June 20th Council Update

The two topics at tonight's Council meeting that drew the most discussion is the proposed public subsidy for utilities on the SE corner of 5 and 65 and the sewer rates.

The proposed subsidy for the utility improvement would set a costly precedent for future development. Isanti does not pay any public funds for such work. This has always been paid for by the developer. The developer in this situation wants the City to pay 30% of the cost. I like the proposed development but I strongly oppose any tax payer money be spent on the project. Development must pay its own way. If we offer to pay 30% of this project cost then this will be used by other developers to have the City pay portions of their cost. This project would cost Isanti at the very least according to the developers own numbers $31,000. This estimate however does not include the full cost of the project. This may not seem like a lot of money but if you add the 30% of all such projects the cost becomes staggering.

We all want this corner to be developed into a prosperous taxpaying commercial district. We must however do it the right way. This is one of the most desirable sights in Isanti. It will be developed without any type of subsidy.

The other major issue is the sewer rates. I proposed a 20% reduction in the cost but the censuses of the Council was at 12%. We also agreed to a new rate of 5,000 gallons for new home sewer. This goes a long way to ending the subsidy paid by current residents for new residents sewer cost. The request from some builders to reduce their cost for sewer on new homes that have not sold was not acted on. For more information on this please read http://georgewimmer.blogspot.com/2006/06/June-20th-2006-council-meeting.html .

We also bonded tonight for the street improvements project. Isanti has a great deal of bonds that have been floated in the last few years. I am concerned with the amount of collective debt we are accumulating as a city. According to Isanti's audit report the debt per resident has gone from roughly $400 to $1,900. This is per resident so even as Isanti's population has double the debt has increased by 5 times. This will start to limit the City's ability to borrow and curtail other future projects. As we enter into the 2007 budget cycle I will be writing more about this.