Liqour Store by the numbers

The liquor store debacle continues to unfold. A few more facts for the public to understand. The three Council Members that voted for this project did so on the most dubious set of facts. The quote provided for the expansion was based on numbers CM Johnson gathered. The numbers he received was from one contractor and was not in the form of a binding quote. The other salient fact is it was for only a portion of the project. The quote did not cover any mechanical work (electrical, heating, plumbing), the sprinkler system, parking lot or landscaping work, signage or any equipment. My understanding is this portion was a guess by CM Johnson.

So the majority of three voted to start the expansion project without any way of knowing the true cost of the project. They did not even ask staff to gather proper quotes before they decided to fund the expansion.

This is of course on top of the fact they did not decided how they were going to fund it. I asked staff after last week's 3-2 vote to provide me with the city's options and the cost. The cost provided by CM Johnson state $600,000 for the whole project. I find this to be dubiously low considering all the items that we do not have actual quotes for. Lets use $700,000, which still may be low but considering the architecture fee alone is $37,500 it looks to be closer to the truth.

$700,000 cost minus $200,000 in cash from the Liquor fund leaving $500,000 to be financed. Total financed cost of $548,200 spread over 15 years is $36,546.67. Now the three voting in favor of this motion said the new liquor store sales will easily pay for this. Ok, well lets see how much in new sales it would take. Our liquor store has had a 7% net profit the last couple years, State average of off sale stores is 8% per the 2005 State Auditor's report. So from $100,000 in sales we bring $7,000 to the bottom line. $36,546.67 divided by $7,000 is 5.22. That means we would need over $522,000 in new sales to pay for the project, or roughly a 28% increase in sales.

These are the numbers I am comfortable using. But lets say we can use $300,000 out of the liquor fund without hurting tax payers to much, the increase in sales still has to be $430,000 or a 23% jump in sales. The assumptions being made here are just that. They seem fair ones though...5% interest on the money borrowed and using historical profit levels. Again maybe profits margins will increase but with the fundamentals we have, they would need to increase dramatically.

This scenario is to just break even on the store expansion let alone add any value to the city taxpayers. Perhaps the cost of the expansion will be lower and profits higher. We simple do not know because the proponents of this project have not provided any actual numbers or assumption nor have they asked staff to calculate anything. I am pressing hard for answers and transparency.

I am baffled how anyone could vote to spend over $600,000 with no proof that the numbers are real and no explanation as to how it will be paid. Maybe they are right and I am wrong. If this project goes forward I hope I am very wrong or the city tax payers will be losing money once again because of an irresponsible spending spree.

Share our Thanks

We face another year with our soldiers in harms way. Let us remember their sacrifices and the sacrifices of their families. It is often easy to forget the freedoms we take for granted each and every day. We must never forget those that make those freedoms possible.

We are faced with another year of a difficult housing market. Many families in our community have lost or are about to lose their homes. The greed of a few has destroyed the dreams of many. The Isanti community will overcome this as it overcomes all adversity. One of the great programs for those in need is the Isanti Lions Christmas project. Tom Pagel and the Isanti Lions give so much to the community all year long but during the Christmas season they do the work of Angels. Please consider giving to this project that brings joy to those that have so little. Here is the contact information:

Please call Tom Pagel at 763-444-6560 for further information. Donations should be made payable to the Isanti County Christmas Project and mailed to: Isanti Lion’s Club, c/o Tom Pagel, 28339 Bayshore Drive NW, Isanti, MN 55040.

Thanksgiving Thoughts

The First Thanksgiving Day Proclamation

The Holy God having by a long and Continual Series of his Afflictive dispensations in and by the present Warr with the Heathen Natives of this land, written and brought to pass bitter things against his own Covenant people in this wilderness, yet so that we evidently discern that in the midst of his judgements he hath remembered mercy, having remembered his Footstool in the day of his sore displeasure against us for our sins, with many singular Intimations of his Fatherly Compassion, and regard; reserving many of our Towns from Desolation Threatened, and attempted by the Enemy, and giving us especially of late with many of our Confederates many signal Advantages against them, without such Disadvantage to ourselves as formerly we have been sensible of, if it be the Lord's mercy that we are not consumed, It certainly bespeaks our positive Thankfulness, when our Enemies are in any measure disappointed or destroyed; and fearing the Lord should take notice under so many Intimations of his returning mercy, we should be found an Insensible people, as not standing before Him with Thanksgiving, as well as lading him with our Complaints in the time of pressing Afflictions:
The Council has thought meet to appoint and set apart the 29th day of this instant June, as a day of Solemn Thanksgiving and praise to God for such his Goodness and Favour, many Particulars of which mercy might be Instanced, but we doubt not those who are sensible of God's Afflictions, have been as diligent to espy him returning to us; and that the Lord may behold us as a People offering Praise and thereby glorifying Him; the Council doth commend it to the Respective Ministers, Elders and people of this Jurisdiction; Solemnly and seriously to keep the same Beseeching that being persuaded by the mercies of God we may all, even this whole people offer up our bodies and souls as a living and acceptable Service unto God by Jesus Christ.
-Date: June 20, 1676-By: Governing council of Charlestown, Massachusetts
*

President Lincoln's Thanksgiving Proclamation

The year that is drawing towards its close, has been filled with the blessings of fruitful fields and healthful skies. To these bounties, which are so constantly enjoyed that we are prone to forget the source from which they come, others have been added, which are of so extraordinary a nature, that they cannot fail to penetrate and soften even the heart which is habitually insensible to the ever watchful providence of Almighty God.

In the midst of a civil war of unequalled magnitude and severity, which has sometimes seemed to foreign States to invite and to provoke their aggression, peace has been preserved with all nations, order has been maintained, the laws have been respected and obeyed, and harmony has prevailed everywhere except in the theatre of military conflict; while that theatre has been greatly contracted by the advancing armies and navies of the Union.

Needful diversions of wealth and of strength from the fields of peaceful industry to the national defence, have not arrested the plough, the shuttle, or the ship; the axe had enlarged the borders of our settlements, and the mines, as well of iron and coal as of the precious metals, have yielded even more abundantly than heretofore. Population has steadily increased, notwithstanding the waste that has been made in the camp, the siege and the battle-field; and the country, rejoicing in the consciousness of augmented strength and vigor, is permitted to expect continuance of years with large increase of freedom. No human counsel hath devised nor hath any mortal hand worked out these great things.

They are the gracious gifts of the Most High God, who, while dealing with us in anger for our sins, hath nevertheless remembered mercy. It has seemed to me fit and proper that they should be solemnly, reverently and gratefully acknowledged as with one heart and voice by the whole American People. I do therefore invite my fellow citizens in every part of the United States, and also those who are at sea and those who are sojourning in foreign lands, to set apart and observe the last Thursday of November next, as a day of Thanksgiving and Praise to our beneficent Father who dwelleth in the Heavens.

And I recommend to them that while offering up the ascriptions justly due to Him for such singular deliverances and blessings, they do also, with humble penitence for our national perverseness and disobedience, commend to his tender care all those who have become widows, orphans, mourners or sufferers in the lamentable civil strife in which we are unavoidably engaged, and fervently implore the interposition of the Almighty Hand to heal the wounds of the nation and to restore it as soon as may be consistent with the Divine purposes to the full enjoyment of peace, harmony, tranquillity and Union.

It is the duty of nations as well as of men to own their dependence upon the overruling power of God; to confess their sins and transgressions in humble sorrow, yet with assured hope that genuine repentance will lead to mercy and pardon; and to recognize the sublime truth, announced in the Holy Scriptures and proven by all history, that those nations are blessed whose God is the Lord.- Abraham Lincoln's Thanksgiving Proclamation October 3, 1863

Once, when my feet were bare, and I had not the means of obtaining shoes I came to the chief of Kufah in a state of much dejection, and saw there a man who had no feet. I returned thanks to God and acknowledged his mercies, and endured my want of shoes with patience- Sadi, The Gulistan

Do not get tired of doing what is good. Don't get discouraged and give up, For we will reap a harvest of blessing at the appropriate time.- Galatians 6:9
For flowers that bloom about our feet;For tender grass, so fresh, so sweet;For song of bird, and hum of bee;For all things fair we hear or see,Father in heaven, we thank Thee!-Ralph Waldo Emerson

"Some people complain because God put thorns on roses, while others praise Him for putting roses among thorns."-Anonymous

Since the Pilgrims observed the initial Thanksgiving holiday in 1621, this occasion has served as a singular expression of the transcending spiritual values that played an instrumental part in the founding of our country.One hundred and twenty years ago, in the midst of a great and terrible civil conflict, President Lincoln formally proclaimed a national day of Thanksgiving to remind those "insensible to the ever watchful providence of almighty God" of this Nation's bounty and greatness.

Several days after the dedication of the Gettysburg battlefield, the United States celebrated its first national Thanksgiving.Every year since then, our Nation has faithfully continued this tradition. The time has come once again to proclaim a day of thanksgiving, an occasion for Americans to express gratitude to their God and their country.In his remarks at Gettysburg, President Lincoln referred to ours as a Nation "under God."We rejoice in the fact that, while we have maintained separate institutions of church and state over our 200 years of freedom, we have at the same time preserved reverence for spiritual beliefs. Although we are a pluralistic society, the giving of thanks can be a true bond of unity among our people. We can unite in gratitude for our individual freedoms and individual faiths. We can be united in gratitude for our Nation's peace and prosperity when so many in this world have neither.As was written in the first Thanksgiving Proclamation 120 years ago, "No human counsel hath devised nor hath any mortal hand worked out these great things. They are the gracious gifts of the Most High God." God has blessed America and her people, and it is appropriate we recognize this bounty.

Now, Therefore, I, Ronald Reagan, President of the United States of America, in the spirit of the Pilgrims, President Lincoln, and all succeeding Presidents, do hereby proclaim Thursday, November 24, 1983, as a National Day of Thanksgiving, and I call upon Americans to affirm this day of thanks by their prayers and their gratitude for the many blessings upon this land and its people.-Thanksgiving Day Proclamation 1983-By: Ronald Reagan

Water Rates

Here are the current water rates:

City--------------7000 gallons-----14,000 gallons

St Francis------$28.50-------------$46.00

Cambridge-----$29.79-------------$50.93

Current Isanti-$21.62-------------$40.24

Proposed ------$31.96-------------$51.14

I want to be upfront about the possible rates. The longer we wait the higher the construction cost. The outcome will be a water treatment plant that will remove iron, manganese and radium. The water quality will improve dramatically. The water will be safe to drink. This is a fundamental turning point for our City. The rate increase is roughly 35 cents a day to get rid of the cancer causing radium.

November 20th 2007 Council Meeting Update

Well I guess I will start with the Comprehensive Plan. This along with the housing moratorium were approved on a 5-0 vote.

We also discussed the Water Treatment Plant tonight. The authorization for the design process was to be voted on. I stated I was uncomfortable with moving forward until the Council voted to adjust the water rates to fund that plant. Currently Isanti's rates are considerably lower than Cambridge and St Francis who draw from the same aquifer. Each of these cities has a water treatment plant because they are faced with the same cancer causing radium issues we have in Isanti.

Our water rates will need to increase to fund the water treatment plant. Partially because the benefit will be for all users and partially because the water infrastructure fund can not afford to pay the full cost because of the low developer fees that were historically charged in Isanti. We have fixed this issue moving forward but there is nothing we can do to recapture what I believe is lost revenue. I would look for a way to delay this project in anticipation of more development fees. Two issues with this is that development has slowed to a snails pace and frankly the health concerns have to be addressed ASAP. As stated previously this is a 3-4 year project. The City has 3 wells. The low volume well is a safe source of water but it must be mixed with either well two or three. We can not mix with both because we only have enough safe water to mix with one at a time. This is at best a short term solution. When we start to grow again or add more commercial development we will not have enough safe water.

The water rate increase the first year is estimated at 48% then 3% per year after that. This rate would take effect in 2008 to start building the funds needed to pay for the $5,000,000 plant. It is a terrible option to face. Either do nothing and eventually we can not provide safe water to our residents or raise rates dramatically to fund the plant so we do not increase our citizens risk of cancer. I personally get mad each time we discuss this when I think of the missed opportunity to have made development pay a greater share of this infrastructure. The Council will vote at the next meeting on the water rates in order to fund the water treatment plant. If the Council does not vote to fund the plant then it will not be built and we will have to face the consequences. I do not believe it is fiscally responsible to vote to spend money until we can show we have the money. Sounds like common sense I know but wait till you read the next item on the liquor store.

There is no good choice, but between the two I have to side on the safety of our citizens. We could have used funds from the liquor store revenue fund to also help lower the rate increase. Unfortunately the majority of the Council decided to spend over $600,000 to renovate the liquor store. Here's that debate.

Two options that were discussed at length were expanding the current store or replacing old equipment and redoing the interior layout. The first of these options has an estimated price tag over $600,000. The second proposed option was around $100,000. The first option will expand the store and replace old equipment. The problem with the first option is that the city will have to borrow at least $400,000 to help fund it. This assumes that the estimate is accurate. The $400,000 will be on top of the 1.2 million the city has to borrow to finish paying off the east highway 65 expansion.

There is no study stating how much more revenue will be generated by the major renovation of the store. There was also nothing presented this evening explaining how the city will pay for this. Yet a majority of the Council decided to spend money we do not have on a project we do not need. This will have a serious impact on the the Long Term Financial Plan. I have been working hard to bring some fiscal discipline to Isanti's spending habits. This was dealt a serious set back tonight. CM Duff was the only one that stood with me on this point. We have to stop spending money with no idea how it will impact Isanti fiscal health.

November 20th 2007 Council Meeting

A couple items from the upcoming Council meeting. The Council will be voting on the new Comprehensive Plan and a moratorium for residential development. The moratorium only restricts new subdivisions and will not impact any of the 402 platted units. The 402 units range from single family to apartments. This equates to 5 years of aggressive growth or 10 years of normal growth. Since we are in such a housing lull it would probably be closer to 10 years. The moratorium will be in force for one year or when all residential ordinances are in compliance with the new comprehensive plan, which ever comes first. The Council will be appointing a sub-committee to complete the residential ordinances so we may have a quick completion to the project.

A few other important items include our storm water management practices, water treatment facility plans, liquor store options, County EDA update and the hiring of our Police Lieutenant.

I will leave the details of this group of items in the hope we will get a few more visitors to our council meeting......November 20th, 7pm at Isanti City Hall...

Comp Plan

The City Comprehensive Plan passed 6-0 in the Planning Commission. There were only a few technical issues raised and these were addressed. The Planning Commission held the public hearing and made their recommendation to the City Council. This is the process proscribed by state statute. I was a bit surprised that there was only one person that made public comment considering the comprehensive plan will guide City development for the next decade.

The Council will take it up on the 20th and make the final decision. It should be clear though that the public hearing was at the Planning Commission. The Council does not hold a second public hearing. The council will sift through the Comprehensive Plan and vote to either approve, table or deny.

Isanti Comp Plan

The Isanti Planning Commission will conduct a public hearing on the new Comprehensive Plan. The public hearing will be at Isanti City Hall November 13th at 7pm. Here is the link to the comp plan on the Isanti City website.

http://www.ci.isanti.mn.us/index.asp?Type=B_BASIC&SEC={82A3D932-CDE8-43B0-84F3-7721176A62E1}

This is your chance to be heard. Decisions are made by those that show up.

When Country Calls

My Uncle Dave sent out a poem he recently found from my Grandfather. He wrote to my Grandmother in 1917 as America was preparing to fight in World War One. His words worked quite well. They had 14 children, 11 boys and 3 girls. We must honor our soldiers and their families each and every day.

A poem written by Ted Wimmer to Agnes

When Country Calls

I feel so very lonesome tonight
I don’t know what to do
I feel so blue and downhearted right
So I’ll write a few lines to you.

I was dreaming of the days gone by
And the hours I spent with you
My eyes grew dim, and with a sigh
I said your love must be true.

There’s a sort of pain that hurts my heart
When I think of the hour drawing nigh
The sad day when we two must part
When I’ll kiss you and say good bye.

Remember me and do not fear
To you, I’ll always be true
I’ll always think of you my dear
And I hope to return to you.

Rivers, mountains and the ocean may lie
Between your soldier and you
His love for you will never die
If you’ll promise you’ll be true.

Your soldier begs of you to say
At the rising of the sun
A prayer for him, that this very day
May not be his last one.

And when this war to an end has come
And the troops God spared return
The world again its peace has won
Your soldier’s love for you will burn.

And if the giver of all good
Hears the prayers of your spotless heart
At least I hope and pray he would
That I return never more to part.

Fiscal Future Signature Project---Website

The new City website that is being developed will provide valuable information to our residents, visitors and business community. The basic format will follow these three categories. An example would be if you are a visitor to Isanti for one of our many events, you could click on the visitor tab and see a list and location of places to eat, lodge, shop and fill up with gas. A resident may be looking for the latest City Council agenda or want to look up what they would need if they wanted to finish off their basement.

An audience I hope to serve well will be those looking to locate a business in Isanti. In this area of the website you would find a list of all the commercial/industrial land that could be developed or current open buildings. We would work hand in hand with real estate agents, commercial brokers, landowners and developers to make sure we keep our information fresh and accurate.

We are also exploring the ability to have licenses and permits pulled and paid for online. This would help bring greater efficiency to City Hall and serve our residents and businesses better by allowing them to apply and pay online for permits and licenses. Not everyone can get to City Hall during the normal operating hours.

The last highlight fits this same category. Council Meetings could be broadcast on our new website. It can be difficult for individuals to make meeting times. If we have an option for residents to watch a meeting streamed over the internet or download and watch at your convenience, we will be making our government more accessible to the citizens and taxpayers in whose name we govern.

These are just a few highlights. I hope to be able to announce its launching within the month.

November 6th Council Update

The Council vote 5-0 to move forward with the preparations for the Water Treatment Plant. There is really no other option for the health and safety of our residents. The cancer causing radium issue, the iron/manganese issue and the competitive edge of competing with our neighboring cities that have or will have a water treatment facility makes a difficult decision a bit easier. Our water rates, which are lower than Cambridge and St Francis currently would have to increase to their levels to pay for the facility. I wish we did not have the radium issue especially but since we can not move our city we have to deal with the problem head on.

The moratorium on new residential development passed on a 3-2 vote. CM Johnson and Larson voted against. I was not surprised by the vote but was hopefully they would see the benefit to the city and to developers. The moratorium would only affect new residential development. The roughly 400 unbuilt plotted lots would still be able to be developed, keeping builders busy for 5 to 10 years.

The moratorium on residential development gives the city time to bring all ordinances up to date when the new comp plan is adopted. This is important so that a development does not start under the old ordinances then is rejected because the new ordinances would not allow it. This saves time and money for the developer. If as suggested we simply allow the old ordinances to stay in effect then the City never should have paid the hundred thousand plus for the new comp plan. The moratorium can last as long as one year but could end sooner if the r1, r2, r3, r4 and pud subdivision ordinances are completed before that time.

We are moving forward with placing a like at Riverside Park. Hopefully we will have a light up and working ASAP. . .

Late Night

The Council meeting went a bit over 11:00 pm tonight. I will update on items Wednesday......

November 6th 2007 Council Meeting

I wanted to highlight five of the items from tonight’s Council meeting. The first is the water and sewer rate study. The study was commissioned to evaluate our current rate structure and make sure we are in line with where we need to be. Another main reason for the study is to determine how we would pay for the water treatment facility.

Tonight the Council will start the process by discussing the methodology for paying for the facility. Should everyone pay or should it fall mostly on new developments? I think since the treatment facility will benefit the whole city, the cost should be shared by new and current residents alike.

One of the hard facts we face is the loss of hundreds of thousands of dollars due to the Council’s actions several years ago to lower sewer and water rates without understanding the impact. Then in 2005, my first year on the council, we were informed that the sewer and water funds were losing money. The money lost can not be replaced and caused the Council in 2005 to raise rates to start breaking even once again on operations. The other issue was the low fees charged to new developments for infrastructure improvements. The low developer fees hurt our ability to build needed infrastructure. We have rectified this situation but still suffer from the ill effects.

Now we are looking at a rate increase to fund the treatment plant. The rate would be inline with what Cambridge pays to fund their water treatment facility. East Bethel to the south is also building a water treatment facility. The hard facts are not only do we have hard and at times foul smelling water, it also contains cancer causing radium. Even if the Council green lights a project this year it will be roughly 3 years before it is up and running and producing healthy drinkable water. There is no easy way to pay for the facility, especially with the missteps of the past, but we must protect the health and safety of our citizens.

The next item is a proposed moratorium on residential subdivisions. The moratorium is needed to take effect after the new comp plan is approved to allow for City ordinances to be updated. This does not affect the already approved plats with the 5 to 10 years of housing stock.

The third item is the Sub-committee for residential ordinances. The Council members will be asked to make two appointments each to the sub-committee. The sub-committee will help shape the new residential ordinances. I asked that each member be allowed to make their appointments independently so all views are represented. I did not want a majority of three to make all the appointments.

The fourth item is placing a street light at Riverside Park. For some reason this was not done when it was built and we need to fix this problem ASAP. It is a child safety issue and would be paid for out of park and recreation dedication fees.

The last item is Union negotiations. Currently the personnel committee, on which I serve, is negotiating with the Police and Public Works unions. I believe we will be able to come to a sensible contract with each union. I only mention it here so the public is aware of the work that is being done. The negotiations are time intensive and set the wage scale for the entire city. It will not be easy but both sides are working in good faith. I hope to have resolution to both contracts soon so our employees can continue their good work with the knowledge of a contract that ensures they are treated fairly. This of course does not happen in a vacuum. The City has financial restraints which I have written and spoken about often.

Foreclosure Story

Interesting story in the StarTribune about the impact of foreclosures on city governments. Ties in well with the Article in the County News last week.

http://www.startribune.com/462/story/1530780.html

Fiscal Future Signature Project---Budget

We touched on the LTFP in the last installment. I will briefly discuss the budget's key points. Many of these topics tie together. One can not occur without the other.

This was the first budget I could actually vote for. The 2005 and 2006 budget process exploded city spending by over 40% and left Isanti with a difficult legacy. We had to make the tough choice earlier this year to eliminate one of our building inspection positions due to the construction slow down.

The original staff presented budget and tax levy had significant increases. I spent several months working on the budget and bringing it in line with our needs and means. We were able to cut the tax levy by 5%, which is a realized 8% property tax cut, and cut spending for the fist time in the decade. It is critically important to get spending under control as residential growth has slowed dramatically. The property tax cut is the only one in the region. This is made all the more remarkable by the fact our Local Government Aid (LGA) was cut by 21%. Fiscal discipline is important in running an efficient government.

Some of our budget highlights:

• 5% Property Levy reduction
  – 8% realized property tax reduction
• Spending reductions
• New Police Lieutenant Position Fully funded
• City in compliance with pay equity
• Increased Capital Replacement funding
• Created community funding policy
• Community Service Officer Fully funded
• Reformed City Fund Accounts
• Reformed Administrative funding
• Smoothed volatile spending
  
  The budget does not get finalized till December. The preliminary budget passed on a 3-2 vote. I hope the final budget will receive a 5-0 vote so the city’s taxpayers do not have to worry that this progress is in jeopardy.
  
  I will touch more on the budget and taxes after we get through all the signature projects. I mention the budget twice since it is critically important to ur economic future.

Isanti's Fiscal Future Part 3

I recently gave a speech and presentation to the Isanti Area Chamber of Commerce. This is the base for my third instalment of Isanti's Fiscal Future. I talked about our busy year and our achievements. I want to share this with you and will go through each area in depth. In order to do this without putting you to sleep I will present the outline and discuss each section in order, roughly one a day until complete. The first major section will be our Signature Projects. Within this section there are 6 major components.

Isanti 2007

• Signature Projects
• Budget and Taxes
• Tax Capacity
• Reform
• Communication
• My 2008 Business Goals

The Signature Projects for Isanti

• Long Term Financial Plan
• Budget that included spending reductions and tax cut
• New City Website
• Pedestrian Bridge
• Isanti City Partnership
• Ever Cat Fuels

Long Term Financial Plan (LTFP) has been a goal of mine for the last 2 ½ years. It took last falls election to bring the Council around to the same goal. The LTFP will map out our city’s expected financial obligation, future expenditures and revenues. The LTFP will end the days of not knowing the consequences each time the Council is asked to spend money.
I have written and spoken about this for years and it will be one of our crowning achievements as a City, although most will not be aware of its existence. That is actually kind of good. For when it works well, it will be an invisible hand helping to guide all of our fiscal decisions. I will be asking that we do however communicate the end result to our tax payers. This would be accomplished by sending an illustrated summary of Isanti’s future fiscal decisions to our taxpayers as part of the Isantian News Letter.

Not to get to political, but once established it can only be undone by a Council that will ignore it or undo it. Elections matter, make sure you keep electing candidates that believe in fiscal responsibility and the tools that make it possible.