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.
About Me
- George
- I have served the City of Isanti as Mayor since 2007. We have accomplished great things together and I look forward to building on our success. United, we move forward to a better future. You may contact me at 763-442-8749 or e-mail me at george@georgewimmer.com.
14 comments:
So, if I understand you right, Isanti's priority is more liquor over cleaner water???
How does this impact the city's ability to fund other future municipal projects such as street improvements, fire protection, police, library and other public assets?
I have a question about the potential water rate increase. If the water rates increase to build funding for supply water, will the sewer rates automatically increase with them? I would hope not.
The sewer rates are not tied to the water rates. I will be posting the Cambridge, St Francis and Isanti water rates.
It is sad that clean water does not have the same priority as more liquor. The new spending will mean more debt and less ability to provide for other needs. The City has finite resources.
B as in bee S as in ess!!!
What can the citizens of Isanti do to reject that vote? The liqour store should have its own seperate fund that is strictly from their profits to pay for these projects!! Or atleast be treated like a seperate entity. This is ridiculous!!
Let's get a petition going for this, how many signatures do we need? This can't be the final word!! What would the media think about a city council that sets a higher priority for a liqour store than their resident's health and safety!
There is a liquor store fund. The purpose of municipal liquor stores is to help lower city property taxes.....if all the profits are plowed back into the store then this goal is not met.
Isanti faces a dramatic drop off in building fees and our state aid was cut by 21% this year alone. It is not the time to reduce the liquor store contributions to the general fund. I was able to get some numbers from our City bond consultant and financial staff. Even with a substantial increase in sales from the expansion the City will lose over 20k a year from current liquor store profits.
This makes no financial sense. A petition has no legal weight. The Council is the final word. I hope by presenting the financial facts it may change some minds but considering there were at least two votes to spend 2 million on a new store that would lose money from the financing...it may not... I will try as hard as I can... \
I spent a few hours today geting the facts and building a spread sheet to explain the situation. I am frustrated but will keep trying.
Does this mean the city's logo will change from "A community for Generations" TO "Hurry and drink the booze before the water kills you?"
"There is a liquor store fund. The purpose of municipal liquor stores is to help lower city property taxes....."
Wow, that proves my point even more now! I guess it will be sad that I will be paying the high water rates and not be able to enjoy the new water treatment plant since we will probably not be in Isanti by the time it's finished...
So, I was listening to the radio and heard reference to this article: http://kstp.com/article/stories/S268335.shtml?cat=206
Are we on this list to see if we can get some help for the funding of the treatment plant? I mean, if Burnsville thinks they can $10 million for a performing arts center, why can't we get at least half of our treatment plant paid for? Maybe if they don't want to give us money for the residents health and safety, then they can contribute to the demise of the safety and give us money for the liquor store...
I understand your point. The state gives low interest loans for sewer treatment plants. I wish it would be funded by the state. The real shame is the low development fees the city had been charging for water and sewer hookups and now we are in the situation we are in.
George, I appreciate your hard work but its obvious you need more help! To me this also seems like double dipping in a way. Not only will we have to pay the outrageous water rates, we also will get fined if we don't keep our lawns watered!
I don't see the City water rates for St. Francis or Cambridge any chance that is going to be posted soon? I know St. Francis rates are no where near the rates we are paying here and they can drink their water there!
I posted this November 21st..
http://georgewimmer.blogspot.com/2007/11/water-rates.html
St Francis is $7 more per 7,000 gallons than Isanti. There water is drinkable because they have a water treatment plant.
there is no fine for not watering your lawns....
I agree I need more help.....Isanti is faced with grave financial challenges. I need a Council that will hold the line on spending and give me the tools to continue bringing in more businesses to help pick-up our tax burdens and provide Jobs.
Ever Cat Fuels, which I have worked on since March is breaking ground December 6th for their plant. This will provide good to great paying jobs and help our tax base. Pat's Small Engines is opening its doors to full operations. McDonalds is opening within a few weeks....this is a gateway business that will attract many more....Hockert Sales moved to Isanti and started operations a few weeks ago...they distribute and repair chiropractor equipment. I will be discssuing all the business we have been able to attract to Isanti this year.
We have great things happening and I have been pouring my self into it...but we need to hold the line and not spend revenue before we get it...common sense that often does not seem common...
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