4.4. - 4.6. SR 02-15-1993
TO:
MAYOR & CITY COUNCIL ~
PAT KLAERS, CITY ADMINISTRATO~
FEBRUARY 12, 1993
FROM:
DATE:
SUBJECT:
AGENDA MEMO FOR ITEMS 4.4., 4.5.,
AND 4.6.
4.4. CITY COUNCIL/UTILITIES MEETING
At the 2/8/93 City Council meeting, the consensus of the
City Council was to invite the Utilities Commission to the
2/15 or 2/22 City Council meeting. This invitation was
discussed at the 2/9/93 Utilities Commission meeting but
neither date worked out for them. Accordingly, the
Utilities Commission invited the City Council to a special
meeting on 2/17/93 at 6:00 p.m. at the power plant. This
site was chosen as everyone in attendance thought it would
be appropriate for the City Council to see this facility,
plus the fact that this facility has a slightly larger
meeting room than the Utilities office.
.
If this 2/17/93 meeting date works out for the City
Council, a motion calling this meeting should be
approved. The agenda will be to discuss growth in the
water utility system or infrastructure and how to finance
the system-wide improvements (see attached).
4.5. FIRE RELIEF ASSOCIATION UPDATE
Mayor Duitsman attended the 2/9/93 Fire Relief Association
meeting and requested to be on this agenda to provide the
City Council with an update on what took place at this
meeting. It should be noted that annually the Relief
Association reques~s a City financial contribution to its
retirement fund. This request generally comes in the
summer just before budget meetings.
4.6. HIGHWAY 101 UPDATE
.
Mayor Duitsman met with State Representatives Klinzing and
Adkins and with MnDOT officials to discuss the Highway 101
project in Januqry, 1993. An update from MnDOT Engineer,
Terry Humbert, was received in a 2/11/93 telephone
conversation and the news is very good. The update
relates to the project moving ahead of its original
schedule and there are high expectations that the stretch
of Highway 101 between the future additional bridge in Elk
River and County Road 42 can be completed by late fall,
1994. I will be happy to provide the Council with a more
detailed update on this topic at the Council meeting.
720 Dodge Avenue N.W.,Elk River, Minnesota 55330 (612) 441-7420
ITEM 4.3.
TO: MAYOR & CITY COUNCIL
FROM: PAT KLAERS, CITY ADMINISTRATOR
DATE: FEBRUARY 12, 1993
SUBJECT: URBAN/RURAL TAXING DISTRICTS
At the last City Council meeting on 2/8/93, the Finance
Director updated the City Council on a recent development
relating to the City urban and rural taxing districts. Lori
indicated that earlier on 2/8/93, she had been advised by the
County that the rural taxing district (for the first time)
exceeds the urban taxing district in terms of its tax rate.
As this is contrary to the goals of the consolidation
agreement, Lori expressed some concerns to the County Auditors
department and discussed possible amendments with the City
Council. The Council gave staff direction to proceed with
making amendments as necessary.
'.
During the past week, a number of issues have surfaced
regarding this topic. First, the County said it could not
accommodate the City if the City held a public hearing to
change the tax rates Or formula on March 22, 1993. The County
had to get the tax statements prepared prior to that date and
the City could not hold a public hearing earlier than that date
due to the thirty day notice requirement. Secondly, the
Department of Revenue indicated on 2/11/93 that it would not
allow the City to change the taxing district ratio as it had to
be changed before August 1 to be effective for taxes payable in
1993 according to Statute 272. Therefore, the County not being
able to accommodate the City is a moot point based on this
Thursday, 2/11/93 discussion with State representatives.
During discussions with the Department of Revenue, Lori
discovered that an October, 1992, directive issued by the
Department relating to the calculation of urban/rural tax rates
had not been used when the County calculated the rates. After
correctly calculating the rates, the rural rate is lower than
the urban rate. However, the rate is now lower than it should
be and will need to be adjusted for taxes payable in 1994.
As the situation now stands, people in the rural taxing
districts will receive a lower tax statement than originally
anticipated. Howeyer, as the City will review this situation
in the summer of 1993, these same taxpayers will most likely
see a jump in their tax rate in 1994 in order to bring the
urban and rural rates closer together which is in line with the
intent of the consolidation agreement.
.
In the final analysis nothing can be done at this time to
change the tax rates for taxes payable in 1993. This issue is
somewhat difficult to describe on paper and Lori will be at the
meeting to provide the Council with an update and answer
questions.
720 Dodge Avenue N.W., Elk River, Minnesota 55330 (612) 441-7420