1987-01-05 CC Agenda/PacketCITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA 55301
PHONE: 497-3384
COUNCIL AGENDA
JANUARY 5, 1967
SWEARING IN OF NEW COUNCIL MEMBERS--LORETTA RODEN-MAYOR
GARY SCHWENZFEIER-COUNCIL
BOB BRAUN-COUNCIL
I. CALL MEETING TO ORDER
II. APPROVAL OF THE AGENDA
III. o APPROVAL OF THE MINUTES
IV. SPECIAL BUSINESS
• a. Approval of the 1987 Appointments
• b. Albertville's vote in selecting the NBA team's name
V. DEPARTMENT BUSINESS
a. Department Business
- Income Recieved/Bills to be Paid
- George Weber of Century 21 RE: Problem lots in Beaudry's
Second Addition
d - Ronay Heidelberg -RE: The transfer of Liquor license from
the Heidelberg to Ronay's on Main
- Letter from the League of Minnesota Cities -RE: Albertville's
hosting of the 1987 Regional meeting --Sept. 16th
- Final Notice of Mill Rate for taxes payable 1987
„ - League's Short-term Investment Pool Seminar in St. Cloud --
January 14th
- Need for additional storeage in City Hall
b. Maintenance
- Collection System Operators Seminar at the Thunder Bird
Inn, Bloomington --January 21-23
n - Payment of Comp Time as of January 2, 1987
(138.5 hrs. X $10.10 = $1,398.85--Gross)
Dennis Fehn has made an offer to buy the old metal
Detector for $100.00
c. Legal
_ Final Ruling on the Annexation Hearing
- Joint Powers
d. Engineering
- Pay Request for PCI in the amount of $25,906.27, pending
the City's recieval of the Liquidated Damages
Settlement Agreement from PCI
Pay Request for LaTour Construction in the amount of
$132,306.70
- Pay Request for Buffalo Bitiminous in the amount of
$5,272,65
Make our City........ Your City
We invite Home, Industry, Business
PAGE 2
Report of PACE Lab --Tentative
- Other Business
VI. OTHER BUSINESS
JANUARY CALENDAR
- COMPILATION OF SCHEDULES FOR JULY AND AUGUST
- NEWSLETTERS FROM: PUBLIC FINANCIAL SYSTEMS
MILLER-SCHROEDER
MINNEGASCO
. - CONFERENCE FOR NEWLY ELECTED OFFICIALS --Saturday, January 31st.
- LETTER FROM LEAGUE OF MINNESOTA CITIES RE: PROPERTY TAX REFORM
- NEED TO CHANGE THE JANUARY 19TH MEETING TO JANUARY 20TH--
FOR THE MARTIN LUTHER KING'S BIRTHDAY
VII. CALL FOR ADJOURNMENT
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA 55301
PHONE: 497-3384
COUNCIL AGENDA
JANUARY 5, 1987
SWEARING IN OF NEW COUNCIL MEMBERS--LORETTA RODEN-MAYOR
GARY SCHWENZFEIER-COUNCIL
BOB BRAUN-COUNCIL
I.
CALL MEETING TO ORDER
II.
APPROVAL OF THE AGENDA
III.
APPROVAL OF THE MINUTES
IV.
SPECIAL BUSINESS
• a. Approval of the 1987 Appointments
• b. Albertville's vote in selecting the NBA team's name
V.
DEPARTMENT BUSINESS
a. Department Business
- Income Recieved/Bills to be Paid
- George Weber of Century 21 RE: Problem lots in Beaudry's
Second Addition
d - Ronay Heidelberg -RE: The transfer of Liquor license from
the Heidelberg to Ronay's on Main
- Letter from the League of Minnesota Cities -RE: Albertville's
hosting of the 1987 Regional meeting --Sept. 16th
. - Final Notice of Mill Rate for taxes payable 1987
- League's Short-term Investment Pool Seminar in St. Cloud --
January 14th
- Need for additional storeage in City Hall
b. Maintenance
- Collection System Operators Seminar at the Thunder Bird
Inn, Bloomington --January 21-23
o - Payment of Comp Time as of January 2, 1987
(138.5 hrs. X $10.10 - $1,398.85--Gross)
- Dennis Fehn has made an offer to buy the old metal
Detector for $100.00
c. Legal
_ Final Ruling on the Annexation Hearing
Joint Powers
d. Engineering
- Pay Request for PCI in the amount of $25,906.27, pending
the City's recieval of the Liquidated Damages
Settlement Agreement from PCI
- Pay Request for LaTour Construction in the amount of
--� $132,306.70
- Pay Request for Buffalo Bitiminous in the amount of
$5,272,65
Make our City........ Your City
We invite Home, Industry, Business
PAGE 2
Report of PACE Lab --Tentative
- Other Business
VI. OTHER BUSINESS
- JANUARY CALENDAR
- COMPILATION OF SCHEDULES FOR JULY AND AUGUST
- NEWSLETTERS FROM: PUBLIC FINANCIAL SYSTEMS
MILLER-SCHROEDER
MINNEGASCO
. - CONFERENCE FOR NEWLY ELECTED OFFICIALS --Saturday, January 31st.
- LETTER FROM LEAGUE OF MINNESOTA CITIES RE: PROPERTY TAX REFORM
- NEED TO CHANGE THE JANUARY 19TH MEETING TO JANUARY 20TH--
FOR THE MARTIN LUTHER KING'S BIRTHDAY
VII. CALL FOR ADJOURNMENT
CITY OF ALBERTVILLE
ALBER1'VILLE, MINNESOTA 5.301
PHONE: 497-3384
Mayor -elect Loretta Roden and Incumbents Gary Schwenzfeier and Robert
Braun were sworn in by Clerk Donald Berning prior to the opening of
the City Council meeting.
Mayor Roden called the first regular meeting of 1987 to order. Members
present included Gary Schwenzfeier, Donatus Vetsch, Bob Braun and Don
Cornelius. Others present included Maureen Andrews, Barry Johnson,
Don Berning, and GAry Meyer.
There was a motion to approve the agenda made by Donatus Vetsch and
seconded by Fary Schwenzfeier. All were in favor.
Then minutes of the December 15th Council meeting were discussed next.
After some discussion the following two changes were made:
Page 4, Paragraph S--The amount of the settlement was
reached by counting days of damage up until the date that
the MRGA-eppfeyed-the water balance test was submitted to
the MPCA for approval on August 14, 1986.
_ Page 6, Paragraph 3 (Special meeting with Ken Lindsay)--
�be-�eee�de-aye-te-Rene-1:bet-tbe-raise-wae-g�HRl:er�-eR-l:be
6�i�ki�B��eR-�bH�-EieR-Wed��-Relr-HBiE-€eP-HR'f-H��}1;}eRH�
help-this-yea�T-e�be�-tbeR-eRe-ed��e�-yedtfa-er��ie}eeT
After these changes were made there was a motion made by Gary Schwenzfeier
and a second made by Bob Braun to approve the minutes as amended.
All were in favor and the motion carried.
Mayor Roden made the 1987 Appointments (see attached list). There
was some discussion regarding having two Official Newspapers, Maureen
was asked to check with the League to see if it was posible to
have two papers designated and is to bring the results back to the
Council at a later meeting.
Mayor Roden held off appointing the Building Inspector and City Engineer
until after the discussion with same regarding the cooperation between
the two departments.
Loren Kohnen of Metro West Building Inspection was present to discuss
the meeting that had been held between himself and Thore Meyer of
Meyer-Rohlin. Loren handed out to the Council his recommendation
relating to the minimum elevation of the garage floor, top block or
walk out basement. This recommendation will need to be passed onto
the Planning Commission for their review and recommendation.
Gary Meyer indicated that he thought there would be more procedures
layed out on how the two departments would be working together. Loren
indicated that he wanted things to be kept as simple as possible and
that he felt the problems could he.resnlueid—he_also indicated to the
Make our City........ Your City
We invite Home, Industry, Business
COUNCIL MINUTES
PAGE 2
Council that he would charge the City of Albertville for time he
work with Thore Meyer.
With the conclusion of this discussion, Mayor Roden appointed Loren
Kohnen as City Building Inspector and Meyer- Rohlin as the City Engineer.
There was a motion made by Bob Braun and seconded by Don Cornelius to
approve the 1987 Appointments. All were in favor and the motion carried.
The next item discussed was the City of Albertville's vote for the
NBA Basketball franchise name. Don Cornelius mad a motion to select
the "Minnesota Timberwolves" as the City's choice, but no second
was offered and the motion was withdrawn. Gary Schwenzfeier next
made teh motion to vote for "minnesota Polars" which was in turn
seconded by Bob Braun. All were in favor and the motion carried.
There was a motion to approve the payment of the bills which totaled
$184,144.13. The motion was made by Don Cornelius and seconded by
Donatus Vetsch to approve checks 'J,*,,i through rJL,,JL and check
# . All were in favor and the bills were paid.
Mr. George Weber of Century 21 was present to discuss some problem
lots out in Beaudry's 2nd Addition. The problem arises from the
fact that fill was added to a number of lots and the buyers were
not informed of fact, making the effectedlot difficult and expensive
to develop. Mr. Weber was present to see if there was anything or
any suggestions from the City Council on how to resolve the problem
without having the issue taken to court. The records should note
that Mr. Weber was not referring to the City being taken to court
but rather the seller of the lot and the firm he represents.
The discussion focused on what the City of Albertville's involvement
was at the time of approving the plat and presently. It was pointed
out even though the City approved the plans for the subdivision its
liability does not extend out beyond that point. There was some
discussion on whether or not the Planning Commission should have
some responsibility of determining if lots are buildable at the time
that a plat is approved, but the fact that this type of reponsibitily
opens the City up for liability problems. It was decided that it
was best to leave the proceedures for approving plats as they are
so not to make the sitution more complicated. Mr. WEber told the
Council that though he was present to see if the Council had any
suggestion that he had not expected that there would be anything the
City could have done about his problem.
The next item discussed by the City Council the League of Minnesota
City's request that the City of Albertville host the Fall Regional
meeting for this area. Gary Schwenzfeier made a motion which was
seconded by Bob Braun to have Maureen proceed with finding out if the
Parish Center was available for use in September and get back with
the League representatives. All were in favor and the motion carried.
The Council reviewed the final notice on Albertville's mill rate
for 1987, which is 36.262. The final figure--36.262 was about 4 mills
lower than what had been projected due to the fact that the estimated
COUNCIL MINUTES
PAGE 3
was somewhat higher then projected. No action was needed on this item.
The Council was informed that the League of Minnesota Cities was
holding a seminar on "Short-term Investments Pool" at the Sunwood
Inn in St. Cloud. It was decided that Maureen and Gary Schwenzfeier
would attend the meeting to see how the pool was being set up and
would report back to the Council at a later meeting.
Ms Ronay Heidelberger was present to discuss the proceedure she needed
to take to get the liquor license (on -sale) for the former Heidelberg
Inn into her name for "Ronay's on Main". Gary Meyer informed the
Council that the application would have to go through the same proceedures
it would if it was a new application. Gary suggested that the
Council go on with other agenda items while he meet with Ronay in
the Administrator's office and review the application with her.
The next item discussed by the Council was that of the need for addi-
tional storage in City Hall for the items brought over from Don's.
It was decided that the item would be tabled until the next meeting.
Ken Lindsay requested that he be allowed to attend the COLLECTION
SYSTEM OPERATORS SEMINAR hanuary 20-22 in Bloomington if weather
permits. The motion was made by Donatus Vetsch and seconded by
Don Cornelius to approve Ken's attendance of the seminar. All were
in favor.
The Council was informed of the final ruling on the Valerius Annexation.
The packet contained the final ruling and a memo from Maureen regarding
the final hearing. No action was needed on this issue.
There was a motion to approve the payment of Ken Lindsay's overtime
for 138.5 hours at the rate of $10.10 per hour or $1,398.85 gross
($983.88 net pay). The motion was made by Don Cornelius and
seconded by Gary Schwenzfeier to approve the payment of overtime.
All were in favor and the motion carried. This was a follow up to
the December 15, 1986 Council meeting atwhich time the Council decided
to pay Ken for his unused comp time at the end of 1986 and then limit
the number of hours of comp time to 24 hours.
Barry reviewed with the Council the pay request for PCI. The Council
was informed that PCI had requested a $0.00 retainage and that it
was Meyer-Rohlin's recommendation that the retainage remain at $2,500.00
for the final clean up work in the spring. In addition, the Council
was informed that as of January 5th the City had not yet recieved
a copy of the signed Liquadated Demages Agreement from the contractor.
There was a motion to approve the pay request in the amount of $25,906.27
pending the City's recieving the signed agreement. The motion was
made by Don Cornelius and seconded by Bob Braun. All were in favor
and the motion was carried.
.� Barry next went through the pay request for LaTour Construction.
there was a motion to approve payment of $132,306.70 for LaTour Con-
struction. The motion was made by Donatus Vetsch and seconded by Don
Cornelius. All were in favor and the motion carried.
COUCIL MINUTES
PAGE 4
The final pay request that Barry discussed was for Buffalo Bituminous
for the amount of $6,263.10. There was a motion to approve this
pay request. The motion was made bu Don Cornelius and seconded by
Gary Schwenzfeier. All were in favor.
Barry next informed the Council that he had recieved a verbal report
on the water sample testing done by PACE Lab. The test showed that
the water look good except that there was a high amount of maganese
present which would account for the black water problems. It was
pointed out that with a high content of maganese the water system
should be flushed with a higher frequency hten a system without the
maganese. PACE Lab is to being sending out a written report to the
City of Albertville.
Barry suggested that he have a legal desciption of the vacant land
out at the wastewater treatment plant drawn up and bring it back
to the next Council meeting so that the City can get the land rented
out for the next growing season.
Gary Meyer informed the Council that he had not yet gotten ahold of
the attorney for the Joint Powers regarding the change in the agree-
ment but said that he would try again before the Joint Power's Board
meeting.
There was a motion to change the January 19th Council meeting to
January 20th because of Martin Luther Keng's Birthday (legal holiday).
The motion was made by Don Cornelius and seconded by Bob Braun. All
were in favor and the motion was approved.
Don Cornelius informed the Council that he had meet with Ken Lindsay
at some length regarding the grader and that him felt that it was in
the best interest of the City to stay away from a used piece of
equipment.
There was a motion to adjourn made by Don Cornlius and seconded by
GAry Schwenzfeier. All were in foavr and the motion carried.
MINNESOTA NBA BASKETBALL
5525 Cedar Lake Road
Minneapolis, MN 55416
612-544-DUNK
December 17, 1986
City Council
RE: Minnesota NBA Basketball
Dear Council Members:
As you know, we have been working hard to bring exciting NBA
Basketball back to Minnesota. It has been 26 years since the
Lakers left, and our chances are excellent for an NBA franchise
to be awarded April 20, 1987, when the league has committed to
announce expansion sites.
In order to maximize the input of our fans, we have had a
"Name The Team" contest which ended December 15. After only one
advertisement, we received suggestions from over 5,500 people!
We have decided upon two finalists, and want to ask for your help
in choosing the eventual team name. We see your council and the
other city councils throughout Minnesota as representatives of
all parts of our state. Each council has one vote, and we hope
that you will consider the two name alternatives and write us
with your choice at the address above by January 9. The majority
will rule, and the choice of the most city councils will be our
NBA team name.
You should know that we have tried to select names which are
marketable, consider the personality of our state and its people,
and reflect on the geography, recreational opportunities and
other unique characteristics of Minnesota. The two choices are:
1. <._ Minnesota Polarst\ or
2. Minnesota Timber Wolves.
Thank you for taking the time to help us choose a name for
the NBA team which will soon represent our great state.
Sincerely,
MINNESOTA NBA BASKETBALL
Ha ve Ratne i ry olf son VRobertlA. Stein
**Minnesota NBA Basketball is a Division of
Northwest Racquet, Swim & Health Clubs, Inc.**
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA 55301
PHONE: 497-3384
INCOME RECIEVED
JANUARY 5, 1987
C.W. STARK LUMBER CO.
$ 38.52
STATE OF MINNESOTA--LGA $25,150.50
42,050.69
HOMESTEAD CREDIT $16,900.19
JIM LEUER CONSTRUCTION
663.90
OTSEGO TOWN BOARD (2ND HALF OF FIRE CONTRACT)
3,708.37
BILL VARERUIS
7,635.14
JIM HENNUM
7,885.59
JIM HENNUM
3,321.85
WRIGHT TITLE CO.
7,885.60
WRIGHT TITLE GUARANTEE
7,885.59
REGISTERED CLOSERS
8,540.46
WRIGHT TITLE GUARANTEE
7,885.59
JOINT POWER'S BOARD
72,500.00
BERNARD VETSCH
.59.89
MEINY'S DIGGERS
35.00
ST. MICHAEL AM. LEGION
500.00
SEWER ACCOUNT
60.00
BILL NORDVICK
602.30
TOTAL 171,258.45
BILLS TO BE PAID
JANUARY 5, 1987
BARCO (SNOW PLOW BLADE)
269.45
UNITED TELEPHONE
76.02
FEED -RITE CONTROLS, INC.
45.00
BOB MINKEMA
400.00
STATE BANK OF ST. MICHAEL--PAYMENT ON FIRE TRUCK
5,196.16
$4,100-PRIN.; $1,096.16-INTEREST
MAUREEN ANDREWS (12-23-86)
461.41
MAUREEN ANDREWS (12-23-86)
50.00
KEN LINDSAY (12-23-86)
592.91
KEN LINDSAY (12-23-86)
50.00
ST. MICHAEL INSURANCE --PUBLIC OFFICIALS INS.
2,600.50
MINNESOTA FIRE & SAFETY
888..80
MINNEGASCO
199.28
NSP
1,485.71
VOLUNTEER FIREMEN'S BENEFIT ASSOCIATION
87.00
ALBERTVILLE AUTO PARTS
23.72
PERA
274.11
PERA
151.68
D.O.E.R. S.S. RET. DIV
31.30
D.O.E.R. S.S. RET. DIV.
475.12
PCI (PENDING THE CITY'S RECIEVING THE LIQUIDATED
25,906.27
DAMAGES AGREEMENT)
LaTOUR
132,306.70
Make our City........ Your City
We invite Home, Industry, Business
I,oso. "15
PAGE 2
MINNESOTA DEPT. OF REVENUE --STATE DEPOSIT
597.00
SECURITY STATE BANK OF ST. MICHAEL--FED DEPOSIT
1,387.00
SIMONSON LUMBER
19.99
G.D. LaPLANT
33.00
BUFFALO BITUMINOUS
-5;R?2-fir
PETE MERGES
8.00
MAUREEN ANDREWS (1-6-87)
486.71
MAUREEN ANDREWS (1-6-87)
85.00
KEN LINDSAY (1-6-87)
616.01
KEN LINDSAY (1-6-87)
85.00
KEN LINDSAY--AFTER HOUR INSPECTION-$25.00; REIMBUSREMENT
54.95
FOR THE PURCHASE OF IMPACT WRENCH-$29.95
KEN LINDSAY (OVER TIME COMP. PAY)
983.88
JIM WAL.SH
175.00
JIM WALSH-MILAGE
44.00
DON BERNING
295.87
DONATUS VETSCH
'15.00
DON CORNELIUS
Ito -cc
GARY SCHWENZFEIER
W60.00
BOB BRAUN
$0.Oa
DON'S AUTO
204.03
WANDA SCHERBER (PARK BOARD)
40.00
GORDY BERNING (PARK BOARD)
30.00
MICHAEL POTTER (PARK BOARD)
40.00
HERB SCHERBER (PLANNING COMMISSION)
180.00
RAY VETSCH (PL.ANNING COMMISSION)
200.00
BRAIN BEBEAU (PLANNING COMMISSION)
200.00
�Q,a-rem' SUBTOTAL
$182,608.43
Jerry
'I. SO
To+o-L 4 m o4 q . 13
First Insurance Arvin Cities
8000 West 78th Street --- Suite #400
Edina. Minnesota 55435
(612) 829-4800
December 30, 1986
City of Albertville
Albertville, MN 55301
RE: Ronay's On Main
(Previously Heidelberg Inn, Inc.)
Effective 1-1-87
Dear Sirs:
We have received the completed application, ST-1 forms and check from
the above captioned insured. A Certificate of Insurance for Liquor
Liability coverage will be forwarded as soon as possible.
Please call with any questions.
Thank you,
B rnadetLL s e r
Customer Service Representative
6
mi4-IM
l�J league of minnesota cities
December 17, 1986
Ms. Maureen Andrews
City Administrator
Box 131
Albertville, MN 55301
Dear Ms. Andrews:
Attached please find a list of regional meetings planned for this coming fall.
As you can see, Albertville is listed as host city for a regional meeting on
Wednesday, September 16, 1987.
In some cases, cities have indicated earlier interest in hosting a regional
meeting. This may be the case for your city. In other situations, we have
selected your city to assure members of an opportunity to attend a meeting in
the local area where we have not recently had a meeting.
This letter is sent to inquire whether your city is willing to host a meeting
this fall and to let you know what is involved with that function. These are
the elements in which the host city for a LMC regional meeting takes part:
1. Assistance in selecting a location for the meeting. Attendance at meetings
varies, but we can usually anticipate as many as 150 officials and guests
to attend. Therefore, a facility that will comfortably seat 150 persons
and is available for both a dinner as well as meeting space is required.
2. The meeting space and dining area must be accessible to the handicapped and
must be available from at least 2:00 - 5:00 pm for an afternoon training
session as well as for dinner and the full regional meeting that follows in
the evening (6:30 - 9:30 pm).
3. At the option of the host city, a social hour prior to the dinner may be
held in the same facility. That portion of the program is appropriate for
the host city to arrange with the facility chosen for the meeting site.
Often, cities sell tickets at the registration area for beverages served at
that time (5:30 - 6:30 pm) or simply arrange for a cash bar. In some
cases, local businesses agree to sponsor such social hours. In other
situations, the social hour is simply given over to a break with no
beverage service except that already underway in the other areas of the
establishment to which officials can adjourn until the dinner hour.
4. The afternoon portion of the program requires space for at least 50 people;
with set-up for dinner and the evening meeting either reserved for that
same or an adjacent area.
1 83 university avenue east, st. paul, minnesota 551 01 (61 2) 227-5600
Ms. Maureen Andrews
Page 2
December 17, 1986
The League furnishes host cities with a checklist of items for which the city
will be responsible. The League prepares address labels for invitations to
neighboring cities that your city will send out several weeks before the
meeting, along with a sample return postcard indicated the number of officials
expected to attend. The entire program will be the responsibility of the
League. The city simply arranges for the facility and the choice of menu for
the dinner (and arrangements for a social hour, if one is held.)
Please discuss this request for assistance in hosting a regional meeting at your
next council meeting. If your city wishes to host the meeting, please contact a
suitable meeting facility and make tentative arrangements Also, please contact
Lynda Woulfe or Tom Thelen at the LMC office by January 19 to let us know if
your city wishes to host a regional meeting
On the enclosed "Host City Contact Information Sheet" please give us the name,
title, and telephone number of a person who will be responsible for the meeting
arrangements and the name, location, address, and telephone number of the
facility where the meeting will be held.
Thank you for your consideration.
Si cerely,
Donald A. Slater
Executive Director
DAS:TT: lw
Tentative Sites for 1987 LMC Regional Meetings
City
Nashwauk
Menahga
Little Falls
Red Wing
Preston
Owatonna
Marshall
Sleepy Eye
Glenwood/Starbuck
Albertville
Mora
Plummer
Moorhead
Date
Tuesday, August 25, 1987
Wednesday, August 26, 1987
Thursday, August 27, 1987
Tuesday, September 1, 1987
Wednesday, September 2, 1987
Thursday, September 3, 1987
Wednesday, September 9, 1987
Thursday, September 10, 1987
Tuesday, September 15, 1987
Wednesday, September 16, 1987
Thursday, September 17, 1987
Tuesday, September 29, 1987
Wednesday, September 30
0
City of
Albertville
O. J. ARLIEN
Wright County Auditor
Wright County Courthouse - Buffalo, Minnesota 55313
Phone: (612) 682-3900
Metro: 339-6881
19 86 Assessed Values for 1987 Taxes:
Real Estate 4,328,337
Personal Property 232,937
Subtotal 4,561,274
i3es, 10% He MY
Less Tax Increment Financing Districts -- 783,367
TOTAL used in mill rate determination 3,777,907
FUND
TAXABLE LEVY
Revenue
$ 11,960
Streets
23,050
Fire Relief
3,073
Fire Protection
10,733
Police
20,257
Park
7,975
PERA
1,825
Bonds '81
7,000
if '84A
51,112
1987 MILL RATES
3.166
6.102
.814
2.841
5.362
2.111
.483
1.853
13.530
TOTALS $ 136,985 36.262
This is a copy of the computation of your mill rate for taxes payable 1987 . If you
notice any error in your levy, please contact Lois in the Auditor's Office immediately!
O.J. Arlien
Wright County Auditor
rr
OJA:lme
— Copy sent 12-30-86
league of minnesota cities
December 24, 1986
To: Mayors, Administrators, Clerks and Managers
From: Don Slater, Executive Director
Dear City Official:
The League of Minnesota Cities Board of Directors on November 19,
1986 approved the creation of a short-term investment pool for
municipalities to provide a viable investment alternative for cities.
The plan is scheduled to begin operation on or before February 1,
1987.
Meetings to explain the investment program have been scheduled and
the list of sites and the dates of these meetings in included with
this notice.
These meetings will include a presentation on the legalities of the
investment pool, it's purpose and advantages, the procedure which
will be used to purchase and sell investments through the pool, and
other pertinent information.
A question and answer session regarding the investment pool will be a
part of the program at all locations.
Please note a different starting time at several of the locations.
While the notice of these meetings has been targeted to reduce
mailing costs, all elected officials and staff who are responsible
for setting policy or administering investment of city funds are
invited and encouraged to attend.
We would appreciate having this matter placed on the city's January
meeting agenda for discussion. Reservations should be made as soon as
possible to assist us in determining space requirements at each
meeting site.
A meeting will also be scheduled for the metropolitan in the near
future.
1 63 university avenue east, st. paul, minnesota 551 01 (61 2) 227-5600
INVESTMENT POOL MEETING INFORMATION
Date: Tuesday, January 13, 1987 Date: Friday, January 23, 1987
Location: Cambridge, Minnesota Location: Fergus Falls, Minnesota
American Legion Club (lower level) Holiday Inn
200 S.E., 2nd Avenue 1-94 and Highway 210
Time: 9:30 A.M. Registration Time: 9:30 A.M. Registration
10:00 A.M. Meeting 10:00 A.M. Meeting
........................................
Date: Wednesday, January 14,1987
Location: St. Cloud, Minnesota
Sunwood Inn
1 Sunwood Drive (Downtown)
Time: 9:30 A.M. Registration
10:00 A.M. Meeting
........................................
Date: Thursday, January 15, 1987
Location: Marshall, Minnesota
Marshall Inn
East College Drive (Highway 19 E.)
Time: *2:00 P.M. Registration
2:30 P.M. Meeting
.......................................
Date: Wednesday, January 21, 1987
Location: Bemidji, Minnesota
Holiday Inn
West Highway 2
Time: 9:30 A.M. Registration
10:00 A.M. Meeting
........................................
Date: Thursday, January 22, 1987
Location: Crookston, Minnesota
Northland Lodge
North Highway 2
Time: 9:30 A.M. Registration
10:00 A.M. Meeting
........................................
Date: Tuesday, January 27, 1987 .
Location: Grand Rapids, Minnesota
Sawmill Inn
Highway 169 South
Time: 9:30 A.M. Registration
10:00 A.M. Meeting
........................................
Date: Wednesday, January 28, 1987
Location: Rochester, Minnesota
Holiday Inn South
1630 South Broadway
Highway 63 South
Time: *2:00 P.M. Registration
2:30 P.M. Meeting
........................................
Date: Friday, January 30, 1987
Location: North Mankato
Holiday Inn North
Highway 169 North
Time: 9:30 A.M. Registration
10:00 A.M. Meeting
........................................
*Please note: 2:30 P.M. Meeting at Marshall and Rochester
* *
Q CG
0 ,F
0
Z Z z V low Q
* s W W
M 0 CA.
* v 0
* *
*
***********************
1,
W f' o N
O G 1-41 2 M
a a
o aui 40 a >, �+ v '� o cn
O , am cti C ca Lj .,
O 'n w 0 F, o 0
p ' o,'a w'
E-' 3 W 0 .1
"� °1i aoa,�
.c° o o .° � " ,o
X 7 o v
o a �+ �, 0 ° co ,n 41
I a, o 4-4k -� oa o
ca �
at O U � •r) .s, N o 4))
W cc rl ,- r W r" -H Q u
m" 0 "' a" to uo �x w to "u
.a W .1 4 0 o
H u ar 4+ H o uIFI 134
00
ca
u 0
M
0
� u
<
_
T.
�
�u
{�+
u=�
Z JC
cvi
C
zaW
U
S0
<►
(V
G
c
S
oo$
r
`
�Z
ao J o
CM
�
C
°`' LA
W
.0
A W �
L,
0
a $aco
s
CO
c
.c
X.
m
o
.c
c
F-
o
m
o41
H
ao 0)
" 0 0
•� m
00
3 a o a
a 3
H
4
o
ca " :I.AQ
>' co
ca v� ..�
ca
w u uco
O �
0
0w o w
a.0 `� a
>,a0
v 8
60
a lz
>,co
0 0
0 •rq
U
z
4!
+J to U tq >° -H
,
U awi c4
>r w O
c�
0 -H >,
v co
0
a o Q) �+ a W o,
" O co -HO
00 U 0! GO cA H O
a v o cv
OU3
a
�
M v C N
v v
tq
N k o
0) u
4.4�i
'n o •�
u
-H b -HW
0 ° o
Ta a14
o
a�i u CIO
o x 0 >1 q
0
a+
cu
x >, o a � x o
u
aoi
$4 .-� o
a cca 3 7
u r
x
ro v" o vU
x
��u
0�o°4,r,W
c�a tioa
3aMa �3 a
30auu 'Tned aS 'psoHa
33OX'43ua2V ToJ3uo0 uoT3nTT d saosauuTW •SSISSe
pusXoua8yToAluo0 uOT3nTTode3osauuTW`so3euTP200o SuTuTeal 'peaasTmjV ( e el� OZS
aq3 03aTquXed (japzo xauom 30 �oa a)oS$:oa TTBm -,
asoToud
NOIlISOd
aP°0 dTZ
arias
(82peq ameu ano4 uo aeadde oa 3T gsTM not 3T)
dNOHd
186I 'U-IZ Xaenuer
aeuTmas s2oaszad0 maasXS uoTloaTToO
HId�O'IdWd
SSdHIQQd
3WVNXDIN
3wN
"Od NOI,LVHI sings
G 'rl
w G
w
w G
W
O
w w G
w
00
cad -Hw
G
w 41
O C w w O w d
w
G w
6+
r-1
w
w 00
c/1 O C w -H c U
w
rl
r+ w w
o G
V! rr w w 41a
w r 4 cl
G
-H o N
a
o
e
+�
v
o
rr-I
.�4
o
.. I w o
w
w w
w
cd u w
0
u
o
v
0 w w w
u
= O
w t0
b a
w
w
.Sd w 0
4, ad w a] .0
G
u w
w Co H G cd
.G w
w rl r-I
a +i w H
cd
0 w
w G--
O O
O cd
cn
w al
G
w 00 -4
Ow COd 000
u
z
w w
44 -H
O•.aW
• o w
z
0
o
.0
3 w -4
.0 O r-I ai w
O
41
G
G w
cn .0 o
p
w ai
IT
00 w w w •
se w ,4 A. w
O
AJ
r-d
H
a0 10
G
G •rl
0 cd
O O w
rl r-I w
cal w w
r-c w
F-H
H
w H
M
w
0
w C w en
G G
N
w w w to w Cd
Q
W of
-Hw
u rq u
Ln m G
d
>,
7
w 1
O O 0 �7
W
W
O O w G x w
3 u w 0 w w
G
r4
w
fs+
H
G
4+ H
cd O V
Ln a G
A
cd w
w
{�-r� N v1
R.
to w o
p
,G
oo
rn
4J 6
cd
w w
w Cl., >1
U rl
p
w r-I
w
w t� 4+ co
W w W o
w
.I
1--4
w 0
4+ '0
w cd
p, cd w
w
cd C
M w
w
m
w
cn N
cd w �
C .0 U rl .0
to
w
C7
w w
W cd
O 4+ N
4+ U w >,
O
O O
w
w C N
cd w
w
,H w
O .a
0 x u
U
w
.G
-1 4, w .4
7 '1
w
w
94
r-i G
oo w-
y
0 G 4+ G
U
'C7
O %o
w a0 F, r-1 v N==
0. O
w 0
w w 0
w 0 w
d
'O
w
4+ o r� v
w
O
~ gyp+
u
N 41
Yd w -H -0 0 'b
w
0 Ln
G u L .4
rl r�l
00
41M>
w w w 41
cn •
u cd
w YI
cd v-4
rl Cd
•f
r-I
w w M 4J
W O u-4 w -4 O
w w
w=
d
G Z w
Z w w -1
.O
w
u
w w 0 O
w U O O .0 -4
> cd
w 4+
w
•rl >,
w r-♦ 0
O w
0
rl u W 00
w w 10 w w
w G
rn rn
>�
v w U
w cn .0 $4
O 'a
w
G w
W 4► w r-4 U w
w •rl
of ti I L' r-I
w w G
H rl of w
w 4 w C r-1 0 00
(�
w 00
4+ -HO
-Hw
O 00�rl
� O G
.0 .G G U •rl w
H H
w w
-4 w rl f3
0 G cqp
0 w m O
W .[
cd •O N
rl 3 u u of
w u)
44 w
3 W
U 0
G4 04 0. U
N H
w
q cd N
00 0
-ri
w
w
Cd 41
w
3
rl
41
w
r. ri r 4
P.
Cd
Q
3
cn
rl 41
a0
0 w O
Cd r-I
G w
•r!
G ^I
►+ P.
.0 44)
u cd co
a
a0co
`o$4
ww
wa
N o
°wv3
i
c.
w'Oz
Ri
G cd
oo G
w
ao
wi •rawiE
ao i
04
a�i w a
zA
,Gi w G
ri w U
N 41
w w k
O
00 00 N E-+
w3
cd G oo
Gg4-4
w
cd
G w w
o• 00
w wy
v
cn
cd ,I
u
cd w rl
w
+I G
w ed
w>
wo0
Oz
Q4)
O
aw
yH
n
d>O
C > O
1-4 G cd
O
O
►-�
o
rl r♦ 0 0
v cd
G
u
z
G 41 p
H
w cd X W
D, G w
C 4
w
O w
O G w
to O cd
w O
G 00 G ri
N
+•1 rl G rl
w cd O w
d
H
cd u m
w IH
u cd Fc
w
rl w
c0 rl u
rn
H v0 cd
u
w of cd
.G ti x
Hd
u Ei U u
En
w GO
cn w r-4 G
y,
G \
w 4 >,
x
V)
w cd
u 3
w w r1
u w
p4
oo p .c.l
w w w
w .0 -H
rl
00 w w
w
w w
w
w
G G
w
..
w
• u w 14
H
44444)0�
41 u O m
w
w r-I w
cd W
pi
r-f w
3 r q w
d
wO g
u
r
PO0
O 0O
r-4 w
O r-I w
UkaGU
ww
xnWikwo
utu
3au
z
ar w
r�1
41
u u
,O cd
s
41 OMOW
NG O
awi
H
G
0
r�
Cd
G
a
w .0
r-I u
w -H 0
w
cd
0
0
4141
cli
wu��
dbr
.
cd
tw
-u
•
-4 0
a3>'
o
0
x
CO
o
uu��av
m o
ri
u1vi
OOu
N0d u
w
ai
Or
ai
�
o G w
G w
dr4-4w
" W w
C u
o
w o
>1
.0
w
3
r-1 r
,-� 'c7 ww
G
O o -H
41
w co
.0 w w
0
0.
6 •� rcoi
� •0
•O
u�
3
.n
Cd w
w
w w O 0.
>% G u
w 4 0
w w
y cn w
•d m>
8
W
"a rn co
cGd a�i w
w w w
q
w rr
w >, m
w w IH "0
w lu
G G w w
o
w O
w
a
G cn cd
cd
u
w 0. X -4
w w G
ca
41wo
or cn cd
4 J u
H
0 cd CO .�
w o
w
.0 0 w
w
r-I w
cn k O
cd w &+
m o cd w
= 6" p
w
rl n G r-+ w
p0.
w
,.0
0 o
w w w
0
o 0
.0
x G
m
o
++
G k
u w O .-A r-c
q r~ w w
w
60
u u 0 a
w r
•rl
w w
3•H
w v4
w w
'ri w
u w •rl vH a
w w a rl
'0 a.
w G w •rl
w
w cn
w
f:,
O •H w
0 c) >,
u m
G
0 w 3 0
w
0 0 3 0
w
w 0. w 3 o
w O w
G
r-4 cd �+ >,
w w
a
G w
V. u�
w l 1-4
w v'
w rl w
w w
>, w
w w.
W 0
I U w
-4 y w w fs
to ty w
>, w q ca.
cd .-1
r-r
r-I C w w
O w 0 c0
G to
w
�
w w w
O w
A r-1 0 u
G>
�
a7 L
w 0
0 0 r I w
cn w w k
w rl
U w u
a w
H
CJ F+ -H
G C
G
G
r-I > rl
O Q
Cd
O w
U •rl r-♦ G w
0
O w w
w�t
.'�
G G
O
U
cd v w
rl
0 0
CO CO ,-I 4-4
w G w
W w w
LL V O w W
w
O
r+ O
w O U p
G> m
O
O
G rl 0 X
G w
W
p G
rl p
O G w cd
A m p
I w
o cd
.0 w w >,
w >,
rl 'p O
w cn
cd r-i
O cd u w
Q
cd .0
U w
a
w cd G
'Ly
m
w 0 cd w
"0 w cn >, 0
w
.0 G
L 1-4 Cn w
c•
w w
w c)
rl
G w 3
cn
rl
rn 'n
cd U w
G w G co O
u cd
w 3
3
O
w cd w
00
'o
u m G u
w G
0 - O
w G
w cd
w u oo
w G
cn cd
w >,
w .0 >, w
cd w 0 w
cd rl G
r1
w cd
C O cn rl
G w G w w
G
w •rl O G
a 0
r1 G O 0
u rl
cd G cd
a w o0
to w 0 00
-4 w
r, o cd
w
w
r4 rl cd
r-I w w G
O rl
a9
w O w w
cd
G
r-I cd
w oo
O 'G w G
al 0 cd rl G
0 0
0
> >, w>
w
0 c0 u w
w
rt O
60
w v
(U
7 G 't7
w G
w w rl
CO O w w rr
U
O
d
U
1gi41
rq
p. w w
w r!
r I
w
14 r�-I
3 C 1w+ w
rGi rwl 0
J W
O ►O+ H W
awi awi
0Q 0 awi
0. cca
En w
0
w w o
.0 cwd
> rl
O rwi w
cn p,
w r I •rr
.G w 0 cd
O 0 w w w w
>, w G 0. O
M w
k w
rl W
0
roi
p O 0 U
0)i r q
3 H O T
H C1.
w -H ,-1 rl 0 3
-
H cn u 0
a
y" -H 0 v o
w 0
>, cd w
PQ El 0
-4
u u d w 0
c0
m
cd g M u 0
EMPLOYEE'S SIGNATURE
SUPERVISOR'S SIGNATURE
SERVICE DATE
FRINGE BENEFITS
VAC
SL
COW
BEGINNING BAL.
TAKEN
G -
2s
EARNED
"L
ENDING BAL .
REMARKS
MEMBERS PRESENT:
ANNEXATION HEARING PROCEEDING
FINAL RULING
KENNETH SETTE
SHIRLEY MIHELICH
JOHN CAREY
LeROY ENGSTROM
MEMBERS ABSENT: PAUL McALPINE
OTHERS PRESENT:
TERRY MERRITT
PAT LUNDY
BILL RADZWELL
NANCY DUEUR
MAUREEN ANDREWS
The final hearing regarding the Valerius Annexation was conducted through a
phone conference at the Municipal Board's office in St. Paul.
The first item discussed was a change on page 7 of the draft regarding the
the phrase without prejudice. Mr. Merritt explained to the Board members
that this statement was inadvertly added in the draft copy.
Mr. Merritt was questioned by Shirley Mihelich regarding what impact the phrase
"without prejudice" would have in the rulling. Mr. Merritt said that in 'r
a case when a property is brought back before the Board within two years
the inclusion of such launguage could have a bearing on whether or not the
Board would hold a hearing on the proposal. Futhermore Mr. Merritt pointed
out that there had never been any reference of including the phrase at any
time during the hearing.
At this time there was a call for any other comments, hearing none Shirley
Mihelich,renewed her motion to deny the annexation, making it effective
as of December 20, 1986.
A role call vote was taken and these are the results: Shirely-aye, LeRoy -aye,
John -aye and Ken -aye.
At this time they asked if there were any comments from the others present.
Bill Radzwell stated that it had been his intention to request that the
phrase "without prejudice" be altered to say "with prejudice" but had not
been given an opportunity. No action was taken on this matter.
The annexation hearing was then officially ajourned.
Lk
A-4297 Albertville
BEFORE THE MUNICIPAL BOARD
OF THE STATE OF MINNESOTA
Kenneth F. Sette Chair
Shirley J. Mihelich Vice Chair
John W. Carey Member
LeRoy Engstrom Ex-Offlcio Member
Paul McAlpine Ex-Officlo Member
IN THE MATTER, OF THE PETITION FOR i FIND4NGS OF FACT
THE ANNEXATION OF CERTAIN LAND TO ) CONCLUSIONS OF LAW
THE CITY OF ALBERTVILLE PURSUANT ) AND ORDER
TO MINNESOTA STATUTES 414 )
The above -entitled matter came on for hearing before the Minnesota
Municipal Board pursuant to Minnesota Statutes 414, as amended, on April 11,
1986 and was continued from time to time at Albertville, Minnesota. The
hearing was conducted by Terrence A. Merritt, Executive Director, pursuant to
Minnesota Statutes 414.01, Subdivision 12. Also in attendance were Kenneth F.
Sette, Chair, Shirley J. Mihellch, Vice Chair, and County Commissioners Paul
McAlpine and LeRoy Engstrom, Ex-Officio Members of the Board. The City of
Albertville appeared by and through Gary Meyer, City Attorney, Otsego Township
appeared by and through William Radzwlll, Township Attorney, and the
petitioners appeared by and through Thomas Hayes, Attorney at Law. Testimony
was heard and records and exhibits were received.
After due and careful consideration of all evidence, together with
all records, files and proceedings, the Minnesota Municipal Board hereby makes
and files the following Findings of Fact, Conclusions of Law, and Order.
On February 27, 1986, a copy of the petition for annexation by all of
P
-2-
the property owners was received by the Minnesota Municipal Board, and an
amended petition was received on March 10, 1986 requesting the board to order
annexation. The petition contained all of the information required by
statute, including a description of the territory subject to annexation which
is as follows:
Government Lots 1 and 2, Section 36, Township 121, Range 24, lying in
the Town of Otsego, County of Wright, State of Minnesota.
A resolution supporting the annexation was received from the annexing
municipality on February 27, 1986.
2. Due, timely and adequate legal notice of the hearing was published,
served, and filed.
3. The area subject to annexation is unincorporated, approximately 61.11
acres in size and abuts the City of Albertville by approximately 35% of its
total boundary. The City of Albertville is approximately 2,100 acres in size.
4. The area proposed for annexation is rolling land with some wooded
area generally sloping toward Mud Lake with the soil generally being a yellow
clay.
Mud Lake, a portion of which is located within the City of
Albertville, is classified as a natural environment lake by the Department of
Natural Resources. Mud Lake is approximately 150 acres In size.
5. The City of Albertville had a population of 564 in 1980, and an
estimated 1984 population of approximately 687, according to the Minnesota
State Demographer's Office.
6. The Town of Otsego had a population of 4,769 in 1980, and an
estimated 1984 population of approximately 6,254, according to the Minnesota
State Demographer's Office.
-3-
7. The area proposed for annexation has a present population of five.
8. Wright County had an average population per residence of
approximately 2.9 persons in 1984.
The City of Albertville had an average population per household of
3.3 persons in 1984.
9. The City of Albertville presently has approximately 950 acres zoned
agricultural, approximately 520 acres zoned single-family and multi -family
residential, and approximately 625 acres for commercial, industrial, park
land, government -owned land, and wetlands.
10. The Town of Otsego has land zoned for Industrial, commercial,
public/seml-public, agricultural, residential, and open space.
11. The area proposed for annexation is presently used for two
residential dwellings, farm buildings, cropland and pasture.
12. The annexation area is presently zoned agricultural.
13. The City of Albertville has a shoreland management ordinance, adopted
June 2, 1986, and a zoning ordinance, which was enacted in 1975 and which is
presently being updated. The city's subdivision regulations are presently one
paragraph located within the zoning ordinance. The city does not have a
comprehensive plan. The city does not have a manufactured housing ordinance.
The City of Albertville anticipates that it will develop a
subdivision ordinance and a manufactured housing ordinance. The City of
Albertville plans to develop a comprehensive plan after completion of its
zoning ordinance update.
14. The Town of Otsego has a comprehensive and land -use plan and a
planning commission.
-4-
15. Wright County has a planning and zoning ordinance and a planning and
zoning commission.
16. The City of Albertville presently provides its residents with water,
sanitary sewer, fire protection, police protection through a contract with the
Wright County Sheriff's Department, street improvements and maintenance, and
administrative services.
17. The Town of Otsego provides Its residents- with fire protection
through a contract with the City of Albertville, street improvements and
maintenance, and administrative services.
18. The annexation area is presently served by two on -site septic systems
and two private wells. Each residence has Its own septic system and well.
19. The City of Albertville's waste water treatment facility has been
discharging its effluent into Mud Lake for many years. The waste water
treatment plant is presently discharging treated effluent into Mud Lake which
has a bio-chemical oxygen demand at a level of approximately 75 parts per
million, suspended solids at approximately 75 parts per million, and solid
phosphates at approximately 5. The existing plant is not removing any
phosphates through treatment. The new plant will discharge treated effluent
into Mud Lake which would have a blo-chemical oxygen demand level of 25 parts
per million, suspended solids at 30 per million, and phosphates at 1 part per
million.
In years past, some of the cattle that occupied the area proposed for
annexation drank the water and became ill. Children skating on Mud Lake
during the winter have come home with extremely foul-smelling clothes.
20. The City of Albertville anticipated having a new waster water
-5-
treatment plant on-line by the summer of 1986. It will be located south of
the area proposed for annexation and discharge its treated water into Mud Lake.
The plant will have a capacity to serve a population of 1,525.
21. The area proposed for annexation is planned for development as a
manufactured housing development with 250 to 275 lots.
22. If all of the manufactured housing pads were developed as proposed,
using the Wright Couniy average population per dwelling of 2.9, the city's
population could increase by between 725 to 797 people.
23. it is projected that the proposed development, if fully completed,
would pay approximately $25,700 in taxes.
24. The area proposed for annexation presently pays approximately $390 in
taxes.
25. The city projects that it would cost approximately $250,000 to extend
municipal sanitary sewer and water to the area proposed for annexation.
The bonding for such an extension would result in an overall general
obligation debt of approximately $4,739,000 for a per capita debt of $6,898.10
for the present population of Albertville.
26. The City of Albertville is the guarantor of the outstanding general
obligation bonds for the joint water treatment facility which services the
Cities of Albertville, Hanover, and St. Michael, and the Town of Frankfort.
27. 70th Street abuts the annexation area on its northern boundary.
Maciver abuts the annexation area on its eastern boundary.
Presently the Town of Otsego maintains both of those roads. If
annexed, the city and town would share maintenance responsibilities for these
roads, there would still be approximately half a mile on 70th Street west of
the annexation area, which would be serviced solely by the township.
28. In 1986, the assessed valuation of the City of Albertville is
$3,417,425. In 1986, the city's mill rate is 35.362. As of 1986, the City of
Albertville had a total bonded indebtedness of $4,489,000.
29. in 1986, the assessed valuation of the Town of Otsego is
$14,872,655. The town's mill rate is 17.147. The Town of Otsego had a total
bonded indebtedness of $525,000.
30. The city's fire insurance rating is 6.
31. The estimated market value of the area proposed for annexation is
$78,800.
32. For 1986, the county's mill rate is 20.308. Elk River School
District 1728's mill levy is 68.035. Monticello School District 1882's mill
levy is 38.824. St. Michael School District 0885's mill levy is 57.577.
33. The area proposed for annexation is presently served by Elk River
School District 1728 which also includes a small part of the City of
Albertville. Monticello School District 1882 includes a small part of the
City of Albertville. St. Michael School District 1885 includes most of the
City of Albertville.
34. The City of Albertville is the only municipality adjacent to the area
proposed for annexation.
35. Otsego Township can continue to function without the area proposed
for annexation.
CONCI111S IONS OF I AW
1. The Minnesota Municipal Board duly acquired and now has jurisdiction
of the within proceeding.
-7-
2. The area subject to annexation is not now urban or suburban in nature.
3. Municipal government is not presently required to protect the public
health, safety, and welfare in the area proposed for annexation at the present
time.
4. An order should be issued by the Minnesota Municipal Board denying
the petitioned annexation of the area described herein.
1. IT IS HEREBY ORDERED: That the request for the annexation of the
property described in Findings of Fact 1 herein, be and the same is hereby
denied.
2. IT IS FURTHER ORDERED: That the effective date of this order is
December 19, 1986.
Dated this 19th day of December, 1986.
MINNESOTA MUNICIPAL BOARD
165 Metro Square Building
St. Paul, Minnesota 55101
i
Terrence A. Merritt
Executive Director
A-4297 Albertville
The Minnesota Municipal Board, while denying the proposed annexation,
notes that the City of Albertville is aggressively moving to improve itself,
from both a planning prospective and a development prospective. The board is
impressed that the city was willing to hire a full-time administrator to
accomplish this task.
The board hopes that as the city moves to update its planning and
zoning ordinances, it will work with the Town of Otsego, so that the greater
community can be better served.
The newly enacted ordinances will need some shake down time to ensure
that they are functioning properly. The ambitious program of growth for the
city will require that these ordinances are functioning and accomplishing
their desired goals. Given the city's desire to improve, the board hopes that
it will continue a thoughtful and thorough analysis of its planning tools.
The board would suggest that the city analyze the present water
qual ity of Mud Lake'W 1,7_1 C` j b
WEYER-ROHLIN, INC.
ENGINEERS -LAND SURVEYORS 1111 Hwy. 25 N., Buffalo, Minn.55313 Phone 612- 682-1781
LJ O
January 5, 1987
Honorable Mayor & City Council
c/o Maureen Andrews, City Administrator
Albertville, MN 55301
Re: 1986-2 Improvement Project
Partial Payment No. 2
Members of the Council:
The Contractor has requested Partial Payment No. 2 based upon the
following estimated quanitites to date on the above referenced
project.
BID "A" - WATERMAIN
Item
No. Item Qty. Unit Unit Price Total Price
1. 6" D.I.P. 2784 l.f. @ $ 10.90 $ 30345.6o
2. 811. D. I . P. 602 l . f . @ $ 13.10 $ 7886.20
3. 8" Gate Valve
w/box &
raiser
2
each
@
$
4o0.00
$
8o0.00
4.
6" Gate
Valve
w/box &
raiser
20
each
@
$
290.00
$
5800.00
5.
Hydrant
7
each
@
$
1055.00
$
7385.00
6.
8" x 8"
x 8" Tee
1
each
@
$
150.00
$
150.00
7.
8" x 8"
x 6" Tee
1
each
@
$
145.00
$
145.00
8.
8" 114 Bend
0
each
@
$
100.00
$
0.00
9.
8" 222 Bend
3
each
@
$
100.00
$
300.00
10.
8" x 6"
Reducer
1
each
@
$
80.00
$
80.00
11.
6" x 6"
x 6" Tee
8
each
@
$
110.00
$
880.00
Thore P. Meyer, Professional Engineer Robert Rohlin, Licensed Land Surveyor
12. 8" 90 Bend
13. 6" 90 Bend
14. 6" Plug
15. 1" Water Service Group
16. 1" Copper
17. Density Testing
1
each
@
1
each
@
2
each
@
45
each
@
1453
l.f.
@
48
each
@
TOTAL
BID
"A"
BID "B" - SANITARY SEWER CONSTRUCTION
1. Sanitary Sewer
(0'-8') Cut)
2055
l.f.
@
2.
Sanitary Sewer
(8'-10' Cut)
548
l.f.
@
3.
Sanitary Sewer
(10'-12' Cut)
137
l.f.
@
4.
4" x 4' x 8' Polystnrene
Insulation (In place)
225
l.f.
@
5.
Manholes (complete)
10
each
@
6.
Extra Depth Manhole
3.4
l.f.
@
7.
4" x 8" Wye
46
each
@
8.
4" Service Pipe
1545
l.f.
@
9.
8" Plug
2
each
@
10.
Density Testing
48
each
@
TOTAL BID
"B"
$ 110.00
$
110.00
$ 90.00
$
90.00
An nn
t
IWn nn
$ 60.00 $ 2700.00
$ 5.70 $ 8282.10
$ 32.00 $ 1536.00
$_ 66604.40
$ 9.95 $ 20447.25
$ 10.95 $ 6000.60
$ 12.45 $ 1705.65
$ 5.70 $ 1282.50
$ 870.00 $ 8700.00
$ 60.00 $ 204.00
(k 1zn nn t 1 ,ZAn nn
$ 5.80 $
8961.00
$ 15.00 $
30.00
$ 32.00 $
1536.00
$_50247.
o0
BID "C" - STORM SEWER
Item
No. Item
1. 12" RCP
2. 15" RCP
3. 18" RCP
4. 48" Catchbasin (Complete)
5. 27" Catchbasin (COmplete)
6. 18" RCP Plug
7. 12" RCP Apron
8. 15" RCP Apron
9. Density Testing
10. 48" Manhole
BID "D" - STREET CONSTRUCTION
1. Excavation
2. Class 5 Aggregate
(In Place)
3. Density Testing
Qty.
Unit
170
1.f.
@
463
l.f.
@
388
l.f.
@
3
each
@
3
each
@
1
each
@
1
each
@
1
each
@
11
each
@
1
each
@
TOTAL BID
"C"
Unit Price Total Price
$ 14.30
$
2431.00
$ 15.15
$
7014.45
$ 24.70
$
9583.6o
$ 885.00
$
2655.00
$ 600.00
$
1800.00
$ 35.00
$
35.00
$ 200.00
$
200.00
(t 010n nn
It
Don nn
$ 32.00 $ 352.00
$ 1250.00 $ 1250.00
$-25541.05
6450 c.y.
@
$
1.30 $
8385.00
0 C.Y.
@
$
6.94 $
0.00
0 each
@
$
27.00 $
0.00
TOTAL BID
"D"
$-_
A5.tOO
EXTRAS
Crew time to hook up to ex. sanitary sewer service &
ex. watermain service on Lander Ave. & 55th St.
2 Hrs. x 491.00 = 982.00
Crew time & rental equipment to work at nite,
connecting to ex. watermain on Barthel Drive,
to keep Factory in operation
Generator & Light Rental 122.00
Crew time overtime portion only
8 men x z time above regular time = 88.00 3jhrs x 8B.oD = 308. 00
Total on Night Watermain Connection 0.00
Material & Labor
4" Sewer Service Cleanout
22.00
Crew time to relocate hydrant on 57th St. NE 22 Yms x 491.00 = 1227.50
Installation of Class 5 Gravel on Clem Property &
54th St. NE
Equipment & Labor Only
87.00
Equipment, labor & material
Furnish & install 12" Trash Guard on
12" RCP Apron on Lander Ave.
185.00
Extra denisty testing charges as requestd by engineer
= 1676.lo
4609. 0
TOTAL EXTRAS
TOTAL PROJECT
BIDS "A", "B", "C" & "D"
and EXTRAS
$152734.5
MINUS 10% RETAINAGE
$ 15539.25
LESS PREVIOUS PAYMENTS
$ 7546.50
GRAND TOTAL
$132306.70
.-. We recommend Partial Payment No. 2 in the amount of $
132,306.70
to the contractor, LaTour Construction, Rt. 1, Box
76, Maple
Lake, MN 55358.
If you have any questions, please contact me.
Sincerely yours,
M ER-ROHLIN, INC
✓a---
arry Johnkr
Proj ct Engin
BDJ:1g
cc:E-601-D
Don Berning
LaTour Construction
MEYER-ROHLIN, INC. " LJ O
ENGINEERS -LAND SURVEYORS 1111 Hwy. 25 N., Buffalo, Minn.55313 Phone 612- 682-1781
January 5, 1987
Honorable Mayor & City Council
c/o Maureen Andrews, City Administrator
Albertville, MN 55301
Re: 1986-1 Improvement Project
Partial Payment No. 4
Members of the Council:
The Contractor has requested Partial Payment No. 4 based upon the
following estimated quantities completed to date on the above
referenced project.
BID "A" - SANITARY SEWER
Item
.-. No.
Item
Qty.
Unit
Unit Price
Total Price
1.
8" Sewer Pipe
(10 -12)
39
l.f.
@
$
11.00
$
429.00
2.
8" Sewer Pipe
(12' - 14')
169
l.f.
@
$
12.00
$
2028.00
3.
8" Plug
2
each
@
$
30.00
$
60.00
4.
4" x 8" Service
Connection
13
each
@
$
50.00
$
650.00
5•
4" PVC Service Pipe
322
l.f.
@
$
5.00
$
1610.00
6.
4" PVC Service Riser
45
l.f.
@
$
7.00
$
315.00
7.
Crushed Rock
20
c.y.
@
$
25.00
$
500.00
8.
Density Testing
28
tests@
$
30.00
$
840.0o
TOTAL
BID "A"
$6432.00
Thore P. Meyer, Professional Engineer Robert Rohlin, Licensed Land Surveyor
BID
"B" - WATERMAIN
Item
No.
Item
Qty.
Unit
Unit Price
Total Price
1.
6" D.I.P. (Class 52)
160
l.f.
@
$
14.00
$
2240.00
2.
8" D.I.P.(Class 52)
120
l.f.
@
$
19.00
$
2280.00
3.
6" D.I.P. Plug
2
each
@
$
50.00
$
100.00
4.
8" D.I.P. Plug
1
each
@
$
90.00
$
90.00
5.
12" D.I.P. (Class 50)
20
l.f.
@
$
25.00
$
500.00
6.
1" Service Connection
11
each
@
$
125.00
$
1375.00
7.
1" Copper
400
l.f.
@
$
7.00
$
2800.00
8.
Hydrant Extension
3.0
l.f.
@
$
250.00
$
750.00
9.
Density Testing
20
tests@
$
30.00
$
600.00
10.
12" Slip Joint Plug
1
each
@
$
103.10
$
103.10
11.
8" Gate Valve/Sleeve
1
each
@
$
1610.00
$
1610.00
TOTAL
BID "B"
$
12448.10
BID
"C" - STORM SEWER & STREETS
1.
12" R.C.P. Class 4
60
l.f.
@
$
20.00
$
1200.00
2.
10" P.V.C. (0-81)
416
l.f.
@
$
10.35
$
4305.60
3.
10" P.V.C. Cleanouts
1
each
@
$
105.00
$
105.00
4.
27" Catch Basin
3
each
@
$
700.00
$
2100.00
5.
48" Catch Basin
2
each
@
$
850.00
$
1700.00
6.
18" R.C.P. Bend
(30.5 ft. radius)
2
each
@
$
250.00
$
500.00
7.
Excavation
1350
c.y.
@
$
5.00
$
6750.00
8.
4" Subsurface Drain
(See Detail)
700
l.f.
@
$
4.00
$
2800.00
9.
Class 5 Gravel
(Vehicle Measure)
6235
c.y.
@
$
6.95
$
43333.25
10.
Class 5 Gravel
(In Place)
2850
c.y.
@
$
11.00
$
31350.00
11.
Surmountable Curb &
Gutter (See Detail)
12545
l.f.
@
$
3.94
$
49427.30
12.
B618 Curb & Gutter
915
l.f.
@
$
3.94
$
3605.10
13.
Curb & Gutter
Backfi ll
1346o
l.f.
@
$
.30
$
4o38,;00
14.
Common Borrow
(Vehicle Measure)
0
C.Y.
@
$
5.00
$
0.00
15.
Granular Borrow
(Vehicle Measure)
0
C.Y.
@
$
6.00
$
0.00
16.
Cross Gutter
15
s.y.
@
$
20.00
$
300.00
17.
2331 Bituminous Base
(12" Thick)
27406
s.y.
@
$
1.50
$
41109.50
18.
2341 Bituminous Wear
(12" Thick)
0
S.Y.
@
$
1.75
$
0.00
19.
Bituminous Removal
0
S.Y.
@
$
2.00
$
0.00
20.
8" Reinforced Concrete
Driveway Payment
0
S.Y.
@
$
30.00
$
0.00
21.
Manhole Adjustment
0
each
@
$
125.00
$
0.00
22.
Gate Valve Adjustment
0
each
@
$
125.00
$
0.00
23.
Catch Basin Adjustment
22
each
@
$
50.00
$
1100.00
24.
Topsoil
976.5
c.y•
@
$
6.00
$
5859.00
25.
Seedin (Mix 5)
0
lbs.
@
$
12.00
$
0.00
26.
Sodding
0
S.Y.
@
$
1.6o
$
0.00
27.
8" Sanitary Sewer
Cleaning
0
l.f.
@
$
.35
$
0.00
28.
2' 6" Manhole
Adjustment
1
each
@
$
351.�3
$
351.�3
TOTAL
BID "C"
$_20103.48
ALTERNATE BID "D"
ADD/DEDUCT for Final Wear Coarse
At later date
$
0.00
SUBTOTAL BID "A"
$
6432.00
SUBTOTAL BID "Bit
$
12448.10
SUBTOTAL BID licit
$
201033.48
TOTAL BID
"A", "B", "C"
$
219913.58
MINUS 10% RETAINAGE
$
21991.36
MINUS PREVIOUS PAYMENTS
$
191659.12
GRAND TOTAL
$
6263.10
We recommend Partial Payment No. 4 in the amount of $6,263.10 to
the contractor Buffalo Bituminous, Inc., Box 337, Buffalo, MN
55313.
If you have any questions, please contact me.
Sincerely yours,
MEYER-ROHLIN, INC.
Barr7. Joh on
Project Engineer
BDJ:1
cc:E-9601-A
cc:Don Berning, Clerk
CC:Buffalo Bituminous
January 5, 1987
TO: City o6 Atbentvitte
FROM: Loren Kohnen, Buitd-ing Inzpscton
RE: Ftoon Etevation Minimum Recom:n2.gdat.ion
The minimum elevation 06 the garage 6too4 .i6 attached oa top a5 5foek o6
buitd.ing 6oundation i6 gxtage is not attached on i6 watk-out ba-cement 6hatt
be eighteen (1811) .inches above the centers o6 the etteet.
Appticants bon Buitding Pehmit bhatt zhow pnopozed etevat-ion 6nom garage
6too4 on top o6 6ound2t.ion on walk -out basement 6toot and att �setbaekz
64om pnopenty tine6 aid mubt -indicate d.inection o6 dna.inage on ent.ine .dot
on a nequ-iaed zite plan be6o4e a Building Penm-it iz i6zus i.
LK:1
0
. Ld.
t
o �.1
L
rl �I
Jr-
h
a
Y
.FJV)
General Tax Levy
Homestead Credit
Wetlands Credit
Wetland Reimbursement Aid
Local Gov't Aid
Revenue Sharing
Other State Aids
Liquior Permits
Beer Permits
Amusement Licenses
Cigaretee Licenses
Building Permits
Sewer Permits
Sign Permits
Dog Permits
Di-"o Permits
Fe -e Permits
Hall Rental
Hearing Fees
Interest on Assessments
Interest on Investments
Donations
Capital Asset Sales
Refunds and Reimbursement
Other Income
TOTAL REVENUES
CITY OF ALBERTVILLE
GENERAL FUND
JULY 1986
CURRENT
YEAR TO
YEAR TO
VARIANCE
MONTH
DATE
DATE
FROM
BUDGET
BUDGET
19,264.87
21,977.16
41,288.00
(19,310.84)
8,078.28
8,078.28
13,762.00
(5,683.72)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
25,150.50
25,150.50
50,301.00
(25,150.50)
3,497.00
11,535.00
12,246.00
(711.00)
0.00
291.81
0.00
291.81
0.00
3,700.00
5,200.00
(1,500.00)
0.00
150.00
300.00
(150.00)
0.00
110.00
130.00
(20.00)
0.00
60.00
'60.00
0.00
3,974.40
16,134.40
18,500.00
(2,365.60)
40.00
280.00
0.00
280.00
1,315.20
2,610'40
1,300.00
1,310.40
0.00
6.00
56.00
(50.00)
0.00
0.00
75.00
(75.00)
0.00
1.00
0.00
1.00
0.00
10.00
0.00
10.00
0.00
500.00
0.00
500.60
0.00
0.00
0.00
0.00
0.00
30.00
0.00
30.00
0.00
500.00
0.00
500.00
0.00
0.00
0.00
(}.00
0.00
84.40
0.00
84.40
0.00
__________________________________________________________
50.00
0.00
50.00
61,320.25
91,258.95
143`218.00
(51,959.05)
COUNCIL
General Salaries
Special Meetings - Reg.
Special Meetings - J. P.
Dues and Subscriptions
Printing and Publications
Mileage and Travel
Insurance
Legal
TOTAL COUNCIL
CLERK
Salaries
Payroll Taxes
PF�4A
6j �ial Meetings
Elections
Printing and Publications
Office Supplies'
Mileage and Travel
TOTAL CLERK
MAINTENANCE
Salaries
Inspection Fees
Overtime
Payroll Taxes
Workman's Comp. Ins.
PERA
Medical Benefits
Utilities
Supplies
Repairs & Maintenance
Gasoline
Rubbish
qapital Outlay
TOTAL MAINTENANCE
CITY OF ALBERTVILLE
GENERAL FUND
JULY 1986
CURRENT
YEAR TO
YEAR TO
VARIANCE
MONTH
DATE
DATE
FROM
BUDGET
BUDGET
360.00
2,520.00
4,320.00
(1,800.00�
335.00
1,055.00
600.00
455.00
15.00
210.00
400.00
(190.00)
0.00
180.00
450.00
(270.00)
0.00
0.00
400.00
(400.00)
0.00
156.25
100.00
56.25
0.00
2,085.00
29000.00
85.00
350.00
________________________________________________________
2,414.70
2,400.00
14.70
1,060.00
________________________________________________________
8,620.95
10,670.00
(2,049.05)
333.00
2,331.00
3,900.00
(1,569.00)
5.00
152.86
275.00
(122.14)
0.00
84.90
275.00
(190.10)
55.00
190.00
430.00
(240.00)
0.00
0.00
1,400.00
(1,400^00)
0.00
13.40
0.00
13.40
69.81
196.26
50.00
146.26
0.00
________________________________________________________
0.00
100.00
(100.00)
462.81
________________________________________________________
2,968.42
6,430.00
(3,461.58)
621.86
4,536.74
7,000.00
(2,463.26)
0.00
0.00
100.00
(108.00)
0.00
0'00
333.00
(333.00)
0.00
267.11
513.00
(245.89)
0.00
0.00
300.00
(300.00)
0.00
159.11
513.00
(353.89)
16.67
116.67
168.00
(51.33)
0.00
0.00
0.00
0.00
84.71
510.55
700.00
(189.45)
60.62
963.74
100.00
863. 4
0.00
311.74
1,100.00
(788.26)
33.00
198.00
125.00
73.00
0.00
________________________________________________________
1,039.99
1,000.00
39.99
816.86
________________________________________________________
8,103.65
11,952.00
(3,848.35)
ADMINISTRATION
Salaries
Payroll Taxes
WorEcman's Comp. ins.
PERA
Medical Benefits
Dues and Subscriptions
Utilities
Printing and Publication
Office Supplies
Mileage and Travel
Insurance
Legal
Accounting & Bookkeeping
Audit
As,-ssor
Bu. Jing Inspector -
Interest Expense
Capital Outlay
TOTAL ADMINISTRATION
PLANNING AND ZONING
CITY OF ALBERTVILLE
GENERAL. FUND
,:JULY 1986
CURRENT
YEAR TO
YEAR TO
VARIANCE
MONTH
DATE
DATE
FROM
BUDGET
BUDGET
1,33a.46
10, 532. 30
17, 473.00
(6,940.70)
0.00
657.36
1,232.00
(574.64)
0. 0o
0.00
54.00
(54.00)
0.00
390.74
1,2 2.00
(841.26)
50.00
200.00
500.00
(300.00)
0.00
54.75
100.00 ►0
(45.25)
7.32
941.85
100. 00
841.85
0.00
258. 40
400.00
(141.60)
283.75
1,037.49
400.00
637.49
92.84
394.24
660. 00
(205.76)
1,464.00
4,6e6.00
3,200.00
1,4e6.00
0.00
1,869.17
1,600.00
269.17
0.00
0.00
3,500.00
(3,500.00)
2,075.75
2,075.75
2,600.00
(524. 25)
0.00
2,837.50
15,725.00
(12, Se7. 50 )
1,220.05
1,220.e5
5,000.00
(3,779.15)
0.00
2,679.17
0.00
2,679.17
6,732.97
31,3e5.57
56,816.00
---
(25,430.43)
Meeting Per Diem 0. 00
Printing and Publications 189.90
Legal 47.50
Recording Fees 0.00
TOTAL PLANNING & ZONING
CITY HALL
Utilities
Telephone
Supplies
Repairs and Maintenance
Capital Outlay
TOTAL CITY HALL
POLICE PROTECTION
Pr qAqc t i on Fees
TOTAL POLICE PROTECTION
475. 5(-') 1 , �. o i. Oi i
279.00 900.00
487. 00 3,500.00
0. 00 0. 00
(524.50)
(621.00)
(3,013.00)
0.00
----------------------------------------------------------
2.37.40
----------------------------------------------------------
1,241.50
5,400.00
(4,158.50)
0. 0 ►
0. 00
1,000.00
(1,000.00)
87.72
453.36
800.00
(346.64)
0.00
0.00
0.00
0. OQ
0.00
334.15
300.00
34.15
0. . 00
0. 00
1,500.00
(1,500.00)
87.72
----------------------------------------------------------
787.51
3,600.00
(2,012.49) -
1 , 642. 50
9,763.75
21,000.00
(11,236.25)
1,642.50
9,763.75
21 , 000. {`►(;}-----(11,236.25)
-
(1 1 , 236. 25)
STREETS
Utilities
Suppilies
Repairs and Maintenance
Gasoline
Snowplowing
Sand and Gravel
City Street Maintenance
Contractual Str. Maint.
Township Road Maintenance
Capital Outlay
TOTAL_ STREET
TOTAL EXPENDITURES
EXCESS OF REVENUES
OVER EXPENDITURES
CITY OF ALBERTVILLE:
GENERAL FUND
JULY 1986
CURRENT
YEAR TO
YEAR TO
VARIANCE
MONTH
DATE
DATE
FROM
BUDGET
BUDGET
0.00
6,047.57
12,500.00
(6,452.43
39.10
832.48 48
1,000.00
(167.52
36.60
1,200.64
300.00
900.64
18.48
213.05
1,000.00
(786.95
0.00 Uu
144.20
1,000.00
(855.80
0. UC►
588. 10
750.00
(161.90
746.67
1,006.67
1,500.00
(493.33
0.00
157.50
7, B O. UC►
(7,642.50
385.00
885.00
1,000.00
(115.00
0.00
0.00
roo. uo
(500.00
1,225.e5
------------------------------------------------------
11,075.21
27,350.00
(16, 274. 79
12,266.11
--------------------------------------------------------
73,946.56
143,218.00
(69,271.44
49,054.14
17,312.39
0.00
17,312.39
"I -
REVENUES
General Tax Levy
Homestead Credit
Fire Aid
Fire Protection Fees
Interest on Investments
Donations
Refunds and Reimbursement
Other Revenues
TOTAL REVENUES
EXPENDITURES
Cheif Salary
Utilities
Suc^4lies
Re irs and Maintenance
Gasoline
Insurance
Education and Training
Dues
Fire Relief Association
Audit
Capital Outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES
OVER EXPENDITURES
CITY OF ALBERTVILLE
FIRE DEPARTMENT FUND
JULY 1986
CURRENT
YEAR TO
YEAR TO
VARIANCE
MONTH
DATE
DATE
FROM
BUDGET
BUDGET
4,444.49
4,795.17
91947.00
(5,151.83)
1,434.83
1,434.83
3,315.00
(1,880.17)
0.00
0'00
1,863.00
(1,863.00)
0.00
4,574.78
8,800.00
(4,225.22)
0.00
0.00
0.00
0.00
0.00
1,350.00
0.00
1,350.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
________________________________________________________
5,879.32 12,154.78 23,925.00 (11,770.22)
________________________________________________________
0.00
0.00
200.00
(200.00)
5.74
531.84
800.00
(268.16)
, 206.02
375.72
300.00
75.72
0.00
610.66
500.00
110.66
48.45
171.55
300.00
(128.45)
0.00
3,861.00
4,500.00
(639.00)
0.00
0.00
1,000.00
(1x000.00)
0.00
0.00
125.00
(125.00)
0.00
81.00
3,000.00
(2,919.00)
0.00
0.00
200.00
(20C>.00)
5,442.96
________________________________________________________
14,101.44
13,000'00
1,101.44
5,703.17
________________________________________________________
19,733.21
23,925.00
(4,191.79)
176.15
========================================================
(7,578.43)
0.00
(7,578.43)
CITY OF ALBERTVILLE
~~ PARK FUND
JULY 1986
CURRENT YEAR TO YEAR TO VARIANCE
MONTH DATE DATE FROM
BUDGET BUDGET
REVENUES
General Tax Levy
3,424.26
3,784.58
9,771.00
(5,986.42)
Homestead Credit
1,864.09
1,864.09
3,256.00
(1,391.91)
Park Rental
75.00
225.00
300'00
(75.00)
Interest on Investments
0.00
0'00
0.00
0.00
Donations
0.00
0.00
0.00
0.00
Other Revenue
________________________________________________________
0.00
31.00
0.00
31^00
TOTAL REVENUES
________________________________________________________
5,363.35
5,904.67
13,327.00
(7,422.33)
EXPENDITURES
'
Salaries
538.66
4,571.96
7,000.00
(2,420.04)
Overtime
0.00
0.00
333.00
333U0)
`245^89>
Payroll Taxes
0.00
267.11
513.00
`300^00)
Workman's Comp. Ins.
0.00
0.00
300.00
`353^89)
PE��
0.00
159.11
513.00
`(50^32)
M 'cal Benefits
16.67
116.68
167.00
Utilities
0.00
175.67
700.00
(524^33)
Supplies
30.39
^
320 39
^
20O 00
^
-'- --
^
120 19
Repairs and Maintenance
.
32.20
.
288 65
500.00
^
(211.35)
Gasoline
/
16.03
22.98
200.00
(177^02)
Planning of Park
0.00
0.00
400.00
(400^00)
Capital Outlay
________________________________________________________
0.00
1,500.00
2,500.00
(1,00W^00)
TOTAL EXPENDITURES
________________________________________________-_______
627.95
7,422.55
13,326.00
(5,903.45)
EXCESS OF REVENUES
OVER EXPENDITURES
========================================================
4,735.40
(1,517.88)
1'00
(1,518.88)
City of Albertville
'
SCHEDULE OF CASH AND INVESTMENTS
July 31° 1986
-�
oeneral Fund - 1
Cash and
Investments
$ 89,014.47
Park Fund
- 2
Cash and
Investments
( 1,017.89)
Fire Department Fund - 3
Cash and
Investments
( 22,378.86}
1968 S. A.
Fund - 21
Cash and
Investments
1,671.48
1973 S. A.
Fund - 22
Cash and
Investments
48,067.97
1976 S. A.
Fund - 23
Cash and
Investments
31,657.22
1977 S. A.
Fund - 24
Cash and
Investments'
48,167.71
1979-1 S. A. Fund - 25
Cash and
Investments
128,310.64
~~q79 Ind. Park Fund - 26
Cash and
Investments
510,726.72
1982 S. A.
Fund - 27
Cash and
Investments
92,443.32
1983 S. A.
Fund - 28
Cash and
Investments
165,410.14
1984 S. A.
Fund - 29
Cash and
Investments
1,096.18
1985 S. A.
Fund - 30
Cash and
Investments
( 63,892.14>
T. I. Cap.
Proj. - 40
Cash and
Investments
83,680.71
Sewer Fund
- 50
Cash and
'
Investments
966,972.10
Clinic Fund
- 51
Cash and
Investments
( 23,395.45>
Tax Increment
D. S. - 60
SEE ACCOUNTANT'S COMPILATION LETTER
City of Albertville
SCHEDULE OF CASH AND INVESTMENTS
FEM
July 31, 1986
Cash and Investments
55,917.31
______________
TOTAL CASH AND
INVESTMENTS
$ 2,112,451.63
==============
SEE ACCOUNTANT'S COMPILATION LETTER
CITY OF ALBERTVILLE
GENERAL FUND
AUGUST 1986
CURRENT
YEAR TO
YEAR TO
VARIANCE
MONTH
DATE
DATE
FROM
BUDGET
BUDGET
General Tax Levy
0.00
21,977.16
41,288.00
(19,310.84)
Homestead Credit
0.00
8,078.28
13,762.00
(5,683.72)
Wetlands Credit
0.00
0.00
0.00
0.00
Wetland Reimbursement Aid
0.00
0.00
0.00
0.00
Local Gov't Aid
0.00
25,150.50
50,301'00
(25,150.50)
Revenue Sharing
0.00
11,535.00
12,246.00
(711.00)
Other State Aids
0.00
291.81
0.00
291.81
Liquior Permits
0.00
3,700.00
5,200.00
(1,500.00)
Beer Permits
75.00
225.00
300.00
(75.00)
Amusement Licenses
0.00
110.00
130.00
(20.00)
Cigaretee Licenses
0.00
60.00
160.00
0.00
Building Permits
3,412.35
19,546.75
18,500.00
1,046.75
Sewer Permits
105.00
385.00
0.00
385.0
Sign Permits
0.00
2,610.40
1,300.00
1,310.40
Dog Permits
12.00
18.00
56'00
(38.00)
Bi°~qo Permits
0.00
0.00
75.00
(75.00)
Fc 'e Permits
0.00
1'00
0.00
1.00
Hall Rental
0.00
10'00
0.00
10.00
Hearing Fees
100.00
600.00
0.00
600.00
Interest on Assessments
0.00
0.00
0'00
0.00
Interest on Investments
0.00
30.00
0.00
30.00
Donations
0.00
500.00
0.00
500.00
Capital Asset Sales
0.00
0.00
0.00
0.00
Refunds and Reimbursement
0.00
84.40
0.00
84'40
Other Income
_________________________________________________________
0'00
50.00
0.00
50.00
TOTAL REVENUES
=========================================================
3,704.35
94,963.30
143,218.00
(48,254.70)
CITY OF ALBERTVILLE
�~ GENERAL FUND
AUGUST 198
CURRENT
YEAR TO
YEAR TO
VARIANCE
MONTH
DATE
DATE
FROM
BUDGET
BUDGET
COUNCIL
General Salaries
360.00
2,880.00
4,320.00
(1,440.00)
Special Meetings - Reg.
130.00
1,185.00
600.00
585.00
Special Meetings - J. P.
25'00
235.00
400.00
(165.00)
Dues and Subscriptions
30.00
210.00
450.00
(240.00)
Printing and Publications
0.00
0.00
400.00
(400.00)
Mileage and Travel
0'00
156'25
100.00
56.25
Insurance
0.00
2,085.00
2,000.00
85.00
Legal
100.00
2,514.70
2,400.00
114.70
TOTAL COUNCIL
---------------------------
645.00
9,265.95
_____________________________
10,'670.00
(1,404.05)|
|
CLERK
Salaries
333.00
2,664.00
31900.00
(1,236.00)
Payroll Taxes
0.00
152.86
275.00
(122.14)
PRIA
0.00
84.90
275.00
(190.10) �
E cial Meetings
0.00
190.00
430.00
(240.00)
Elections
0.00
0.00
1,400.00
(1,400.00)
Printing and Publications
0.00
13.40
0.00
13.40
Office Supplies'
0.00
196.26
50.00
146.26
Mileage and Travel
0.00
0.00
100.00
(100.00)
--------------------------------------------------------
TOTAL CLERK
________________________________________________________
333.00
3,301'42
6,430.00
<3,1z8.58>
MAINTENANCE
Salaries
953'11
5,489.85
7,000.00
(1,510.15)
Inspection Fees
0.00
0.00
100.00
(100.00)
Overtime
0.00
0.00
333.00
(333.00)
Payroll Taxes
0.00
267'11
513.00
(245.89)
Workman's Comp. Ins.
0.00
0.00
300.00
(300.00)
PERA
0.00
159.11
513.00
(353.89)
Medical Benefits
16.67
133.34
168.00
(34.66)
Utilities
0.00
0.00
0'00
0.00
Supplies
77.45
588.00
700.00
(112..00)
Repairs & Maintenance
0.00
963.74
100.00
863.74
Gasoline
53.64
365.38
1,100.00
(734.62)
Rubbish
33.00
231.00
125.00
106'00
Capital Outlay
0.00
1,039.99
1,000.00
39.99
" ________________________________________________________
TOTAL MAINTENANCE
________________________________________________________
1,133'87
9,237.52
11,952.00
(2,714.48)
.
CITY OF ALBERTVILLE
GENERAL FUND
AUGUST 198
CURRENT
YEAR TO
YEAR TO
VARIANCE
MONTH
DATE
DATE
FROM
BUDGET
BUDGET
ADMINISTRATION
Salaries
1,338.46
11,870.76
17,473.00
(5,602.24)
Payroll Taxes
0.00
657.36
1,232.00
(574.64)
Workman's Comp. Ins.
0.00
0.00
54.00
(54.00)
PERA
0.00
390.74
1,232.00
(841.26)
Medical Benefits
50.00
250.00
500.00
(250.00)
Dues and Subscriptions
40.00
94.75
100.00
(5.25) �
.
Utilities
59.31
1,001.16
100.00
901.16 �
Printing and Publication
0.00
258.40
400.00
(141.60)
Office Supplies
68.33
1,105.82
400'00
705.82
Mileage and Travel
0.00
394'24
600.00
(205'76)
Insurance
0.00
4,686.00
3,200.00
1,486.00
Legal
161'50
2,030.67
1,600.00
430.67
Accounting & Bookkeeping
200.00
1,750.00
3,100.00
(1,350.00)
Audit
0.00
0.00
3,500.00
(3,500.00)
As-assor
0.00
2,075'75
2,600.00
(524.25)
BL ding Inspector
0.00
2,837.50
15,725.00
(12,887.50)
Interest Expense
0.00
1,220.85
5,000.00
(3,779.15)
Capital Outlay
0.00
2,679'17
0'00
2,679.17
. ________________________________________________________
TOTAL ADMINISTRATION
1,917.60
33,303.17
56,816'00
(23,512.83)
PLANNING AND ZONING
^
Meeting Per Diem
0.00
475'50
1,000.00
(524.50)
Printing and Publications
0.00
279.00
900.00
(621.00)
Legal
0.00
487.00
3,500.00
(3,013.00)
Recording Fees
0.00
0'00
0.00
0.00
__________________________________________________________
TOTAL PLANNING & ZONING
0.00
1,241.50
5,400.00
(4,158.50)
CITY HALL
Utilities
0.00
0.00
1,000.00
(1,000.00)
Telephone
71.63
524.99
800.00
(275.01)
Supplies
0.00
0.00
0.00
0.00
Repairs and Maintenance
0.00
334.15
300.00
34A5
Capital Outlay
0.00
0'00
1,500.00
(1,500.00)
__________________________________________________________
TOTAL CITY HALL
__________________________________________________________
71.63
859.14
3,600.00
(2,740.86)
POLICE PROTECTION
Projection Fees
1,642.50
11,406.25
21,000.00
(9,593.75)
__________________________________________________________
TOlAL POLICE PROTECTION
1,642.50
11,406.25
21,000.00
(9,593.75)
CITY OF ALBERTVILLE
GENERAL FUND
AUGUST 198
CURRENT
YEAR TO
YEAR TO
VARIANCE
MONTH
DATE
DATE
FROM
BUDGET
BUDGET
STREETS
Utilities
1,192.84
7,240.41
12,500.00
(5,259.59)
Suppilies
10.11
842.59
1,000.00
(157.41)
Repairs and Maintenance
9.18
1,209.82
300-00
909.82
Gasoline
27.44
240.49
1,000.00'
(759.51)
Snowplowing
0.00
144.20
1,000.00
(855.80)
Sand and Gravel
0.00
588.10
750.00
(161.90)
City Street Maintenance
180.00
1,186.67
1,500.00
(313.33)
Contractual Str' Maint'
0.00
157.50
7,800.00
(7,642.50)
Township Road Maintenance
150.00
1,035.00
1,000'00
35.00
Capital Outlay
0.00
0'00
600.00
(500.00)
________________________________________________________
TOTAL STREET
1,569.57
12,644.78
27,350.00
(14,705.22)
TOTAL EXPENDITURES EXPENDITURES
7,313.17
81,259.73
143,218'00
(61,958.27)
EXCESS OF REVENUES
OVER EXPENDITURES
(3,608.82)
13,703.57
0'00
13,703.57
REVENUES
General Tax Levy
Homestead Credit
Fire Aid
Fire Protection Fees
Interest on Investments
Donations
Refunds and Reimbursement
Other Revenues
TOTAL REVENUES
EXPENDITURES
Cheif Salary
Utilities
SV"lies
Re,.irs and Maintenance
Gasoline
Insurance
Education and Training
Dues
Fire Relief Association
Audit
Capital Outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES
OVER EXPENDITURES
CITY OF ALBERTVILLE
FIRE DEPARTMENT FUND
AUGUST 1986
CURRENT
YEAR TO
YEAR TO
VARIANCE
MONTH
DATE
DATE
FROM
BUDGET
BUDGET
0.00
4,795.17
9,947.00
(5,151.83)
0.00
1,434.83
3,315.00
(1,880.17)
0.00
0.00
1,863-00
(063.00)
3,708.38
8,283.16
8,800.00
(516.84)
0.00
0.00
0.00
0.00
0.00
1,350.00
0.00
1,350.00
0.00
0.00
0.00
0.00
0.00
------------------------------------
0.00
0.00
0.00
3,708.38
________________________________________________________
15,863.16
____________________
231925.00
(8,061.84)
0.00
0.00
200.00
(200.00)
3.98
535.82
800.00
(264.18)
62.45
438.17
300.00
138.17
0.00
610.66
500.00
110.66
0.00
171.55
300.00
(128.45)
0.00
3,861.00
4,500.00
(639.00)
0.00
0.00
1,000.00
(1,000.00)
0.00
0.00
125.00
(125.00)
0.00
81.00
3,000.00
(2,919.00)
0.00
0.00
200.00
(20&.00)
0.00
14,101.44
13,000.00
1,101.44
________________________________________________________
66.43
19,799.64
23,925.00
(4,125.36)
3,641.95
========================================================
(3,936.48)
0'00
(3,936.48)
REVENUES
General Tax Levy
Homestead Credit
Park Rental
Interest on Investments
Donations
Other Revenue
TOTAL REVENUES
EXPENDITURES
Salaries
Overtime
Payroll Taxes
Workman's Comp' Ins'
PE�"4
ML cal Benefits
Utilities
Supplies
Repairs and Maintenance
Gasoline
Planning of Park
Capital Outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES
OVER EXPENDITURES
CITY OF ALBERTVILLE
PARK FUND
AUGUST 1986
CURRENT
YEAR TO
YEAR TO
VARIANCE
MONTH
DATE
DATE
FROM
BUDGET
BUDGET
0.00
3,784'58
9,771.00
(5,986.42)
0.00
1,864.09
3,256.00
(1,391.91)
0.00
225.00
300.00
(75.00)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
---------------------------------------------------------
31.00
0.00
31.00
0.00
________________________________________________________
5,904.67
13,327.00
(7,422.33)
B75.33
5,447.29
`
7,000.00
(1,552.71)
0.00
0.00
333.00
(333.00)
0.00
267'11
513'00
(245.89)
0.00
0.00
300.00
(300.00)
0'00
159.11
513.00
(353.89)
16.66
133.34
167'00
(33.66)
14.74
190.41
700.00
(509.59)
3.33
323.72
200.00
123.12
9.18
297.83
500.00
(202.17)
15.35
38.33
200.00
(161.67)
0.00
0.00
400.00
(400.00)
500.00
--------------------------------------------------------
2,000.00
2,500.00
(500.00)
1,434.59
________________________________________________________
8,857.14
13,326.00
(4,468.86)
(1,434.59)
========================================================
(2,952.47)
1.00
(2,953.47)
City of Albertville
-
^ SCHEDULE OF CASH AND INVESTMENTS
August 31, 1986
weneral Fund - 1
Cash and Investments
Park Fund - 2
Cash and Investments
Fire Department Fund - 3
Cash and Investments
1960 S. A. Fund - 21
Cash and Investments
1973 S. A. Fund - 22
Cash and Investments
1976 S. A. Fund - 23
Cash and Investments
1977 S. A. Fund - 24
Cash and Investments
1979-1 S. A. Fund - 25
Cash and Investments
~0179 Ind. Park Fund - 26
Cash and Investments
1982 S. A. Fund - 27
Cash and Investments
1983 S. A. Fund - 28
Cash and Investments
1984 S. A. Fund - 29
Cash and Investments
1985 S. A. Fund - 30
Cash and Investments
T. I. Cap. Proj. - 40
Cash and Investments
Sewer Fund - 50
Cash and Investments
Clinic Fund - 51
Cash and Investments
Tax Increment D. S. - 60
SEE ACCOUNTANT'S COMPILATION LETTER
$ 84,035.56
( 2,452.48>
( 18,736.91)
1,671.48
48,067.97
31,657.22
' 47,506.01
128,310.64
512,537.36
86,238.90
179,362.45
5,534.72
( 63,892.14>
83,680.71
1,098,466.19
( 38,001.70)
City of Albertville
SCHEDULE OF CASH AND INVESTMENTS
Cash and Investments
TOTAL CASH AND
INVESTMENTS
August 31, 1986
SEE ACCOUNTANT'S COMPILATION LETTER
55,917.31
$ 2,239,903.29
==============
000
Public Financial Systems is redefining the role of
municipal government financial advisor.
PUBLIC FINANCIAL SYSTEMS • DECEMBER, 1986 • VOLUME III • ISSUE 4
FROM THE CHAIRMAN...
very happy Holiday Season and our best
Awishes for a prosperous 1987 to all of you
from all of us here at PFS. With all of the last
minute deadlines that have happened in
Decembers past, most of us approach the
season with great apprehension ... a fear that
we may reawaken that "Black Force" which
drives all tax and bond regulation. But, in fact,
we've seen the worst. Now we are all charged
with enthusiasm to make municipal
development efforts work within the new rules.
We face one grand challenge in 1987, and that
challenge will be met.
1986 has been a year of dramatic change — not
just in the industry, but for PFS as well. We
added a new partner, Ms. Rebecca Yanisch,
and we welcome the talent and the friendly
professionalism she brings. We even let her call
us by our first names. We added a new
element, the Development and Planning Group,
that has met with solid success in the areas of
market analysis and in dealing with broader
urban economic issues. Mark Winkelhake,
Director of our Software Development Group,
and his wife, Val, recently added a new
member to their family! They named him Dan,
which qualifies him for the "Dan O'Neill
Employee Dependent Scholarship" program.
We have also increased our office space in
response to the demands made by our artificial
intelligence equipment (hardware) and our
humanware. The grumbling over who gets to sit
closest to the refrigerator has stopped and all is
at peace at PFS. Heck, even the deadly serious
Kathy Aho is in a festive spirit and showing
sparkling good humor for this time of year.
Now, as we stand in the dawn of 1987, we
would like to heartily thank all of you that have
supported us and showed such great confidence
in these first five years of our development. We
think we've come a long way, and not without
the occasional ups and downs that are part of a
developing new business venture. We recognize
that our success and progress today is because
of our many friends who trusted us.
THANKS!!
Once again, we wish each of you the happiest
of holidays, even though a "Grinch has stolen
our tax exempt Christmas"!
Sincerely,
TAXABLE
MUNICIPAL
DEBT
The Tax Reform Act of 1986 has
prompted municipal issuers to
explore the taxable debt market as an
alternative to what could be considered
the more traditional financing vehicles
of the past. Thus far in 1986, municipal
issuers have brought to market more
than $2.9 billion in taxable financings.
There are three primary reasons that
the taxable fmancing has become a
more acceptable alternative to
municipal issuers. First, the Tax
Reform Act has greatly limited the
ability of issuers to use the tax exempt
market to finance projects which now
fall under the definition of "private
activity bonds". The inclusiveness of
projects that fall under the definition of
"private activity" and the additional
complication of the allocation process
have made the taxable market an
appealing alternative. Second, the new
tax law has created more
comprehensive requirements for
compliance with arbitrage restrictions.
The flexibility of investing bond
proceeds at a rate higher than the bond
yield and using those earnings to
effectively reduce the costs of a project
is only available on a very limited basis.
Finally, while both taxable and tax
exempt rates have fallen, taxable rates
have experienced a sharper decline than
their tax exempt counterparts thereby
narrowing the spread between a taxable
and tax exempt transaction.
The taxable market exhibits several
characteristics that are unique from the
more familiar tax exempt marketplace.
The primary purchasers are almost
exclusively institutions. Because of the
liquidity requirements necessary for
trading among the institutions, taxable
issues tend to be large and uniform in
structure. Issues are often larger than
$100 million with maturities of three,
five, seven, ten, fifteen, twenty, and 1"00
thirty years, although much smaller
issues with serial maturities are possible.
Pricing in the taxable market is
generally based on one of two
standards. Fixed rate debt is priced at a
spread above the yield available on
United States Treasury Securities of a
comparable maturity. The magnitude
of the spread is determined by a variety
of factors: supply; demand; quality of
the credit; size; and maturity. The more
closely a municipal issue resembles a
corporate issue in size and maturity, the
smaller the spread. Variable rate taxable
pricing is generally based on the
London Interbank Offered Rate
(LIBOR). This index has become the
common basis for pricing both
domestic and European floating rate
debt.
Experience will be the only indicator of
how and if the taxable market will
adjust to accommodate the municipal
issuer. If the spread between taxables
and tax exempts remains small, many
more issuers will enter the market.
Several new ideas have been developed
to help the municipal issuer take
advantage of the arbitrage opportunities
and overcome the size of issue barrier.
If successful, these new financing
packages will encourage more
municipalities to become a part of the
taxable market. ■
DATE OF
BOND SALE
MONTH/DAY
ISSUER
SUMMARY
ISSUER POPU-
TYPE STATE LATION
OF BOND SALES
TYPE OF
ISSUE AMOUNT
RATING
NET
INTEREST
RATE
MATURITY
SCHEDULE
AVERAGE
MATURITY
I1/24
LINO LAKES
CITY
MN
4,966
GO IMPR
475,000
A
5.33007o
88/97
3.98
11/24
ZUMBRO FALLS
CITY
MN
208
GRANT ANTIC
345,000
NR
5.050%
-
-
11/24
ZUMBRO FALLS
CITY
MN
208
GO SEWER TREATMENT
200,000
NR
7.035%
88/05
11.67
11/25
MILWAUKEE
CITY
WI
36,212
GO LOCAL IMPR UT
1,885,000
-
4.785%
87/92
3.33
11/25
MILWAUKEE
CITY
WI
36,212
GO SHORT TERM PROM NTS
1,200,000
-
4.39007o
87/89
2.00
I1/25
PLAINVIEW-ELGIN SWR DIST
-
MN
-
GO GRANT ANTIC
1,090,000
NR
5.146%
87/89
-
11/25
PLAINVIEW-ELGIN SWR DIST
-
MN
-
GO SEWER REV
1,300,000
NR
6.826%
89/06
-
12/ 1
ST ANT/NEW BRIGHT ISD 282
SCHOOL
MN
-
13 MO TAX ANTIC C OF 1
2,175,000
NR
4.290%
-
-
I2/ 1
MARSHALL
CITY
MN
11,161
GOIMPR
270,000
A
5.662%
88/98
-
12/ 1
CEDAR FALLS
CITY
IA
36,322
GO
2,100,000
Al
6.130%
88/02
10.70
12/ 1
SILVER LAKE
CITY
MN
698
GRANT ANTIC
300,000
NR
4.990%
-
-
12/ 1
SABULA
CITY
IA
824
STREET IMPR UT
40,000
NR
6.000010
88/95
5.00
I2/ 1
KENSETT
CITY
IA
360
CORP PURP UT
55,000
NR
6.473%
87/96
5.50
12/ 2
NEW RICHMOND
CITY
WI
4,306
GO SEWER RFDG
1,685,000
A
6.270%
89/03
10.76
12/ 2
NEW RICHMOND
CITY
WI
4,306
GO ELEC UTIL
740,000
A
6.500%
88/06
12.41
12/ 2
BLUE EARTH
CITY
MN
4,132
GO GRANT ANTIC
650,000
Baa
5.0709/9
-
2.50
12/ 2
BLUE EARTH
CITY
MN
4,132
GO SEWER REV
1,775,000
Baa
6.920%
90/09
15.13
12/ 2
ELDON
CITY
IA
1,255
IMPR UT
265,000
NR
6.551%
88/02
9.83
12/ 2
WESTWOOD COMM SCH DIST
SCHOOL
IA
-
SCHOOL UT
5,880,000
NR
6.632010
88/06
12.33
12/ 3
HASTINGS ISD #200
SCHOOL
MN
-
13 MO TAX ANTIC C OF 1
3,280,000
NR
4.440%
-
-
12/ 3
MOVILLE
CITY
IA
1,273
CORP PURP
100,000
-
-
88/97
6.00
12/ 3
BROOKFIELD
CITY
WI
34,035
GO PROM NOTES UT
1,650,000
Baa
6.020%
88/96
8.19
•BBI not availablc at time of printing.
ARBITRAGE AND TAX REFORM
k-
Wtth the passage of the 1985 Tax
Reform Act, arbitrage has
moved from the endangered to the
vanishing species list. The
opportunities for a state or local
government to benefit from the
investment of bond proceeds has
been virtually eliminated.
The arbitrage provisions set forth in
section 148 of the code consist of
three distinct limitations:
1. Investment yield
2. Reserve fund sizing
requirements
3. Rebate requirements
In general, the investment of bond
proceeds is limited to a ratio which is
not materially higher than the yield
on the bonds. The yield on the
bonds is determined on the basis of
the issue price of the bond. Issue
price is defined as the initial offering
price to the public, at which price a
substantial amount of bonds were
sold. To the extent possible, issuers
are allowed to earn back the cost
of insurance and some letter of
credit fees.
In addition to the investment
restrictions that also apply to reserve
funds, the sizing of the reserve fund
is limited to 10% of the proceeds of
the bonds. Without regard to the
investment yield of the reserve fund,
the bonds become taxable if the
sizing limitation is exceeded.
The new law requires rebates of the
excess of the amount earned on
invested bond proceeds, over the
amount which would have been
earned on such proceeds had they
been invested at the bond yield. Even
the earnings from the allowed higher
yields earned during the permitted
three year temporary period or on a
permitted reserve fund would be
subject to the rebate provisions. In
certain cases, issuers are exempt from
the rebate provisions. Issuers whose
annual borrowing does not exceed
$5,000,000 and issuers who expend
all proceeds within six months from
the date of issue need not comply
with the rebate provisions.
The bottom line of the volumes
written analyzing and describing tax
reform is that there are very limited
opportunities for money to be made
by investment in non -purpose
obligations. With arbitrage virtually
a thing of the past, issuers are
investigating more flexible financing
vehicles, particularly in the taxable
market that may replace lower tax-
exempt rates with a program more
closely matched with an issuer's
objectives. ■
Public Financial Systems offers
arbitrage monitoring and rebate
evaluation services. For more
information call Greg Anderson,
(612) 333-9177.
The Minnesota Institute of
Public Finance, Inc. (MIPF)
recently appointed Ms.
Kathleen Aho, President of
PFS, and board member of the
MIPF as Vice President of
State Legislation.
For more information -------------------------------
please fell out this card I
and mail it to PFS I Please send me information on:
today, El Public Finance ❑ Arbitrage Rebate Analysis
I ❑ Development Analysis ❑ Computer Software
I ❑ Technical & Analytical Services
I
I
I
I ❑ Please have a consultant contact me.
jI ❑ I am not currently receiving the PFS newsletter, please add me to your
mailing list.
I
I Name
I
j Title
I
Government Unit
I Address
I State Zip
I
Phone
Vol. III, Issue 4
I
I
Welcome To Suite 550:
On November 1, Public Financial
Systems welcomed Richardson,
'-hter and Associates, Inc. to share
.ice space and support services.
Mary Richardson and Trudy Richter-
Gasteazoro are public advisors for
communities and counties
entertaining complex public projects
such as wastewater treatment, solid
waste and jail facilities.
Both Ms. Richardson and Ms.
Gasteazoro bring a myriad of special
skills to assist public entities in
developing and coordinating the
procurement process and negotiating
contracts with equipment vendors,
owners and operators to provide the
community with the best public
services for the lowest cost.
Ms. Richardson and Ms. Gasteazoro
have worked, published and lectured
on privatization for the last four
Education Finance Unit
Recently, PFS created an Education
Finance Unit (EFL) within the
company. The purpose of this group
is to meet the present and future
needs of public education. Due to
the changes that are continually
happening within school districts,
many school officials and board
members face challenges that have
long-term financial implications. The
EFU is available for schools that are
-ig these changes and the
hiuividuals who make up the EFU
have the experience to make the
challenges less complex.
The EFU is composed of four
individuals who have experience as
School Board members, school
administrators, and financial advisors
to school districts for a time period
that spans 30 years. They have
assisted over 120 Minnesota school
districts in the areas of bond
elections, bond sales, rating reviews,
tax impact studies, anticipatory
borrowing and reinvestment
opportunities.
If you would like more information
or have any questions with regard to
how the Education Finance Unit
could be of help to you, please feel
free to call PFS at (612) 333-9177 and
ask for Lisbeth Hiller.
years. They have acted as legal
counsel, project manager and
consultant to a variety of large
privatization projects in Minnesota.
If you would like to contact
Richardson, Richter and Associates,
Inc., please call (612) 334-3210.
---------------------------------------------
NO POSTAGE
NECESSARY
IF MAILED
IN THE
UNITED STATES
I
I
I
BUSINESS REPLY MAIL '
FIRSTCLASS PERMIT NO.21049 MINNEAPOLIS,MN I
I
Postage will be paid by addressee
I
Public Financial Systems I
Suite 550
512 Nicollet Mall
I
Minneapolis, Minnesota 55402-9990 I
I
I
I
I
I
I
Conferences coming
up in January...
include the Association of
Minnesota Counties, January
18-20 and the Minnesota
School Board Officials
(to be held at the Minneapolis
Auditorium), January 19
and 20.
For weekly calendar updates
please call the Municipal
Bulletin Board System.
(612) 342-2970.
a a SL
PUBLIC FINANCIAL. SYSTEMS
512 NICOLLET MALL, SUITE 550
MINNEAPOLIS, MINNESOTA 55402
TELEPHONE: (612) 333-9177
1J
1.0)
Li Newsletter
Vol. 1 No. 2 - December, 1986
In this issue:
• Federal Update .......... pg 1
A brief view of the Tax
Reform Act and a 1987
congressional forecast.
• Season's Greetings ........ pg 1
• The Capital Markets ..... pg I
Interest in tax exempt
bonds strong.
• Qualified
Redevelopment Bonds:
Are They Possible? ....... pg 2
A look at the new tests
to retain tax exempt status.
• Weekly Interest Rates
Indicator ................pg 3
A two year comparison
of the Bond Buyer Index
for G.O.'s and Prime.
• ')rairabTe Bonds -
A Developing Breed ...... pg 3
One option available to
municipalities that works.
Federal Update
by Louis G. DeMars, Vice President
1986 was the year of tax reform. The
2009-page tax simplification and tax
reform package was signed into law
(the Tax Reform Act of 1986, hereinaf-
ter referred to throughout this Newslet-
A publication for municipal officials
ter as the "Act') by the President on
October 22. The Act sharply curtailed
the ability of local government to use
tax-exempt bonds for many types of
projects which have been eligible in the
past. For the first time the federal
government, through the device of an
alternative minimum tax on individu-
als and the alternative minimum tax on
corporations, is taxing the interest
from non -essential function tax-
exempt bonds. Undoubtedly there will
be several court challenges to this
unprecedented invasion of local govern-
ment's right to determine what a public
purpose bond is. These restrictions will
sharply curtail redevelopment bonds
that traditionally have been tax-
exempt. It is possible under the new
Act for a city to issue general obligation
bonds that must be taxable because the
federal government has too sharply
defined what public purpose is.
In addition, the next Congress must
deal with at least 78 pages of technical
corrections in the 2009-page bill. Hope-
fully this will be done through a Tech-
nical Corrections Act in 1987. Issuers
must be alert while the corrections are
written as pressure to meet the Gramm
Rudman target numbers could lead to
attempts to alter the Act substantially.
It is estimated that the deficit next year
will be about $180 billion, which will be
far from the Gramm Rudman target
numbers. In fact, it is anticipated that
five items in the federal budget will cost
more than the total projected federal
income for next year. These items are
Medicare/ Medicaid, federal salaries,
Social Security, interest on federal debt
and Defense. Any other activities
engaged by the federal government will
have to be funded from borrowed
money, or at local governments
expense as a result of reduced federal
funding. continued on page 4
Season's
Greetings
Miller & Schroeder Financial, Inc. wel-
comes this opportunity to thank all our
friends and clients for their new and
continuing business in 1986.
This has been a year of great change
within our industry, providing 1987
with the promise of new and exciting
opportunities. In the upcoming year
our goals are to focus on the continuing
development of creative and flexible
financing methods and the continuing
process of keeping you informed and
involved with relevant financing issues.
Working together we can meet the chal-
lenges we are faced with in our "post tax
act" environment.
Miller & Schroeder wishes each of you
and your families a happy holiday sea-
son and a prosperous New Year. ■
The Capital
Markets
by Michael Schroeder, Vice President
With the advent of the Tax Reform Act
of 1986 has come a new era in munici-
pal finance. A great deal of energy has
been devoted recently toward analysis
of the effects of tax reform on present
forms of financing, and much thought has
already been given to new forms of
financing.
The elimination of certain tax advan-
taged investments has helped keep
demand for tax-exempt bonds strong
so far in 1986. Though rates on munici-
continued on page 3
Qualified Redevelopment Bonds:
Are They Possible?
by Mary Molzahn, Underwriter
Traditionally tax increment bonds
supported by the issuer's full faith and
credit were issued to finance the acqui-
sition and preparation of land and
infrastructure improvements such as
streets and sidewalks. Under the Act
bonds issued for these purposes must
meet the criteria listed below in order to
be tax-exempt and are subject to the
state volume cap.
If private party payments, including
land sale proceeds, exceed 10% of the
principal of and interest on the bonds
and property financed with bond pro-
ceeds is used in the trade or business of a
person other than a governmental unit
then the bonds are considered private
activity bonds. As a result, most tax
increment secured redevelopment
bonds issued to acquire and prepare
land for redevelopment are now consi-
dered private activity bonds. To retain
their tax exemption, these bonds must
qualify as "qualified redevelopment
bonds" and the following conditions
must be met:
4. Payment of debt service on qualified
redevelopment bonds must be
secured primarily by taxes or tax
increment.
5.
which qualifying activities were in
progress on such date are not subject
to the 20% rule, but no new districts
may be designated, or existing dis-
tricts expanded until the jurisdiction 6.
complies with the 200,70 limit.
3. Qualified redevelopment bonds
must be issued pursuant to a state
law authorizing the issuance of such
bonds to redevelop blighted areas
and pursuant to a redevelopment
plan adopted by the governmental
unit prior to issuance. Findings of
blight are to be based on a finding of 7.
a substantial presence of the statu-
tory criteria for blight. Redevelop-
ment plans adopted for districts
established before August 15, 1986,
need not be resubmitted, however,
any new bonds issued for activities in
such districts must meet the other
criteria for qualified redevelopment
bonds.
1. Qualified redevelopment bond pro-
ceeds must be used in a designated
blighted area for one of the follow-
s i.00
ing redevelopment purposes:
• acquisition of real property (by a
governmental unit with eminent 10 00
domain powers):
• clearance and preparation for 9.00
redevelopment of land acquired
by such governmental unit: 8.00
• rehabilitation of property ac-
quired by the governmental unit 7.00
(new construction may not be
financed):
6.°°
• relocation of occupants of such
real property.
2. Designated blighted area is defined
as an area designated by the govern-
ing body of a local general purpose
governmental unit. In general,
designated blighted areas may not
exceed 20% (by assessed value) of
the governmental unit. Districts
designated before January 1,1986 in
Real property acquired by a
governmental unit with proceeds of
such bonds and transferred to a per-
son other than a governmental unit
must be transferred for fair market
value.
Redevelopment districts are now
subject to a minimum size require-
ment of 100 contiguous acres or
more. The only exception being if
the area is at least 10 contiguous
acres and no more than 25% of bond
proceeds used to finance land is pro-
vided to one person or group of
related persons.
A new limit of no more than 25% of
bond proceeds can now be used for
the following facilities or for land to
locate such facilities on: health
clubs, retail food and beverage
establishments, recreation or enter-
tainment facilities, tennis clubs,
skating facilities, racquet sports
facilities, health club facilities and
automobile sales or service facilities.
Weekly Interest Rates Indicator
�
1
0
• • • • • • • • • General Obligation Interest Rates 1986
Prime Interest Rates 1986
• • • • • • • • • General Obligation Interest Rates 1985
Prime Interest Rates 1985
'Names of the twenty general obligation issues used to
indicate average interest rates are available upon request.
w
a
No proceeds may be used to finance
the following facilities or the land to
locate such facilities on: private or
commercial golf courses, country
clubs, massage parlors, hot tub facil-
ities, sun tan facilities, race tracks or
other facilities used primarily for
gambling and liquor stores.
8. The Act additionally requires that
property taxes in designated areas
must be imposed at the same rate
and in the same manner as for sim-
ilar property located within the
municipality. Also no additional
fees or charges may be imposed that
are not imposed on similar property
(insubstantial fees such as parking
are not includable). This particular
requirement could possibly prevent
a municipality from issuing quali-
fied redevelopment bonds if a spe-
cial assessment district lies solely
within the redevelopment district
and the assessments are more than
insubstantial.
The restrictions imposed by the Act
have made it difficult if not impossible
for issuers to finance redevelopment
activities with tax-exempt bonds. As a
result, municipalities are being forced
into the taxable bond market for most
financings other than infrastructure
improvements. ■
Capital Markets,
continued from page 1
pals have recently stabilized, mid have
actually lagged slightly behind the
strong Treasury bond market, they
have nonetheless declined significantly
this quarter.
The Bond Buyer Index recently stood
at 6.74% and the Revenue Bond Index
at 7.16%, both of which remain near
their seven-year lows. The traditional,
essential -function issues, which comprise
most of these indexes have fared well of
late. General obligation bonds in par-
ticular have remained popular among
security -conscious investors, and de-
mand from banks for "qualified" issues
of less than $10,000,000 has been
strong.
Cities with debt rated "A" by Moody's
Investors Service have been able to
borrow at rates of 5%, 6% and 6.5% for
five, ten, and fifteen year maturities,
respectively as recently as early Decem-
ber. Short-term rates are especially
attractive to some municipalities; the
state of Texas recently sold $600 mil-
lion in one-year notes at an average rate
of less than 4%.
Given these attractive low rates, many
issuers of industrial revenue bonds are
rushing to close IDB issues before
December 31st, after which many such
issues will be severely restricted and/or
eliminated by tax reform. Most of these
non -essential function bonds have car-
ried interest rates between �/4 to '/z%
higher than their essential -function
counterparts; because they are subject
to the Alternative Minimum Tax. As
an alternative to tax exempt financing
of housing, industrial development and
pollution control facilities, numerous
agencies have begun to tap the credit
markets for taxable municipal bonds
— a vehicle which has become increas-
ingly popular over the last sixty to
ninety days.
New York, Maryland, Massachusetts,
Louisiana, Colorado, California and
Minnesota are among many states in
which taxable financings for housing
and IDBs have taken hold. Several of
these have carried some form of credit
enhancement, i.e., bond insurance or a
bank letter of credit, to take full advan-
tage of the demand for quality and
yield. Because these AAA rated taxable
municipals can be sold at yields below
9% in most cases, they are a viable
alternative for issuers. And, since these
yields represent an acceptable spread
over what Treasury bonds are yielding,
many institutional buyers find them a
desirable addition to their portfolios.
Demand has also been high for taxable
general obligation bonds, which offer
banks and insurance companies the
opportunity to continue to participate
in the municipal bond market, and
provide a vehicle whereby cities and
counties can finance tax increment dis-
tricts and land acquisition.
So, even though the complexion of the
capital markets has begun to change
this year, it seems that financial consul-
tants, underwriters and issuers have
already begun to address these changes
and take advantage of today's market
interest rates. The year ahead should
provide many opportunities for issuers
who have a firm grasp of how tax
reform has affected them. ■
Taxable Bonds:
A Developing
Breed
by Steve Vincent, Vice President
The recently enacted tax code has
severely limited the ability of cities to
raise capital by issuing tax-exempt
bonds. This is particularly true for
economic development projects. For-
tunately, there is an alternative —
TAXABLE BONDS! Capital for pro-
jects prohibited by the Tax Reform Act
of 1986 can be financed with taxable
obligations issued by municipalities
and agencies.
Taxable bonds may be used to finance
almost any project. These might include
hospital bonds, industrial development
bonds, pollution control bonds, hous-
ing bonds or general obligation bonds
issued to finance special projects (per-
haps a golf course or ice arena). Cur-
rently, few limitations on taxable
municipal obligations are prescribed by
law.
The strength of the bond market and
the resulting low interest rates has
created an opportunity for issuers to
sell bonds at very favorable rates. Many
projects can be economically financed
using taxable bonds in this interest rate
environment. Rates haven't been this
low for nearly ten years.
The market for taxable municipals
continues to grow. In 1986 there was
over four billion dollars worth of bonds
issued. Pension funds and insurance
companies have been the largest con-
sumers of these issues. As more inves-
tors get involved in this expanding
market their appetite for bonds will
grow.
In response to the Act's limitations on
tax-exempt bonds, Miller & Schroeder
has added a staff of professionals dedi-
cated solely to this emerging market. 0
Federal Update,
continued from page 1
Municipalities are still vulnerable to
future assaults on tax-exempt bonds,
elimination of the deduction for local
property taxes and state income tax
and additional cuts in federal aid to
states and local governments.
In addition to severely restricting
bonds and cutting back on federal aid
to local government, the Act will have a
devastating effect on manufacturing
companies, multifamily housing pro-
jects and other types of real estate
investment. While the Act presumably
cuts taxes to individuals, this tax cut is
recovered by raising that money from
the corporations in America.
The elimination of many types of
deductions and investment tax credits
will benefit service corporations in the
form of lower taxes, but again it is at
the expense of manufacturing facilities.
While the maximum tax rate has been
dropped from 46% to 34%, the elimina-
tion of many deductions may result in
the actual taxes paid by manufacturing
companies being drastically higher.
This may cause some major corpora-
tions to shift their emphasis away from
the U.S. and manufacture in foreign
countries. Cities will have to be alert
and aggressive in order to keep the
manufacturing facilities that exist in
their cities. In addition, the predicted
slowdown in new multifamily and
other real estate projects should cause
the tax base to grow at a slower rate,
producing more pressure on city
budgets.
Miller & Schroeder Financial, Inc.
P.O. Box 789
Minneapolis, Minnesota 55440
Other problem areas that will create
additional financial pressures on local
governments relate to welfare reform
and the President's pocket veto of the
Clean Water Bill of 1986. This means
that local government will have to find
new and innovative ways to raise funds
or finance typical municipal expenses.
The investment banking industry is
obviously looking at all of these prob-
lems. Potential solutions are already
being used by a few cities, although the
volume has been low so far. These solu-
tions include taxable general obligation
bonds, taxable industrial development
bonds and taxable revenue bonds.
Additionally, many cities are looking at
the potential for sale lease -back opera-
tions of projects for sewer and water,
parking ramps and bridges. I am sure
that through the joint efforts of cities
and private industry we will find a solu-
tion to the problems that have been
created by the Act. Those solutions,
however, will mean higher total costs
over a period of time for local govern-
ments. From a city's viewpoint tax
reform signals a shift in the tax burden
from federal government to local
government and from individuals to
manufacturing companies, emphasiz-
ing the need to watch what happens in
Washington.
Every municipality in the country
should consider following the technical
correction and reform activity a top
priority in the months to come.
Miller & Schroeder Financial, Inc.
P.O. Box 789
Minneapolis, Minnesota 55440
(612)831-1500
Co-editors: Mary E. Molzahn
Denice K. Holstad
A special thanks to the
contributing authors for their time
and cooperation.
A Newsletter for
Ad
Community Leaders
/► published by
Minnegasco, Inc.
^ r.
Volume 1, Number 2
Update is published for community leaders in areas served by
Minnegasco, Inc., in Minnesota, South Dakota and Nebraska. The
quarterly newsletter provides information on issues facing com-
munity leaders today in the areas of energy use and manage-
ment. Topics will include key national and regional, as well as
local, energy issues and events that are of interest to you, your
NATURAL GAS CITED AS A
GOOD BET FOR THE FUTURE
Natural gas was highlighted as "a good bet for the future" in
.. the October issue of Rodale's Practical Homeowner magazine,
formerly New Shelter magazine.
"Home Energy Update;' by Don Best, compares gas, oil, elec-
tricity, wood and solar energy for home heating, and concludes:
'All things considered, natural gas shapes up as the
homeowner's most economical bet for the future"
Why?
Low prices: "Gas is still less expensive than the competition
on a BTU -for -BTU basis"
Abundant supplies: 'Abundant supplies of domestically pro-
duced gas" will help keep prices stable. U.S. Department of
Energy estimates world reserves at 3,401.8 trillion cubic feet.
Better technology: "Modern furnaces and boilers can achieve
efficiencies better than 90 percent"
Increased competition: "Increased competition among pro-
ducers" creates a competitive energy marketplace.
CANADA DECONTROLS GAS PRICES
The Canadian government announced a gas decontrol policy,
effective November 1, 1986, that should lower the price at which
Canadian gas can be exported to the U.S. It makes the possibility
of the government -decreed export shut -offs that have occurred
in the past much less likely.
Canadian domestic prices will not be subject to buyer -seller
negotiation. Users can now sign supply agreements with
--Canadians with much more confidence of continuous service
.nan in the past.
Minnegasco signed contracts in September 1986, gaining
access to a second major natural gas pipeline system that will
transport Canadian gas to our Minnesota customers.
Winter 1986
constituencies and our company.
Reader comments and suggestions are encouraged. If you have
any questions, would like additional information about issues men-
tioned in Update, or have suggestions for future articles, please
contact the public affairs administrator for your area.
GAS HEATING OUTLASTS
ELECTRIC HEAT PUMPS
Natural gas heating systems last longer than electric heat
pumps, according to a survey of heating contractors.
The nationwide survey by Easton Consultants, Inc., of about 500
contractors reveals natural gas furnaces last an estimated .
average of 18 years, while electric heat pumps last only 12 years.
The survey also shows electric heat pumps break down more
often and cost more to repair.
The survey, conducted for the American Gas Association, also
reveals that electric heat pump compressors have a service life
of only eight years and that replacement compressors cost 40
to 45 percent of a new unit's total costs, while natural gas heating
systems have no comparable high -cost parts to replace.
Years Heating Equipment Service Life
20
15
10
Electric Heat Electric Heat Natural Gas
Pump Compressor Pump Unit Heating System
,„...
MINNEGASCO SERVICE AREA SEASONAL DEMAND
n DRIVES PRICE FLUCTUATION
Minnesota
South Dakotas
Minnegasco distributes
Nebraska
natural gas to 224
communities in a
;�; :" si.�•
three -state area:
�+
152 in Minnesota,
57 in Nebraska, and
15 in South Dakota.
'?,r
NORTHERN OPENS SYSTEM
OCTOBER 1; FINAL FEDERAL
APPROVAL PENDING
Acting under Federal Energy Regulatory Commission (FERC)
Order No. 436 that encourages the establishment of open
transportation policies by interstate pipeline companies, Northern
Natural Gas Company (Northern) provided temporary 'open
access" to its system to transport interruptible natural gas
supplies on October 1, 1986. The action is an interim measure
pending final approval of Northern's rate case settlement by
FERC.
Minnegasco is now purchasing some short-term supplies of
natural gas directly from producers, or marketers, at costs lower
than those charged by Northern, paying Northern a transpor-
tation fee to bring the gas to Minnegasco's pipelines. These new
natural gas supplies are used for general system supply and
for large -volume industrial end -users where Minnegasco acts
as a purchasing agent for the customer.
As long as open transportation is available,
Minnegasco will continue to seek out lower -
priced gas supplies from a variety of sources,
blending these lower -priced spot market
purchases with long-term supply contracts
for reliability.
,-,As long as open transportation is available, Minnegasco will con-
inue to seek out lower -priced gas supplies from a variety of
sources, blending these lower -priced spot market purchases with
long-term supply contracts for reliability. Minnegasco's goal is
to obtain the lowest -priced portfolio of gas supplies for our
customers, consistent with maintaining reliable supplies.
Although Minnegasco prices are lower overall due to deregula-
tion and open transportation, suppliers' prices are moving up
and down frequently depending upon competitive market
conditions.
Northern Natural Gas Company (Northern), our main supplier,
lowered its purchased gas prices three times between June and
November when customer demand was low and lower -priced
gas was available. The onset of the winter heating season
brought higher customer demand and firming prices. Northern,
in turn, increased its price on December 1, reflecting the in-
creased gas costs Northern pays its suppliers.
Minnegasco expects prices may change monthly as our
suppliers alter their prices to reflect changing demand in the
marketplace, with price declines expected in the spring as
demand softens.
Minnegasco will continue to keep customers informed of price
changes as they occur. Watch for articles in the In Touch news-
letter that is enclosed with customers' bills.
INTERLINKsm SERVICE
PRESENTS OPTIONS FOR
LARGE VOLUME CUSTOMERS
Minnegasco customers who use large volumes of gas, typically
10,000 thousand cubic feet (MCF) or 100,000 therms of gas or
more per year, have many opportunities available to them since
Northern Natural Gas Company (Northern) provided temporary
'open access" to its system to transport interruptible natural gas
supplies on October 1.
To assist large -volume customers in managing their energy
needs, Minnegasco offers a new service called InterlinksM.
Through this service Minnegasco packages customized energy
programs to meet each customer's specific needs.
Under the Interlink service umbrella large -volume customers can
continue to purchase gas from Minnegasco in the traditional
manner. They can also purchase fuel directly from a producer
and pay transportation fees to Northern and Minnegasco for
delivering it. If they transport gas on their own, they must be
responsible for managing daily deliveries and assuring reliable
supplies.
If cost savings for the customer can be realized by purchasing
natural gas on the spot market, Minnegasco makes those
arrangements. It will also arrange for the transportation of gas
and daily management of accounting and billing.
David Osgood, manager of the Interlink service, stated, 'The
gas price for large -volume customers can change by the
week... or the day... or even the hour. In the long -run with
deregulation and open transportation, the price of gas will be
determined by market forces and the price of competition. With
Interlink service we can help our business customers or anyone
else determine what their energy options are and help secure
them"
Community Update,.-' .x Y
MINNEGASCO EMPLOYEES SPEAK
OUT ON CURRENT ENERGY ISSUES
One way Minnegasco keeps customers informed about current
energy issues is through the Minnegasco speakers bureau.
Employees speak to business and civic groups throughout the
company's three -state service area on a variety of energy -related
subjects of particular interest to customers. The topics they speak
on include: Minnegasco in your community; pricing, supply and
demand; new technology; and wise and safe use of energy.
In the first three quarters of 1986 Minnegasco employees spoke
to 68 different groups, addressing 2,595 customers.
For more information or to schedule a speaker, please call (612)
342-4668. Feel free to call collect.
Diversified Energies; Inc. (DEI) is an energy services, products
and communications corporation, headquartered %in -
Minneapolis. The company is traded on the New York Stock
Exchange under the symbol: DEI. Its major businesses are
natural gas distribution through Minnegasco, Inc.; oil and gas
exploration and production through Dyco Petroleum Corpora-
tion; mobile communications through E.F. Johnson; and energy
management through EnScan, Inc.
MINNEGASCO PURCHASED
NEW METER READING SYSTEM
FROM ENSCAN
Minnegasco signed a contract to purchase the AccuReacITM
meter reading system from EnScan, Inc., a Minneapolis -based
subsidiary of Diversified Energies, Inc. (DEI).
The AccuRead system allows utilities to read customers' meters
by simply driving a van specifically equipped with computerized
scanners through metered residential areas. The system can
read up to 15,000 meters in a single, eight -hour work -day, com-
pared to about 300 meters read by the traditional method of
walking the route.
,n initial purchase of 50,000 meter indexes and two receiving
units will cost $2.9 million and will be installed on customers'
meters in the Minneapolis area. About 300,000 of Minnegasco's
600,000 customers are in the Minneapolis metropolitan area.
EMPLOYEES UNITED WAY
CONTRIBUTIONS TOTAL $85,000
Minnegasco employees contributed more than $85,000 to 1986
United Way Campaigns held in Minnesota area communities,
Sioux Falls area, Nebraska communities, and the Minneapolis
Metro area. The amount of contributions per region coincides
with the locations of Minnegasco employees.
Minneapolis metro employees increased their pledges by 17
percent over last year, exceeding $70,000 for the first time.
Minnesota area employees increased their pledges by seven
percent over 1985, reaching all 78 communities which Min-
negasco serves with contributions totaling $6,150.
Sioux Falls area employee participation resulted in $2,375 be-
ing pledged for the next year, plus an additional $472 raised
with a raffle.
Nebraska's campaign was highlighted by a 275 percent
increase in Beatrice, where employees received a letter of
commendation from the chairman of the United Way utilities
division. Total Nebraska contributions were $7,712, up slightly
from last year.
Minnegasco also gave corporate contributions to the United
Way, an organization which boasts that '91 cents out of every
dollar go to a service that reaches someone in need"
Minnegasco plans to install the AccuRead system throughout
most of its three -state service area over the next four to seven
years. That plan would require the purchase of an additional
400,000 meter indexes and eight additional receiving units.,
John D. Somrock, president and chief operating officer of
Minnegasco, said that Minnegasco's decision to purchase the
AccuRead system was made following an extensive field evalua-
tion on about 2,000 of its residential customers' meters, most
of which were inside meters.
"it will enable us to not only virtually eliminate
estimated meter readings, but to simultaneously
increase productivity, reduce overall operating
costs, speed information gathering and process-
ing, and improve customer service..:'
'The system operated at near 100 percent accuracy in field
evaluation and proved its capabilities as a system that will result
in more cost-effective, accurate, and timely meter reading and
customer billing operations,' Somrock said. "It will enable us to
not only virtually eliminate estimated meter readings, but to
simultaneously increase productivity, reduce overall operating
costs, speed information gathering and processing, improve
customer service and overall operating efficiencies, and eliminate
customer inconvenience caused by having to gain access to
homes to read inside meters"
Minnegasco
201 South Seventh Street
Minneapolis, MN 55402
FIRST-CLASS MAIL
U.S. POSTAGE
PAID
Minneapolis, MN
Permit No. 3390
MAUREEN ANDREWS AD14H-
CITY OF ALBERTVf LLE
Bog 131 MN 55301
ALBERTVILLE,
Update is published quarterly for community leaders
in the areas served by Minnegasco, Inc. If you have
questions or comments regarding the newsletter, please
direct them to:
1—n Minnesota: Jim Anderson, public affairs
,dministrator, Minnegasco, Inc., 700 West Linden
Avenue, Minneapolis, 55403. Telephone:
612/342-5316.
DEI REPORTS THIRD QUARTER LOSS
Diversified Energies, Inc. (DEI) reported a third quarter loss of
$8.8 million, or 59 cents per share.
The third quarter historically has shown a loss for DEI because
lower heating requirements during this warm weather period
affect results of Minnegasco, Inc., DEI's natural gas distribution
subidiary. Lower prices received by Dyco Petroleum Corpora-
tion, DEI's oil and natural gas production subsidiary, also had
an impact on third quarter 1986 results.
I�f{I��f�l���ll�ll�:���►il�fl��f
In Nebraska: Merle Jansen, public affairs
administrator, Minnegasco, Inc., 1201 N Street,
Lincoln, 68501. Telephone: 402/473-0501.
In South Dakota: Roger Menk, director of South
Dakota operations, Minnegasco, Inc., 114 South
Main Avenue, Sioux Falls, 57102. Telephone:
605/336-0530.
DYCO PETROLEUM CEO NAMED
TO DEI BOARD
Jaye F. Dyer, president and chief executive officer of Dyco
Petroleum Corporation, was named to the board of directors
of Diversified Energies, Inc., (DEI) at the board's regular meeting
in November 1986.
Albert D. Etchelecu, president and chief executive officer of DEI,
said the board is pleased with the addition of Dyer. "His broad
business experience makes him a valued contributor to our
strategic plan;' he said. Dyer was recently named to the
Minnesota Business Hall of Fame.
LIIII
league of minnesota cities
December 24, 1986
Dear City Clerk:
Enclosed are copies of two announcement brochures for League of Minnesota
Cities and Government Training Service programs. We ask your assistance
in distributing them as follows:
1) Conference for Newly Elected Officials on January 31 -- While we have
used information submitted by most city clerks to the League to mail
an announcement brochure directly to newly -elected mayors and council
members, it is hoped that you will use the enclosed brochure to
follow-up with them (insuring that they have indeed received an
announcement brochure, as well as encouraging them to participate in
this unique event). While this program will speak primarily to newly
elected mayors and council members, any incumbent elected official or
appointed employee will find it a valuable 'refresher' course. This
brochure also announces two "Seminars for Elected Officials" to be
presented on Friday, January 30.
2) Seminars for All Elected Officials on January 30 -- These brochures
should be given to veteran city council members. As indicated on the
brochure, these programs are being presented by the Government
Training Service and Women in City Government. All city officials
will benefit from participation in either or both programs.
Multiple registrations can be made for any of these programs by
duplicating the registration form. Should you need additional copies of
either brochure or have questions, please call the Government Training
Service (612/222-7409 or toll free (800/652-9719).
Thank you in advance for your assistance in this matter.
Sincerely,
the
Donald A. Slater Helene L. Johnson
Executive Director Executive Director
League of Minnesota Cities Government Training Service
DS:HJ:lj
Enclosure
1 e3 university avenue east, St. paul, minnesota 551 01 C61 2) 227-5600
Registration Form
- Conference for Newly Elected Officials (Saturday, January 31, 1987)
Pre -Conference Seminars for All Elected Officials (Friday, January 30, 1987)
Name _
.iy _
Address
(street)
Work Phone
City Population
(city) (zip)
Register me for: ❑ Saturday "Conference for Newly Elected Officals" ($45/person)
❑ Saturday "Conference for Newly Elected Officials -Spouse" ($25/person)
❑ Friday seminar "Ethics and Public Leadership" ($75/person)
❑ Friday evening seminar "Enhancing Your Effectiveness Within the City Team" ($20/person)
❑ Registration fee in the amount of $ enclosed (make checks payable to Government Training Service).
❑ Please bill me (provide address if different than above:
NOTE: A $2 billing charge will be added.
Return by January 23 to: Government Training Services, 202 Minnesota Building, 46 East Fourth Street, St. Paul, MN 55101(612/222-7409 or Minnesota toll free 800/652-9719).
o o C O N O N< - 0 y K 0= n K �2 °+ p OG �� tR�i tb C eSo o O o M�� A
Or`+' � .C'► tV r- �+' 3 M O O G r•. ' ' N eo :�. "tee rN^p �. O C
OQ a .�. N C •• O !�i S :^ O ,W. v' C_ �%• P+ �• O p .•t C ? �' �' W 7
O t�-� 7 7 O O C ."f �' O O
O a;, � 3 T o °`a. io `° N• tyD co z 14- ,z O 't eM M v0, 7' a -., c w o y �• n � ° —
'a n -^ i� 7' H ti 7 Oct O N S a � n =n O en Cn '^ � ? C ? = R `r7
�� �W o n -''y ��,00=•moo o eo-0 c�•o •� .� a'�
�-� �'o +ago to $o'.c��-� ao�o rn°eon a<a ozya
a3w 3 0�0'0-.<. o o �'o o� an °c o N•� Leo vt o
G eo eo 7 A a ° 0 9 •_, -• C n: oo -s pq w o o a o. oa c
C eo .e r0•. iv n_ N a+ 7 7 �. y pOp go
K C a' ,^�'-.
�,
° a �� G � � ° � et -7 5 A Ro aotpeo r.
'+ f] .� ec w C Aqz: eo O O t?] n O
.7+ G LY' G co
O O M sw 7 O 1-' O "Cl `w<
M A o
'"• S'+' a .� •o a eo -n'. ti
w a••t Q. vo ° ° m A `' C en a d K '� C + 't7 w
/D fD H c en. o < it. fDb•.0 C eoCn
K m a O O O O d 7 eo O O .., ~' en C£
o W a' a yeel eD Oe o ti ZA O y v O.. 7 f�i .a. r* !� O G. d o -2 C M°
in �' 7 O 2 OQ X O O en y ° 'a - 'O n W r9
3a��oe�oco'a�_�. � �`e�o aa'� �n
a-`,,, q�.
�w�c0
°o�°
Q.;�°oSy mygo �v b
£.
'<opto3
nm,
^�
'a� to aZoo�
Q. 0o4 M e(o � Q. v o n � eo � a FL
a% aA. d
a a+ p Cl cn a+ O N W N a
�wa. a s. H C N 3
vj t .: a>i E ° •� .� .E N N b O }a.. ° O'C o n'`P3
0� y E a :7 a y C C w a a ro ro . a u Co .?•
obi t� o, E o �� oyc� 3
' M Ci •CJ C N U a r- u
O V F"� r' U �_ �- A O E °' a N a� v 7 a y j •p .� "' c .v C
w o' Guo o n o c 3 E E ed
h E �i a a u y GO
WV o tt Ecc o,� >cO E u --�=.+ = °'
d o o° E� c a Nw.� - E 3 ro i N .S C N 3v v
ro t.
a'b y o° b> u 0 c a� E ccv n5 0,
� of .E ,C O .+j u y ., ►. ro 't7 O A v� `� C o� ,O„ � N
tCO
O .�~1 O Oyi E • y> = A_ N ~ O1 C y� 3 O _O
U •� a�.+ •�. � � N •�'' y fl. � ... ;; a `•- O ro a. � U ..J „ b � a u N (1 � Fi C °
0�0 0. >'� � c � c .G °c' C � E 'u °w' �•� c'°°o� �
eat �7 Lz. O (4j u of
a E O >. � b C
a� o a c� Q.3 0 C a ,- = u ao bo o v a A o ^oai
W b E o
a o� N iLi ro O g ++
}O:1 ai Go�w a a ,e o E �ooc�
ON ^L� N O ^L� ^A' ^L� R O ,p X N .�' N a+
a'L N C= •y u 7 C U 7 C17 N Ry y yD y N A w C A N N Ol tVy
=od c E
Oh oui w w .emu.
0. a
c Cw •� �E c 'tl ❑ N ^ate A GO3 74a'oOz u w
C Its w Go p• •� A "' of O iv C v� •� ro aCi .t-+ " u Y a a 'p
c N O Go -o u N O > x U O OJ •- 6 a s ._ u c a w c
j! �.+
Ot of u C .+ C N s '— .4 � C _- O C
O Ol Q • A a .w., u C O C
u I�_, A y N O
O UA U a: a COO p' id ° j a. 481.
X a - .L O CRf oCi w .a+ > .�? •b
�1 Y. ° r1 >, M •.�.. O •^ N Y U a U E V N O! a'%+ A. N z a E O N u .O C
� .G � CJ ."n i+ •C' E� � a�i y. u G. � � y � '+ Y p. � `•- A o� ,� � � a� U .b � a w
U o� a .G A � O .0 •d C a� ai a C; 0. .,..,
a•-�G � Gr � � � a•=-o � a Gn:L o._ Go �'H.o u Ny
:+ 'U '� �.' O N ^ R a N Ol a N N y t0 y u N- .D t• p a a
`d ° C 7 O is A O s. °; a ? a O N ro O ?> u" C LO
E y c, 6q u 7
a a v e� y a 4.� w + o. a C C u id •o a°-+ .\N 'J �. 'fl •'." a -M O
ema U W 01 rn ° G G GO O a
vf� U uo a Ebb A__Nc aao,yaccro�.E w 5 ¢
" A C C cj
O w u N Caw., ro° vai L C _u C�••'
a0 N o °'- 3 a-- o c ° y y c ro y u Q a•- N a o. •C asvp
—% E C 1.
aA Oy. ,� �".'• U O i u�w^„ G. Ccl . N ro U [:] A. O vui E a .°3 0� '`� w y boa A N O a •C aO�
b y A to W v F O • • • • • rs• o O fs. GL' E Gz. 00 x G7
a,.
o o°
tagOtn
U a gyp. u ro C o O U oNi a `v�i 0
b o y 'a7 o a C 7 G. E00
o C a• =_�
a u yN w v C e C '.+ o�'i A O A C_ oAi d u O aCi z U •a cn
O m u
y '•y U s. o° v y v '= u ¢ C to C •� c •u oXi i y x U a O a o, wO
aO a d E G y C d ayi •O '"' O y> a ro U oCi xi. �' eC0 O �'
'C u A ° C C ro w O a O •O Ll N a ..w.• U .'� O V
'E ro u °' 7 a s u C] .e U N p
�;; c � o� ;a -o .� >, t?t C `� .-i 3 a a .•. rV,, + i. � oyi
oya�3gA
>� O G N w. 7 8 41 A t1� as p :wy"+ y U 'C . 7 mc- N y
A GO. r G 0 A ' 'C 'O .., 'a - ++ Cj •Y ' m
�j� e• i•n O� E > O O 'O a a C_ eA.. 'c +' ct� C � � C 'O id to �'• -cE�
o 6 U c c E a i. u Ca O u
� � Oi a GO *. y .0 .' �' ►+ o� ^ C w C ro� C b0 °� C E .O E a >�
,°, n "� •.j C C O E a
> u� cL E _ u a _ C:� a o
O .- C C O u a N of �= a Go N aNi aO
o> C7 o>i aai C a n aN c' o yo C 7 _? oyi a Ti u u c eO C-; E of ro d Go C
.'3 .'`• 'a+ O .fir cai 3 >` a 0 S C m
o o [;, v)U00..» uU0..+oGG.0.d¢ c O p•o-- a•Od s. �!•—y�
�+ � b � of U �Or' .°v; � � � � C � a .:. � Q � •� x" y � 9s oNyi � ei
y y aJ u E c M M'.-�N000 M M.�-�.�-iOM of cD btc7 cn O Q O•C G
O a os o L °''o amt-a000c)C �C13 ..c�ici�r a fitF E� Gzr�Oi°.HF oGc�c� �Xcs
(� cn z E oc Or
ftmL
t
'(6TL6-ZS9l008 uan;aa
J II 3 ; W 60g1-ZZZ/ZT9) iOISS NW 'toed ';S 'Taaa�S 43ano�;set gq'Hwplma e;osauuiW ZOZ'sa�in.ias iiuiuie.q,;uawuaano� :o; EZ,Genuei'Cq
aa.t o e osauul .ao
•pappe aq ll!M a;'laego ?u!ll!q Z$ d :310N
:anogi2 uegj luaiajj!P;! ssaaPpe ap►noad) aw [[!q asea[d [I
•(aa!naas $u!u!eAL luawuaano0 of algeAed s�aaga amew) paso[aua $ jo junowe all u► aa; uolVea;sOal a
(uos.tad/OZ$) „weaL A;!� aql ul4;!M ssauan!�aaJJ3 ano,� $u!�uegu�„ aeu!was �u!uana �Cep!ad El ao! aw Ja;s!$aa
(uosAad/SL$) „d!gsAapea•l o![gnd pue so!g43„ aeu!was sepyj ❑
(aiz)
uol;elndod SID ssaappd
_ auogd �Jo/N aweN
all!,L
(L86I `0£ blenuier PPatg Ioj 9.1'eu►was
UUOA u0111C.11si$au
;p'n
OO S- y CA- a-p
• • •
• • 0 -i
ac m
croi+ S y',�
a. -c
w r. O C 'y. r+ C w S �'. w•"
� w � p /o p;
,�., � O C £
^ � y
Oua
'�' '� O O
p =
G. ,� N
0 0 to
w `�< ,
O
7
b. w N
A 7 O w
et
w
y
O
O 7 O
f D
O 0
A
-w•. tyo ro
.0 a y
�. n.
tOo f
C p:.
a' c`oa b
n O
ooa O
0 =et,
O
K co ^' y
'� w Cl.
�' O 7
b co �, O
�'
O.,b S
•••� C O
r. Q p
w to .�-. _� f'� < `G y
n' �; �fO.�
' 7 to
o �= H
�< TJ �f0iev
F4 _ m
:<
Ut
to ,+ Q SOi
. n to E C m" rn m O
ram-.
w S -O-n
'�
.d O 7 aq
C
OID w w S
n -0 y
O ro w
.•'^., "O
C
�• m^
ro co '0 co
cl
K
S O S fO y m co y b ryi
w (�D
Q n. �•
f-.
A -O+. (0 W S'a to K f0
r. in O
O•
(ten '0
O y O
O rw-.
N C
R v�i
C]
.cr
�0 O
c? -s
.t a
ep
w Z= co GQ w •p y y
'' a
o o
� �•
7 '0
cr
£o a
'a o.
a x
fp fn
C
N t�A
y
w
r �, °_:. '� � `s7
� � '=f
y
� � ?
•
•
• • • �
coo -c. w y O
�o
0
cCo
n' fO
o owa o O^ C
°= A
o
w -0
S
oTaoacoo
ocm���
o�
3 < O
o
aaac�
�y03oo
pIrol
o
Ca
...
�. n 'r
`•�
0
n
0 ID ro
"= tyo
-
N•
co 0
y `O„
o C G
R Li
o
�° 00 �`
On
o,
a_
O,
ev
w
cr
o
�' O _^
n
�D
w
rw•.
o
o r'
O
f0•.
N
n
cOo o v v
y0
"."
w
4.
w
ar" mx
x a r. w
w'
W vwyl j
•a vOi w
'0
W
O Vx m'c7
r. t70
y I
y
co
A ss
a
N
cr'o
0
< O
co
y
^.'� K a
0-
tA O vwi :'
O•
w
n O
O O O �< K
'i
y
<ai+ co O 0 O
O
N
y aQ
y =•
O
y
p O aQ
�O
ti �•
'�
O n• �_ < �.
C
�•
O_ O
n
r
ev -*
to
p y .0
C �.
rt
'fD0 y
�' O rr p•
"'
w
.»'
0 y a
S i x
O
co
�
S v
iO
..`CA
y
ft
OC
f�0 �„
1
�
f-D
w
< w
w
C .Y w
O
y O
,
Q
o
to
=
<
O �• 7 �°
q
y
p•
O S
O
7
H
y O <
0.
,b
,�
b�0X003
pp��Wo•bo�
p, C7 H rr w C
`°�3�
C/) C
lD cn �
C7 O S o
d 0 N y
v+ _
0
o � r•. �,
league of minnesota cities
December 23, 1986
Dear Mayor:
A letter was recently sent by Mayor Mary Anderson
of Golden Valley to mayors who had attended the 1986
Minnesota Mayors' Conference. The letter, which is
enclosed, provides information about a property tax reform
proposal under consideration by Governor Perpich. Although
many key elements of the plan have not yet been developed by
the Governor's staff, the League has done a preliminary
analysis of the basics of the proposal.
The overall structure of the proposal is to transform
virtually all current property tax relief mechanisms,
including local government aid, into one "school credit"
used to reduce school levies. We believe the thrust of this
proposal is to eliminate the state's role in providing
property tax relief to cities, a policy commitment which the
state has upheld for the past 15 years.
The Revenue Department's proposal would consolidate all
property tax credits (homestead credit, agricultural credit,
etc.) and local government aids (including LGA) into one school
credit" that would be used solely to reduce school district mill
rates. That is, all the property tax relief resources currently
available to counties, cities and townships through state -paid
credits and aids would be channeled into one credit used to
reduce school mill rates. On average, the school credit is
estimated to reduce school mill rates by approximately 33 mills.
As school mill rates decline, the proposal assumes that
counties, cities, and townships would increase their mill rates
to make up for the property tax relief, particularly local
government aid, they would lose. On average, to make up the
loss of property tax relief, cities' mill rates would have to
increase by over 20 mills.
At this time, the intention of the school credit proposal is
to make available to the various taxing jurisdictions the same
amount of property tax relief funds as is currently available
under our system of aids and credits. This would mean that
resources would be allocated so that some areas could finance
'1 E3:3 (iniversity avenue east, st. p�ul, minnesota 5 1 O'I (6 1 21 227-SCOO
more than the average 33 school mill rate reduction and other
areas, less than that average. However, no details have been
provided about either the first -year funding level for this new
school credit or, even more critical, the design of the
formula for distributing funds to jurisdictions in the future.
In addition to consolidating all aids and credits into a
school credit, the proposal would also reduce the number of
property classifications to five or six. Although, no
classifications ratios have yet been determined, the stated
intention is to reduce property taxes for commercial and
industrial property. Without additional funding for such
property tax relief, a reduction in commercial/industrial rates
could mean a shift in property tax burdens to homeowners. The
proposal may also include granting a "local option" to local
jurisdictions allowing them to determine how to allocate some
portion of the school credit among classes of property.
The school credit proposal attempts to fulfill the
Governor's commitment to increase the state's role in funding
education. Given the increased costs associated with such a
commitment and given the tight budget situation faced by the
state, it is clear that increasing property tax relief for
schools will mean the withdrawal of state funds from other units
of local government. This is a dramatic shift in state
priorities. It asks cities to increase their property tax
levies in order to finance increased property tax relief for
schools.
The League is also concerned that the allocation of tax
relief under the school credit mechanism runs the future risk of
increasing tax disparities among cities and between cities and
neighboring townships. The stated intention of the proposal is
not to cause such disparities. This would be done by
"grandfathering" all taxing jurisdictions in the first year,
thereby making available to them approximately the same amount
of tax relief under the proposed school credit as is currently
available through the various property tax credits and local
government aids. However, no allocation mechanism for the
future distribution of funds has been developed. We believe it
will be very difficult in future years to maintain an equitable
distribution of funds since the proposal would combine numerous
allocation mechanisms (which currently are used to distribute
property tax relief) into one single "school credit" mechanism.
Since several different allocation mechanisms would be collapsed
into one mechanism, we are very skeptical that a future increase
in mill rate disparities among cities and between cities and
neighboring townships can be avoided under this plan.
Furthermore, granting local option for distributing school
credit funds could magnify such disparities. Unless credit
monies are distributed in an equitable manner that will
compensate for, rather than exacerbate, tax base disparities,
extremely unfair competition among adjacent taxing jurisdictions
will result.
In summary, we believe this proposal does not represent
property tax reform, but rather a means for the state to bail
out of providing assistance to cities. Local units of
government would lose state funding at a time when their
resources are shrinking. Half of all cities are already
struggling with the problem of declining tax bases. They are
also under financial pressures with federal program cutbacks,
the elimination of general revenue sharing, rising insurance
rates, the costs of implementing state mandates, and other
forces over which they have no control.
I hope you will use this information to communicate your
concerns about the Revenue Department's proposal to the Governor
and your legislators. The League has created a Technical
Committee to review and respond to property tax reform
proposals. We will keep you informed as more details of such
proposals become available.
Sincerel
quxzo V �&&
James Miller
President
4
i
y� k
City of Golden Valley
December 23, 1986
Dear Mayor:
I am writing to the Mayors who attended the Minnesota Mayor's Association
Conference to clarify my role on the Governor's Advisory Commission on
SLaLe-LUGdi Relations, and to snare some information and concerns about property
tax reform proposals.
In 1985, Governor Perpich appointed a commission made up of City, County,
Township and School Board officials plus legislators and State Department Heads
to advise him on State -Local relations. It is known as the ACSLR. Sam Huston,
the Mayor of St. Cloud, and I serve as representatives for cities. We are
selected by the League of Minnesota Cities. I have been serving on a sub-
committee of the ACSLR that is reviewing and commenting on various proposals
being considered by the State Revenue Department for property tax reform.
Revenue Commissioner Tom Triplett and his staff have been sharing ideas with
this sub -committee and asking for reactions.
The proposals for change have been complex, somewhat conceptual and lacking in
specifics as well as in the formative stages. This has made meaningful comment
difficult. At the last meeting of the sub -committee the Revenue Department's
proposal called for consolidating all property tax credits (homestead credit,
agricultural credit, etc.) and local government aids (including LGA) into one
credit that would be used to reduce school district mill rates. That is, all
the money currently available to counties, cities and townships through state -
paid credits and aids would be channeled into one "school credit" used to reduce
school mill rates. As school mill rates declined, counties, cities, and
townships could increase their mill rates to make up for the credits and aids
they would lose.
As I understand it, the intention of the school credit proposal is to make
available to tax payers in the various taxing jurisdictions the same amount of
property tax relief funds as provided under the current system of aids and cre-
dits. However, no details have been provided about either the first -year
funding level for this new school credit or the design of a formula for distri-
buting funds to jurisdictions in the future.
Civic Center, 7800 Golden Valley Rd., Golden Valley, Minnesota 55427, (612) 593-8000
December 23, 1986
Page 2
The property tax reform proposal would also reduce the number of property
classifications to less than ten. Although no classification ratios have yet
been determined, the stated intention is to reduce property taxes for commercial
and industrial property. The proposal may also include granting a "local
option to local jurisdictions allowing them to determine how to allocate some
portion of the school credit among classes of property. This school credit pro-
posal is in keeping with the Governor's commitment to increase the State's role
in funding education.
As I expressed at the Mayor's Conference, I have a concern about commenting on
portions of the proposal without having a clear understanding of the impact of
the total package. I am apprehensive about the effect on cities because we are
different in our needs and capacities to deal with those needs. local
Government Aid made some attempt to recognize that. If cities lose LGA and rely
entirely on the property tax, those disparities will be magnified. Also, the
State and Federal government require us to do many things but don't provide the
funds. This means there is a certain percent of our budget we really don't
control. It seems to me those levels of government should provide funding for
activities we are mandated to do. Another concern I have is the pull back of
the Federal Government from funding of programs serving the needy in our
society. We are all feeling more pressure of requests for funding human ser-
vices. Is the property tax the appropriate vehicle?
We do need to reduce the number of classifications in our property tax system.
There is also strong support for reducing the tax burden on commercial -
industrial property. If there is no new funding, how will a reduction in the
commerical -industrial burden impact other classifications?
The sub -committee I serve on and the full Advisory Commission submitted the
following statement to the Revenue Department:
PROPERTY TAX REFORM ISSUES
1. Support simplification of the property tax classification system.
2. A necessary condition for state property tax reform is the need for reducing
state revenue volatility.
We support modifying the revenue system to enhance stability. Specifically
we support:
* a targeted budget reserve
* expansion of the sales tax base (no sales tax on local government)
* trigger tax concepts such as temporary suspension of indexing.
We.feel it is inappropriate to reduce state revenue volatility by trans-
ferring that volatility to the local property tax.
3. Support programs to increase taxpayers' generalized knowledge of state's
role in funding local government services including all aids, grants, etc.
December 23, 1986
Page 3
Later the sub -committee added a statement about the necessity to provide addi-
tional funding to implement a new system.
I support property tax reform but feel strongly we should be aware of all the
impacts of any proposals before we make a commitment to support specific aspects
of a proposal. The League of Minnesota Cities has formed a Technical Committee
to review and respond to property tax reform. I will also keep the League
informed of the ACSLR Committee activities. I urge you to be in close contact
with the League to keep up to date on this issue.
I enjoyed the day and evening at the Mayor's Conference and look forward to
seeing many of you again at LMC or Mayor's Association activities.
Si qtqrely,
Mary E. A66erson
Mayor
MEA:pb
cc: Jim Miller, President - LMC
Tom Triplett, Commissioner of Revenue
Zvi
rW-1w
- �� N�����' ����������p��� �_�����liti�������� Inc.
X
Don R'Larson, president Carole J'Larson, vice president
Dec. 22, 1986
City Council
City of Albertville
Albertville, Minnesota
Dear Mayor and City Council: , .
We have enjoyed serving You as your legal newspaper
in 1986 and mould like to continue as your official
publication during 1987.
Serving the residents of Albertville is an important
- part of our nemspaper`s operation, and we plan to
continue to provide a thorough and balanced news coverage
this year.
The Crow River News is a fully qualified newspaper
and is registered as such With the Secretary of State.
0ur legal rate is that which is provided for by state
lam.
We mould encourage You to appoint us your official
nemspaper again for 1987. We are proud to serve
Albertville. We look forward to continuing to serve you
and the residents of Your city.
Sincerely'
Managing Editor
loLISIS OF:
CROVER NEWS NORTH
St.8Hict .OSSEO MAPLE GROVE PRESS
^CnOW--RNEWS SOUTH
Osseo and Maple Grove
mnckfn' °CwAMPUNcAvTOmPRESS
^osLAw`mLs
Champlin
me|mnp
^mTeAnmS MmRpomomsmTEnPn/ms
Albany and wolmmmforu
*MELROSE BEACON