arbiter as to whelher ia shooting range is dangerous to adjacent property. And if the DNR says it is dangerous, a
range may only be closed if it is dangerous to adjacent NEW development. And if so requested, when possible the
local government must relocate the range and use eminent domain to acquire the new site.
Finally, cities should view this amendment as being about whether land use decisions and balancing all property
,,
owners rights and interests should be done at the local level or be pre-empted by the state.
Contact me at 651.281.12256 or rstone('&lmnc.om if you have any questions or concerns. Thanks. Remi
SHOOTING RANGE AMENDMENT:
Hackbarth; Mahoney; Howes; Milbert; Dempsey; Sviggum; Tuma; Wenzel; Rukavina; Boudreau; Erickson;
Finseth; Bakk; Walz; Solberg; I_arson; Clark, J.; Kielkucki; Holberg; Schumacher; Smith and Seifert moved to
amend S. F. No. 2351, the unofficial engrossment, as amended, as follows:
Page 55, after line 4, insert:
T
"Sec. 28. [87A.01 ] [DEFINITIONS.]
Subdivision 1. [APPLICABILITY.] The definitions in this section apply to sections 87A.01 to 87A.06.
Subd. 2. [PERSON.] "Person" means an individual, association, proprietorship, partnership, corporation, club,
political subdivision, or other legal entity.
Subd. 3. [SHOOTING RANGE OR RANGE.] "Shooting range" or "range" means an area or facility designated or
operated for the use of firearms as defined in section 97A.015, subdivision 19, or archery, and includes shooting
preserves as described in section 97A.115 or any other Minnesota law.
Subd. 4. [GENERALLY ACCEPTED OPERATION PRACTICES.] "Generally accepted operation practices"
means those voluntary guidelines adopted by the commissioner of natural resources for the safe operation of
AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER
Ma~ OB 2801 14:35:04 Via Fax -> 612 937 5739 fi&mioistrator Page 082 0£ 883
shooting ranges. In developing the guidelines, the commissioner shall consult with range operators. The generally
accepted operation practices shall be reviewed at least every five years by the commissioner of natural resources
and revised as the commissioner considers necessary for safe operation of a shooting range. The commissioner
shall adopt initial guidelines by July 1, 2001.
Subd. 5. [UNIT OF GOVERNMENT.] "Unit of government" means a home rule charter or statutory city, county,
town, municipal corporation, or other political subdivision, or any of their instrumentalities.
Sec. 29. [87A. 02] [LOCAL ORDINANCES; EXISTING OPERATIONS.]
(a) A shooting range that is in operation and is in material compliance with existing law at the time of the
enactment of an ordinance of a unit of government affecting, directly or indirectly, operation or use of a
shooting range must be permitted to continue in operation even if the operation of the shooting range at a
later date does not conform to the new ordinance or an amendment to an existing ordinance.
(b) A shooting range that operates in material compliance with generally accepted operation practices, even
if not in compliance with an ordinance of a unit of government affecting, directly or indirectly, operation or
use ora shooting range, must be permitted to do all of the following within its geographic boundaries if
done in accordance with generally accepted operation practices:
(1) repair, remodel, improve, replace, construct, or reinforce any conforming or nonconforming building or
structure as may be necessary or desirable in the interest of safety or to secure the continued use of the range,
building, or structure;
(2) reconstruct, repair, restore, remodel, improve, replace, or resume the use of any conforming or nonconforming
building or structure damaged by fire, collapse, erosion, explosion, act of God, or act of war; and
..
(3) do anything not prohibited by generally accepted operation practices, including:
(i) expand or increase its membership or opportunities for public par~cipation; and
(ii) make those repairs or improvements necessary or desirable under generally accepted operation practices.
(c) Nothing in sections 87A.01 to 87A.06 exempts any newly constructed or remodeled building on a shooting
range from compliance with fire safety, handicaPped accessibility, elevator safety, bleacher safety, °r other
provisions of the State Building Code that have mandatory statewide application.
Sec. 30. [87A.03] [CLOSING OR RELOCATING SHOOTING RANGES; PAYMENT OF CERTAIN COSTS.]
Subdivision 1. [WHEN CAN CLOSE OR RELOCATE.] A shooting range may be closed under subdivision
3, or relocated under subdivision 4, by a state agency or unit ofgovernment only if, because of new,
permitted development of adjacent land, the range becomes a clear~ immediate, and proven safetv hazard
to the adjacent population ann i~ cannot be brought in~_o m~ia~: c~m?.~ance wi:~ general{y a~epted
operation practices with range or operation improvements.
Subd. 2. [PROCEDURE.] The clear and immediate safety hazard must be proven at a contested case hearing. The
hearing must be held after the commissioner provides notice to the owner and operator of the shooting range that
includes a clear and precise statement of the factual basis for alleging a safety hazard. The owner and operator of
the shooting range must be given an opportunity to be heard and meet the allegation. The commissioner must
make written findings and conclusions as to the hazard and whether range improvements can bring the range into
material compliance with the generally accepted operation practices. If the commissioner concludes that there is a
clear and immediate safety hazard and the operation of the shooting range can be brought into material
compliance with the generally accepted operating practices with range improvements, the state agency or unit of
government that permitted the development must pay for the range improvements.
Subd. 3. [CLOSURE.] Ifa clear and immediate safety hazard is proven as required under subdivisions 1
and 2, a shooting range may be closed by the state agency or the unit ofgovernment if the agency or unit of
tlau 8~ Z001 14:35:50 ~ia Pax ->
Pa§e 0B3 0f B03
government closing the shooting range pays the/'air market value of the range operation as a going concern
to the operators and the fair market value of the land, including improvements, to the owner of the land.
Subd. 4. [RELOCATION.] Upon request by the operator of the shooting range, the agency or unit of
government must relocate the shooting range to a suitable new location if available. The agency or unit of
government may use its power of eminent domain to acquire the new location.
Subd. 5. [TRANSFER OF TITLE.] The shooting range owner and operator shall transfer their interests in the
property to the agency or unit of government after full and final payment under subdivision 3, or after the
relocation is completed under subdivision 4.
Sec. 31. [87A.04] [IRREBUTTABLE PRESUMPTION; NUISANCE LIABILITY.]
la all relevant actions, there shall exist an irrebuttable presumption that a shooting range that is conducted
in material compliance with generally accepted operation practices is not a public or private nuisance and
does not otherwise invade or interfere with the use and enjoyment ofany other land or property.
Sec. 32. [87A. 05] [SHOOTING RANGES; NOISE STANDARDS.]
A person who owns or operates or uses a shooting range in this state is subject only to the noise standards
set forth in Minnesota Rules, part 7030.0040, subpart 2, in effect on March 1, 1999o
Sec. 33. [87A. 06] [NUISANCE ACTIONS; SUBSTANTIAL COMPLIANCE WITH GENERALLY
ACCEPTED OPERATION PRACTICES.]
A person who owns, operates, or uses a shooting range in this state which is in material compliance with
generally accepted operation practices is not subject to any action for nuisance, and no court of this state
may enjoin or restrain the use or operation of such a range. This section does not prohibit an action for
personal injury resulting from recklessness or negligence iii the operation of the range or by a person using
the range in a reckless or negligent manner.
CITYOF
CHANHASSEN
~90 Ci7 Center Ddve, PO Box 147
Chanhassen, Minnesota 55317
Pho,e 612.937.1900
General Fax' 612. 937. 5739
E, gineering Fax' 612.937.9152
Public Safety Fax' 612.934.2524
Web ww~v. ti. chanhassen, m,. us
MEMORANDUM
TO:
FROM:
Scott Botcher, City Manager
Todd Hoffman, Park and Recreation Director
DATE: May 7, 2001
SUB J:
Chanhassen Recreation Center/Bluff Creek Elementary
Tennis Courts
Both the Mayor and I received a resident inquiry concerning the condition of
the tennis courts at the Recreation Center/Bluff Creek Elementary School.
There are 4 courts at this location, configured in a rectangle. The courts were
constructed in 1994/95 in conjunction with the school and recreation center.
The cost of constructing the courts was split 50%-50% between Independent
School District 112 and the City.
Prior to the courts being accepted, the south battery began to show
pronounced settlement areas. I attended the first inspection of the courts
scheduled prior to their acceptance, and stated that it was the city's position
that the construction was unacceptable. Mr. John Gockel, the District's
construction coordinator, instructed the contractor to patch the courts. I
disputed Mr. Gockel's position contending that when the City invests in a new
tennis court we want a new court, not one that has been patched. Restricted
by the fact that the City was not a party to the contact with the tennis court
manufacturer, Mr. Gockel prevailed.
Upon finishing the patching, I was again called out to inspect the courts.
Upon arriving, I knelt down to inspect the patching and peeled the material up
with my thumbnail. I walked off the project. Ultimately, Mr. Gockel
accepted the courts on behalf of the district and the City.
The condition of the "new" court has continued to deteriorate ever since. Our
new courts no longer met "specs" six months after Mr. Gockel's acceptance. I
have made numerous inquires with the District about participating in a project
to re-build the courts. It is their position that many of the other courts they
manage are in worse condition. As such, they cannot justify investing in the
Bluff Creek courts.
In an effort to make the best of a bad situation, the city's park crew cut a
trench into the courts adding drain tile and a catch basin. This unorthodox
approach was relatively inexpensive and drains the "lake" which continues to
form on these courts.
Scott Botcher, City Manager
5/8/2001
Page
Regarding wind fencing, it is the city's current policy that our courts are
maintained for recreation play and that the expense and maintenance of
windscreen is unwarranted.
G:kpark\thkrecctrtenniscourts
ITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 93:7-1900 · FAX (612) 937-5739
MEMORANDUM
TO:
FROM:
DATE:
Dave Leschak, HGA
Greg Szypulski, Borson
John Gockel, Gockel & ASsociates
Todd Hoffman, Director of Parks and Recreation
November 4, 1997
SUB J:
Bluff Creek Elementary SchooI/Chanhassen Recreation Center Tennis Courts
The enclosed photograph was taken from an aerial ladder truck on October 29, 1997. The silt
deposits documented indicate the areas of the courts that do not drain. These low areas catch and
retain rainwater for up to three days. Only one Court remains p.layable under these conditions.
HGA has informed me that the courts have been accepted. The residents of District 112 and the
community of Chanhassen who sit in my office yelling at me cannot understand how this could
be.
The question I have been seeking an answer to for nearly two years is:
Who is responsible for the reconstruction of these courts?
pc'.
Don Ashworth, City Manager
Nancy Mancino, Mayor
Dave Clough, Superintendent of District 112
g:\parkXth~IGA BorsonGockel
C -Y O--
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 93~-1900 · FAX (612) 937-5739
MEMORANDUM
TO:
Mayor Nancy Mancino
FROM: Todd Hoffman, Park & Recreation Director
DATE:
September 18, 1997
SUB J:
Chanhassen Recreation Center/Bluff Creek Elementary School and Response to
Inquiries Concerning Youth Sporting Activities
CHANHASSEN RECREATION CENTER/BLUFF CREEK ELEMENTARY SCHOOL
Current problem areas include:
· Landscaping: An extensive punchlist is outstanding (see attached). Minnesota Valley is the
responsible contractor, but is not showing good effort in getting the job done. According to
Dave Leschek of HGA, their pe~ormance bond is our only remaining leverage.
.
"- ~~. ennis Courts'.~There is extensive pooling of water on the tennis courts. HGA and the
- district-trove ae"depted the courts. I was present at the site visit when this action was taken
and disputed that decision. I continue to be of the position that the owner's best interests
were not upheld in this process.
Other notes:
BorSon, the general contractor, will replace the concrete stoops at each entryway for the third
time later this fall at their own expense.
The district has agreed to pay for drain tile around a portion of the school building.
HGA is paying for repairs to the crumbling brick at the comers of the building and repairs of
the window sills.
Hoffman, Todd
From:
Sent:
To:
Subject:
LC Jansen2 @ aol.com
Thursday, April 19, 2001 6:10 PM
thoffman @ci.chanhassen.rnn.us
"Coulter tennis courts"
Todd,
I have received a phone message from Mr. Jed Jacobson (sp?) regarding
the
state of disrepair of the "Coulter tennis courts" He mentioned that he
had
spoken with you.
The two points he made in his message were a.) the condition of the 2
southern courts and b.) the need for wind screens.
Could you please provide us with a report on this situation and any
scheduled
maintenance. What actions have been or will be made to remedy this
situation?
Thank you,
Linda
l'Jau 84 2881 15:88:25 Via Fax -> ill2 937 5739
~ ~~ ~ A weekly legislative update from the League of Minnesota Cities
Page 881 Of 882
Number 1
May 4,200
House To Act on Tax
BillmSenate in Limbo?
On the floor today, the House of
Representatives will consider its
version of the omnibus tax bill. With
only a little more than two weeks
remaining in the regular session, the
Senate Tax Committee has yet to
unveil its version of the omnibus tax
bill. As of Friday morning, the
Senate Tax Committee has a hearing
scheduled for 1:00 p.m. today.
However, if the week's activities
follow suit and rumors of a lack of
Senate progress on a direction for
their tax bill are true, the hearing
could very well be cancelled. This lack
of progress is rather unprecedented.
As described in this week's edition
of the C/t/es Bullet/n, the most
prominent feature of the House
omnibus tax bill is the property tax
reform article. The House plan
includes many of the ideas contained
in the governor's Big Plan reform
initiative, including a state takeover
of the K-12 general education levy
and significant property class rate
compression. To fund the $880 million
cost of the levy takeover, House
plan uses state resources, including
city HACA, to fund the state-deter-
mined portion of school finance. The
loss of city HACA is offset by a total
increase in city LGA of $104 million.
The House bill includes two years of
levy limits--for taxes payable in 2002
and 2003. After levy limits expire, a
new reverse referendum process is
enacted that would allow voters to
challenge levy increases. The
provision would require cities over
2,500 population to hold a reverse
referendum on a levy increase if a
petition is signed by a number of
voters equal to five percent of the
votes cast-tn the last general election.
Although the bill is not pretty for cities,
perhaps a saving grace is the
projected net impact on taxpayers.
Overall, House Research analysis of
the impact of the bill shows that net
property taxes paid by all broad
classes of property in all regions of
the state are reduced. These esti-
mated reductions are based on the
assumption that all cities will increase
their property tax levies to replace
100 percent of the lost HACA.
The House bill includes more than
550 pages of tax changes. We will
be working to moderate the content
of the bill. Please see this week's
edition of the Cities Bulletin for a more
complete description of the bill or
contact Gary Carlson at the League.
PERA Pension provisiqns
move forward in House,
Last evening, Rep. Harry Mares
(R-White Bear Lake) offered an
amendment to State Government
Finance Committee Chair Phil
Krinkie's omnibus state departments
bill that will begin to address the
PERA coordinated plan's projected
deficiency. Rather unexpectedly, Rep.
Mares was able to secure $8.9 million
for each of the first two years to
offset the need for employer arid
employee contribution increases.
The amendment was signed and
supported by Rep. Krinkie, a fiscal
conservative who frequently chal-
lenges state spending increases.
Amendments to omnibus bills must
maintain fiscal balance of the entire
bill. The additional $18 million to
fund the state contribution to PERA
was generated by funding a Depart-
ment of Revenue budget request to
increase their income tax filing
compiiance effo~s. Appare~tiy. the
For more information on city legislative issues, contact any member of the League of Minnesota
(651) 281-1200 or (800) 925-1122
department had estimated the
increased compliance efforts would
raise $9 million per year.
The amendment includes plan
modifications supported by the
League, including a partial service
credit adjustment for part-time
employees and a delay in the plan's
full-funding amortization date.
The employer contribution will be
increased by .35 percent beginning
Jan. 1,2002. Employee contribu-
tions will be increased by a similar
amount. The amendment did not
include a second employer/
employee increase for 2003.
The Senate bill must still clear the
Senate Finance Committee. That
bill contains a smaller $2 million
annual state appropriation and a
.7 percent increase in the employer
and employee contribution phased-
in over two years. The committee
was scheduled to hear the bill on
Wednesday; however, the meeting
ended unexpectedly when a hand-
gun conceal-carry amendment was
offered to another bill on the
agenda. The Finance Committee
may meet early next week.
Conference committee
scheauie
With just two weeks remaining in
the legislative session, the confer-
once committees will most likely
begin their work next week. Confer-
ence committee members should
be announced in the next few days.
Chief authors of the bills are almost
always chairs of the conference
committee and the lead negotiator
for their side. At this point, lobbying
efforts can be directed to them.
Conferring this year's omnibus bills
wiii be ~ jug§iin~ act. Senate and
Cities Intergovernmental Relations team,
Xa~ 04 ZBB1 15:Bg:3G g~a ~ax -> GIZ 937 5?39 ~&m~n~s~ra~o~ ?~gc BOZ Of BOZ
=RIDA YFAX
MAy 4, 2001 m PAGE 2
House budget bills do not line up directly between committees; for example
Sen. Cohen's State Government, Economic Development & Judiciary
Budget Committee lines up with three committees on the House side.
Nevertheless, the following is an educated guess on how the bills will line up.
(Bill numbers with an asterisk indicate which bill is actually moving.)
· Omnibus Transportation Bill
SF 2340'/HF 2189--Sen. D.E. Johnson (DFL-Willmar); Rep. Molanu
(R-Chaska)
· Omnibus Environment & Natural Resources/Agriculture Bill
SF 2351'/HF 766 (also, HF 1266 Ag.)mSen. Price (DFL-Woodbury);
Rep. Holsten (R-Stillwater); Rep. Ness, Ag. (R-Dassel))
· Omnibus Economic Development Bill
SF 2360'1HF 2486*roSen. Cohen (DFL-St. Paul); Rep. McEIroy
(R-Burnsville)
Omnibus State Departments Bill
SF 2360'1HF 218~Sen. Cohen (DFL-St. Paul); Rep. Phil Krinkie
(R-Shoreview)
Omnibus Corrections/Judiciary Bill
SF 2361/HF 351--Sen. Berglin (DFL-Minneapolis); Rep. Stanek
(R-Maple Grove)
Omnibus Health & Human Services Bill
SF 2361/HF 1832wSen. Berglin (DFL-Minneapolis); Rep. Goodno
[R-Moorhead)
Omnibus Bonding Bill ,
SF 1402/HF 1266--Sen. Langseth (DFL-Glydon); Rep. Ness, (R-Dassel)
(Ag. bill substituted as bonding bill.)
Sign up for the LMC
legislative issues
listerv
Sign up for the up-and-running
I ntergovern mental Relations
Legislative Listserv! Visit the
LMC web site at www. lmnc.
org/forms/llstserv, cfm to sign
up and receive periodic up-to-
the-minute legislative news.
We hope members will find this
service especially informative
as the Legislature completes its
work over the next few weeks.
A conference geared exclusively to the needs of Hinnesotn city leaders!
League of Minnesota Cities
200 I
Annual Conference
LMC's 88'h Annual Conference
June 19-22, 2001
Duluth, Minnesota
www. cl~?
Attend LMC's premier conference event of the year and renew
your ideas, energT, and commitment to your city's leadership.
Registration information was mailed to your city clerk---check
the March/April or May issues of&~innesora Ciries maaS_ne for
more ~a~:s, or ~"~_'.s*,~ c-._dlne eight now at
Mark your calendar and we'll see you in Duluth in June[
Conference High lights:
· Outstanding speakers
- Camille Cate~ Barnett, Ph.D.
widely regarded as one of
America's most ~alented city
managers
- Rod Raymond
Duluth triathle~e and OOunpian
· LMC's Web For Citie~
the ekc~ed officials' introduction
~v e-governmen~
· Topi~ to ~uit every city
· Door Priz~ every city can
really use
· LMC Bayfront Blue~ and
Cruise
· City Night at the Great Lake~
Aquarium
REGISTER ONLINE ANYTIHE: WWW. LMNC.ORG '
AMM FAX
April 30- May 4, 2001 (no. 3)
Association of
Fletropolitan
Flunicipalities
~ iII _ .. II I
Tax and Spending Bills Taking Shape
The House and Senate have
approved their spending bills
and conference committees
to resolve differences between the
bills should begin work next week.
The House tax bill should be
debated on the floor today (May 4),
while the Senate tax bill should be
off the floor eady next week. A
summary of some of the issues of
concern to local governments
contained in the bills is as follows:
The House State Departments
bill was amended Thursday night to
include a comprehensive pension
amendment. The amendment,
which was offered by Rep. Harry
Mares, modifies several pension
provisions and contains provisions
regarding the Public Employee
Retirement Association (PERA).
The PERA amendment provides
approximately $!8.0 million in state
pension aid and increases the
employee and employer contribu-
AMM News Fax is foxed to all AMM city
managers' and administrators, legislative
contacts and Board members. Please sh ate
this fax with your mayors, cottncilrrternber$
~nd slaff to keep lhtrn abreast of lrttflor-
lan! metro city issues.
145 University A venue }Fast
St. Paul, MTv 55103-2044 ,
Phone: (651) 215-4000
Fax.: (651) 281~1299
~-rnail: amn~,..~amm14 5. org
tion in each of the next two years
by 0.35%. The Senate PEP, A bill is
scheduled for a hearing in the
Finance Committee on Monday.
The Senate bill contains similar
language and rates but the pro-
posed appropriation is currently
only $2.0 million.
Trak,sit Funding
The, House tax bill would remove
the metropolitan transit operations
levy f:om the property tax and
replace it with state general fund-
ing. 'r'ransit debt would continue'to
be paid from the property tax.
Hou. slng Funding
The, House Housing and Eco-
nomic Development Finance bill
appropriates $129.6 million to the
Minnesota Housing Finance
Agency (MHFA). Ortho total $14.9
million is from federal funds (Tem-
porary Assistance for Needy
FSmilies) and the reE~_i.:',der is
from ;:he state general fund. The
federal funds are -"one time fund-
ing."
The; Senate appropriates a
similar amount in base funding for
the MHFA and $75.0 million in "one
time" general funds. The one time
money will be used to fund such
programs as the inclusionary
housing program ($4.0 million), the
challenge fund ($20.639 million),
and the Housing Trust Fund
($23.017 million).
Inclusio#ary Housing
The Senate bill contains provi-
sions regarding a developer initi-
ated affordable housing program. If
a developer proposes to have 20
percent of its units affordable to
households having incomes at or
below 80 percent of the area
median income, the city is required
to provide the developer with a 30
percent density bonus and one
additional regulatory relief mea-
sure. There are no similar provi-
sions in the House bill.
Legislative Commission on
tho Metropollta#
Council
The House tax bill includes the
legislative commission as pro-
posed in HF 981. The Senate
companio~ as amended is in the
& z~ae T&x Committee. T~,e Sen-
ate version proposes an elected
Metropolitan Council.
Additional information on these
and other issues is included in the
tracking report to be sent later
today or accessed now on the
AMM website. Once the Senate tax
bill is introduced, a future fax will
summarize the bill and compare it
to the House bill.
COVER STORY
The V,o!ce of the Public:
'Nh'.t C: zen'flor <
Thomas I. Miller and Michelle Kobayashi
ust how in touch with the citizens of your juris-
diction do you or your elected officials have to
be? After all, there are the town meetings, the
budget hearings, and the neighborhood talk-
back sessions, as well as conversations With the
chamber, school board, planning board, liquor board, board
of zoning adjustment, Rotarians, Shriners, Odd Fellows,
Grange, Elks, Lions, and like clubs r3presenting all manner
of fauna and flora. Open-mike titne at council meetings can
get to look like bug-house square at a carnival.
The Usual Suspects
The truth is--and most staff suspect this--that the varied
community activists who show up for every input opportu-
nity are members of a single cadre of irate, enthusiastic, agi-
tated curmudgeons who care deepiy about the community
in general, or their blocks in particular. When the dust set-
tles and the budgets and policies have been written, the Sus-
picion lingers that the typical resident still has not been
heard from. Decision making by "wheel decibel" (a squeaky
wheel gets the oil), after all, could simply be dismissed as the
American way, by which those people with enough interest,
energy, or money get to call the tunes. Although this genre of
cynicism has been raised almost to a religion for the politi-
cally savvy, giving in to it won't work when you come to the
apolitical questions that managers need answered if they in-
tend to run their communities well and to run them for all.
MAY 2001
The C'rtizen Survey
Defined
The way to capture that much-vaunted
voice of the typical resident is by a citi-
zen survey, a scientifically conducted
survey whose purpose is to gather the
opinions ora sample of adults who rep-
resent the entire adult population of a
jurisdiction. A citizen survey finds and
gives voice to all types of citizens, the
poorer as well as the better-off residents,
those whose health may keep them from
attending meetings and those in better
health, shy people and outgoing people,
newcomers and old-timers, and those
who have a dispassionate point of view
as well as those who are emotionally in-
-volved. The representative sample
tapped in a citizen survey provides the
point of view that can be found only in
the community at large. We have found
that about 15 percent of respondents to
citizen surveys have attended any public
meeting in the past 12 months. This
means that 85 percent of the voices
heard in a citizen survey are new.
This article, then, addresses citizen
surveys that include an evaluation of
local government services, that provide
a kind of consumer scorecard. Common
,practice in local government service
evaluation is to count citizen com-
plaints. Typically, these "evaluations" of
services come when there is a crisis--for
example, right after a snowstorm, when
,treets are impassable and motorists are
kate. But snowstorms of criticisn-, are no
way to judge the quality of services. Be-
muse evaluative surveys collect so much
information so much more efficiently
than any other kind of citizen participa-
tion, they are among the local govern-
ment administrator's most useful man-
agement tools.
1Nhat's the Point of
Surveying?
It's not that surveying is the only way or
the most accurate way to know what cit-
izens in a community think or do: Citi-
zen surveying is a compromise made in
In the real world--
where time flies and
money talks--surveys
are the quickest,
cheapest, and most
accurate way to
reckon the state of
public opinion.'
the face of a scarcity of resources. If
time was boundless and money ran like
water from a spigot, no one would
bother with surveys. In the world of
wishes, everyone in a community would
be asked and everyone would respond
to the questions of interest. There
would be no guessing about what the
people wanted or what they liked or
what they did.
In the real world--where time flies
and money talks--surveys are 'the
quickest, cheapest, and most accurate
way to reckon the state of public opin-
ion. Survey researchers are stuck with
the unenviable job of figuring out what
ever?one would say after hearing from
only a few. In the typical Gallup poll,
pretty good guesses are made about the
likely behavior of 100 million Ameri-
cans based on reports from only about
2/300 of' *~'
,,em---~ sample of' cn!y about
0.002 percent.
The trick to survey research, if there
is one, is not in getting x many people to
be surveyed but in ensuring that the
people surveyed represent well the pop-
ulation about whom you're trying to
make estimates (inferences). Imagine a
'citizen survey undertaken in New York
City that sampled more than a million
people. Wouldn't this survey give highly
accurate estimates for this city of seven
million? Probably not, if all those sur-
veyed were from the Bronx. Or if they
were all women. Or if riley all worked on
Wall Street.
With a lot of experience under their
belt, survey researchers have proved to
offer an accurate and affordable way to
determine the predilections, fears, and
activities of large numbers of people.
Many kinds of errors can occur
when public administrators or elected
officials use surveys to inform them-
selves about their communities. But
survey errors are largely controllable. In
contrast, the extent of misjudgment as-
sociated with other methods of taking a
community pulse is hopelessly beyond
estimate. There is no way to judge
whether the information that public
officials get from complaint counts,
liability suits, newspaper straw polls,
public meetings, conversations with
friends, or letters to the editor really
represents of all community residents.
At least, survey strengths and limita-
tions are well understood and can be
used to make reasoned estimates of
what constituents want.
Rules of ThUmb for
Good Citizen surveys
Maximize the representativeness of:
the sample.
Give all residents a chance to
participate.
· Select households at
random.
· Offer translations to other
languages~'.~.~.;.'~i"i~: '~ ' ·
· Select p~ticipafi~:~hin
- households iv, ~o
include.selected ho~eholds.
Comvare your resffits w~th-resulu..
~om s~mflar commumttes:~'?~:
'ind t6.rec6mmend &i ne~-stepS.·
Cooperate w~th s.~mfla?;.
communid~? 'cd'Pare survey
res ~ ~'s. :.
-;'
PUBIJC ~/'~t~IAGEME~T 7
Telephone's Unspeakable Problem
In the National Research Center's analysis of surveys from around the country
conducted from 1981 to 1991, the median response rate for telephone
interviews was 65 percent. It was 35 percent by mail. In its update, conducted in
1998, the median response rate was 38 percent by phone and 35 percent by
mail, among the few jurisdictions whose survey contractors still reported
telephone response rates.
In fact, response rates by telephone have declined so rapidly and so far
that it has become uncommon for telephone survey research firms to
report their response rates. The American Association for Public Opinion
Research has quite specific rules for response rate calculations that, when
followed, produce response rates that go from bad (when the most liberal
rules are applied) to worse (when stricter requirements for assumptions are
applied).
It is not difficult to understand what has happened to the telephone survey
research industry. In 1990, only 37 percent of American households had
answering machines. By 1999, more than 80 percent had some kind of
answering device or caller ID or call blocking.
The practice of pretending to administer a telephone survey as a ruse
for marketing is so prevalent that it has its own name--"sugging"--an
acronym taken from the first letters of "selling under the guise" of a
survey. A journalist concluded in 1996 that "...an increasing reluctance
among Americans to participate in surveys is distorting all polling data.
At a time when abuse of the telephone by sleazy sales reps masquerading
as pollsters is widespread, refusal rates are soaring."' In fact, a study done
in the early 1990s showed that most Americans thought that telephone
surveys and telemarketing were the same thing, or didn't know if they
were different.
One telephone market researcher admitted that "the market research
industry has pretty much abandoned the response rate as a tSrimary
indicator of survey quality. Despite response'rates in the range of 10 percent
to 15 percent, telephone surveying continues because the market research
industry is heavily invested in the infrastructure used for telephone
interviewing.2
Although there are noticeable differences in response rates for properly
conducted phone, mail, and in-person surveys, the differences tend to be small,
and the response rates for all methods are low enough to require some
investigation of--or adjustment for--non response bias. It is generally accepted
that a well-conducted mailed survey can net between a 35 percent and a 50
percent response. For phone surveys, good response rates now tend to
between 25 percent and 40 percent, while in-person interviews, which once
netted around an 85 percent response, are so expensive-and liability-prone that
almost no one does them for citizen surveys.
The response rates for intercept surveys vary by the environment and by the
task asked of potential respondents. For example, two questions asked of riders
sitting on a bus will get more than an 80 percent response but a two-minute
survey asked of busy shoppers at an outdoor mall in the winter will get under a
30 percent response. The differences in response rates between the methods,
excluding in-person surveys, is not large enough to recommend one method
over another.
tlohn Liscio for Barron's (November 25, 1996).
':Reg Baker, Marketing Research, Vol. 8, No. 1 (Spring 1996), pp. 22-24.
Judging Service quality
Evaluative surveys are conducted in
many communities across the country,
but their proper interpretation remains
elusive. For example, what does it mean
to discover that citizens are more satis-
fied with services from the parks depart-
ment than with the services of street
maintenance workers? Because most cit-
izens prefer parks to potholes, it is better
not to base the interpretation of results
on absolute percentages but rather to at-
tend to changes in residents' evaluations
of one service from one survey to the
next, and to compare your jurisdiction's
results with those garnered across the
nation or in similar locales.
Many jurisdictions do use the results
of citizen surveys to assess the perfor-
mance of local government services. In-
deed, while it is right to acknowledge
that citizen opinion is only one measure
of service quality, citizen opinion also
may be the most important measure. If
you collect trash three times a day, and
your residents still rate trash hauling as
poor, you have a problem.
When you conduct a citizen survey,
however, it is important not to presume
that you can determine the best services
by comparing ratings of one service with
those of another. In this "competition;'
fire services will always win, and street
repair will always lose. Fairer is a com-
parison of your fire services with those
of other communities and of your street
repairs with those of others.
Yl/ho Is Doing Citizen
Surveys?
In 1991, the National Research Center'
estimated that citizen surveys were con-
ducted each year by 30 to 60 jurisdic-
tions of over 25,000 population. By
1998, the center's estimate, derived from
a survey of more than 1,000 larger juris-
dictions, had risen six-fold, to more
than 250 such surveys per year. Evidence
from an e-mail survey conducted earlier
this year suggests that the use of surveys
is continuing to grow.
In 1998, many citizen surveys in-
MAY 2001
·
Look to ICMA
ICMA?s special report on citizen surveys, Citizen Surveys: How to Do Them,
How to Use Them, What They Mean (second edition) describes the best
practices of jurisdictions with successful track records of surveying on
everything from local trash pickup to long-term land-use planning. Written by
Thomas I. Miller and Michelle Miller Kobayashi of the National Research
Center, Inc., Boulder, Colorado, the book incorporates step-by-step guidance
for conducting surveys. It answers questions like
· What makes a survey reliable?
· How can we be sure results really reflect the sentiments of citizens?
· How can we interpret the results we get?
- How can we be sure our results are comparable from one year to the next?
o How much does it cost to conduct a citizen survey?
The book summarizes ten principles for using surveys effectively and
explains how to integrate citizen survey results into decision making and
service improvement. Six case studies illustrate how local governments have
used citizen surveys to promote excellence in service delivery and program
planning. "
Citize, Surveys: How to Do Them, How to Use Them, What They Mean,
second edition. 2000. 176 pages. Special Report (42551), $45.00. To order, visit
ICMA's Online Bookstore at bookstore.icma.org, or call 800/745-8780.
duded questions about service quality
and quality of community life. Slightly
less popular are questions about the im-
portance of various services, resident de-
mography; and policy issues. Some sur-
veys ask about residents' willingness to
pa), for proposed improvements, their
use of facilities, and trust in government.
Among the communities conducting
citizen surveys, almost half intended to
measure resident satisfaction with city
services, and about a third were gauging
community support for policies and
funding options. Close to a third in-
tended to use the citizen survey over
time as a device to monitor change.
About a quarter of communities con-
ducting citizen surveys used them as
part ora planning process, and about 20
percent used the surveys for general in-
formation or public relations outreach.
More than two-thirds of communities
in 1998 characterized the surveys as "very
useful," and another third said that their
citizen surveys had been "somewhat use-
ful." But when it came to identifying ac-
lions taken based on the results eta dtizen
survey, findings were less positive. About a
third of the communities reported using
dtizen survey results to assist in policy
malting, and about a quarter used tine re-
sults for budget decisions or communica-
tion with community residents. About a
fifth used the results in making decisions
about land use or other plans. ,
Using Survey Results '
So as more and more local governments
begin to conduct citizen surveys, the most
important question may be: How can we
use our citizen survey results once we get
them? Here are a few suggestions on how
to use survey results. In general, seek help
by appointing a joint committee charged
with taking survey results and, from
them, recommending action (or watchful
t~ ,
waiting). Derisions can affec, zc~mmun~t7
policy, personnel policy, and budget:
· Refer to results whenever citizens tell
you they know what the community
thinks.
· Bring results into discussions with
elected officials about strategic
planning.
· Monitor results to track the quality of
service delivery. Allocate resources
where they seem most needed.
· Compare results with those of similar
communities to identify opportunities
to benchmark service performance.
· Consider holding department direc-
tors to agreed-upon targets for con-
sumer satisfaction.
· Decide whether to press for a com-
munity policy that you've tested in a
citizen survey.
· "Jawbone" the results in your citizen
newsletter and at press conferences.
Thomas L Miller, Ph.D., is president of
the National Research Center, Inc., Boul-
der, Colorado. Michelle Kobayashi,
M.S. EH., is vice president of the National
Research Center.
Coming in
GASB 34
This is the day the
playground came to me.
And my sister followed
oil my rules.
And my mom just never
stopped smiling.
is the day we all got to
forget I wos sick.
·
.-:-. - "vn~tw.~sh~grg"~ :! ' "-"
· · If you know a child with -
d life4hrealening illness,
' please coil 1-80D-722-W!SH.:'.:.~
]C~IBLfC MANAGEMENT 9
·
145 University Avenue West, St. Pa~l, MN 55103-2044
Phone: (651) 281-1200 ° (800) 925-1122
TDD (651) 281-1290
LMC Fax: (651) 281-1299 ° LMCIT Fax: (651) 281-1298
Web Site: http://www.lrnnc.org
TO:
FROM:
DATE:
MEMORANDUM
~'~"' g 2001
TIF task force members CiTY 01-- GHAi:~iH^$$F~N
Andrea Steams, Intergovernmental Relations Representative
April 30, 2001
House omnibus tax bill- Article 12 Local Development
I have enclosed for your review a summary and the actual language of the TIF and related
provisions of the House omnibus tax bill released this morning. As expected, the bill
contains Rep. Abrams' H.F. 187 as amended in the Tax Committee, Rep. McElroy's TIF
consultant registration bill, and the entirety of the TIF tech/fical bill.
·
Since the House omnibus tax bill eliminates the general education levy and makes
additional property tax class rate changes, $206 million is pumped into the TIF grant
program for grants to address deficits caused by those changes through January 1, 2006.
Additionally, the existing special taxing authority and pooling authority are expanded to
address deficit situations.
The House Tax Committee'will reconvene after today's floor session for continued
presentation of the omnibus tax bill and for the purpose of taking testimony on its
contents.
As always, please feel free to contact me with any feedback at 651.281.1258 or
stearns~lmne.or[,.
The Base Bill
Version: Base Document
Section
April 30, 2001
Page 67
Article 12: Local Deyelopment
ol
2
Overview
This article makes a number of chahges in local economic development powers. It
narrows the "blight test" used to qualify areas as redevelopment districts Under the
tax increment financing CrIl~ law and imposes a one-year time limit on most pre-
1990 TIF districts to put in place the spending for their remaining projects. It
requires outside T~ consultants who work for cities and development authorities to
register with the state. The 'article a[~o makes a lar/~e'number of min6r policy and
technical type changes in various TIF and abatement laws. It grants special TIF
authority to five cities:
· Aurora
· Gaylord
* North St. Paul
* Park Rapids
· Robbinsdale
An additional $1.5 million is allocated for border city enterprise zone credits, and the city
of Luveme is given border cify development zone powers.'
Iron Range f'rscal disparities. Adds a cross reference in the fiscal-disparities law for
the taconite tax relief area to make it clear that all pre-existing TIF districts are .
exempt from contn'buting to the fiscal disparities pool until they are decertified. It is
effective retroactive to the effective date of the taconite area fiscal disparities law.
The new language is consistent with the way in which the law is being, administered.
Additional enterPrise zone allocations. Directs the commissioner of the
Department of Trade and Economic Development (DTED) te allocate $1.5 million
for additional border city enterprise zone credits for cities along the western, border.
These credits are to be allocated among the qualifying cities (Breckenridge, Dilworth,
East Grand Forks, Moorhead, and Ortonville) on a per capita basis. Based on 1999
population, the $1.5 million would be allocated approximately as follows:
Breckenridge $108,705
Dilworth . 88,882
East Grand Forks 243,245
Moorhead 998,553
Ortonville 60,613
Article 12: I_zx:al Development
-4
. 5
.6
.7
The Bas~ Bill
Version: Base Document
Section
April 30, 2001
Page 68
These enterprise zone credits can be used for a variety of tax reductions under present
law:
,, exemption for the sales tax on building materials and equipment
,..an income tax credit for a percentage of debt financing to construct new or
expanded facilities
,- a state paid property tax credit
Also authorizes the allocationg to be used for any other taxes imposed on businesses
located in the zone... Imposes. a.:'but-£or'..' .type. finding as a condition on the 'city
awarding the tax reductions (i.e., the city must find that the reductions are needed to
attract or retain the business).
~ .
Scope definitions. Extends the application of defirdtions under the tax incremefit
financing act to include the special taxing authority, the pre-1990 district spending
· rules, and the registration of TIF consultants.
Bonds. Includes interfund loans and advances in the definition of bonds. Section 26
explicitly authorizes repayment of interfund loans with tax increments. ·
Blight test. Substitutes the term "similar structures" for "improvements" in the blight
test for redevelopment districts and renewal and reno~,ation districts. This clarifies
that gardens, lawns, landscaping, farm fields, and simil~ items do not meet the
occupancy test.
This section also narrows the definition of "substandard buildings" used in the blight
test. The blight definition requires 50 percent of the buildings in an area to be
"substandard" to qua/i~ as a redevelopment district. Under present law, this is
defined generally to include defects in "structural elements" or a "combination of
deficiencies in essential utilities and facilities" that are of "sufficient total significance"
to justify renovation ~r removal. The section substitutes two alternative tests for
substandard buildings:
,. A dilapidation type test that focuses on the repair condition of building - i.e.,
"advanced state of disrepair or neglect of necessary repairs" as shown by a
documented building analysis showing major repair Or removal is needed; or
,. Major defects in secondary components of the building which would cost 25
percent of the appraised value of the building to correct.
Cross reference correction. Corrects erroneous cross references in the renewal and
renovation district statute to the redevelopment district definition and makes a similar
change in the use of the term Lmprovement to that contained in section 5.
Economic development districts. Elimin~ates the proMbition on creatktg an
economic dev,.,ov~,,t disrfi~,~ ff it could qu~ as ax~other type of district.
Article 12: Local Develor~ment
The Base Bill
Varzion: Base Document
April 30, 2001
Page 69
Section
-9
10
,11
,12.
Definition of increment. Clarifies that the interest clause ia the definition of
increment only applies to interest earned on idle cash (e.g., bank deposits and similar
amounts) and not interest paid on developer loans and similar obligations. This
change makes a substantive difference only because.repayment of developer advances
and loan.q' has a different (delay .ext) effective date than interest. The change, in effect,
treats interest on developer loans made before July 1, 1997 as not subject to the
~pending restrictions on increments.
Contents of TIF plans. Makes two changes in the TIF plan requirements.
Required contents., of the TIFplan. It limits the.budget to. the district, rather than
the project as under present law, and to the amount of increment. (Other revenues
could still be included 'in the budget, but would not be required to be included and
they. would need to be budgeted separately.) It requires a plan to separately budget
for (if increment is to be spent within these categories):
· Administrative'expenses
· Property acquisition and site preparation (including related public
improvements that are part of site preparation, such as sewer and water
connections) ·
· Public improvements
· Payments for private improvements and other.eligibl~ costs
The amounts budgeted in each category would be binding; if the authority wishes to
spend more than the budget item, a plan amendment would be required. -
Authority to waive increments. The authority to waive increments for
redevelopment, h.ousing, and hazardous substance subdistricts is repealed.
·
Municipality approval Eliminates the conclusive effect of the fmdings~by the
development authority and the municipality in approving a TIF plan. These findings
include the fmd~gs under the b!/ght test, the bu~-,,, tes~_~ ~6 the consistency of rne
TIF plan with the general plan for development of the muniqipality.
Filing of TIF plans With the state. Reinstates the requirement that copies of the TIF
plan and amendments to the plan be fried with the commissioner of revenue. The
commissioner is to provide a copy to the State Auditor on the request of the Auditor.
Filing must be done within 60 days of the latest of the (1) request for certification of
the district, (2) approval of amendments to the plan by the municipality, or (3)
adoption of amendments to the plan by the development authority for plan
amendments that do not require municipal approval.
Annual financial reporting. Eliminates the requirement that budget amounts be
included in the annual report for a TIF district. This change conforms to the changes
rhade in the line item requirements for the T~ p~ in section 9.
Article 12: Local Development
The Base Bill
Version: Base Document
Section
April 30, 2001
Page 70
13
.14
Cross reference correction.. Elin-dnates a cross reference to, a repealed statute.
Duration Hmlts, Makes two changes in the basic duration limit statute:
· It eliminates the shorter duration limits for redevelopment, housing, and
' hagardous substance subdistricts that .waive increments. These districts would
not be permitted to waive increments under the amendment'in section. 9.
· It provides that receipt by a hazardous substance subdistrict of an increment
(i.e., an increment as a'result of the wHte-down of original tax capacity) does
not start the duration lin:fit running on the overlying TIF district itself. The
district's duration limit' will only l~gi_n to run when the tax capacity of the district
increases over the original tax capacity for the district (rather than the
subdistrict).
.15
Pre-1979 districts. Makes three changes in the spending and duration limits that
apply to pre-1979 distridts.
These districts are allowed to use increments after April' 1,2001, to paY the
administrative costs that are imposed by the county for administering the
district.
Interest or similar investment earnings on pre-1979 increments are subject to
the spending limit. This change is effective f6r earnings received after
December 31,2001.
· A pre-1979 district must be decertified once it has collected enough
increments to pay all of the outstanding pre-1990 bonds.
.16
Hazardous waste subdistricts, waiving increments. Repeals the shorter duration
limit for hazardous substance subdistricts that waive increments.
· 17
. 18
Administrative expenses. Modifies the limitation on administrative expenses to
provide that the limit will be calculated relative to increments from the district, rather
than the expenditures for the project. Th/s change is effective for new districts.
Restrictions on spending increments. Makes changes in the statute .specifying the
permitted purposes for spending increments to be consistent with the changes in
budgeting of items in the TIF plan. as provided in section 9. If the budget includes no
amount for an item, it is deemed to be zero. If the authority decides to include more
specification than the required items, the amounts in these subcategofies would not be
binding (i.e., the authority could move money among these subcategories within the
items without a plan amendment).
-19
General government use. Moves the restrictions on the uses of increments for
social and recreational facilities to.a separate subdivision and eliminates the need for
the mun/cipal/ty to approve operating and management policies for social and
recreational facilities financed with incre, n;~ents.
Article 12: Local Development
The Base Bill
Version: Base Document
April 30. 2001
Page 7 t
Section
· 20
- 22
23
24
· 25
Social and recreational facilities. Re, codifies (without substantive change) the
prohibition on using increment for social, recreational, and similar facilities. The
effective date includes the grandfather provision that was contained in the 1999
legislation and permits assigned binding contracts and letter of intent to qualify under
the grandfather provision. .-
Pooling permit'/ed. Redefines when pooling is permitte~ for deficits in increment
revenues. The permitted u'~es are expanded to include binding contracts (e.g., "pay as"
you go" agreements). This change makes the pooling authority consist with the grant
program. The new allow~mce is for districts for which the request for certification
· . was made before June--2~. 2001; andcovers- reductionS-in-increments as a result of the
class rate changes and the elimination of the general education tax levy under this act.
This change allows the pooling to be used to cover deficits created by the property
tax reform changes.
...
Adjustment to original net tax capacity for exempt property. Allows the
development authority to exclude improvements the authority makes to exempt
property from original net tax capacity when the exempt property becomes taxable. -
State tax and increment computation. Provides that the state property tax does
not generate tax increment. ..
Deduction for enforcement costs. Changes th~ portfgn of tax increments dedicated
to the office of the state auditor for enforcement from 0.25% to 0.34% to mainta~
approximately the current level of funding in light of the elimination of the general
education tax levy.
Enforcement scope. Extends the scope Of the section relating to enforcement (both
.
private actions and State Auditor's powers) to include the special taxing district
authority to eliminate deficits.
- 26
Interfund loans. Authorizes the authority or municipality to pay project costs with
interfund loans and receive reimbursement, with interest, from increments. In order
to do so, the authority or municipality must aaopt a res-~u~,~e, zuthorizing the loan
and setting its terms, in writing. These terms must include, at least, the principal,
interest, maturity, and a repayment schedule. The interest that may be charged is
limited to the higher of the judgment interest rate or the rate on unpaid state taxes.
Pre-existing interfund loans are ratified, if the interesi rates comply with the maximum
rate limits.
Article 12: Local Development
The Base Bill
Vm'sion: Base Document
April 30, 2001
Page 72
Section
27
28
29
30
Special taxing authority foe deficits. Expands the special tax authority for Tn::
deficits caused by property tax rate compression. This taxing authority allows a city
to levy a special tax on properties in a Tn:: district that have either developmeht
agreements or assessment agreements to recoup (on behalf of the TIF district) some
or all of the property iax savings resulting from 1997-98 class rate compression.. The
section changes these dates to include the changes made in the 2001 session and to
include districts created through June 2, 2001. Under present law, the authority is
limited to cities. The bill expands it to all municipalities (e.g., towns and counties).
Special taxing authority for deficits, Extends the special taxing authority to include
the effects ofcIass rate compression proposed, in the bill:.
Special taxing authority, calculation 'of maximum' tax. Extends this authority to
the 2001 property tax compression and clarifies how the limit will be calculated.
Under present law, the maximum special tax that a property can be required to pay is
either the amount of tax specified in the development agreement or the market value
in the assessment agreement multiplied by the tax rate differential. The bill provides a
method of calculating this limit ff neither a dollar amount of tax nor an minimum
market value is specified. In this case, it would be the dollar amount the development
agreement requires the authority to spend on behalf of the district's development. If
no dollar amounts are specified, then no limit applies,
Pre-1990 districts. Prohibits modifications ofTIF pla~s for pre-1990 TIF districts
after April 30, 2001 and imposes a time limit on spending increments from these
districts paralleling the 5-year rule.for post-1990 districts. This time limit is set as
April 30, 2002. One of the following must be completed by April 30, 2002 to permit
increments to be spent after that date:
Bonds are issued and the proceeds of the bonds have been spent or
deposited in a reserve or replacement fund.
,- Binding contracts are'entered into with a third party to pay for the costs.
,. ~'lt~e costs are paid (e.g., by the authorky or the city) and the increments are
used to repay the city or authority.
After April 30, 20002, increments may only be used to pay these obligations. When:
they are paid, the district must be decertified.
Exemptions. The following districts are exempt from the time limits:
,. The county board approves, by resolution, an exemption for the district by
April 1, 2002.
,. Increments are spent to match federal funds.
,- A special law-authorizes the ~,,~'~;~',-
Article 12: Local Development
The Base Bill
Version: Base Document
Section
April 30. 2001
Page 73
3'1
The district's duration was extended by special law, .the extension was
· approved by.the county, city, and school and the state aid offset apples to
the duration extension.
TIF consultants.
Subd. 1. Definitions. Defines terms for purposes of th~ b~:
Act means the TIF act and the state aid offset..
Commissioner is the commissiOner of revenue.
. .
Consultant includes an both individuals and entities (e.g., corporations and
partnerships).providing consulting serVices.
Consulting services means providing professional advice (e.g., legal,
accounting, and fiscal services) regarding the TIF act to a municipality or
development authority. Providing services to a private entity (e.g., a business)
would not be covered.
Subd. 2. Registration. Requires consultants who provide consulting
services to municipalities and development auth°rities to register with the
commissioner of revenue. To do so, a consultant must:
· Agree in writing to abide by the act. '
· Agree in writing to make its records available for inspection by the State
Auditor, the Commissioner of Revenue, or the Commissioner of Commerce
for field or financial audits under the TIF act.
· Certify knowledge of the TIF act and published guidelines of the State
Auditor.
· Submit certificates of required insurance coverage.
The commissioner ~ to mainF~- a ~ vf registered consukants. Only regmtered
consultants may provide consulting services to mur2cipalities.. The registration
requirements do not apply to employees of the authority or municipality.
Increments may not be used to pay unregistered consultants.
Development authorities and municipalities may not hire consultants on a
contingent fee.basis (e.g., compensation is dependent upon creation of a distric~
or is a percentage of increment or TIF spending).
Registered consultants are to file supplemental information promptly, if the
information on file becomes inaccurate or incomplete. Registration takes effect .
30 days after the application is filed and remains in force until voluntarily
terminated or until suspended by the commissioner of commerce.
Article 12: Local Development
The Base Bill
Version: Base Document
Section
April 30, 200I
Page 74
- 32
· 35'
A registration fee of $100 applies to the initial registration and $25 to annual
renewals. The fee is deposited in the general fund.
Subd. 3. Sanctions. Authorizes the commissioner of commerce to revoke
or suspend the registration or censure a registrant. A maximum civil penalty of
$10,000 applies. Violations subject to sanctions includ, e:
· . Failing to conform to minimal standards of acceptable and prevailing legal,
accounting, or fiscal practices under the act
· Committing fraud, embezzlement, theft, and similar acts
· Being subject to discipline by a licensing body in Minnesota or another state
· Failing to comply with the ongoing registration requirements .
:
· Failing to comply with a provision of or order under the TIF act or the
commerce department's powers
·
· Providing services without being registered
· Being incompetent, untrustworthy, or financially irresponsible
· Making material misrepresentations or omissions to the municipality,
authority, or commissioner. ',
· Entering a contingent fee type compensation·'agreement.
Subd. 4. Orders. Authorizes the commissioner of commerce to issue
orders revoking, suspending, censuring, or denying applications for registration.
This includes authority to enter sunumry orders suspending registrations
pending a final ~termination. An administrative hearing must be held within 30
.days.
*.
Effective for Consulting services provided after July 1, 2002.
Abatements by towns. Cia~fifies that for prepe~.' ~ abatements 0y towns, the
board of supervisors is the governing body. The 1999 legislature authorized town
boards (rather than the annual meeting) to approve abatements. When this change
was made, the reference in the definition of governing body was not changed. This
section corrects that mistake and is made retroactive to the date of the 1999 change.
Abatement, relationship to TIF. Prohibits dropping parcels from a TIF district in
order to grant an abatement. It would not-affect the authority to grant an abatement
after decertification of the entire TIF district.
.34
Duration limit on abatements. Cia,rifles that the duration extension for abatements
(from 10 to 15 years) when only two political subdivisions approve an. abatement
applies to both politica~ subdivisions, not j,,~t_,,. ,~h,...,., ."'-."."'~:'~',,~,~,~, unit of g~ve~ar~nt.
Article 12: Lacal Development
The Base Bill
Version: Base Document
Section
April 30, 2001
Page 75
· 35
· 36
· 37
· 38
39
40
Abatement bonds. Limits the referendum exemption for abatement bonds.
Abatement bonds used for buildings primarily used to conduct the business of a unit
of govemment would require approval by the voters in a referendum.
·
Increment definition, effective date. Amends the effective date of the definition of
increment to make it clear that the basic definition (i.e., property tax paid by captured
tax capacity) applies to all increments of pre-1979 districts and to in.terest and similar
investment earnings received after December 31, 2001.
Effective date, housing outside project area. Extends the 2000 legislation
permitting spending of a share.of increments onlow income housing activities outside
of the project areas to all post-1982 districts.
Hollman housing, exemption for low-rent public' housing. Provides that low-rent
punic housing built under the Hollman decree qualifies for the property tax -.-
exemption and the requirement to make payments in lieu of property taxes, even if the
properties are owned 'by municipalities or other entities. Under present state law, this
·
exemption extends only to housing and redevelopment authorities. Federal law
requires these properties to be exempt from property taxes.
Aurora, TIF. Allows the city of Aurora to extend the duration of a pre-1979 TIF
district through December 31, 2009. This will allow the city six additional years of
increment. This district is scheduled to be decertified a~; the end of 2003. The section'
allows the district's increments to be spent on public redevelopment costs anywhere
within the project area. General law prohibits use of increments from pre- 1979
districts after April 1, 2001, except to pay for bonds issued before April 1, 1990 (or
bonds issued to refund them).
Gaylord T1F, effective date. Authorizes the city of Gaylord to extend the duration
of a pre-1979 TIF district. The extension may not extend beyond December 31,
2008. The 1997 legislature authorized an extension of the duration of this district, but
the city, county, and school district apparently failed to act. The authority to approve
~ -. ~ 2',-~
special legislation expires on the first day ~.,t the ne~ bi~.e~.-,Jal le~s~ive sessiori~
Thus, the authority to approve this legislation expired in January i 999.
Because this is a pre-1979 district without pre-1990 bonds' outstanding, this district
was effectively decertified at the 2000 and, thus, will generate no increment in 2001.
As a result, the bill would, in effect, revive the district in 2002. In addition, the
section provides authority to spend increments during the extension period. Effective
upon local approval by the city, county, and school district.
Article 12: LOcal Development
The Base Bill
Version: Base Document
Section
April 30, 2001
Page 76
41
42
43
North St. Paul, TIF grant. Directs the commissioner of revenue to pay a $12,800
grant to the city of North St. Paul. This grant is to be charged against the
appropriation to make up TIF deficits caused by the 1997, 1998, and 1999 property
tax class rate compressions. The bill cites that thiS. grant is to compensate the city' for
a 1999 calendar year deficit determined on an accrual basis. The commissioner is to
pay the grant within 60 days ager enactment. Effective day .following final enactment
Without local approval.
Park Rapids, TIF. Extends the 5-year rule by one .year for a redevelopment district
in Park Rapids. Effective upon local approval by the.city of Park Rapids.
. .
Background information. 'The 5-year rule requires the "in-d/strict" portion of
increments to be spent (or bonds to be issued) within 5 years after the TIF district is
certified. The pooling rules require either 80% of increments (most districts) or 75%
of increments (redevelopment districts) to be spent on activities actually located inside
the TIF district. This percentage is the "in-district" percentage. After the end of the
5-year period, the in-district portion of the increment must be spent only to pay
obligations incurred to finance these activities completed during the first 5 years.
When they are paid, the district must be de. certified. The pooling percentage (i.e., the
rest of the increments, either 20% or 25%) can continue to be spent on new activities
after the end of the 5-year period.
,.
Robbinsdale, Tn*. Allows the city of Robbinsdale to spend.increment from a pre-
1979 district on general project costs through June 30,'2001. This will allow the .city
three additional months (from April 1, 2001, to June 30, 2001) to pay for these
project costs with increments. General law prohibits use of increments from these
districts after April 1, 2001, except to pay for bonds issued before April 1, 1990 (or
bonds issued to refund them). Effective the day following final enactment and after
filing of the local approval by the.city with the secretary of state.
Luverne; Border city development zone. Allows the city of Luverne to designate
up to six areas of the city as border city development zones. Each area or zone is
limited to no more th~ I00 acres.
The general law rules for border city development zones apply to these zones. The
bill allocates $183,000 to the city to be used in providing tax reductions for the zones.
This limit or cap on the zone tax reductions does not apply, if the commissioner of
revenue waives the limit.
45
Repealer. Repeals both of the state aid offsets (i.e., the one for new districts and for
extensions of district duration limits), effective for taxes payable in 2002. With the
state takeover of the education levy, the state aid impact of Tn:: is minimal.
Article 12: Local Development
Thc B~se B~ll
¥cr~ion: B~c ~ocumcn~
Section
April 30, 2001
Page 13
34
35
36
Rental housing tax base replacement aid.
Subd. 1. Aid amount. Provides aid to counties and cities in 2003 and subsequent
years based on the reduction in tax capacity resulting from rental housing class rate
reductions for taxes payable in 2003 and 2004. The aid is equal to the jurisdiction's
reduction in tax capacity for 2003 in excess of 0.4 percent of the jurisdiction's total net
tax capacity times ttie jurisdiction's local tax rate for taxes payable in 2003.
Subd. 2. County aid. Provides that a county's aid amount under subdivision 1 is
permanently added to the county's HACA amount for 2003 and subsequent years, and
then the same amount is permanently added again.for.2004 and subsequent years.
Subd. 3. City aid. Provides that a city's aid amount under subdivision 1 is added
to the city's grandfathered LGA base for 2003, and then the same amount is added
again for 2004.and.subsequent years.
Subd. 4. Appropriation increase. Provides for an increase in the overall city
LGA appropriation limit by the amount of additional aid provided under this section for
2003 and 2004.
Electric generation tax base replacement aid. Provides that for taxes payable in 2002
only, the county auditor must compute all local tax rates as ff the class rate for electric
generation machinery was 2 percent instead of 1.5 perc. ent. When taxes are levied on
electric generation machinery, the actual class rate of 1,5 percent will be used. The state Will
provide aid to each affected local taxing jurisdiction equal to the difference between the tax
intended to be levied and the tax actually levied due to the provisions of this section.
Effective for taxes payable in 2002 only.
TIF grants.
Subd. 1. TIF grants. Provides for grant payments to municipalities in 2003, 2004
and 2005 for deficits in tax increment financing districts caused by the changes in class
rates and the elimination of the state-determined general education levy under this
article. Requires a municipality to impose the special tax under article 12: sectio~ 27
to 29, in order te qualify for a graat und~ .~c
u.c~. set,om T~ ~.mount of the grant is
equal to the lesser of (1) the reduction in the district's revenues from the class rate
changes and the elimination of the general education levy, or (2) the amount needed by .
the district to pay off bonds issued before and binding contracts entered into before
June 2, 2001, less the municipality's total tax increments including unspent increments
from previous years and the revenues derived from the special tax under article 12,
sections 27 to 29. Payments will only be made to districts for which certification was
requested before June 2, 2001.
Article 2: Property Tax Reform
The Base Bill
Version: B~se Document
Section
April 30, 2001
Page 14
37
38
39
Subd. 2. Appropriation. Appropriates $184 million in FY 2002 and $22 million in
FY 2003 fi.om the general fund to make grants under this section. Provides that the
appropriations are available until spent. Provides that if the amount of grant
entitlements for a year exceeds the amount available, all grants shall be proportionately
reduced.
Subd. 3. Expiration. Provides that the grant payment program expires on January
1.2006.
Assessment guidelines. Requires the commissioner of revenue to develop instructional
materials and issue guidelines to assist.local assessors in valuing land and buildings
separately in the case of commercial-industrial property subject to the state general tax by
December 31, 2002.
Appropriation. (a) Appropriates $6 million from the transit fund to the commissioner of
transportation to finance nonmetrop01itan transit systems for FY 2003. Provides that grants
to recipient systems in calendar year. 2002 must provide funding to compensate for the
elimination of transit levy authority under section 7. (b) Appropriates $105.2 million from
the transit fund to the metropolitan council to fund the operating costs of transit services in
the metropolitan area for FY 2003.
Repealer. Repeals the general education levy, the education homestead credit and the
education agricultural credit for taxes payable in 2002.. Also repeals technical provisions
-related to transit zones (eliminated in section 11) and the education homestead credit.
Article 2: Property Tax Reform
C]TYOF
CH SEN
690 C#y Center Drive
PO Box I 47
5ha~d~25sen, Minnesota 553I 7
Phone
952.937.I900
Go~eral Fax
952.937. 5739
En~neering Deparmlent Fax
952.937.9152
Building Dqoartment Fax
952.934.2524
Web Site
~ut,utci. chanhassen, mn. us
May 3,2001
M-Con, Inc.
Jon McDonald, President
109814th Street NE
Hanover, MN 55341
Dear S' .
Thank you for your bid on the City of Chanhassen's Roundhouse pavilion
renovation. The City has elected to postpone commencement of this project
due to higher than anticipated costs. Your bid bond is enclosed.
Again, thank you for your interest in Working for the City of Chanhassen.
Sincerely,
Todd Hoffman
Park and Recreation Director
TH:ns
C-'
Scott Botcher, City Manager
City Council
Park and Recreation Commission
g:\park\thXroundhousepostponementltr
BID BOND
The American Institute of Architects,
AIA Document No. A310 (February, ] 970 Edition)
KNOW ALL MEN BY THESE PRESENTS, that we M-Co;~., Inc.
as Principal hereinafter called the Principal, and Merchants Bonding Company
as Surety, hereinafter called the Surety, are held and firmly bound unto City of Chanhassen,
Department of Natural Resources
as Obligee, hereinafter called the Obligee, in the sum of Five Percent (5%) of amount of bid
Dollars ($ ), for the payment of which sum well and truly to be made, the said Principal and the
said Surety, bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally,
firmly by these presents.
WHEREAS, the Principal has submitted a bid for Renovation of Chanhassen Round House Pavllion
'NOW, THEREFOR_E, if the Obligee shall accept the bid of the Principal and the Principal shall enter into
a Contract with the Obligee in accordance with the terms of such bid, and give such bond or bonds as
may be specified in the bidding or Contract Doduments with good and sufficient surety for the faithful
performance of such Contract and for the prompt payment of 1 .a;bor and material furnished in the
prosecution thereof, or in the event of the failure of the Principal to enter such Contract and give such
bond or bonds, if the Principal shall pay to the Obligee the difference not to exceed the penalty hereof
between the amount specified in said bid and such larger amount for which the Obligee may in good
faith contract with another party to perform the Work covered by said bid, then this obligation shall be
null and void, otherwise to remain in full force and effect.
Signed and sealed this 5th day of December , 2000
M-Con. Inc.
Principal
Witdess
Merchants Bonding Company
Surety (Seal)
Lauri~ Hag~ 0 Attorney-in-Fact
lv . cchants Bonding Corral. any
(MUTUAL)
POWER OF ATTORNEY
Know All Persons By These Presents, that the MERCHANTS BONDING COMPANY (MUTUAL), a corporation duly organized under the
laws of the State of Iowa, and having its principal office in the City of Des Moines, County of Polk, State of Iowa, hath made, constituted
and appointed, and does by these presents make, constitute and appoint
Angela Sue Cofield, I~urie L. Rmge, Edythe Dankert,
Cecile M. Fraley, Roberta L. Hoskins
of .t~.'u~. eap.oli.s, and State of Mizmesota its true and lawful Attorney-in-Fact, with full power
and authority hereoy conTerreo in its name, place and stead, to sign, execute, acknowledge and deliver in its behalf as surety any and all
bonds, undertakings, recognizances or other written obligations in the nature thereof, subject to the limitation that any such instrument shall
not exceed the amount of:
FOUR MILLION ($4,000,000.00} DOLIJLRS
and to bind the MERCHANTS BONDING COMPANY (MUTUAL) thereby as fully and to the same extent as if such bond or undertaking was
signed by the duly authorized officers of the MERCHANTS BONDING COMPANY (MUTUAL), and all such acts of said Attorney-in-Fact,
pursuant to the authority herein given, are hereby ratified and confirmed.
This Power-of-Attorney is made and executed pursuant to and by authority of the following Amended Substituted and Restated By-Laws
adopted by the Board of Directors of the MERCHANTS BONDING COMPANY (MUTUAL) on October 3, 1992.
ARTICLE II, SECTION 8. -The Chairman of the Board or President or any Vice President or Secretary shall have power and author-
ity to appoint Attorneys-in-Fact, and to authorize them to execute on behalf of the Company, and attach the Seal of the Company
thereto, bonds and undertakings, recognizances, contracts of indemnity and other writings obligatory in the nature thereof.
ARTICLE II, SECTION 9.- The signature of any authorized officer and the Seal of the Company may be affixed by facsimile to any
Power of Attorney or Certification thereof authorizing the execution and delivery of any bond, undertaking, recognizance, or other
suretyship obligations of the Company, and such signature and seal when so used shall have the same force and effect as though
manually fixed. '
in Witness Whereof, MERCHANTS BONDING COMPANY (MUTUAL) has caused these presents to be signed by its President and its
corporate seal to be hereto affixed, this 7th day of December ,1999 .
SS.
STATE OF IOWA
COUNTY OF POLK
, MERCHANTS BONDING COMPANY (MUTUAL)
·
Pr~s~.rt
On this 7th day of December , 1999 , before me appeared Larry Taylor, to me
personally known, who being by me duly sworn did say that he is President of the MERCHANTS BONDING COMPANY (MUTUAL), the
corporation described in the foregoing instrument, and that the Seal affixed to the said instrument is the Corporate Seal of the said
Corporation and that the said instrument was signed and sealed in behalf of said Corporation by authority of its Board of Directors.
In Testimony Whereof, ! have hereunto set my .... hand anO affixed mv C~,'im.~ Seai at th~ ,~, of Des Moine.. lc. wa. the (~ay =n_' year first
above written.
ee ~ ee
· --~- O0 ·
.',,~ ...... .<L'.
· 12:: %~ ·
· : IOWA ~ . '
· ·
· · · ·
· ~'. :~ ·
· · ee ·
· 0,,~_'..oo....,...~[~/_~ ·
STATE OF IOWA
COUNTY OF POLK ss. · ·
Notary Public, Polk Countj4 Iowa
~SC O814 (P./98J
I, William Warner, Jr., Secretary of the MERCHANTS BONDING COMPANY (MUTUAL), do hereby certify that the above and foregoing
is a true and correct copy of the POWER-OF-ATTORNEY, executed by said MERCHANTS BONDING COMPANY (MUTUAL), which is still
in force and effect.
In Witness Whereof, I have hereunto set my hand and affixed the Seal of the Company on
this day of ,
~a9 OZ Z001 14;IS;44 ~i~ F~x
->
filZ 937 57219 Administrator Page I]fll 0£ 0FI1
' . . ' .~ ~ .
I~ax: (651) 281 1299 1'1)1)(651)~61 129()
Local Ordinances Nullified: Legislative Alert
May 2, 2001
'Yesterday on the House floor Representative Tom Hackbarth (R-Cedar) amended the Omnibus
Environment Finance bill to include legislation exempting shooting ranges from afl_[ future local ordinances.
Rather than adopting sound measures guiding the harmonious coexistence between ranges and adjacent
property owners, the House chose instead to adopt bad publlc policy in what appears to be a political
statement for the benefit of a narrow special interest.
The bill exempts this business from all future ordinances. For example, your city may wish to enact an
ordinance relating to the building code, fire code, garbage collection, signage, noise pollution, septic
systems, adult businesses, dangerous dogs, alcohol or tobacco, crc, Shooting ranges WILL NOT be subject
to any of those ordinances.
Additionally, the law exempts shooting ranges from any liability for being a nuisance. For example, ifa
shooting range is an attractive nuisance and draws small children to it out of curiosity, the range will be
held harmless from any claim arising from damage due to its attractive nuisance quality.
The only way a shooting range will be closed is if the DNR says it is a safety hazard to new development.
Existing adjacent property owners have no righ! to petition their local government for protection.
In the event a shooting range is determined to be a safety hazard by the DNR, it may be closed if the local
government unit pays for all costs, including the purchase of all real & personal property and value of the
business, Then it requires the local government to buy a new site to give Io the range operator, if so
requested. '
The irony is that under the bill a range may operate 24 hours a day, change its shooting configurations,
expand its operation, refuse to provide signage, increase noise, put up spot lights, ignore local soil and
water conservation programs and there is nothing a local government can do about it.
The following legislators voted in support of this legislation.
Anderson, I. Finseth .luhnke Milbert Pugh Thompson
Bakk Fuller Kalis Molnau Rhodes Tingelstad
Bishop Gerlach Kielkucki Mulder Rifenberg Tuma
Boudreau Goodno Knoblach Murphy Rukavina Walz
Bradley Goodwin K-inkie r-~ess R:.tth V,:-'asiluk
Buesgens Gunther Kubly Noraes Szhumacher Wenzel
Carlson Haas Kuisle Olson Seagren Westerberg
Cassell Hackbarth I_arson Osskopp Seifert - West rom
Clark J. Harder Lieder Osthoff Sertlch Wilkin
Daggett Holberg Lindner Ot remba Skoe Wi nter
Davids Holsten Lipman Ozment Smith Wolf
Dempsey Howes Luther Paulsen Solberg Workman .-)(-
Dorman Huntley Mahoney Pawlenty Stanek Spk. Svlggum
The LMC and AMC have been working with proponents to draft legislation that protects shooting ranges
from unwarranted closure. The Hackbarth amendment is not the answer. Please let your legislators know
this is bad law and ask them to work with local communities to create a solution that protects all private
property rights, not just the rights of a special interest.
If you have questions please comaci Remi Stone at 65.1..281,1256 or
AN EQUAL OPPORTUNITY/AFFIRMATIVE AC'NON EMPLOYER
(?it;a,; pr,.nnt;;~,~7 axce//~.,~..~
->
937 5739 fl&ministrator Page 001 0£ 001
] -~5 L.l,~ive. rsity Avenue. West, St'. I)aul, hi 1N 551 ()3-2()~4
I'hone: (651) 281-] 200 (800) 92.5-1122
I~ax: (6.51) 281-1299 '1'1)1) (651) 281-1290
Local Ordinances Nullified: Legislative Alert
May 2, 2001
ADDENDUM: The following 12 Representatives were inadvertently omitted from the previous fax
containing the list of legislators voting to support legislation exempting shooting ranges from local
ordinances.
I apologize for any inconvenience this may have caused.
Abeler Eastlund Jacobson Mares Pelowski Stang
Abrams Erhardt Jennings Marquart Penas Swenson
Anderson, B. Erickson Johnson, J. McElroy Peterson Sykora
Again, the LMC and AMC have been working with proponents to draft legislation that protects shooting
ranges from unwarranted closure. The Hackbarth amendment is not the answer.
Please let your legislators know this is bad law. Ask them to remove it from the Omnibus Environment
Finance bill, SF 2351.
If you have questions please contact Remi Stone at 651.281.1256 or rstone(_~.imnc.or~
AN I~QUA L OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER
Ma6~ B1 2BBZ 14:IB:3G V~a Fax -> Gl2 937 5?39
FAX
April 30- May 4, 2001 {no. 2)
III ~1 _.1 II
A_ MM NgW. S Fax is faxed to all AMM ¢1~
managtr~ ~d ad~n~tr~o~, l~g~lative
~nt~s ~ ~ard ~e~, Ple~e share
~ f~x with your ~yor& counea~en
~d ~ff to ~ep them ~r~ of
145 Unive~ Av~ W~
~ ~au~ MN 55107-2044
~ho~: (650 215~000
F~ (651) 281-12~
~. ~I 45.o~
Association of
Hunicipalities
House Omnibus Tax
Bill Update
HF2498, (Rep. Ron Abrams) can
be found on the Intemet in its
554-page entirety, as well as a
House Research Summary.
To view the bill or the summary
go to the AMM's website
(www.amm 145.org) and select
"Minnesota Legislature" from.the
options in the left-hand column.
From there, select "Minnesot~i
Legislature's Bill Tracking Sys-
tem'' and then "House Bills."
Enter"HF2498" into the space
given for bill number and hit
"search." You may select to view
the full text of the bill or the House
Research Bill Summary. Ifyou do
not wish to print the entire docu-
ment, you may r~i~h[igh~_ ~ par--
ticular section and select "pr'int
selection" from your print menu.
Apparently there was some
confusion after yesterday's,~A,1M
News Fax concerning levy limits.
The wording in the bill (Article 4,
Section 8, pages 100-103)is
somewhat confusing. However,
cities do not lose a year of popu-
lation or inflation. The base is
increased for two years for
inflation plus current population.
Also, as indicated yesterday, if
a city's actual levy in 2000 (pay-
able 2001 ) exceeds the levy limit
calculated for 2001 (payable
2002) the city may levy the
greater amount for 2002. Al-
though the city will not see an
increase under this scenario at
least the city will not have to
reduce its levy.
Testimony is being taken today
~ .d toni§hr, The comm~'~ee ·
mark up the bill tonight, it will go
to Rules and then the floor by
Friday. The Senate Tax bill may
be available Wednesday.
l'bg El ZBBl 14:1B:36 Via Fax -> 612 937 S739 Scott Botcher
AMM FAX
lie
April 30- May 4, 2001 (no. 2)
.,
AMM News Fax i~ faxed to all AMM el~y
mtmagers and administrators, legislative
contacts and Board mernb~rs. Please share
this ftrx with your mayors, councilmembers
and staff to keep them abreast of impor-
tant mctro city issue~
145 University A venue West
St. t'aul, MN $$105-2044
Phone: (651) 215-4000
Fa~' (651) 281-1299
F-mai/: ~un145.org
Association of
Iqetropolitan
Municipalities
House Omnibus Tax
Bill Update
HF2498, (Rep. Ron Abrams) can
be found on the Internet in its
554-page entirety, as well as a
House Research Summary.
To view the bill or the summary
go to the AMM's website
(www.amm145.org) and select
"Minnesota Legislature" from the
options in the left-hand column.
From there, select "Minnesot~
Legislature's Bill Tracking Sys-
tem'' and then "House Bills."
Enter"HF2498" into the space
given for bill number and hit
"search." You may select to view
the full text of the bill or the House
Research Bill Summary. If you do
not wish to print the entire docu-
ment, you may hi~,~, h[i~ht a par-
ticuiar section and seiect ~prir,[
selection" from your print menu.
Apparently there was some
confusion after yesterday's,~dVIM
News Fax concerning levy limits.
The wording in the bill (Article 4,
Section 8, pages 100-103) is
somewhat confusing. However,
cities do not lose a year of popu-
lation or inflation. The base is
increased for two years for
inflation plus current population.
Also, as indicated yesterday, if
a city's actual levy in 2000 (pay-
able 2001) exceeds the levy limit
calculated for 2001 (payable
2002) the city may levy the
greater amount for 2002. Al-
though the city will not see an
increase under this scenario at
least the city will not have to
reduce its levy.
Testimony is being taken today
and tonight. The committee will
mark up the biii tonight, i~; ~,~ii go
to Rules and then the floor by
Friday. The Senate Tax bill may
be available Wednesday.
CITYOF
CHANHASSEN
690 CiO, Cemer Drive
PO Box I47
Chanhassen, _Mi, nesota 55317
Phont
952937.1900
General Fax
952.937.5739
£,ffneeffng Depamnent Fax
952.937.9152
.B~dlding Depart,~n Fax
352.934.2524
~b Site
~t~:ci. cha,/~ssen, m,.us
MEMORANDUM
TO:
FROM:
Recreation Center Dance Staff
Susan Marek, Recreation Center Manager
Todd Hoffman, Park and Recreation Director
DATE: April 30, 2001
SUB J: Commendation
As you £malize plans for your spring dance recital, I want to take a moment
to commend you on a job well done! What a huge task! Your dedication to
this important program does not go unnoticed. Putting on two shows with 750
people attending each performance is truly a remarkable feat. I look forward
to hearing the reviews.
Again, thank you for all your hard work!
¢:
Scott Botcher, City Manager
Todd Gerhardt, Asst. City Manager
~l~layor and City Council
Park and Recreation Commission
G:\park\th\dancerecital
Mon Apr 23 12:30 AM
Tues Apr 24 9:50 AM
Tues Apr 24 5:52 PM
Tues Apr 24 6:06 PM
Weds Apr 25 9:19 AM
Weds Apr 25 4:04 PM
Weds Apr 25 8:24 PM
Thurs Apr 26 4:20 AM
Thurs ~ Apr 26 11:11 AM
Fri Apr 27 10:07 AM
Fri Apr 27 6:49 PM
Sat Apr 28 1:27 PM
Sat Apr 28 2:53 PM
Sat Apr28 3:47 PM
Sun Apr 29 12:45 AM
CHANHASSEN FIRE DEPARTMENT
FIRE/RESCUE
WEEK OF APRIL 23, - APRIL 29, 2001
Bluff Circle
Utica Lane
Summerfield Drive
Chanhassen Road
Pond Promenade
Chaska Fire Dept
Big Horn Drive
Cardinal Avenue
Hazeltine BOulevard
Elm Tree
Bridle Creek Trail
Highway 7 & Greenbriar Ave
West 78th Street
Lakeview Road East
Lotus Lake
Fire alarm - false alarm, no fire
Medical - possible heart attack
Medical - trouble breathing
Medical - possible stroke
Medical - cut chin
Mutual Aid- structure fire
Medical - difficulty breathing
Medical - seizures
Fire alarm - false alarm, no fire
Medical - possible heart attack
Propane gas tank fire
Possible car fire - cancelled enroute
Medical- seizures
Smoke in the apartment
Water rescue
~pr 38 2881 15:52:1G Via Fax
AMM FAX
NE
April 30- May 4, 2001 (2 pages)
->
G1Z 93? 5?39 Scott Botcher
Page 88Z 0£ 883
A sodadon of
Hetropolitan
Hunicipalities
House Tax Bill Impacts Cities
Class Rate Reduction
The property tax section of the
House tax bill would significantly
reduce and compress the class
rates applied to all types of
properties. For residential
homesteads, the bill eliminates
the second tier and applies the
current first tier rate of 1.0% to
the entire value of the properly.
For residential non-homestead,
there would continue to be a tier
break at $76,000, but the first tier
rate would fall from 1.2% to 1.0%
and the second tier rate would
fall from 1.65% to t .5%.
Under the proposal, the class
rate for all apartments would
change gradually to arrive at
1.0% (the same as residential
homesteads) by payable 2004.
The class rate for regular apart-
ments woutd decline from 2.4%
to 1.5% for payable 2002, then to
1.25% for 2003 and 1.0% for
AMM News' Fax is'fax, ed to all ,,tMM city
manager~ anti administrators, legislative
contacts and Board members. Please share
thb'fax with your mayors, counclImembem
and staff lo l~eep tttem abreast of impor-
tant metro city issues.
145 Univers#y /lvenue We~t
St. Paul, M'N $SI03-2044
Phone: (651) 215-4000
Ia.x: (651) 281-1299
.E.mnE: ~mmJ 45. org
2004. Low-income apartments
would decline from 1.0% to 0.9%
for payable 2002, but then creep
back up to 0.95% in 2003 and
return to 1.0% in 2004. The rate
for small city apartments would
decline from 2,15% to 1.5% for
payable 2002, and then fall to
1.25% for 2003 and 1.0% for
2004.
A 1.0% rate would aisc be
applied to all seasonal recr¢~,
ational property-- both cornmer-
cial and residential, starting with
payable 2002. The class rate
difference between homestead
and seasonal resorts would be
eliminated. Seasonal resorts
would be exempt from referen-
dum market value taxes, but
would pay a state property tax.
As with residenti~!
the second tier of seasonal
recreational residential would be
eliminated, with a 1.0% class
rate applied to the entire value of
the property.
The rates for C/I property would
also fall, and the tier break would
increase from $150,000 to
$200,000. The class rate for the
first tier (up to $200,000) would
be 1.5%, down from 2.4%, while
the rate for the se~ tier R,,ver
$200,000) would fall from 3.
to 2.0%. The rate on electric
generation machinery would fall
from 3.4% to 1.5%.
The bill includes a state prop-
erty tax on commercial-industrial
and seasonal recreational prop-
erty, with the same class rates for
the state tax as for local taxes.
Finally, the bill would reduce the
number of tiers for agricultural
homesteads from three to two.
Currently, the first tier (up to
$115,000) is at 0,35% and
second tier ($115,000-
$600,000) is at 0,8%. These
tiers would be combined under a
0.55% rate. The rate forthe
upper tier (over $600,000) would
decline from 1.2% to 1.0%. Non-
homestead agricultural land and
buildings would also decline from
'~,2% to 1.0%.
Homestead Credit
Provided new homestead
credit equal to 37 percent of net
tax capacity of each homestead
to a maximum of $256.
Levy Limits
Levy Limits are imposeQ for
cities over 2,500 for taxes levied
2001 payable 2002 and 2002
CO~lJ~llgff ~g.~l pagg...
Apr 38 Z081 15:53:07 Via Fax -> G1Z 937 5739 Scott Botcher Page 883 0£ 883
...continued from previous page
2001 is the adjusted levy limit
base for levy year 1999 plus
specials plus one year household
and inflation growth. Levy base is
adjusted each year for household
and inflation (Implicit Pdce Defla-
tor). The property tax levy limit is
the adjusted base minus general
purpose aids. The allowable levy
is the greater of (1) the calcu-
lated amount, or (2) the amount
actually levied in 2000 less any
amount for specials. Thus, a city
whose levy increased over what
the limit for 2000 would have
been will not have to reduce their
levy but will not be able to in-
crease above the limit calcula-
tion. Maintains special levies
other than 1997/98 flood and
tornado related specials.
LGA/HACA
HACA is eliminated, LGA is
increased by $81 million to $505
million in 2002. Limits Metro first
class city increase to 55% of
HACA loss. Limits other cities
increase to 50% of net levy for
taxes payable 2001. Also in-
creases aid base for cities losing
electric generation property tax
through compression. In 2003
and beyond a Rental Housing
Tax Base replacement aid is
provided for net tax capacity
reduction in excess of.4 percent
due to rental housing class rate
compression.
similar to those contained in
HF 1505. Among the major
provisions of the article are the
following:
Metropolitan Council Leg isla-
five Commission
The contents of HF 981 have
been included in the omnibus bill.
Sales Tax/Education/General
· Although there were about 40
requests for sales exemption for
city buildings, NONE were
granted. The general sales tax on
city purchases was not elimi-
nated.
State determined education
levy is eliminated. A statewide
property tax on C/! and seasonal
recreational is provided to raise
$429.4 million in 2002.
Tax Increment Financing (TIF)
Article XI! of the omnibus bill
addresses TIF. Many of the .
general law provisions included
in the technical bill or separate
bills have been placed into the
bill. In some instances the lan-
guage has been modified. For
example, the pre- 1990 provi-
sions retain the dates - plan
modification by April 30, 2001
and activities completed or
commenced by A[~ri130.2002
bL'. aiso permi[=., e;~mptions
· Registration of TIF consultants
· Definition of substandard
building to be either dilapi-
dated or deteriorating. The
effective date for this provision
is prospective for new districts
(Sept. 1,2002)
· Redefines use of increments
from pooled districts and
expands the use of special
taxing authority for deficits.
Another article of the bill (Ar-
ticle Section 36) establishes a
TIF grant program to assist
districts to cover deficits caused
by the tax class changes and the
elimination of the general educa-
tion levy. The appropriation for
the grants is $184.0 million in
fiscal year 2002 and $22.0
million in 2003.
Transit Property Tax
The bill transfers 19.5 percent
of-motor vehicle sales tax
(MVS'I') to replace metro council
transit property tax for opera-
tions. Does not affect capital levy.
Protects optouts by requiring a
proportional amount be allo-
cated.
FINANCE
Muni Days Are Here Again
A reinvigorated municipal bond market
is attracting investors, as well as helping
issuers lower their costs.
BY PENELOPE LEMOV
asdaq's nosedive is good
news for the municipal
bond market. Jittery traders
are now looking for safer
places to park their money.
And there's more good news: U.S.
Treasuries a~e en route to being zeroed
out. That means muni bonds--particu-
larly triple-A rated government obligation
bonds---could become the Object of the
fixed-income investor's affections.
The municipal bond market may be
short on cachet; but when risk rises in the
gtitzier, high-profile markets, the Plain Jane
starts looking like a pretty' good place to be.
Technology has lowered his county's
bond-bldding co~ts by 90 percent, say. s
Tim Flrestlne, Montgomery County,
l~arylard's finance director.
Moreover, during the decade in which
other markets captured all the attention,
the old-fashioned and tradition-laden
muni marketplace updated itself.
Muni bond investors can now buy some
bonds over the Intemet, click on Web
sites to check out the fiscal stability of an
issuer and go online to get a handful of
real-time bond quotes. In other words, e-
trading is underway, disclosure is faster
and more widely available, and price
transparency--well, it's still in the fledg-
ling stage, but it's moving forward.
This is all well and good for investors.
But what does it mean for issuers?
In general, by' making munis more
investor-friendly, the modernization ef-
fort should bring more individual in-
vestors to the market, and increased
activity Usually translates into lower interest
62 G O V E I~ N I hi O May 2001
rates issuers have to pay to borrow money.
Beyond interest rates, though, other
changes in the $1.3 trillion marketplace
are bringing down issuance costs dramati-
cally, even while some of the evolutions
are creating more responsibility for issuers.
Two major forces have been converg-
ing to lower issuance costs. One is the
'seemingly endless squeeze on underwrit-
ing spreads--the profits Wall Street firms
make when they bring a bond to market.
Ten years ago, underwriters enjoyed
spreads of more than 11 points between
buy and sell prices; today the average
spread is nearly half that.
As fees get squeezed, the industry con-
solidates. Major and minor firms have
been getting out of the business. For
issuers, this side effect does not create
unalloyed joy. When a bond deal is com-
plicated and the issuer is looking for cre-
ative ideas in structuring its debt, under-
writer service becomes important. And
that's what may suffer when profitability is
squeezed. "Having been on the under-
writer side of the business myself, I know
· that if you keep cutting fees, something
· has to give somewhere," says Frances
Walton, the chief financial officer for New
York's Empire State Development Corp.
"It's not to anyone's advantage to try to
keep beating fees down further."
Not surprisingly, as president of the
Bond Association, a trade group that rep-
resents municipal bond dealers, Micah
Green points to another negative scenario.
If large Wall Street firms or major regional
companies leave the marketplace, it could
result in an issuer having fewer purchasers
a.5 btcS. aers ~0r ~rs t~an'~. 'q.f there's over-
· capacity, the market has to adjust," he
says. "To the extent the marketplace has
to be more efficient to be profitable, the
marketplace is doing what it can." '
In addition to consolidating, the muni
market is also turning to technology to
hammer down bidding costs. Electronic
bidding is where a lot of firms and issuers
are moving. With e-bidding, an issuer puts
its bond proposal up on an electronic net-
work and underwriters respond electroni-
cally with their bids for the business. "It
works like a whistle," says South Carolina
Treasurer Grady Patter,on. "It saves a ~
of mone~' and also s~,5.. ~'..gs u.~,~
Goverrling,com
The Long-Squeeze .' - -
-~~. ~t~.munlcil:~_. llssu~nce'~ ~
:~.~ ¥.~?~?: 1990. :. 1991 ~'..1992 ':1993 t'(~ 1 ~94 ?) 1 ~6 c::.1996 ;~1997)~ 1998 ;41999 ;;: 2000 '~7~
Instead of the day or two it used to take
for underwriters to hand in written bids
and then have the issuer calculate the
offers to determine the winner, it now
takes only two or three hours for the
whole shebang. "I can remember six or
seven years ago when a bond sale tied up
the county's computers all day to analyze
the bids," ,says Tim Firestine, finance
director for Montgomery County, Mary-
land.-"Now we know almost instanta-
neously who the winner is."
The savings for issuers are considerable.
When Firestine thinks of the salaries that
were tied up in the traditional bidding
~ocess and the amount of printing and
mailing of documents that went on, he
estimates that his county's bidding costs
have dropped by as much as 90 percent.
Several Wall Street firms have formed
joint ventures to develop e-trading plat-
forms, for both the primary market of new
issues and for trading in the seconda~ mar-
ket. There are currently dozens of these e-
trading systems functioning, although only
three or four are expected to survive. Most
of them are for broker-dealers to buy new
bonds from issuers and to sell to each other;
few, if any, of them are designed to provide
' a marketplace for individual investors to
buy or sell tax-exempt bonds.
As to systems that give issuers a chance
to sell bonds directly to investors, that's
been happening but not as widely and not
with as much momentum as the issuer-
dealer system. Still, most jurisdictions that
have tried it--Pittsburgh was the fl/st in
1998~have gone back for more. G. Louise
Green, chief of Baltimore's Bureau of Trea-
sury Management, reported that when her
de~ issued bonds where individuals
were allowed to purchase them online, it
found a whole new market of investors who
were now attracted to the city's bonds.
Direct-to-investor e-trading doesn't work
for all bonds--it's most effective for the
plain-vanilla, general obligation issues that
have strong credit ratings. In other words,
bonds that stand to do well online are those
that dorYt need a sales pitch to sell.
Technology is also bringing issuers
savings on the disclosure front.
During Arthur Levitt's seven-year.
chairmanship, which ended in February,
the Securities and Exchange Commission
pressured issuers to provide investors with
more and better information about the
issuer's fiscal situation--the ability to repay
a bond, be it from general revenue funds or
a more narrowly targeted revenue stream.
If all that additional information--offi-
cial statements and updates on fiscal
events within the issuing jurisdiction, for
example--has to be printed and mailed, it
runs up quite a tab. And when disclosure
rules were first being prom-b~t~-~
early !99C~s, issuers were co,c-creed a~ut
the additional costs the new demands
would create. But then came the Internet
and the ability to send documents to
underwriters, investors and government
regulators electronically.
While that's made compliance easier and
cheaper, it can sometimes be overwhelming
for the receiving end. "We're getting so
many Official Statements by e-mail, it's
overloaded our printing capacity," says
Hyman Grossman, managing director for
public finance at Standard & Poor's Corp.
Credit-rating agencies and others who need
to pore over disclosure doc~enrs are also
6a G 0 V I= R N I N G May 2001
having to use the World Wide Web to gain
access to such items as state budgets. Most
states are posting all their firiandal, budget
and audit information on Web sites and dis-
seminating notice of that information
through e-mail. The state of Florida, for
instance, no longer provides S&P with a
hard copy of its documents.
The Web certainly saves on Printing
bills, but it also raises some legal and regu-
latory issues. One of those is how to deal
with hyperlinks imbedded in Web sites.
That is, ff an issuer refers a potential
investor to another Web site in which one
of the issuer's documents resides, is the
issuer incorporating all the information in
that Web site into its disclosure docu-
ments or just referring someone to the spe-
cific information as a common courtesy?
While neither the SEC nor its muni mar-
ket ann, the Municipal Secutifies Rulemak-
lng Board, has yet to rule on these kinds of
Intemet-disclosure issues, there's no short-
age of suggestions for solutions. Jeffrey
Green, general counsel for the Port Author-
ity of New York and New Jersey, would like
to see rules for electronic disclosure syn-
chronized with those for paper disclosure.
On the question of hyperlinks, for instance,
an issuer could put a pop-up screen on its
Web site so that when investors click on a
hypeflink, the pop-up alerts them to the
fact that they are leaving the issuer's site,
going somewhere else and that the issuer
doesn't vouch for all the information on the
other sites. "We need to have appropriate
disclaimers and wamings and segregate
information intended for bond holders from
other information," Green says.
Given that and other concerns about
electronic access to information, many
issuers are wary of 100 percent e-distribu-
tion of disclosure documents. That's the
case in Montgomery County. "We're not
s::;1 c,.~cerned about the regulatory envi-
£onlnent."
One other area that the muni market
hasn't mastered yet is price transparency:
letting individual investors know what the
price of a bond is on any given day. Even
state-of-the-art technology has not been
able to come up with a full-fledged, stock-
exchange-style ticker tape. That's not too
surprising, given that the trillion-dollar
marketplace has hundreds of millions of
outstanding bonds.
Right now, price transparency depends
on prototype buy and sell 'prices. The
MSRB rum a re~rting ~stem o~actual
Governing.com
I
The era of performance measurement is here!
Government will never be the same.
Governing's Guide to
Performance Measurement for
Geniuses [and Other Public Managers]
JOHATflAH WALTERS
"Measuring performance is about trying to understand
what we are supposed to do and showing people ~that
we did it. Measuring Up demystifies the sacred and
focuses on the practical .... Measuring Up is the first
book I have seen that recognizes the common sense
basis for performance management."
--G. Edward DeSeve
Former Deputy Director for Management,
U.S. Office of Management and Budget;
Current Partner and National Industry Director,
KPMG Feat Marwick
Measuring Up is a hype-free primer on the ins and outs of perfor-
mance measurement in the public sector. Told through the real
experiences of those on the front lines, Measuring Up is a straight-
forward guide to this management technique--how it works in the
real world and how to make it work for you.
To order,
call CQ Books at
1-800-638-1710
(ISBN 1-56~0z-~o~.-4)
$14.95
Quantity discounts
'available
May 2001
muni bond transactions and that i~orma
tion is available through several source~,
including the Bond Market Association'
site, investinginbonds.com.
The bottom line on price transparen%
according to S&P's Grossman, is this
"We're creeping there."
In addition to all of these changes
issuers are now using a new type of cot.
lateral to access capital. Securitizatior
has become an important muni bond cate.
gory and is enabling issuing govemment~
to turn i.O.U.s and expected payments intc
money in the pipeline. Tax lien bonds,
based on bundled collections of unpaid tax
bills, were one of the first models. Today,
tobacco bonds are the hottest entry. The
biggest tobacco deal to date is South Car-
olina's $935 million tobacco bond, which
came to market this past March and was
secured by the state's $2.4 billion share ot
the national tobacco settlement '
Grant anticipation notes are based on
a similar theory: Bonds are issued with the
promise to repay investors from Payments
scheduled to be collected in years to
come. Massachusetts' grant anticipation{
notes for the Big Dig, for instance,
promised to repay investors from federal
payments that were scheduled for the
next few years.
An even more recent type of bond is a
TIFIA--bonds issued under rules set out
under the Transportation Infrastructure
Finance and Innovation Act. TIFIA sup-
plies credit enhancement to infrastructure
projects that would normally be rated
below investment grade. New York's
Empire Development Fund is looking to
a TIFIA bond to help pay for the redevel-
opment of New York City's Penn Station.
":'. ¢,~ a gap we might blare had d~'~ult-~
~Eng," says Frances W.'Aton.
These innovations and enhancements
are well and good, but they pale in
parison to the prestige that could redound
to the muni market if muni bonds become
the benchmark for fixed-income debt--a
role that's now played by Treasury bills.
As the federal government cuts back on
T-bill issuance, the investment markets
may look to GO bonds with high credit
ratings--North Carolina GO bonds
played that role some 40 years ago.
"There's nothing safer than a triple-A
rated muni bond backed by the full force
o{ a government taxing auth~_B','; ~ys
Firesune. "k's almost as good as the U.S.
Treasury." []
Governing.corn
LEAGUE
OF MINNESOTA
CITIES
2001
AWARDS
PROGRAM
RECEIVED
RPR $ 0 ?_0111
Recognizing Minnesota cities
for building quali communities
What is the LMC Awards Program?
Each year, the League o£ Minnesota Cities Awards Program honors the out-
standing contributions of elected and appointed city officials, and recognizes
city innovation and excellence in service to citizens. The 2001 LMC Awards
Program includes three opportunities for recognition:
[] The C.C. Ludwig Award honors the accomplishments of an outstanding
elected city official
[] The Leademhip Award honors the accomplishments of an outstanding
appointed city official.
[] The City Achievement Awards recognize city'innovation and excellence
in service to citizens in five categories: -'
- Citizen, Community & Youth Development
- Communications
- Cooperation.
- Housing, Economic Development & Community Spaces
- Public Safety
Help the League honor the accomplishments of your city's leaders and services
in building quality communities across ~e sm~e. ~4case consider nominating
an elected of appointed city official or entering your' city for recognition by
May 18, 2001.
Please see inside for details.
,LC _qC
MINNESOTA CITIES
15uilding
Quality
Communities
CITY ACHIEVEMENT AWARDS
The League has a long tradition of promoting the important role of Minnesota cities and the
lengths city officials and leaders will go to improve their communities. The annual City
Achievement Awards spotlight city leaders and their work to enhance the quality of life and
the vitality of our cities.
What is an Achievement Award city?
While each city's accomplishments vary, the underlying themes are the same. Award-winning
cities:
[] Involve citizens and youth in the local government process.
· Improve city communications to better explain city services.
[] Work together to promote effective and efficient local government.
[] Create opportunities for unique projects.
[] Approach challenges with creativity and ingenuity.
[] Strive to do more with less.
Does your city have a program to share?
In 2001, the City Achievement Award categories are: Citizen, Community & Youth Involve-
ment; communications; Cooperation: Housing, Economic Development & Community
Spaces; and Public Safety. A total of two awards may be given in each category; one to a city
under 10,000 population, and one to a city over 10,000 population.
When can we share the success?
City Achievement Award winners are notified prior to the LMC Annual Conference in June.
Each entry is displayed at the LMC Booth and a brochure summarizing all of the entries is
induded in the Annual Conference packet. The League also announces winners in LMC
publications and submits press releases to the winners' communit7 newspapers°
Deadline and details
Entries must be submitted or postmarked by May 18, 2001 to: Erica Norris, LMC, 145
University Avenue West, St. Paul, MN 55103-2044. Each entry should consist of two sets
of materials as detailed in the enclosed l~structions Form.
Who do ! c~ll il: I have questions?
Erica Norris can answer your questions about the City Achievement Awards. -
Contact her at enorris@lmnc, org, (651) 215-4032, or (800) 925-1122.
C.C. LUDWIG & LEADERSHIP AWARD
The League celebrates the commitment and service of outstanding elected city officials through
the C.C. Ludwig Award and outstanding appointed city officials through the Leadership Award.
~fi/hat mak~ them winner~?
These city leaders are chosen for their breadth of vision, statesmanship, and unselfish concern for
the general good. They regularly go above and beyond their job requirements and contribute to
improving city government through national, state, county, city, professional or other public
organizations.
These awards also reward city oflqcials for their work in improving their communities, for the
influence they have had in raising the prestige of local government service, and the number of
years they have served their communities.
Past award winners have demonstrated these qualities in a number of ways, from spearheading a
community effort and obtaining funds to improve safety on a highway; or going the extra mile to
connect citizens and promote their city through numerous public appearances, to creating a
multi-city collaborative model for planning and coordinating the delivery of human services.
How do ! nominate someone?
Nominations are accepted from a council of an LMC member city or any civic organization
concerned with local government and endorsed by the city council.
,,
When can ! share the success?
C.C. Ludwig Award and Leadership Award winners are announced at'the banquet during the
LMC Annual Conference in June. The League also announces each w~nner in LMC publications
and submits press releases to the winners' community newspapers.
Deadline and details
Nomination must be postmarked by May 18, 2001 to: Cathy Dovidio, LMC, 145 University
Avenue West, St. Paul, MN 55103-2044. Please see enclosed Instructions and Nomination Form
for additional requirements and information.
2000 LMC AWARD WINNERS
C.C. Ludwig Award
· Vince Schaefer, Mayor, City of Rockville
(under 10,000 population)
· Calvin "Kell7' Ferber, MaTor, City of Fergus Falls
(over 10,000 population)
Leadership Award
[] Robert Erickson, Administrator, City of Lakeville
(over 10,000 population)
City Achievement Award Winners
Citizen, Community & Youth Category
· City of Rosemount
(over 10,000 population)
· City of AnokamHonorable Mention
(over 10,000 population)
Conununicafions Category ,
· City of Anoka '
(over 10,000 population) ,
· City of Burnsville~Honorable Mention
(over 10,000 population)
Cooperation Category
· City of Brooldyn Center
(over 10,000 population)
Housing, Economic Development
& Community Spacez Category
· City of Brooklyn Park
(over 10,000 popuhtion)
Public SaK-ty Category
· City of Minnetonka
(over 10,000 population)
league of Minnesota Cities
145 University Avenue West, St. Paul, Minnesota 55103-2044
[651) 281-1200 · (800) 925-1122 · Fax: (651) 281-1299 · TDD: (651) 281-1290 · www. lmnc.org
2 0 0:1. L M C A W A R D S P R O G RA M
CITY ACHIEVEMENT AWARD
RULES
:1.. Establishment and purpose. The City Achievement Award shall be made in accordance with the following rules
to a deserving Minnesota city that is a member of the League of Minnesota Cities. The award shall be made at an
appropriate time during the LMC Annual Conference.
1. Eligibili~ for award. The award shall be made to a Minnesota city that has achieved excellence in city
innovation and governance in one or more of the following categories:
- Citizen, Community & Youth Involvement
· Communications
° Cooperation
° Housing, Economic Development & Community Spaces
° Public Safety
To be eligible, the subject of the award nomination must have been initiated and/or implemented between Jan.
2000 and April 2001.
~.. Enl./contents. Please submit two portfolios or two three ring binders that include the following information:
· Completed Entry Form for LMC CityAchievementAward.
o Specific information as detailed in Instructions for 2001 LMC City AchievementAward.
- Supporting materials as described in Instructions for 2001 LMC City J~chievementAward.
ag. 3udging. Judges may include experts from the various awards categories', city and state officials, and previous LMC
City Achievement Award winners. If there are a large number of entries ih a category, a panel of League staff will
conduct a preliminary screening. Judges will Select one award for each population category (over 10,000 and under
10,000) in each award category. If the quality of entries in a category does not meet the judging standards, judges
have the right to withhold an award.
$. Criteria. Evaluation of the award entries will include analysis of the following details:
· Overall quality
° Planning and research
o Meeting stated project objectives
o Adherence to professional standards
o Allocation ofbudget .
° Effective use of personnel and other resources
o Innovation and effectiveness
o Applicability to other cities
Judges will provide written feedback on each entry. The League will return one entry and judges' evaluations
following the LMC Annual Conference.
League of Minnesota Cities
145 University Avenue West
St. Paul, MN 55103-2044
Entry deadline. All entries must be submitted or postmarked by May 18, 2001 to:
Erica Norris
7..l~lotification of winners. Winners will be notified prior to the Annual Conference.
League of Minnesota Cities
Cities promoting excellenee
2 0 0 I L I~1C A W A R D S P RO G RA M
CITY ACHIEVEMENT AWARD
INSTRUCTIONS
All entries must include the following specific information:
a. Category
o Citizen, Community & Youth Involvement
· Communications
· Cooperation
Housing, Economic Development & Community Spaces
- I)ublic Safe~y
b. Description and overview of project, including:
- Strategy (purpose/process)
o Goals and objectives
"Implementation
. Budget
· Results/evaluation/applicability to other cities
c. Summary statement of 100 words or less
All entries may also include supporting materials; i.e., maps, newsletters, brochures, plans, etc.
Each entry should consist of two complete sets of information, submitted in two portfolios or two binders.
Name of city
Population
City/state/zip
Contact l~erson
Plmne number_
/~-mail address
ENTRY FORM FOR 2001 LMC CITY ACHIEVEMENT AWARDS
Please copy, cut, and mail with each entry to:
Erica Norris
League of Minnesota Cities
145 University Avenue West
q~ Pad, ~,:N ~"'
.... .,., x 03-2044
The deadline for entries is May 18, 2001.
Mailed entries must be postmarked no later than the deadline for consideration.
2 0 0 I L M C A W A R D S P R 0 G R'A M
C.C. LUDWIG & LEADERSHIP AWARD
RULES
Establishment and Purpose. The League of Minnesota Cities C.C. Ludwig Award and the League of Minnesota
Cities Leadership Award shall be made in accordance with the following rules to a deserving elected/appointed
Minnesota municipal official of a city or town that is a member of the League of Minnesota Cities. The award shall
be made at an appropriate time during the LMC Annual Conference.
Eligibility for Award. The award shall be made to the elected/appointed official who has, in the opinion of the
judges, the most outstanding record of public service for a city among those nominated for the award. To be
eligible, an official must have been in office during the year preceding the award deadline date (deadline for 2001 is
May 18). In making their determination, the judges shall take the following factors into account:
a. The extent to which breadth of vision, statesmanship, and unselfish concern for the general good have
been characteristic of the nominee's public life. In evaluating this characteristic, importance shall be
attached to the following:
{[1} Service above and beyond that which is reqUired by the nominee's position.
{2}Contributions of the nominee in the interests of improved municipal government through national,
state, county, municipal, professional or other public organizations or agencies.
b.The nature and extent of the improvement in municipal government'or nominee's municipality
attributable to the nominee's service and the lasting character of such 'imprOvement.
.~ ,
c. The respect in which nominee is held by the community and the influence the nominee has had in
raising the prestige of municipal government service.
The length of nominee's municipal service. This factor shall not be considered as important as other
criteria except that service of the nominee should have been long enough to have established a pattern
of continued, unselfish conduct in office.
No award shall be made if, in the judges' opinion, no nominee meets the standards of excellence contemplated by
these rules. The judges may make two awards in one year when, in their opinion, two nominees meet the standards
contemplated by these rules. However, if two awards are made, 'one must be made to ap. official of ~ munidp~iw of
less than 10,000 population.
l~lominations. Nominations may be submitted by the council of a member city or any. civic organization concerned
with local government as long as the organization has the endorsement of the city council.
All nominations must be submitted or postmarked by May 18, 2001. Please refer to nomination form for specific
mailing instructions.
Suitable and timely announcements shall be made in soliciting nominations for the award. Questions should be
directed to Cathy Dovidio at (651) 281-1250 or (800) 925-1122.
League of Minnesota Cities shall choose three or five persons as judges to select the
League of Minnesota Cities C.C. Ludwig Award/Leadership Award wS.n_ner for tlnat
year. Judges shall be outstanding Minnesota citizens or public officials who are not
eligible for the award, except that if five judges are appointed, no more than two may
be members of the Board of Directors of the League of Minnesota Cities.
aL .'hldges. No later than the last day for nominations each year, the president of the
2001 LMC AWARDS PROGRAM
C.C. LUDWIG & LEADERSHIP AWARD
INSTRUCTIONS
Nominations for a League of Minnesota Cities C.C. Ludwig Award/Leadership Award may be made by a city council
or by any civic organization concerned with local government function as long as that civic organization has the endorse-
merit of the city council.
The person nominated must be, or have been during the year, an elected (C.C. Ludwig Award)/appointed (Leadership
Award) Minnesota municipal official, but not necessarily from the city making the nomination.
The size ofthe city will not be a factor; the judges will evaluate individuals by their contributions as compared with the
general nature of the problems and challenges facing the city.
Please be specific in answering questions. Providing specific examples and situations will be of greater significance than
general statements in evaluating the nominees. The nomination form may be supported by other materials showing the
nominees's public service and dedication. This material may include, but is not limited to, newspaper articles, pictures,
editorials highlighting accomplishments and/or municipal service; letters of appreciation from citizens or other public
officials; and letters of recommendation from public officials or community leaders. While this type of supporting
material is not required, it is highly encouraged.
Those making the nomination will want to keep in mind the following factors the judges will take into account in
determining the winners of the League of Minnesota Cities C.C. Ludwig Av~grd/Leadership Award.
The extent of which breadth of vision, statesmanship, and unselfish concd'rn for the general good have been charac-
zeristic of the nominee's public life. In evaluating this characteristic, importance shall be attached to the following:
~, Service above and beyond that which is required by the nominee's position.
b. Nominee's contributions to improve municipal government, through national, state, county, municipal,
professional, or other public organizations or agencies.
The nature and extent of the improvement in municipal government or nominee's municipality attributable to the
nominee's municipal service and the lasting character of such improvement.
The respect in which the nominee is held by their community, and the inf!..aence the nominee has had in raising the
prestige of municipal government service.
Thelength of nominee's municipal service. This factor shall not be considered as important as other criteria except
that service of the nominee should have been long enough to have established a pattern of continued, unselfish
conduct in office.
League of Minnexota Citle~
Cities promo~ng excellence
2001 LMC AWARDS PROGRAM
C.C. LUDWIG & LEADERSHIP AWARD
NOMINATION FORM
It is very important to be as specific as possible when completing this nomination form. If additional space is required,
please attach additional sheets. Deadline for completing this form is May 18, 2001.
The nomination form may be supported by any other material bearing facts which the judges are required to take into
account when selecting the League of Minnesota Cities C.C. Ludwig & Leadership Award recipient. This material may
include, but is not limited to, newspaper articles, pictures, editorials highlighting accomplishments and/or municipal
service; letters of appreciation from citizens or other officials; and letters of recommendation from public officials or
community leaders.
Person being nominated:
City
Title
Nomination is submitted by:
Name
City (or Civic Organization)
Address
Office Phone ( )
Home Phone ( )
How long has the nominee held their current municipal position? From
(Month, year)
tO
(Month, year)
Please list any other positions/public offices, and the years served, that the nominee has held (e.g. Councilmember,
1990-1994).
LUDWIG & LEADERSHIP AWARD -- NOMINATION FORM J
Please list any positions/offices held, and the years served, in any city, county, regional, state, or national municipal
organization (e.g., President, Managers Association, 1998-99).
Please li~ any other public service, such as a member of a citizen's committee; involvement with committees or
task forces involving state, county, or municipal government; involvement with the League of Minnesota Cities
and/or the National League of Cities, etc.
5. Please highlight the nature and extent of the improvement in the nominee's municipality or surrounding area
that is attributable to the nominee's municipal service.
6. Please highlight contributions made by the nominee to improve municipal government.
lC.C. LUDWIG & LEADERSHIP AWARD -- NOMINATION FORM
7- Has the nominee received other awards or citations for municipal accomplishments? If so, please provide the name
of the award, the reason the award was presented, and when the award was presented.
'8. Highlight any other evidence that the nominee is held in high public esteem.
Other facts influencing the nominee's selection for the League of Minnesbta Cities C.C. Ludwig Award/
Imadership Award.
If you have any questions concerning the nomination form or the League of Minnesota Cities Leadership Award process,
please contact Cathy Dovidio at (651) 281-1250 or (800) 925-1122.
Mail nominations to:
Cathy Dovidio
League of Minnesota Cities
145 University Avenue West
St. Patti, MN 55103-2044
The deadline for nominations is May 18, 2001. Mailed nominations must be postmarked no later than the
deadline ~r~- for consideration.
->
FRI_)AYFAX
A weekly legislative update from the League of Minnesota Cities
Number 17
April 27, 2001
PERA legislation
advances in Senate,
stalls in House
Contact your House member
The recommendations of the
Legislation Commission on Pensions
& P,etirement to address the PERA
coordinated plan deficiency have
stalled in the House. Legislative
inaction could increase the PEP, A
coordinated plan's shortfall by an
additional $70 million each year.
League discussions with key mem-
bers of the House indicate that the
rank and file House membership
currently does not believe the pension
issue is a high priority. Although a
delayed legislative response may
prevent immediate pressure on
property taxes to fund the necessary
contribution increases, the funding
deficiency will not magically disap-
pear. In fact, the ultimate cost will
only continue to rise.
Action Needed
Please contact your House member:
o Urge them to address the PERA
coordinated plan deficiency this
year.
o Also, urge them to approve an
annual state contribution to the
plan to reduce pressure or~
local property taxes. In the past,
the state has contributed state
resources to other plans to assist
with those funding deficiencies.
Given that the state sets benefit
levels and contribution rates, we
believe state assistance to the
PERA shortfall is justified.
On Wednesday, the Senate State
Government Committee merged the
two major pension bills and approved
the bill including provisions that will
begin to address the PERA coordi-
nated plan's funding deficiency. Under
the Senate bill, employer contributions
would increase by 0.35 percent
beginning on Jan. 1,2002, and an
additional 0.35 percent on Jan. 1,
2003. Employee contributions would
be increased by equivalent amounts.
The Senate bill also appropriates a
mere $2 million in state resources
to reduce the needed employer/
employee contribution increases
and would make modifications to
the plan that will, over time, help
address the fund's deficiency. These
plan modifications include the
implementation of a partial service
credit and a delay in the amortiza-
tion date until 2031.
Although Education Minnesota, the
state's teacher's union, has opposed
a provision that would transfer school
PERA employees to their retirement
fund, the Senate bill still contain~
_
the transfer language. A Pension
Commission recommendation that
would have transferred the funding
of excess mortality costs from the
active fund to the post fund was
eliminated from the final Senate bill.
Tax committees delay
omnibus bills
Ti~e House Tax Comm~ee has
delayed the release of its omnibbs
tax bill until Monday. The delay was
apparently forced by disagreement
among House Republicans about
the content of the bill, including the
magnitude of income tax cuts and
property tax reform.
The bill will apparently contain many
of the property tax reforms pro-
posed by the governor, including
additional property tax class rate
compression, a state takeover of the
general education propertytax levy,
and a new state-imposed property
tax that will be applied to businesses
and possibly cabins. We believe it is
likely that the House will use city
HACA to pay for the state takeover
of the general education levy, but we
believe it is unlikely cities will be
granted a sales tax exemption for
their purchases·
The bill will likely contain a reverse
referendum provision for counties
and cities over 2,500 population.
The reverse referendum would
require that a city hold an election if
a number of citizens equal to 5 per-
cent that voted in the last general
election sign a petition challenging
a property tax levy increase· If the
voters do not support the levy
increase, the city's levy would be
reduced to the previous year's
amount.
On Monday morning, the' committee:
chair will unveil the bill and the
members will walk through the initial
draft. On Tuesday, the committee
will take public testimony on the bill·
On Wednesday, the committee will
mark up the bill.
The Senate Tax Committee still has
not unveiled the specifics of their
finalize their bili in the near future.
Currently, the Senate may be
considering changes to the LGA
formula and appropriation, additional
property class rate compression,
and at least a partial state takeover
of general education property taxes.
The Senate bill will not likely contain
law limits, nor will it contain a
reverse referendum. The sales tax
exemption for local government
purchases has not been ruled out,
but the bill might only contain an
~For more information on city legislative issues, contact any member of the League of 3/Iinnesota Cin'es Intergovernmental Relations team,
(651) 281-1200 or (800) 925-]122
t%pr 27 Z001 1Z:0Z:ZS Via Fax
->
61Z 937 5739 adainistrator
Pase 00Z 0f 00Z
.-RIDAY.'-AX
exemption for certain purchases or
a reduction in the sales tax rate
applied to city purchases.
Redevelopment Account
lacks adequate funding
Early indications of legislative support
for state "funding for redevelopment
activities now appears to be in
question. Early in the session, Rep.
Bob Gunther (R-Fairmont) and
Sen. Randy Kelly (DFL-St. Paul)
introduced legislation that would
have appropriated $15 million for
'[he Department of Trade and
Economic Development's (DTED)
Red eveiopm e nt Acco u nt. U nfo rtu-
nately, funding anywhere near this
level has not been included in the
omnibus bills.
The House Omnibus Jobs & Eco-
nomic Development Finance bill
does not contain an appropriation
for the program, while the Senate
has provided only ,$1.5 million.
Efforts are underway to obtain
funding through state bonding
proceeds, but an appropriation is
still critical.
Please contact your legislators and
share your concerns with the
apparent lack of adequate funding
for DTED's Redevelopment Account.
House approves keg
registration
On Monday, the House approved on
a 114-20 vote a bill introduced by
Rep. Steve Dehler's (R-St, Joseph)
that would enable beer kegs to
be traced back to their original
purchaser. While similar legislation
has been introduced in the past, this
is the first time it has made it all the
way to the floor. Much of this success
is attributable to support from several
liquor industry trade groups. Others
supporting the bill included the'
League of Minnesota Cities, Mol~hers
Against Drunk Driving, and organi-
zations representing youth concerned
with underage drinking.
The Senate companion bill never
made its way through the channels
in that body, but the omnibus liquor
bill still awaits floor action and is a
possible vehicle for a keg registra-
tion amendment.
Transportation update
House and Senate finance and tax
committees reviewed and passed
their respective omnibus transporta-
tion bills this week, SF 2340
(Johnson, D., DFL-Willmar) and
HF 2189 (Molnau, R-Chaska).
The Senate bill is expected to be
discussed on the floor Friday. The
House will most likely take up their
version of the transportation omni-
bus bill on Tuesday. Aisc next week,
each body will appoint five members
for the conference committee, which
will likely start at the end of the week.
See next week's Bulletin for additional
information, or contact Jennifer
O'Rourke at (651) 281-1261 or
jorourke@lmnc.org.
A conference geared ex~'~' to the needs of lflinnesota city leaders!
League of Minnesota Cities
l
Annual Conference
LMC's 88'h Annual Conference
June 19-22,2001
Duluth, Minnesota
c h a I I:::e.n..g,e.
Attend LMC's premier conference event of the year and renew
your ideas, ener~, and commitment to your city's leadership,
F e~isr, ravior~ information w~.? m~_i_led r_c, yottr ci~ clerk---check
the !',.4arcki.4.pn.,'. or M~y iss=es o£Minnesora C/'rie~ rnaDzine for
more details, or reg:.,,'ter online fight now at www. lmne. ot'g.
Mark your calendar and we'll See you in Duluth in Junel
Conference Highlights:
· Outstanding speaker~
- Camille Catex Barnett, Ph.D.
widely regarded as one of
America'~ mos~ talem~d ci~y
mana£er$
- Rod Raymond
Duluth triathlete and Olympian
· LMC'~ Web For Citie~
the elected officiak' introduction
· Topics to suit every city
· Door Prim every city can
really use
· LMC BayFront Blues and
Cruise
· City Night at the Great Lakes
Aquarium
REGISTER ONLINE ANYTIME: WWW. LMNC.ORG
AMM FAX
April 23-27, 2001 (2 pages)
I
I
Association of
Metropolitan
Hunicipalitie
Budget bills move toward conference
committee
Omnibus Bills of Note:
The major budget bills have
been or will be on the floor
of both the House and
Senate by Tuesday. The Housing
and Economic Development bill
has passed the House and will
be on the Senate floor on Mon-
day. The Transportation bill is
being debated on the Senate
floor today. The tax bills have not
been introduced but the House
Tax Committee has scheduled a
Monday meeting to begin discus-
sion on the proposal. The Senate
Tax Committee will also begin
marking-up its bill next week.
House Omnibus Transporta-
tion Bill
HF2189 (Rep. Molnau) pro-
vides very little new transporta-
_AMd/[ N.e~,s Fax is fared to all AMM city
managers and administrators, legislative
contacts and Board members. Please share
lltls fax with ),our ~0~oI~, counailm~mber3'
and staff to keep them abrea~t of
rant metro ~y issuea
145 tZniver~ity Avenue glZe~t
S~ Paut, MN
Phon.-' (651) 215-4000
Fax: (651) 281-1299
tion rnoney. It does contain two
constitutional amendments, one
to transfer 60% of MVST (auto
sale.~ tax) to HUTDF (Highway
distribution fund) and One to
allow state general fund bond
proceeds to be used for trunk
highways. The bill provides a;
very modest Metro transit operat-
ing increase but eliminates $19
million from last years. $44 million
exclusive bus transitwaY appro-
priation. Itrequires Metro Council
to create LRT special service
districts to include C/! property
within one-half mile of an LRT
line except
Amedca to
pay 1,'"o r
LRT opera- ..
tional cost
not recovered by fares. Any rail
funding by MNDOT or metro
council is further restricted unless
specifically legislatively autho-
rized. Also MNDOT, Metro Coun-
cil nor TAB can fail to approve a
project or withhold funds based
o:, ~iiure of iocai unit to zo_r~ or
impose housing densities re-
quested by them. Finally the bill
contains ability for cities to
create 'quiet zones' around
railroad tracks, auto registration
fee increase from $3.50 to
$4.50, 'choose life' license
plates, a sane lane study, and
TH62 crosstown de[ay for one
year.
Senate Omnibus Transporta-
tion Bill
SF2340 (Sen. Dean Johnson)
provides about $300 million
more in general fund appropria-
tion for Transportation than the
governor or
' ~ i~.ouse, most
Tax ills be marked! of tfor
up next week highways.
,Metro transit
is increased
$60 million over the governors
recommendation for a total of
$196.2 million, A local road
improvement account is created
and funded $18 million for high-
way corridor, $18 million for local
road development $8 million for
small cities, $2 miiiion for towns
and $4 million for noise wall.
.,
continued next page...
..,continued from previous page
A Metropolitan Improvement
Board is created if the metro
area voters pass a haif~cent
sales tax increase to be used for
metro transit capital and metro
major highway projects. The bill
also provides local bridge fund-
ing, a sane lane study, and auto
license registration fee increase
from $3.50 to $4.50. A constitu-
tional amendment to transfer
32% of MVET to HUTDF and
18% MVST to transit operating is
provided. Finally, a provision is
included to allow cities to use
cameras for red light enforce-
men1: commonly referred to as
'photo cop'. Proceeds greater
than actual cost must be applied
to a crosswalk safety program.
Originally included was a three
cent gas tax increase and gas
tax indexing. However, these
were removed in Tax Committee
for possible inclusion in the
Senate Tax Bill.
Economic Development
Omnibus Bills
The House and Senate Eco-
nomic Development bills differ in
funding levels and housing policy.
Local Government Bills: Update
Pensions
SF451 includes the Public
Employee Retirement Asso-
ciation (PERA) short-fall provi-
sions, cap bill has passed the
Senate and is on the House
floor. The House bill should be
heard on the floor next week.
Streamlining Development
The bill provides for a simple
majority for a rezoning of
property to residential property
and changes to the zoning
statutes regarding afforaaDle
housing, The House compan-
ion is in the Local and Metro-
politan Government Commit-
tee. it is probable that the
language of SF 1619 will be .
included in another bill.
Metropolitan Council Legis.
lative Commission
-l-he House bill will be in the
House tax bill. The Senate
companion, which has been
amended to be an elected
Metropolitan Council, has
been referred to the Tax
Committee.
The House bill generally adopts
the Governor's recommenda-
tions for the Minnesota Housing
Finance Agency (MHFA). There-
fore, the MHFA program consoli-
dation is included in the House
bill and the total funding approxi-
mates $100.0 million. The Sen-
ate bill also includes the program
consolidation but appropriates
$75.0 million in one time funding.
The bulk of the funds will be used
for rental housing and the hous-
ing trust fund. Approximately $6.7
million of the one time funding
has been appropriated for the
inclusionary housing program.
The inclusionary housing pro-
gram requirements, however,
have changed from preference
for lower income units to a re-
quirement for lower income units.
The Senate bill also provides for
a developer initiated affordable
housing program. If a developer
proposes to have twenty percent
of the development's housing
unitA affordable to households
whose incomes are at or below
eighty percent of the area me-
dian income, the city must offer a
density bonus of at least thirty-
percent and one other regulatory
relief measure. The policy
changes are not in the House bill.
Neither bill includes mandatory
inclusionary housing..
League y Minnesota Cities
Cities promotSng excellence
145 University Avenue West, St. Patti, MN 55103-2044
Phone: (651) 281-1200 · (800) 925-1122
Fax: (651) 281-1299 · TDD (651) 281-1290
Web Site: http://www.hnnc.org
TO:
City Clerks, Administrators and Managers
FROM: Jim Miller, Executive Director
DATE: April 24, 2001
SUBJECT: Board of Directors Vacancies
At the Annual Meeting in Duluth on June 21 st, the membership will elect four new Board
members. These officials will replace: St. Paul Councilmember Jerry Blakey, Fosston Clerk-
Administrator Chuck Lucken and Rochester Councilmember Marcia Marcoux, all of whose
three-year terms expire. Also, the term of Austin Mayor Bonnie Rietz who was elected to fill
the remaining one-year term of retiring Fergus Falls City Administrator Jim Nitchals will
expire. By precedent, she is eligible to be elected to her own three-year term.
As you will see from the accompanying Nominating Committee guidelines, the Board has
"commitments" to the City of St. Paul (Jerry Blakey's position) and the Coalition of Greater
Minnesota Cities (Bonnie Rietz's position). If these two entities recommend qualified
individuals, it is likely that people meeting those specific criteria would be nominated to fill
these two vacancies, although that ultimately is a membership decision. Nominations to fill
the remaining two vacancies will probably be based on other, more general guidelines, such as
gender and geographic balance.
The League's strength has always been rooted in the Board's outstanding leadership.
Continuing that tradition is critical as the League looks to meeting the ever-changing
challenges facing our cities. If you or someone on your Council has an interest in serving on
the Board, please apply now. Terms are for three years and service involves attendance at
monthly Board meetings and two, two-day retreats. The League pays for most expenses,
including mileage.
A roster of current Board members and the application form are enclosed. I would be most
happy to answer any questions and can be reached at 651-281-1205.
Thank you for your help in this very important matter.
RECEIVED
APR 2 6 2001
CITY OF CHANHASSEN
Application for
2001-02 LMC Board of Directors or
2001-02 LMC Officer Positions
All candidates for LMC Board of Directors or LMC Officers (President, First Vice President,
Second Vice President) positions are asked to submit the following items by June 1,2001:
1)
~)
3)
4)
A cover letter stating your intent to run for an LMC Board or Officer position,
addressing the following points:
· Why you are interested in serving in this position;
· What specific attributes or experiences you would contribute to the Board or
Executive Co'mmittee (made up of the LMC Officers); and
· Whether you will be able to make the time commitment necessary to fulfill your Board
or Officer duties (monthly Board meetings, as well as two, two-day retreats).
A completed "Nomination Form for LMC Board of Directors/LMC Officers
Positions" (attached).
Optionah A resume that provides an over¥iew of your municipal/professional
experience and accomplishments.
Oi~tiottal: Letters of reference.
Please return these materials by June 1, 2001 to:
Jim Miller
League of Minnesota Cities
145 University Avenue West
St. Paul, MN 55103-2044
Nomination Form- LMC Board of Directors
PLEASE COMPLETE THE NOMINATION FORM PROVIDING AS MANY DETAILS AS
POSSIBLE. You are encouraged to attach other materials that may be useful to the Nominating
Committee during its deliberations, such as your resume and a letter stating your reasons for
seeking a League office.
Name: Title:
Organization:
Address: City/Zip:
Home Phone: ( ) Work Phone: ( ) E-mail:
1.
o
Length of service in your present position: years
Other municipal or related position(s) you have held and the number of years:
3.
Previous League experience (e.g. committees, conferences, affiliate organizations, etc.)
4~
5.
Are you applying for (Please select one)
President l'~t Vice President _2na Vice President Director _
If you are applying for Director, can you complete a full three-year term as a Board
member?
PLEASE RETURN THIS FORM BY JUNE 1, 2001 TO:
Jim Miller
League of Minnesota Cities
145 University Avenue West
St. Paul, MN 55103-2044
Board Nominating Process and Selection Criteria
Board nomination process.
A. Nominating Committee Appointment and Orientation Process.
o
Beginning in April of every year the League will solicit individuals
interested in serving on the nominating committee. Notice of
solicitation of interest shall be placed in Cities Bulletin at least
twice. When necessary in order to get a sufficient number on the
committee, or to achieve appropriate balance, the Executive
Director may directly solicit city officials to be on the committee.
2,
On or before May 1 of each year the League President shall
appoint a nominating committee of 8 to 12 city officials, consisting
of both elected and appointed officials with appropriate attention
paid to issues such as gender, city size, and geography. The
immediate past president of the Board of Directors will sit as an
ex-officio member of the Committee and shall be its Chair.
At least one week prior to the annual conference, the Executive
Director shall hold an orientation meeting of the nominating
committee in order to explain the nominating committee process
and to explain the Board selection criteria.
B. Recruitment and Nomination Process
.
Beginning in April of each year the League will solicit Minnesota
city officials interested in serving on the League of Minnesota
Cities Board of Directors. Notice of Board openings and
solicitation of interest shall be placed in the April Minnesota Cities
Magazine and shall run at least twice in the Cities Bulletin. In
addition, prior to May 1 of each year, the Executive Director shall
mail to the chief administrative offic~:r of each member city a letter
soliciting Board candidates and explaining the process and
selection criteria.
.
All candidates who wish to be considered by the nominating
committee, must submit an appropriate written expression of
interest by June 1. Additional material in support of particular
candidates may be submitted up to the date of the nominating
committee meeting.
.
Once the list of Board candidates has been compiled, the Executive
Director in co~u_n~ction with the nominating cormmittee chair shall
of !n~,,~ ~ .,~'~. ll~qes.
de'~'elop an a~e, nda and a scheo_.ule ' *,--,,;~ x,
II.
o
After considering the presentations of the various candidates, the
nominating committee shall make its recommendations based on
the requirements of the League Constitution, Board Commitments,
and the Guidelines set out herein.
o
In order to avoid the appearance of a conflict of interest,
nominating committee members should refrain from participating
in discussion involving candidates from cities that they represent.
o
Notice of the nominating committee's recommendations shall be
posted at a predetermined time in at least two locations at the
annual conference site. The location of the postings shall be
included in the material provided to conference attendees and shall
be directly communicated to prospective candidates.
o
The Chair of the nominating committee shall be responsible for
presenting the report of the nominating committee at the Annual
business meeting.
Board selection requirements and guidelines.
A. Constitutional Requirements.
The League Constitution requires that the BOard of Directors shall
consist of an "elected president, an elected first vice president, an
elected second vice president, the immediate past president ex-
officio, the president of the AssOciation of Metropolitan
Municipalities ex-officio, the president or vice president of the
National League of Cities ifa Minnesota City official ex-officio,
and twelve directors.
o
"To be eligible to be elected to serve, or to continue to serve as an
elective officer of the League, a person shall be an elected official
[or], an appointed official... ," who is not an independent
contractor.
B. Board Commitments
.
The Board has made a commitment that representatives of the
following organizations and entities will have a seat on the Board
Co
of Directors, if they desire and if the nominating committee
believes that a qualified individual has been recommended by the
particular organization or entity:
ao
Coalition of Greater Minnesota Cities
Minnesota Association of Small Cities
City of Minneapolis
City of St. Paul
5~
Non-binding Guidelines for the Nominating Committee to Consider
.
3,
o
1. Geography
b.
Co
The nominating committee will attempt to respect an
appropriate balance of representation between Greater
Minnesota and the Metropolitan area.
In this same regard, the Committee will strive to maintain a
similar balance when making recommendations for the
President, first vice-president, and second vice-president
positions.
No particular importance will be placed on where within
Greater Minnesota or the Metropolitan area a given
candidate comes from.
Population.
a. Board members should come from cities of differing size.
Gender
Every effort should be made to ensure gender equity on the
Board.
Position (Appointed v. Elected)
a. A majority of the Board should be elected city officials.
a~
b.
Where there are other qualified candidates, Board members
should generally serve only one term.
An individual appointed to fill an unexpired Board term
will not be prejudiced by this guideline so long as the
unexpired term was for one year or less.
LMC Board of Directors and Officers
June 2000- June 2001
President
First Vice
President
Second Vice
President
Directors
Gary Doty, Mayor, Duluth
Term expires: June, 2001
Lester Heitke, Mayor, Willmar
Term expires: June, 2001
Joan Campbell, Councilmember, Minneapolis
Term expires: June, 2001
Jerry Blakey, Councilmember, St. Paul
Elected by Membership: June, 1998
Term expires: June, 2001
Marcia Marcoux, Councilmember, Rochester
Elected by Membership: June, 1998
Tem~ expires: June, 2001
Chuck Lucken, Clerk-Administrator, Fosston
Elected by Membership: June, 1998
Term expires: June, 2001
Bonnie Rietz, Mayor, Austin
Elected by Membership: June 2000 to complete unexpired term of Jim Nitchals
Term expires: June, 2001
(Coalition of Greater Minnesota Cities representative)
Ronald Jabs, Mayor, Jordan
Elected by Membership: June, 1999
Term expires: June, 2002
Judy Johnson, Councilmember, Plymouth
Elected by Membership: June, 1999
Term expires: June, 2002
Mark Voxland, Councilmember, Moorhead
Elected by Membership: June, 1999
Term expires: June, 2002
Joel Young, Clerk, Chatfield
Appointed by MAOSC to fill unexpired term of Gail Lippert: January, 1999
Term expired: June, 1999
Elected by Membership: June, 1999
Term expires: June, 2002
(Minnesota Association of Small Cities representative)
Marvin Johnson, Mayor
Elected by Membership: June, 2000
Term expires: June, 2003
Don Levens, Administrator, Cokato
Elected by Membership: June, 2000
Term expires: June, 2003
DeWayne Mareck, Councilmember, St. Cloud
Elected by Membership: June, 2000
Term expires: June, 2003
Michael McCauley, City Manager, Brooklyn Center
Elected by Membership: June, 2000
Term expires: June, 2003
Ex-officio seat
Past President Del (Delvin) Haag, Councilmember, Buffalo
Elected by Membership: June, 1998
Term expired: June, 1999
Karen Anderson, NLC 1 ~t Vice President
Elected by NLC: December, 1999
Terry Schneider, AMM President
Elected by AMM: May, 2000
Office of County Sheriff
Carver County Government Center
Justice Center
600 East Fourth Street
~ Chaska, Minnesota 55318-2190
CARVER
Y OUNTY
April 25, 2001
Ms. Carol Egyhazi
6720 Powers Blvd.
Chanhassen, MN 55317
Bud Olson, sheriff
Emergency: 9 ! 1
SheriffAdmin: (612) 361-1212
Admin. Fax: (612) 361-1229
Dispatch: (612) 361-1231
(Non-Emergency)
Dear Ms. Egyhazi,
This letter is a follow up to our conversation regarding your traffic concerns on Carver County
Highway 17 (Powers Blvd), between Lake Lucy Road and Santa Vera Drive.
You expressed two main concerns: the 50 mph speed limit is too fast, and there are no marked
crosswalks in the area. I must qualify my comments by stating I am not a roadway engineer and
do not know all the factors that go into setting speed limits, or installing marked crosswalks.
As an officer concerned with traffic safety I believe your reasoning has merit. While I can only
comment as to my own opinion, I do believe a review by road officials of the speed limit, road
configuration, and crosswalks would be valuable, given the following:
Residential and commercial development in the area has increased year by year.
Increased development has certainly brought a continual increase in traffic volume.
· There are several cross streets and driveways in the area with many vehicles turning
onto or off' the highway. This causes further traffic congestion and safety concerns.
· The roadway is relatively narrow with a heavily used walking/bike trail within a few
feet of the roadway. In fact, the trail abuts the roadway south of Saddlebrook Curve.
· There are no marked crosswalks in the'area, but there is a moderate to high number of
pedestrians crossing at Lake Lucy Road, and perhaps Kerber Blvd.
· It could also be noted that Co. 17, between State Highway 5 and Co. 18, is a 45 mph
zone that has four lanes, right and left turn lanes, curbing, and marked crosswalks.
You mentioned that in your contact with the County Highway Department you were told
crosswalks would be the jurisdiction of the City. I've learned ti'om Chanhassen City Engineer
Teresa Burgess that the City often works in conjunction with the County regarding crosswalks.
Therefore, you may wish to consult with the City Engineering Department on that issue.
Sincerely,
Sgt. David Potts
Patrol Division
Chanhassen Station
Affirmative Action/Equal Opportunity Employer
Mort
Mon
Mon
Tues
Tues
Tues
Tues
Weds
Weds
Thurs
Thurs
Fri
Fri
Fri
Sun
Sun
Apr 16
Apr 16
Apr 16
Apr 17
Apr 17
Apr 17
Apr 17
Apr 18
Apr 18
Apr 19
Apr 19
Apr 20
Apr 20
Apr 20
Apr 22
Apr 22
4:16 AM
11:19 AM
5:08 PM
8:L13 AM
3:04 PM
5:34 PM
7:56 PM
3:41 PM
4:51 PM
4:08 AM
10:12 AM
9:16 AM
12:18 PM
5:21 PM
1:50 PM
2:49 PM
CHANHASSEN FIRE DEPARTMENT
FIRE/RESCUE
WEEK OF APRIL 16, - APRIL 22, 2001
Nicholas Way
Arboretum Boulevard
Hunter Drive
Highway 5 & Galpin Blvd
Century Boulevard
Medical - difficulty breathing
Medical - difficulty breathing
Broken water main
Medical - unknown problem
Car accident with injuries
Highway 7 & Washta Bay Rd Car accident - no injuries, cancelled
Carver Fire Department Mutual aid - sandbagging
Audubon & Highway 5 Car accident with injuries
Market Boulevard
Great Plains Boulevard
Lake Drive West
Lone Cedar & Highway 5
West 78th Street
Dell Road & Lake Drive East
Powers Boulevard & Utica Ln
Great Plains Boulevard
Medical - trouble breathing
Car accident - no injuries, cancelled
Medical - chest pains
Car accident with injuries
Medical - person feeling faint
Car accident - no injuries, cancelled
Car accident with injuries
Fire in the basement
April 17, 2001
CH~J~J~E~ of
Dear fellow Chanhassen Chamber member:
At the board of director retreat this past December we discussed a book entitled
"Who Moved the Cheese?" The book discussed the importance of accepting change.
Little did we know at the time the amount of change the Chanhassen Chamber would
experience in 2001. I am writing this letter to personally inform you of the major
changes that are taking place with the Chanhassen Chamber.
First of all, it is with sincere regret the board at its April meeting accepted the resignation
of Pat Papenfuss as the Chamber's Executive Secretary. In addition, Chanhassen
Secretarial Service terminated its contract with the Chamber. Both are effective May 1,
2001. Pat has thought about making a change for some time. She is looking forward to
taking some time off from the Chamber. Pat and her husband are planning a seven-week
trip to Alaska starting on May 15, 2001. She is also looking into some other business
opportunities for Chanhassen Secretarial Service. Pat will probably return to an active
role with the Chamber on a volunteer basis sometime later this year.
The Chamber will be formally recognizing Pat for her many years of service and
contribution to the Chamber at a special social event scheduled for May 2, 2001. Please
mark your calendar. An invitation with the details will be sent to you within the next few
days.
On a more positive note, Linda Walton has accepted the new part time paid position of
Chamber Executive Director. We are excited to have her on board. Her first official day
was April 15, 2001.
In addition, the Chamber will be relocating its office. Since the current office is
connected with Chanhassen Secretarial Service, we quickly had to find a new location.
The City of Chanhassen has allowed us to relocate the Chamber office to the old City
Hall building located at 391 West 78th Street. ~t is the small whke turn of the century
building located next to Colonial Church. We hope to be n-,oved in by the first of May.
The Chamber's phone number will remain (952) 934-3903. -
Please stop by and visit our new location as well as welcome Linda to her new position.
The Chanhassen Chamber will continue to serve its members. If you have any questions
or concerns regarding the Chamber, don't hesitate to give us a call.
"David M. Krause
Chairperson
RECEIVED
APR 2001
CiTY OF CHANHASSEN
fl(}() V,*e.,l ?Sth Street · tl.O. B,~x 976 · Clmnha,:c:~. XJN 557,!? · 952-934-?()3 · fax 9.52-93-~-3561
Plpr 20 2891 15'15:18 Via Fax -> 617_ 937
, 5799 ~d~inistr~or
FR DAYFAx
~ ~~ ~ A weekly legislative update from the Leapue of Minnesota Cities
Page 801 Of 802
Number 16
April 20, 2001
Tax committee bills
addressed next week
The House and Senate tax commit-
tees will be marking up their respec-
tive omnibus tax bills next week.
The Senate unveiled a skeleton bill
at a meeting this past Wednesday.
The bill reveals little about the
direction of the Senate. In fact, the
property tax and local adds articles
only contain blanks for new property
class rates and new LGA formula
factors. The sales tax article, which
could contain an exemption for local
government purchases or a base
extension to services or clothing, is
entirely blank.
The full Senate Tax Committee has
a hearing scheduled for this after-
noon and Saturday morning.
Today's agenda lists the omnibus
tax bill as the only legislation up for
consideration.
The House Tax Committee will
unveil their bill next Wednesday and
take public testimony on Thursday.
At this time, we have only a few
ideas of what the House bill might
contain. Given the governor's
property tax reform proposal, it is
highly likely that the House will
include another phase of class rate
compression in their bill. The full
state takeover of general education
costs is a less certain provision.
At a Thursday evening hearing on an
LGA reform proposal by Rep. Andy
Dawkins, Tax Chair Ron Abrams
asked why the bill was being offered
when much of the new census data
that could be used to modify the
formula is not yet available. This
could mean the House will not
attempt to rework LGA this year.
More next week.
TIF proposals considered
as omnibus tax bills begin
to take shape
A draft version of the Senate omnibus
tax bill described as being a
"skeleton" at this point, meaning that
many pieces are missing or will be
further refined, was distributed
Wednesday evening. The TIF article
contains most of the provisions of
SF 2198, Sen. Rest's TIF technical
bill, the portion of SF 1798 that was
amended onto the bill last week
removing TIF enforcement authority
from the OSA, and a number of
special laws. At this point, the Senate
omnibus bill does not contain any
language that would limit activities in
pre-1990 districts.
The House held "TIF Day" in the
Property Tax Division on Thursday
morning. During the hearing, a '
number of TIF bills were amended.
Probably the most notable provisions
were amended onto HF 187, Rep.
Abrams' pre-1990 bill, by two author's
amendments. One of these amend-
ments specified that districts created
between 1979 (rather than 1982)
and 1990 would be affected, and
carved out a series of exemptions.
The second amendment creates a
more restrictive biight test for
redevelopment districts, and deletes
existing language that makes the
creation of a district conclusive as to
the underlying findings and necessity
for the district.
HF 2444, the TIF consultant registra-
tion bill introduced by Rep. McEIroy,
was amended to prohibit contingency
fee arrangements. Rep. Abrams'
TIF technical bill, HF 2447, was
amended with several modifications
that appear to be largely technical in
nature. Rep. Lenczewski's pre-1990
bill, HF 1505, was heard but was not
amended.
We expect the House omnibus tax
bill to be unveiled next Wednesday.
Funding bill passes out
of Senate Transportation
Budget Committee
The $535 million Senate transporta-
tion funding bill passed out of the
committee on Thursday night with
provisions, including a 3 cent per
gallon gasoline tax increase, and a
50 percent MVET dedication consti- .
tutional amendment. Under the
proposed constitutional amendment,
highways would receive 32 percent !
of the transferred money, and transit
would receive the remaining 18 per-
cent. The appropriations for local
roads include: $216 million from the
municipal state aid fund for distribu-
tion to cities, and $1 million for
municipal turnbacks.
Next stop for the bill is the Tax
Committee, where is it very likely
amendments will be offered for a
100 percent MVET dedication, and
a potentially larger gas tax increase.
Other stops for this bill next week,
include zne Finance Committee and
the Rules Committee.
The House transportation package
is expected to be available Monday
and passed out of committee on
Tuesday in the HOuse Transporta-
tion Finance Committee in Room 5
of the State Office Building.
For more information on city legislative issues, contact any member of the League of Minnesota Cities Intergovernmental Relations team.
(65]) 2S]-]200 or (800) 925-]]22
flpr 28 2001 15:16:1Z Via Fax
'-RIDA Y.'-AX
A~mz. 20, 2001 -- P~E 2
-> 61Z 937 5739 fl&ministrator Page 002 0£ 00Z
City Officials needed to serve on LMC Nominating Committee
The Nominating Committee plays an important role in selecting the League Board of Directors. The commit-
tee convenes on Wednesday, June 20 at the Annual Conference in Duluth to interview candidates for Board
and officer positions. The Committee's recommendations are presented to member cities at the LMC
business meeting.
The Nominating Committee is made up of 8 to 12 city officials, consisting of both elected and appointed
officials with attention to issues such as gender, city size, and geography.
City officials interested in serving should contact Jim Miller at (651) 281-1205 or toll-free (800) 925-1122.
LMC Board of Directors is expected to appoint the Nominating Committee by May 3.
A conference geared exclusively to the needs of Hinnesota city leaders!
League of Minnesota Cities
200 I
Annual Conference
LMC's 88'h Annual Conference
June 19-22, 2001
Duluth, Minnesota
Attend LMC's premier conference event of the year and
renew your ideas, energy, and commitment to your city's
leadership. '
Registration in£ormarion was mailed ro yoUr'city clerk-~
check the March/April or May issues of Minnesota Cities
magazine for more derails, or register online right now
at ~.lmn c. org.
Mark your calendar and we'll see you in Duluth in June[
Conference Highlights:
· Ou~tanding speaker~
- Camille Cares Barnett, Ph.D.
widdy regarded as erie of
- Rod Raymond
Du[~h ~ria~h~t and
' LMC~ W~ For ~ti~
~ t~c~d o~cia~' in~r~c~ion
· Topics to suit every city
· Door Prizes every city can
really use
· LMC Bayfront Blues and
Cruise
· City Night at the Creat Lakes
Aquarium '
REGISTER ONLINE ANYTIME: WWW. LMNC.ORG ,
2881 14:'L2:87 Via Fox
AMM FAX
N[
April 16-20, 2001
~ ..I I
->
937
I _. II !Il
Page BBZ 0£ 88Z
A sociation ol
Hetropolitan
Hunicipalities
Tax Bills to Contain Tax Increment
Financing Articles: Contents Being
Discussed
The House Property Tax Division
on Thursday heard and amended
several bills that will be included
in the omnibus tax bill. Among them
are the registration of Tax Increment
Financing (TI F) consultants (HF2444),
the T1F technical bill (HF2447) and the
two pre-1990 bills (HF187 and HF1505).
HF2444. The registration bill was
amended to prohibit TI F consultants
fromworking on a fee contingency
basis. The amended bill may impact
howbond fees are structured. The bill's
author Rep. McEIroy was made aware
of the concern and is willing to discuss
the impact.
HF2447. The technical bill was
amended to oladfy language regarding
interfund loans and other references,
HF'187andHF'IS05. The bills were
heard jointly. Two amendments were
made to HF187. One amendment
included exemptions similar to those
contained in HFt 505. The amended
exemptions include the county board
approval and special taw provisions but
AMM ~_ ews Fa~. is fa. xed to all AMM clty
managers and administrators, legislative
aontacts and Board members. Please share
thls fa~ with your mayors, councilmember~
and st,ff fo keep fhem abreast of impor-
tant rnzlro city issues.
145 Urd v ersity Avenue FFe ,t
St. ?~ui, ~ $$205-2044
Phone: (65]) 225-4000
Fax: (651) 282-1299
E-maE: ~ 4$.org
not the housing district provision. A
federal match exemption is also ;added.
The time frames have not been
changed. The second amendment
deletes the definition of"structurally
substandard" contained in the redevel-
opment distdct section of the TIF act,
The amended definition defines structur-
ally substandard building to be: ,
"in an advanced state of disrepair or
neglect of necessary repairs to the
primary and structural components of
the building that a documented
building condition analysis determines
that major repair is required or the
defects are so serious and so exten-
sive that the building must be re-
moved; or has major defects in
secondary building componen[s, such
as doors, windows, porches, ;utters
a,~d downspouts, and fascia., requiring
repairs costing 25 percent of the
appraised value of the building,"
The amendment also deletes in the
municipality approval section of the act
the sentence that states that the
determination of the authority to under-
take the project with TIF and the
resolution of the governing body shall
be conclusive.
The Senate Tax Commiaee has
released an initial draft of the TIF
article. The article includes the fo~iow-
ing sections:
· Technical bill.
, An amendment transferring the
reporting requirements to the
Department of revenue and the
enforcement provisions to the
county attomeys,
, A provision making the housing
replacement district a general law
that does not require a city to
request special legislation,
· Modifications to the abatement
statute; and
· Special Yaws for eight cities
including five metro cities. The
metro cities are Brooklyn Park,
N.of~ St. Paul, St. Louis ParK, St.
Paul and Wayzata.
It is probable that the Senate articte
wilt be revised to include additiona~
'sections. If you have any comments or
concerns please contact Gene at 651-
215-4001.
AMM Annual Meeting
Tb..ursday. May 31. 2001
Fcur Po~ts $~e~mton
Minneapolis Metrodome
1330 Industrial Boulevard
";:oc,a,~' "Hour ......... 5:7~0 - ¢:30 p.rn,
~uffet Dinner ...... 6:30 - ?:30 p.m.
Business Meeting ........... 7:30 p.m.
April 17, 2001
Carver County
Health Partnership
Scott Botcher
690 Coulter
Chanhassen, MN, 55317
Dear Scott:
On behalf of the Carver County Health Partnership, we cordially invite you to participate in the
Second Annual State of Public Health in Carver County Address.
As an energized and committed community leader you have the opportunity to play an important
role in shaping and planning for the health of your community. Your involvement is important to
create a shared vision of making Carver County the healthiest county in the United States.
Join members of the Carver County Health Partnership as they share information about the
changing health care needs of Carver County citizens, as our population continues to grow and
our communities change. This is an opportunity to build partnerships, plan health at the local
level, and make a difference for the health of all people in Carver County.
2nd Annual State of Public Health in Carver County
Tuesday, May 15, 2001 from 7:00-9:00 p.m.
Chaska Community Center- Theater Room
(See enclosed-map for directions)
Scheduled Speakers
John Siegfried, Chair, Carver County Board
Robert Stevens, President and CEO, Ridgeview Medical center
Del Hurt, Director, Carver County Community Health Services
Arthur Himmelman, Keynote Speaker,
Nationally recognized consultant on healthy communities
Key Findings and Recommendations in building a foundation for a healthier
community for: -Youth - Diane O'Connor, League of Women Voters
-Adults -Jonathan Larson M.D., Lakeview Clinic
-Seniors - Bob Roepke, Mayor for City of Chaska
RECEIVED
APR 2 0 2001
CITY OF CHANHA$$EN
Your attendance and participation is important as we work [ogetner towards our vision of
making Carver County the healthiest in the United States! Please feel free to invite others who
mi.qht be interested in attendin.q. Please RSVP to Carver County Community Health Services
by May 1, 2001 at 952~442-3074.
Sincerely,
John Siegfried
Chair
Carver County Board
Robert Stevens
President and CEO
Ridgeview Medical Center
Del Hurt
Director
Carver County Comm. Health Serv.
Carver County Health Partnership · 540 East 1st Street · Waeonia, MN 55387 · 952/442-4493
IVlap to Chaska Community Center
1661 Park Ridge Drive
Chaska, MN 55318
U.S. HIGHWAY
~ .......
TO
494
0.5 0 0.5 1 1.5 2 Miles
CARVER COUNTY
OEOG/~APHIC LO CA T/OH
7 COUNTY ~ETItO AREA
C
10 0 10 20 30 40 50 Miles
~ i