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.

Welcome Back Dinner was a Great Event

Welcome Back 2007 was an incredible event. Vietnam Veteran's Chapter 684 were tremendous host. MC Don Fredlund kept us on task and guest speaker Sergeant Major Bob Boone put the sacrifices and successes of our soldiers and their families into living detail for us all.

I would like to especially thank Jaysen Guthmueller for doing so much of the hard work behind the scenes to make this all happen.

We made sure that our veteran's were appreciated on October 26th 2007. Let us continue to honor and serve our veterans each and every day. If not for them we could not endure.

Freedom is not free. . .

Interesting Demographic Data

We received some demographic data from the State Demographer. I took the raw data and took out Isanti County's data and then made a few graphs to illustrate some of the trends. Interesting data that shows Isanti will overtake Cambridge in total population by 2025. Another interesting fact is the cities will go from 37% to 44% of the total County population by 2035.

These are of course trends and many variables may change. As cities grow and add more land from a township that could increase that city's population trend and lower that specific township's population trend. We also have St Francis's purchase of land in Athen's township for municipal utilities. An Anoka County city growing into Isanti County could also change the dynamic of future growth.

City Comp Plan

The City Comprehensive Plan process is drawing to a close. If you have not had a chance to look at the draft plan go to:

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

Take a look at the plan chapters and if you have any questions or comments please let me know or contact city staff. This document will be the Isanti's road map to the future.

Welcome Back Veterans 2007

Vietnam Veterans Chapter #684 presents

Welcome Back Veterans 2007!

Date: Friday, October 26
Where: Spectacular Events
Isanti, MN

Social: 6:00 pmDinner: 7:00 pm

Extensive Silent Auction

Dinner Tickets: $40:00

Please join us in celebrating the return of ourmodern era Veterans!
Sponsor a Table of 10 that would include2 Veterans and their spouses or a total of4 Veterans for $400.00!

Also, if you know of a recently returnedVeteran please call 763-444-4554 to placetheir name on the referral list.

Tickets available at: Minnco Credit Union’s 4 locations -American Family Insurance - Isanti DJ’s Grill House &The Isanti Chamber of Commerce or by calling 763-444-4554

Ever Cat Biodiesel Facility Update

The Ever Cat biodiesel facility passed unanimously. I am excited for us to move forward with this project. I will update you when we break ground...

October 16th Council Meeting

The Council will be conducting a work session at 5:45 to discuss several topics including bringing cameras into the Council Chambers. I believe being able to record and broadcast our meetings through cable access and on the city's website will bring city government to our citizens. This democratizing act would be paid for by the cable company’s franchising fee.

The Council meeting at 7pm will focus on Ever Cat Fuels. This is a cutting edge biodiesel technology company. The technology was developed at the University of Minnesota and Augsburg College. I have been working on bringing Ever Cat Fuels to Isanti since March of this year. I've seen the technology at work and in production from the lab to the test facility. I had the privilege of escorting Congressman Oberstar and State Senator Olseen on tours of the test facility.

The idea that this technology, with over 150 years of combined PhD research behind it, can help solve the world’s energy problems is simply amazing. The fact that Isanti is leading the way is monumental. The facility in Isanti will be a demonstration plant producing 3 million and then potentially 30 million gallons of biodiesel. As we approach larger capacities rail service will be needed. A side note: this could get us to a rail industrial park which would be the only one in the region and have significant economic offshoot. The demonstration part is important because as this technology gets adopted, Isanti can expect to receive 1000 or more visitors per year to learn about the technology. This is another important offshoot for local businesses and any future hotel project.

I also drew comfort from the fact that the parent company, SarTec has been in business for over two decades.

http://www.sartec.com/

The raw materials can range from soybean to corn to waste food oils to even algae. The process does not have any of the “soap” by-products from current biodiesel processes and can actual use the “waste” product from both ethanol and other biodiesel plants. The algae option is really the most exciting source. One of the options for growing algae is using the excess heat and co2 that comes from coal power plants, as demonstrated at Massachusetts Institute of Technology (MIT).

In this process, the lost heat and pollutants from a coal generating electric plant are captured and turned into energy. A clear win/win for everyone involved.

I will not attempt to explain the science here, but I do encourage everyone with interest to attend the October 16th Council meeting to see Ever Cat’s presentation themselves.

Here is their website, which is still under construction…

http://www.evercatfuels.com/

The benefits of this project to Isanti are:

• Good paying technical jobs
• $5,000,000 facility bringing 3 acres of industrial land onto the tax rolls
• Cutting edge technology
• Increased business travel
• Real life example of science applied for our students to experience
• Future possible spin off businesses
• Puts Isanti on the map for both high tech and green technology companies
• Locally grown feed stocks can be used

The benefits to the nation and beyond include:

• Profitable even without government subsidy for biodiesel production
• Lower dependence on foreign crude oil
• Renewable
• Biodegradable and low toxicity
• Environmentally friendly
• Improvement of rural economies
• Lower combustion emission profile
• Use without diesel engine modifications
• Good engine performance
• Improved combustion because of its oxygen content
• Ability to be blended with traditional petroleum-based diesel fuel

Ever Cat will bring the highest paying jobs to Isanti of any Industrial Park project to date. It is important to me that any new business I work with has good paying jobs. This facility is new and the jobs created are new jobs, not simply transferring current employees around.

The potential for dramatically increasing business travel in our area is key to the placement of a motel/hotel in Isanti. We are an event city. Everything from the Rodeo/Jubilee days to soccer tournaments, BMX events and the numerous other events bring tens of thousands of visitors to our city--mostly on the weekends. The missing component is the Monday to Thursday traveler that sustains a motel/hotel. Ever Cat helps fill that role.

The biodiesel plant will highlight Isanti. I intend to leverage this project into other high tech and green technology businesses. Our City will be discussed by legislators, business owners and many others that would never have come in contact with us if not for this project.

The last economic advantage from Ever Cat is the future ability to leverage increased biodiesel production into a rail industrial park. I have been working on rail industrial development for nearly a year. I would still hold to clean industries if we progressed to a rail industrial park. A clear advantage would be having the only rail industrial park in the region. I believe we need to look at all options as we strive to increase Isanti’s business growth.

And, oh by the way, it helps save the world . . .

Ever Cat Press Release

FOR IMMEDIATE RELEASE

Contact: Dr. Clayton McNeff
Ever Cat Fuels, LLC
(763) 421-1072
claytonmcneff@evercatfuels.com

The Mcgyan Process:

A Continuous Biodiesel Production Process from Inexpensive Feedstocks
(Anoka, MN) – (August 22, 2007) Ever Cat Fuels, LLC announced today its intention to build a 3 million gallons per day biodiesel production facility in Isanti, MN that uses a revolutionary process of biodiesel production dubbed the “Mcgyan Process,” after its inventors, Dr. Clayton McNeff, Dr. Arlin Gyberg and Dr. Bingwen Yan.

The process was developed by a sister company, SarTec Corporation, also located in Anoka Minnesota. SarTec has developed a patent pending process for continuous biodiesel production that involves the chemical reaction of a lipid source (e.g. algae oil, yellow grease, animal tallow, or acidulated soapstock) and alcohol through a reactor that produces biodiesel with no waste streams, unlike the state of the art methods that use large amounts of corrosive chemicals, produce large amounts of salts and which are water intensive.

The Mcgyan process catalyzes the conversion to yield pure biodiesel with no waste products. Biodiesel is renewable fuel for diesel engines derived from natural oils like soybean oil, and which meets the specifications of ASTM D 6751. Biodiesel is readily biodegradable and nontoxic. Glycerin is a byproduct of biodiesel production that can be refined and is commonly used in foods, beverages, medicines, and personal care products.

Dr. Clayton McNeff, the Vice President of Research at SarTec and Chief Science Officer of Ever Cat Fuels, explains, “the chemical process of producing biodiesel is achieved by the combination of a triglyceride or free fatty acid with an alcohol to produce biodiesel and some benign byproducts. The traditional large-scale production of biodiesel is achieved by a base-catalyzed transesterification reaction that uses methanol, sodium hydroxide and a triglyceride source such as virgin soybean oil. There are a number of caveats to the current process including unwanted side reactions with free fatty acids to produce soaps, and numerous water-intensive neutralization and fuel washing steps. The Mcgyan process overcomes almost all of these issues and allows for the ultra fast continuous production of biodiesel without waste and unwanted glycerol byproducts.

In fact when acidulated soapstock is used as a feedstock the byproduct is water. Since the reactor catalyzes both transesterification and esterification reactions simultaneously, oils with high levels of free fatty acids can be converted to biodiesel, which means that very inexpensive feedstocks can be used.

Furthermore, the process is so clean that in theory it could be used to supply fuel a diesel engine directly and can be implemented via mobile units at the farm-level.” Larry McNeff, President of SarTec and Chief Manager of Ever Cat Fuels notes that, “One of the largest roadblocks to the use of alternative fuels is the change of performance noticed by end users. Biodiesel has many positive attributes such as lowering our dependence upon foreign oil, being environmentally friendly with no additional green house gas emissions and being renewable, but by far the most noted attribute is the similar operating performance to conventional petroleum diesel fuel and the fact that it can be blended with petroleum diesel in any proportion and run in any diesel engine.

The Mcgyan process is completely scalable from farm sized reactors all the way to industrial scale. The Mcgyan Process when combined with vast sources of renewable lipids like oil produced from algae, offers a way to meet our growing
energy demands and yet be a responsible steward of the environment.”

About SarTec Corporation

SarTec Corporation is a privately held company founded in 1983 and based in Anoka, Minnesota. SarTec manufactures a wide variety of natural plant derived saponin based products for the agricultural industry and an automatic lawn fertilization system for the lawn care industry. About Ever Cat Fuels, LLC Ever Cat Fuels, LLC is a privately held limited liability corporation founded in 2006 and based in Anoka, Minnesota. Ever Cat Fuels intends to build and operate a first of its kind biodiesel production facility located in Isanti, MN that uses the patent pending “Mcgyan” process.

ReNew Main Street Barbecue

City Hall will be used as a rain contingency plan for the barbecue and presentation. Hopefully we will have a pause in the rain to allow for an outside event but if not we are prepared.

ReNew Main Street Barbecue

You are cordially invited to a Free Barbecue on Friday, October 5 from noon to 2:00 PM at 30 West Main (across from Creamery Crossing Cafe).

Brian Ross from Hometown Minnesota, Inc. will be the guest speaker.

Brian will discuss creating and implementing design goals for our community's downtown and how to make our downtown a vibrant asset which successfully combines economic, social, and visual elements of our community. Newly available financing programs will be discussed.

If you have any interest in revitalizing the downtown business disstrict you are encouraged to attend this event.

RSVP to admin@isantichamber.com or call Diane at 763-444-8515
Sponsored By Landmark Community Bank

October 2nd Council Update

The Council received input from the residents of Palomino Acres neighborhood. The consensus was to explore the rain gadens option. We are going to put together a presentation of what this would entail and then present this information to the residents in November. I was happy my idea of rain gardens is at least being explored. I can not say that rain gardens are the right answer but they are a lower cost option that will save trees, replenish our water table and save our city taxpayers money.

The Council did approve moving forward with the street improvemnent project along the rail line and Elizabeth without sidewalks. This project will improve the sanitary sewer system by increasing capacity and replacing the old clay sewers.

The Council approved both the water/sewer rate study and the 429/special assessment policy reform. Both of these items will put Isanti on a better finacial footing and save the tax payers money.

The Police Lietenant position was approved and is being posted at the police department before it goes out to the public in general. I am happy we can finally move forward with adding a needed police officer. This improvement will help structurally as well as adding more police time on the streets.

The last item of nuisance abatement was moved forward. The city is working to adopt administrative tickets that can be issued and acted on quickly to speed up the process. It has been painfully slow but I am dedicated to make this a fair, transparent and qucik process.

“Justice delayed is justiced denied”
---William E. Gladstone

October 2nd Council Meeting

We have a couple agenda items I want to discuss. The items are the possible 2008 street improvement project, water/sewer rate study, special assessment policy for petitioned projects, police lieutenant and nuisance enforcement time lines.

The first item relates to two different street projects. the first is the Palomino Acres neighborhood. The streets included are Pinto Lane, Appaloosa Lane and Buckskin Blvd. The Council invited, by letter, all the residents of this neighborhood to discuss the possible placement of curb and gutters. The streets in this area were constructed without the necessary curb and gutter to handle the water from rain. this causes localized flooding. In essence the water from this neighborhood unfortunately floods through a few yards. The Council has received numerous complaints and we are asking the neighborhood for their input. We can use ditches to slow the water, build up to date curb and gutter improvements or leave as is. The first option is less expensive but would eat up a lot of land, destroy many mature trees and cost home owners on average $4,500. The second option is more expensive at an average cost of $6,600 but would bring the system up to modern standards. The city as a whole would still be picking up a majority of the cost. There is no good option here to fix a past planning mistake. The curb and gutters should have been installed when the area was first built to handle the water runoff issue.

Another option I will ask about is what would the impact of rain gardens throughout the entire neighborhood have. Is this a plausible option and would the residents be willing to take on this low impact option.

The second major street project is upgrading the existing sanitary and storm sewer bottlenecks. This includes the area of 2nd ave from Spirit Brook to Elizabeth, Elizabeth Street from 2nd Ave to BNSF, Alley west of BNSF and Broadway at alley intersection.

The Council will be awarding a bid to have our water and sewer rates studied. This study will include the water treatment plant and an option without it. Once we receive the outcome of the studies The Council will decide the final rates and how to fund the water treatment plant.

The special assessment for petitioned projects (429) is one of those items that quickly make you fall to sleep except for the fact they can cost taxpayers tens of thousands of dollars. The idea behind these 429 projects is that if a group of land owners agree they can ask the city to build the road and utilities infrastructure and assess back 100% of the cost to the landowners. The current process however does not charge enough for city staff time and carrying cost of money---since the city acts as the banker. It is critically important that the city makes development pay for itself.

The police lieutenant position will add a necessary supervisor to our Police department. We had originally worked to hire a Sergeant but we received a number of union complaints about the process and the position classification. It was important to us to have a position that would still have a majority of policing activity but not be in the current union so supervision of officers would not be an issue. With the passage of this position we will hire a lieutenant and if filled by a current department employee we will add another patrol officer as well. This will give us a net gain of 1 police position.

The Council has for the first time has put teeth into nuisance abatement. We have been frustrated however by the amount of time it takes to resolve these nuisances. The City Attorney will present a way to dramatically improve the time line for a number of the nuisances.

Welcome Back Veterans 2007

Vietnam Veterans Chapter #684 presents
Welcome Back Veterans 2007!

Date: Friday, October 26

Where: Spectacular Events

Isanti, MN

Social: 6:00 pm
Dinner: 7:00 pm

Extensive Silent Auction

Dinner Tickets: $40:00

Please join us in celebrating the return of our
modern era Veterans!

Sponsor a Table of 10 that would include
2 Veterans and their spouses or a total of
4 Veterans for $400.00!

Also, if you know of a recently returned
Veteran please call 763-444-4554 to place
their name on the referral list.

Tickets available at: Minnco Credit Union’s 4 locations -
American Family Insurance - Isanti DJ’s Grill House &
The Isanti Chamber of Commerce or by calling 763-444-4554

3rd Annual Park Day

Isanti County on Verge of Tax Increase

Unfortunately the Isanti County Board looks to be raising county taxes. They will be holding a follow-up meeting September 25th at 9:00 am to complete discussions on the preliminary budget and property tax levy. I had greater hopes that Isanti County would follow the leadership of The City of Isanti and reduce spending and taxes...at the very least not raises taxes.

Rambling Rave

Well tonight's Council meeting unfortunately had yet another rambling rave by Mr. Iverson. I did not comment when he made his goofy remarks a few weeks ago and asked that I resign as Mayor and leave town. Engaging someone who has such a causal relationship with the facts is unnecessary.

I do however feel compelled to comment on his ridiculous claim tonight that the behavior of the City of Isanti and I towards him, equates to the brutal invasion of the Soviet Union by the Nazis.

Counts vary but the total is roughly 20,000,000 to 25,000,000 men, women and children killed on the Eastern Front. Again counts vary but of this number 13,000,000 to 18,000,000 were civilians.

Mr. Iverson's statement is a great insult to the tragic loss of life in the face of the most heinous regime in human history. I do not know if I should be offended by his statement or simply pity its author for his complete lack of knowledge and understanding of his comments.

Community Center Reroof Project

The community build project to reroof Isanti's community center is moving along nicely. This all volunteer project will provide much needed repairs to our community center. Josh Fedder of Million Dollar Homes and Jan Peterson of the Isanti Area Chamber of Commerce and Realty Executives are taking the lead on this project.

Here is the posting and link from the Isanti City Website with all the details:

VOLUNTEERS NEEDED

The City is seeking volunteers to assist in the following areas for the re-roofing of the Community Center. Types of volunteers needed are:
· Adults who have skills in re-roofing, please bring appropriate tools.
· Adults to do ground work (placing shingles in dumpsters – picking up nails – general clean up, etc.)

The project is scheduled for Saturday, September 22nd and will start at 7:00 a.m. at the Community Center located at 208.5 1st Avenue North (north of Isanti City Hall).

This project has been coordinated by the Isanti Area Chamber of Commerce and the City thanks Jan Peterson and Josh Fedder for organizing the project.

A thank you to the Lions who will be volunteering their time on the project as well as serving food.

Contacts:
Josh Fedder 763-286-1697
Jan Peterson 612-716-1703
Rick Sames 763-444-5512
(City of Isanti Building Inspector)

http://www.ci.isanti.mn.us/

Isanti Fall Music Fest Thanks

I would like to thank the Isanti Fall Music Fest Committee and especially Jan Peterson for all the hard work they put into Saturday's event. It was a lot of fun. The Isanti Ambassador's did a great job getting the dancing going. The involved all the kids and really were the life of the party. Again, thank you for all the hard work and representing Isanti so well.

Property Tax Update

I see in the local papers once again our neighboring cities are all uniformly raising their property taxes, one by over 16% in the preliminary levy. I do not state this to add injury to our neighbors but to simply draw a contrasting note.

The majority of the Council voted to support my spending reductions and tax cut plan. Placing Isanti on a firm and responsible economic footing will bring benefits for years to come.

I would also like our business community to take note. Property taxes hit businesses harder than anyone. My Long Term Financial Plan is taking shape. This incredibly important tool allows us to manage our City's finances and to avoid the poor planning of the past. The ever improving commercial tax base will help fuel Isanti's continued growth and economic development.

Isanti has an ever improving climate for locating and expanding commercial opportunities. Pass the word along...

Main Street Free Barbecue

Friday, October 5 from noon to 2:00 PM the Isanti Area Chamber of Commerce will be having a Renew Main Street Free Barbecue. It will be held at 30 West Main. Brian Ross from Hometown Minnesota, Inc. will be the speaker.
Please RSVP to admin@isantichamber.com or call Diane at 763-444-8515

Brian will discuss creating and implementing design goals for our community's downtown and how to make our community's downtown stand out as a vibrant asset which requires successfully integrating economic, social, and visual elements of the downtown and the larger community.

Please plan on attending this important event.

Isanti Fall Music Fest Repost

Isanti Fall Music Fest

Isanti is hosting the 5th annual Fall Music Fest September 15, 2006 on Main Street. Once again, the Festival will offer a classic car show, street vendors, a street dance featuring the White Sidewalls and a beer garden.The Isanti Fall Music Fest Committee is continuing on the path of making this festival enjoyable for all ages.

Activities start at 2pm. The Color Guard will present at 5:45 followed by my official welcome. The White Sidewalls start playing at 6pm.

The Festival will have family friendly activities such as various street vendors, moonwalk, potato painting, face painting, duck pond, scavenger hunt, sack racing, and tug of war. New Activities for all ages this year are a Cake Walk and The Chicken Raffle. I am looking forward to this great city event.

This is a great event and I hope everyone will come out and have some free fun.

If you have any questions please contact Isanti Fall Music Fest Chairperson Jan Peterson at 763-444-9090.

Tax Update

The preliminary levy amounts are in for each of the municipalities in Isanti County. I am proud to announce Isanti is the only City to lower its property tax rates.

Isanti faced a 21% reduction in our Local Government Aid and a dramatic drop off in developer/building fees due to the housing crash. The majority of the Council made the hard decisions and cut spending to reduce our taxes by 5%. It is not always about how much money you make but how much you spend.

I hope everyone takes notice of the different reactions to tough economic news. Isanti is working hard to increase our commercial tax base so we may continue to lower property taxes, create jobs and provide goods and services our residents need and want. As City government becomes more fiscally responsible trust will be garnered by our citizens and businesses alike.

In the third installment of Isanti's Fiscal Future I will detail how Isanti is saving tax dollars and improving services to our citizens.

Preliminary Budget and Levy Update

Well we did it. With a vote of 3-2, CM Duff, Kolb and I voting in favor, the Council set the preliminary budget and property tax levy. We cut spending and reduced the levy by 5% to 60%. The first actual cut in budgeted city spending for nearly a decade, possibly longer. My records only go back as far as 2000.

To give a point of reference, I have included the levy % since 2001 when rapid residential growth started. 2002 levy was the first year that responded to the rapid growth. This also shows the argument that rapid residential growth pays for itself is nothing short of false. What follows is the year and the actual tax levy as a percentage of actual expenses.

2001---45%
2002---73%
2003---72%
2004---72%
2005---69%
2006---64%
2007---65%

2007 is a budgeted number that is trending closer to 70% year to date.
2008---60% preliminary passed September 4th 2007.

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Our tax dollars have been paying the cost of residential development. My goal is that development pays for itself. I will not give up on that goal.

The state average of 55% is within reach over the next two years. Isanti has faced the predictable issues of drastically reduced Local Government Aid and builder/development fees drying up. Isanti has faced this not by raising taxes as many city's do but by reigning in spending and cutting taxes.

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This is a great accomplishment for our community and should be trumpeted throughout the region. I think it is also important to note that the reason we have two new Council Members and a new Mayor is because the City was on the wrong track. We are moving aggressively to correct past decisions. I also believe it proves elections matter. Who we pick to represent us is more important now than ever.

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I promised to fight to lower taxes. I presented a plan and it was approved by a majority of the Council that also desires to make Isanti a better City. CM Duff and Kolb should be commended for making the hard decisions that had to be made.

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We still have a lot of work to do but tonight was a great victory. I am happy to have delivered on another campaign promise.

September 4th Council Meeting

The 2008 preliminary levy will be set at the September 4th City Council meeting. I have put forward a plan that will reduce the levy rate by 5%. The 5% levy rate reduction from last year’s 65% to 60% of our tax capacity brings us half way to my three year goal of the state average of a 55% levy rate. We should also not forget the initial budget proposal had a 70% proposed property tax levy rate.

In a period of difficult financial times it is important to note Isanti is reducing taxes and spending. We are getting our financial house in order as we face greater uncertainties. The solid fiscal base will give us greater flexibility no matter what the future brings.

I am adding links to three previous pieces that might give some greater clarity of Isanti’s fiscal state without rewriting everything thing here---

http://georgewimmer.blogspot.com/2007/07/isantis-fiscal-future-part-1.html

http://georgewimmer.blogspot.com/2007/08/isantis-fiscal-future-part-2.html

http://georgewimmer.blogspot.com/2007/08/august-21st-budget-special-session.html

The Council will be receiving an update on the water treatment plant process. The test plant process went well. We will be able to treat for the cancer causing radium and the hard water causing iron and manganese. The next step is to decide when we will be building the facility. This decision will then help give a time table for the varied financial options. I will keep you updated on this important project.

The next item on the agenda I want to discuss is the proposed 2008 street and sidewalk project along historic Elizabeth and Broadway. This project failed last year because several council members wanted to force sidewalks into this area. I have been opposed to destroying these sensitive neighborhoods by tearing down mature trees and virtually eliminating front yards. The lots in these low traffic areas were not designed to support sidewalks. I believe it is important to protect Distinctive Isanti Neighborhoods.

If we are going to add sidewalks to the city lets place them where they are needed, along highway 5 and 23. $126,000 of taxpayer money is slated for the sidewalk portion of this project. Let’s put it where it is most needed and will add tremendous safety value to Isanti.

The agenda has 18 major items---some of which have subsets....there may very well be some other items that will generate some energy....I will let you know after the meeting.....

Welcome Back

I had the privilege to help welcome our 911 School Districts Staff back to school this morning. Unfortunately it was not my best public speaking event. I do want to express my support for district teachers and staff.

At the last City Council meeting I declared August 30th Isanti Teacher and Staff Day. There will be a lunch in our teachers' and staff's honor at Community Pride Bank. The lunch will be 11:30 to 1pm. I will be presenting the signed proclamations to the three Isanti principals.

Isanti Fall Music Fest

Isanti is hosting the 5th annual Fall Music Fest September 15, 2006 on Main Street. Once again, the Festival will offer a classic car show, street vendors, a street dance featuring the White Sidewalls and a beer garden.

The Isanti Fall Music Fest Committee is continuing on the path of making this festival enjoyable for all ages. The Festival will have family friendly activities such as various street vendors, moonwalk, potato painting, face painting, duck pond, scavenger hunt, sack racing, and tug of war. New Activities for all ages this year are a Cake Walk and The Chicken Raffle. I am looking forward to this great city event.

If you have any questions please contact Isanti Fall Music Fest Chairperson Jan Peterson at 763-444-9090.

August 21st Budget Special Session Update

The budget session tonight started out quietly and slowly and end in a burst of fury. After the presentation by the the Finance Director I opened the floor to the Council Members. I asked for any comments or suggestions. Hearing none I offered to layout my suggestions for reductions in new spending.

That phrase is key. Reduction in new spending. I laid out specific reductions totaling $253,496. I also asked that $100,000 be transferred from the liquor store fund which currently has $602,000. The total effect of the cost cuts and liquor store transfer would give Isanti a levy of 60.3% or almost a 5% property tax reduction. The initial budget proposal asked for nearly a 70% levy. This 5% increase in taxes is not acceptable.

The reductions in new spending were not easy. We are delaying the hiring of a police investigator for a least one year. This equates to a savings of $78,011 and $15,000 towards a city car. We still be adding one new police position. There was a staff request for a new part time secretary...this was rejected. Another tough decision was to reduce the amount of money the city gives to other non/not for profit and charitable groups. The number was $20,000 and this was reduced by half.

The last major area that was reduced was the equipment replacement schedule. The city has always under funded this area. Our goal is to fully fund but this will have to be eased into. We are increasing our replacement funds but will not be able to go the whole way in one year. If more funds become available or the city's LGA increases after a legislative special session, I will ask that the money goes towards the replacement funds.

None of this is fun or easy. Tough decisions have to be made to control city spending in a time of dramatic cuts in city revenue. The average property tax levy in the state is 55%. Isanti is the 15 highest taxed locality in greater Minnesota. Our current tax levy is 64.718%. My goal is to reduce our tax levy to the state average in three years. We are half way there in the first year. We should not kid ourselves however, the last 5% will be much tougher than the first 5%. CM's Duff and Kolb voted with me to reduce spending and lower taxes. CM's Johnson and Larson voted against reducing spending and against lowering taxes. The end of the session tonight ended in a heated exchange unfortunately and the vote was quite tense.

The other thought to leave you with is the increasing commercial development. These businesses will start coming on the tax rolls in the next two years helping to bring balance to our property tax base. Businesses pay 50% more in taxation per the same value as residential property and use less services.

We are faced with a simply but harsh reality. LGA and building fees are drastically reduced. We can either reduce spending or increase taxes. I believe we made the right decision.

August 21st Council Update

I wanted to update you on two items from tonight's meeting. The first item is the new liquor store. Building a new liquor in the end did not make financial sense. The $1,800,000 bonded debt and the $200,000 to $300,000 in cash the city would have spent did not bring the city and new revenue. We would have forgone roughly $40,000 in salary offsets and $100,000 in property tax relief per year.

The store would be able to reach roughly $40,000 in added revenue to the city by 2012 if the projections hold up. This is still $100,000 short of where we are today. I can not see spending so much for so small of a return in the future. This was a tough decision and the split vote reflects the debate. In the end council members' Duff and Kolb and I voted against building a new store. CM Johnson and Larson made good arguments in favor but I just could not agree. This was tough and a lot of work went into the process. It is always difficult to see a project not be completed but good money after bad is an even worse decision.

The other item of note is the discussion on the Community Center. We talked about the longevity and the need to fix the roof. I want to commend CM Johnson and Duff on their work on this project and for continuing to tackle this project.

Josh Fedder of Million Dollar Homes and Jan Peterson of Realty Executives Northland volunteered to help find support in the building community for the project. This type of volunteering is one of the many reason's our Community is so strong. I want to thank Jan and Josh and hope everyone recognizes their efforts.

Nominate Great Yards

Don't forget to nominate yards for the Mayor's Great Yard Award. Email me with your nominations. george@georgewimmer.com

August 21st Council Meeting

There are three items from the August 21st Council Agenda I want to discuss.

The first item is the Liquor Store Project. I had voted to support the first phase of this project. This included getting construction plans, construction budget and how a plan to pay for the project. The initial information seemed to show the project would pay for itself and still continue to bring in ever increasing revenue to the general fund. The numbers I have reviewed do not support this conclusion.

The increase in sales that would occur would not pay the associated debt for the store in the first 4 years. This would have a significant impact on each years budget leading to higher property taxes or greater cuts in other city services.

The two funding options are a level 20 year payment schedule, akin to a fix rate mortgage, or a 20 year end loaded payment schedule, akin to a hybrid of a fix and an adjustable rate mortgage. I do not believe it is fair to saddle the next generation with balloon payments for what will be at the time an almost 20 year old building. This will setup the situation when major repairs are needed the city will be paying the highest payments.....

It would be easy to leave the debt payments for the next generation to worry about, but I cannot.....I do not believe it is responsible for us to get a short term gain at our children's expense.

The next item is a reform of the nuisance noise ordinance. I just wanted to keep you informed as ordinances are improved. Any questions please let me know.

The last item is a debate on the Community Center. The council will be discussing what changes/improvements are needed. The discussion will also look at the long term view of renovation and longevity of the facility. I welcome your comments.

Update on Updates

The Council and budget updates will be published tonight. The last budget meeting is 5:30 at City Hall Tuesday the 21st.

40,000 Milestone Reached

I was on vacation for a few days and came back to see that the Blog has passed the 40,000 visit milestone. Just thought you would like to know...

August 8th Council Update

The new fee schedule was passed by a 3-2 vote. As predicted Council Members Johnson and Larson voted against. I have written so much on this topic I will simply conclude by saying with the passing of the new schedule, residential development comes much closer to paying for itself.

I was presented with a $500 check from the Rotary Club to help fund handicapped accessible picnic tables for Isanti parks. This was wonderful donation and I would like to thank the Rotary and Greg Owens of Community Pride Bank for presenting the check.

I read a portion of a letter from MnDot promising their support for the Pedestrian Bridge project. The commitment is at least $200,000. This helps dramatically reduce our local match from Park and Recreation dedication fees. The commitment is based upon the regional benefits of this project. There is still a lot of work to do on the project but I am committed to leaving Isanti with a completed trail system, including a pedestrian bridge.

The last item of note I want to mention is that the Council approved a moratorium on peddlers licenses. I asked for this because of the complaints I have received. I was further troubled when I was informed the City issues these licenses to anyone that applies. I felt the City should take greater responsibility to do some background checking before we license someone to go door to door selling products or services. I also wanted to have a system to track complaints.

National Night Out Thank you.

There was a great crowd at National Night Out tonight. A number of games and raffle prizes along with plenty of food for all helped make tonight a success. I would like to thank the Police reserves and the Police department for hosting the event.

I met some residents for the first time tonight and was able to answer a few questions. It was a lot of fun and I look forward to next year.

Council is Wednesday this Week

Council is Wednesday night due to National Night Tuesday.

The proposed fee increases will be voted on. This is critical to our financial future. A no vote to making development pay for itself is a vote to increase taxes, plain and simple.

Isanti's Fiscal Future Part 2

I was contemplating changing this work to discuss the damaging effects of the 21% reduction in Local Government Aid (LGA) we were notified of last week. I decided to stick with my original topic for this piece. In part three of Isanti’s Fiscal Future I will tie the complete financial picture together and layout my budget changes that will keep us on the path to a 55% levy rate in three years. Isanti is currently at a 65% levy rate and as of 2006 was the 15th highest taxed locality in greater Minnesota.

The great myth of rapid residential growth is that it pays for itself or eventually pays for itself. The numbers speak for themselves in cities across this state and country. As I have stated numerous times in the past, current residents are heavily subsidizing residential growth. The outcome has been higher taxes and a higher proportion of the city’s budget coming from property taxes. In 2001 Isanti’s tax payers paid for 45% of the overall budget. 2002, the first year experiencing the effects of the rapid growth, the percent from taxpayers shot up to 73% of the total budget. 2001 to 2008 follows:

2001---45%

2002---73%

2003---72%

2004---72%

2005---69%

2006---64%

2007---68%

2007---71%

2007 is an estimate based off of year to date and the 2008 number is the current proposed budget.

The revised current proposed budget has a 5% tax increase. I cannot support such a budget. All evidence points to the fact that Isanti is already heavily taxed and for added measure our sewer and water rates are also quite high. I have identified budget cuts equaling a 6% reduction in the proposed budget. This however is only a 1% actual cut in property taxes. This again is the result of LGA cuts. Based on the current funding and formula Isanti may expect a further LGA cut next year. Therefore we must continue cut cost.

I will be indentifying more cuts in the next month to reduce the proposed budget by 10% resulting in an effective 5% levy reduction. This levy reduction will take us to an effective rate of 60%, leaving two more years to reach my goal of 55%. Please take note that the greatest cuts are in the first year of my plan. I am always amused by budget or deficit reduction plans that show the greatest cuts at the end of a plan and usually occur when the person proposing such a plan is no longer in office.

"There is nothing so useless as doing efficiently that which should not be done at all." Peter Drucker

This quote states better than I ever could the next difficult decision we need to make. Isanti has been funding a few organizations in just the last couple years. We have also been approached by several others. The word is out that the City is open to funding charities and non/not for profits.

These are noble pursuits but in many cases simply not what city taxpayer money is for. In some cases the county is or should be funding these groups. This sets up the unfortunate circumstance that city taxpayers are paying twice. The magic formula for many of these groups is a dollar person or roughly $5,000 per group.

Here is a partial list of organizations the city has help fund or has received request to fund.

Isanti County Historical society
Community Involvement Team
Friends of the Library
Family Pathways
Refuge Network
Redbirds
Rum River BMX
Jubilee Days

Please also note that the funding has only started in the last couple years. Even though it has been a few short years the vested interest makes it sound as though we have been doing it for a millennium and they are entitled to your taxes. Again these are all great groups. The question is, should the city give charitable donations of taxpayer money? It is tough to say no.

Some groups like the Redbirds and Rum River BMX bring in people from the region to Isanti and provide activities far cheaper than the city could. I have addressed this in the Park and Recreation budget by providing an initial amount to help such groups but make it part of the budget process so tradeoffs can be made. I have also proposed to cut this amount in half as we face tougher budget numbers due to LGA cuts this year.

To be sure we must understand each dollar the city gives is one more dollar in taxes that must be raised. Is charity a government service or an individual decision? No one likes to say no and be labeled a scrooge but we must remember what our mandate is as a city and protect our taxpayers’ money like a sacred trust.

I proposed the elimination of a building inspector earlier this year and will be asking that we eliminate other proposed staff increases and other cost. All budget items must be on the table for reduction.

Now we have discussed the general situation and the overall tax and cost reductions. The specific cuts will be laid out in part three. The other side of the equation is commercial growth. Commercial growth is important for three main reasons. Providing much needed tax base, job opportunities and products/service our residents need and want.

Commercial property pays 50% more in taxes than residential and uses less city services; ergo cost less to the taxpayers. Isanti is far behind in commercial growth. I have made expanding business opportunity my number one priority. Only through growing our industrial and commercial districts will Isanti have a solid base of revenue to fund the services our citizens want and need.

We have had a number of important ground breakings this year and I look forward to many more. The industrial and commercial business base we are currently developing will provide the tax base, jobs and products/services Isanti needs.

I have been visiting Isanti businesses with the Isanti Area Chamber President to learn what works and does not work and extending my help so they may thrive and expand. I have also been working hard to bring in new industrial and commercial businesses. The fruit of these efforts is also ripening, bringing a brighter future for our great city.

Together we can accomplish anything. Only together can we make the hard decisions that will take us forward. There may be a hard fight in the near future over this budget. Hopefully we can come to an agreement. I ask that each citizen and taxpayer consider carefully the decisions that have to be made. The budget we create for 2008 will either put us on the right path to the future or damn us to continue the mistakes of the past.

National Night Out

National Night Out

Tuesday

August 07, 2007 at 6:30 PM

Potluck dinner.

The night will include games and prizes!

Location:
Isanti Community Center

Any questions please contact me:

George@GeorgeWimmer.com or 763-444-7158

Isanti's Fiscal Future Part 2 Coming August 6th

I will have the second installment of the Isanti's Fiscal Future published August 6th. The 21% reduction in Local Government Aid will have a dramatic impact on the budget. LGA has doubled in the previous 5 years becoming a significant portion of total revenues. The LGA cut will force the City to make tough economic decisions.

LGA Update

Well the capacity numbers came in higher yesterday. Today we received bad news. Our LGA number is down over 20%. This is a hole in the budget that will need to be addressed. Tough budget decisions will need to be made.

Budget Update

We have the new tax capacity numbers. The proposed tax increase is not just over 1%. Still to high when a tax cut is needed but moving in the right direction.

Special City Council Budget Session Tonight

The Council has its first budget session tonight 5:30.

The Departments covered are City Planning, Building Inspections, Mayor/Council, Economic Development and Finance/Administration departments and our City debt.

A few points as we start tonight. The proposed budget has a 6% increase in spending and a 3.61% tax increase. Both of these numbers are unacceptable. I have identified $200,000 in spending cuts to date. I am still working to reduce further cost.

Tonight's and the next budget session are to listen to staff's request. The Council then needs to prioritize spending decisions. The amount the Council decides to spend will determine Isanti's property tax levy rate. Isanti currently has a 64.7% levy rate. I have been working to reduce city property taxes since I was first elected to the Council. My 2006 long range fiscal plan has a 55% levy rate goal. This would take Isanti from being the 15th highest taxed locality in greater Minnesota to one of the most competitive tax rates in all of Minnesota.

In my second installment of Isanti's Fiscal Future I will detail the city's effective tax rate in comparison to the rest of the state and the competitive disadvantage we face. I will also discuss trends that do not bode well for Isanti.

We must also be aware that the City is going through a new assessment by the County. We may think this would lead to lower values and taxes but the opposite has been seen throughout the state. Sale prices are going down but valuation keep marching forwarded due to the delayed reaction time of the assessment process. This leads to the troublesome possibility that sale prices go down, tax levys go down but if assessments go up the actual tax you pay may also go up.

Government must be as lean and cost effective as possible now more than ever.

Celebrety Donkey Races

The Celebrity Donkey Race I was talked into was quite a bit of fun. Things got going about an hour late but when it did we were all in for a lot of laughs. The Donkey I was assigned to ride was what they call a dunker. He would trot along then stop on a dime and lower his head to dunk me off the front. He was successful about half a dozen times. Unfortunately I have no pictures of my falls. If you have any please let me know. I would like to post them. Here are a few pictures I have---

Alexander watching Dad walking to the starting line

It was a brief lead

My research into alternative modes of transportation comes to an end

Watering Ban Lifted

Total watering ban is lifted...we are back to the normal every other day watering. Thank you for your patience

Tax Quotes

I thought a few quotes on taxes would help put things in perspective on the eve of our budget discussions.

If you make any money, the government shoves you in the creek once a year with it in your pockets, and all that don't get wet you can keep. ~Will Rogers

Taxation with representation ain't so hot either. ~Gerald Barzan

The taxpayer - that's someone who works for the federal government but doesn't have to take the civil service examination. ~Ronald Reagan

America is a land of taxation that was founded to avoid taxation. ~Laurence J. Peter

I'm proud to pay taxes in the United States; the only thing is, I could be just as proud for half the money. ~Arthur Godfrey

Why does a slight tax increase cost you two hundred dollars and a substantial tax cut save you thirty cents? ~Peg Bracken

The income tax has made more liars out of the American people than golf has. Even when you make a tax form out on the level, you don't know when it's through if you are a crook or a martyr. ~Will Rogers

Unquestionably, there is progress. The average American now pays out twice as much in taxes as he formerly got in wages. ~H.L. Mencken

The nation should have a tax system that looks like someone designed it on purpose. ~William Simon

We must care for each other more, and tax each other less. ~Bill Archer

Be wary of strong drink. It can make you shoot at tax collectors... and miss. ~Robert Heinlein

The art of taxation consists in so plucking the goose as to get the most feathers with the least hissing. ~Jean Baptist Colbert, attributed

What at first was plunder assumed the softer name of revenue. ~Thomas Paine

Did you ever notice that when you put the words "The" and "IRS" together, it spells "THEIRS?" ~Author Unknown

We have long had death and taxes as the two standards of inevitability. But there are those who believe that death is the preferable of the two. "At least," as one man said, "there's one advantage about death; it doesn't get worse every time Congress meets." ~Erwin N. Griswold

The point to remember is that what the government gives it must first take away. ~John S. Coleman, address, Detroit Chamber of Commerce, 1956

Philosophy teaches a man that he can't take it with him; taxes teach him he can't leave it behind either. ~Mignon McLaughlin, The Second Neurotic's Notebook, 1966

The best things in life are free, but sooner or later the government will find a way to tax them. ~Author Unknown

The government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it. ~Ronald Reagan

There's nothing wrong with the younger generation that becoming taxpayers won't cure. ~Dan Bennett\

A fine is a tax for doing something wrong. A tax is a fine for doing something right. Author Unknown

First Budget Work Session

The first Isanti City budget work session is Tuesday July 31st 5:30 at Isanti City Hall. We will be going through department by department starting with Administration and Community Development.

The Departments covered are City Planning, Park and Recreation, Building Inspections, Mayor/Council, Economic Development and Finance/Administration departments.

Watering Ban

WATER ALERT

WEDNESDAY - July 25, 2007

TOTAL WATERING BAN EFFECTIVE IMMEDIATELY

NOTIFICATION WILL BE GIVEN WHEN BAN IS LIFTED

From Isanti City Hall

Repost Veteran's Picnic

Veterans Hog Roast & Picnic

Where:

Isanti’s Bluebird Park

When:

Saturday, July 21stfrom 12:00 pm till Dusk

Sponsored by Jaysen Guthmueller'sAmerican Family Insurance of Isanti

Donations accepted to help Veteran's in need

Interesting turn of Events

I was able to present the Mayor's Choice award to the Isanti Cub Scout Troop tonight. A great part of being Mayor is to help promote the positives of Isanti and be a Goodwill Ambassador.

Now for the interesting turn of events--- The discussion centered on the proposed fee increases. The arguments that were given I expected such as CM Larson and Johnson making initial statements that they would never vote for any developer or builder fee increases. I countered with the points I raised at http://georgewimmer.blogspot.com/2007/07/isantis-fiscal-future-part-1.html stating that current residents should not subsidize developer cost.

The unexpected argument made by both CM Larson and Johnson was that a reason for what they deemed as high city developer cost was city employee inefficiency.

I was frankly floored. That these two were the ones to raise this concern after they have in the past accused me of being too critical of City staff. I am not sure where their argument will lead but it is interesting.

Staff keeps very good records of all the activity generated by processing developer request. The vast majority of the activity that is generated is by the developer. Some of this is by the natural development of any project. Particular items may change. These changes need to be reviewed. We cannot simply rubber stamp what is presented to the city.

Let’s be very clear. Isanti’s developer fees are low and in some cases the lowest in the area. The fee increases are justified by both the findings of an independent audit and in comparison to our neighboring cities. We face grave financial issues to be sure but these were caused by Council past action and inaction.

The one developer that did come to the meeting stated he knew fees had to rise but wanted them to be time delayed to January 2008 and perhaps not as high as being proposed. I was contacted by developers and builders and all understood that Isanti has low fees and that some type of increases were coming.

So to sum up we have an independent audit saying we have extremely low fees, we are not covering our basic cost and developer and builder community are not fighting tooth and nail against the proposed increases. We are losing money on ever development that is being processed by the City.

We have a simple choice to make. Development pays for itself or the city taxpayer continues to subsidize residential development. I feel like Don Quixote sometimes tipping at windmills. I have made the argument 100 times but we face difficult financial times and we must make residential development pay for itself.

We left the item tabled until the next Council meeting so some of the questions raised tonight can be answered. Then we will make our collective decision about what to do. I did find it ironic that the Council tabled the item…perhaps showing some inefficiency of our own.

Isanti Area Chamber Golf Classic

Isanti Area Chamber
Golf Classic

The Refuge Golf Course
Oak Grove, MN
Monday, Aug. 27
11:00 Registration/Lunch
12:00 Shotgun Start

Qualify for a chance to win
$1,000,000

Call 763-444-8515 for more information

Veteran's Hog Roast & Picnic

Veterans
Hog Roast & Picnic

Where:
Isanti’s Bluebird Park
When:
Saturday, July 21st
from 12:00 pm till Dusk

Sponsored by Jaysen Guthmueller's
American Family Insurance of Isanti

Donations accepted to help Veteran's in need

Council 7/17/07

We had the McDonalds ground breaking today. This is an important business to start generating commercial energy along highway 65.

The Council will be holding a public hearing on annexing 34.44 acres at the SE corner of 301st and highway 65. I have considerable issues with this annexation because it is so far from City water and sewer and the cost are quite high to bring city services to the area.

The next public hearing item is amending the City fee ordinance. I have stated by position on this topic at http://georgewimmer.blogspot.com/2007/07/isantis-fiscal-future-part-1.html.

The last public hearing item is abatement on several properties that have not complied with city nuisance ordinances.

The last item I want to talk about is interim use permits. Interim Use permits for differing commercial uses gives the City greater control and and allows for better planning practices. Any questions let me know.

Isanti's Fiscal Future Part 1

“Perhaps the sentiments contained in the following pages, are not YET sufficiently fashionable to procure them general favour; a long habit of not thinking a thing WRONG, gives it a superficial appearance of being RIGHT, and raises at first a formidable outcry in defense of custom. But the tumult soon subsides. Time makes more converts than reason.” from Common Sense by Thomas Paine.

Thomas Paine’s words of February 1776 seem quite appropriate to Isanti of July 2007. The past decisions to subsidize residential development at the cost of the Taxpayer must end. The rapid residential growth has brought crippling debt to our City. The rusty blunt sword of eminent domain that the Council used in 2005 has inflicted a wound that continues to fester to this day. We have a clear path in front of us that will bring a bright future. We only need to understand the current situation, make the tough choices and be disciplined enough to follow our course.

We are faced with 3 troubling facts:
· Disastrous Debt
· Excessive City Spending
· Low Residential Developer Fees

The $4,540,000 in bonded debt assumed by the City in 2005 for the East 65 expansion was based on 104 residential units being built per year. We have obviously built far fewer than that in the last two years and are on pace for roughly half the number needed. The use of eminent domain, which I voted against, has added hundreds of thousands of dollars in added cost to this project. Isanti will have to bond at least another $1,073,500 to cover the eminent domain and other added cost to the east 65 expansion. The original $4,540,000 bond and its roughly $500,000 yearly debt payment will have to be refinanced. This however will come with a greater long term cost but will allow for a lower yearly payment. The refinancing will be meaningless however if the development fees are not set to cover the debt.

Now let us turn to the excessive City spending of the past few years. The 40% plus in new spending contained in the last two budgets, I voted against both, has set a false pretense. I fear as the budget process goes forward the idea will be firmly set in a number of minds that the current amount being spent is a floor we cannot go under.

We have received only 27% of the expected building fees. This is an important number because it pays several city employees complete salary and portions of many others. We did take action and eliminated one position. I do believe we must look at cutting other cost. There are only three options left if the anticipated fees are not generated---raise property taxes, raise fees or reduce cost. I will be presenting my budget cuts and offsets in August.

Isanti’s property taxes are already too high. This leaves fees and cost reduction. The city has already reduced one position in building inspections to lower ongoing cost. I will continue to work to lower all city cost. There are however a number of developer fees that are considerably low compared to the cost of operations and comparable cities in the area. Several examples of losing money are final platting -$22,844, prelim platting -$4,388 and site plan reviews losing -$3,269. Site plan reviews are a good example—Cambridge charges $500 and Isanti only half that at $250. Isanti’s final plat fees are significantly lower than North Branch, Wyoming, Princeton and Zimmerman. These numbers are based on the Independent Audit of City Fees by Abdo Eick & Meyers LLP. The audit further states that the majority of the costs under the planning department are not covered by fees. This means you and I the taxpayers are subsidizing development through our property taxes. This is flatly wrong.

One of the fees that is often derided by developers is the Park and Recreation fee. Isanti’s current fee is $1,320 for residential and $1,375 for commercial. Again this is a developer fee. Cambridge’s residential is $1,600 and commercial is $2,940 and Princeton is $2,400 residential and $1,000 per acre of commercial. Again Isanti is lashed by developers saying our fees are high and yet the facts show we are low and in some cases the lowest.

I applaud developers for wanting to maximize their profits. The Council however must maximize what is best for the City. We cannot protect the City if we place developer profits ahead of good planning and proper financial stewardship. If developers do not pay the proper fee amount then the current taxpayers are in essence writing a check to the developer on each development.

Now we get to my favorite Trojan Horse of an argument for low fees. The people who are going to be buying these new homes will have higher cost because of higher fees. I would find this plausible if we were all getting rebate checks from the last 7 years when houses were selling for a premium and profits were flying in on each new home sold. Where was the concern for the poor home buyer when prices were seeing double digit increases do to market conditions. Everyone’s home valuations are much higher because of the housing boom. We are all paying higher property taxes because of high valuations even when tax rates decrease. How can I ask our Taxpayers who already pay inflated property taxes to subsidize residential development?

I am asking that the true cost be paid for in the developer fees--- nothing less and nothing more. This is why the council ordered an independent audit of our fees. To simply ignore the facts when presented would be folly. The other boogey man argument being raised is well this could slow or stop residential development. There already is a tremendous slow down because of the housing bubble. We need residential building to slow so the city can catch up to the growth. Also I think everyone should be aware that there are hundreds of existing homes and sites already available. Isanti has a good decade of housing stock in the pipeline already. There is no reason to artificially prime the housing pump.

We must be ready to make the hard decisions. We must cut cost where necessary and make development pay for itself. If we do not do this we are only setting ourselves up for failure. I predicted this moment when I first ran for council 2004. If we simply stick our heads in the sand again this year the repercussions will reverberate for generations to come.

I see that bright future when our financial house is in order. I have been working for Long Term Financial Planning (LTFP) the past few years and we are almost there. My Development Impact List will hopefully be completed this year as well. I was pleased at the beginning of the year when the LTFP was embraced as a City Council goal. With these tools in place and proper discipline we will thrive. We must continue to move forward. Leave the poor decisions of the past in the dust of time.

This is the first of what will be three installments about Isanti's Fiscal Future.

McDonalds

McDonalds ground breaking is Monday the 16th. The long awaited project will finally start rolling along.

One more Day

I am still waiting to get a few more facts checked for the budget and developer fee issues paper. If you would like to be notified email at george@georgewimmer.com

Pictures from Dunk Tank and Outhouse Races

Alexander throwing to sink Dad

Taking my seat after Abigail sinks me

The climb out of the water after being dunked

My sponsored Crash Test Dummies came in 2nd in the Outhouse races. They also won the award for best Outhouse. Great job!!!

Ambassador Coronation

Do not forget the Ambassador Coronation today 4pm at the Ice Arena..

June Winners of the Mayor's Great Yard Award

I am happy to announce the winners of the Mayor's Great Yard Award for June:

First Place Andrew Moen Wins $100 and Framed Proclamation

Second Place Craig Nelson Wins $50 and Framed Proclamation

Third Place Melissa Krizan Wins $25 and Framed Proclamation

Landmark Bank provided the monetary awards. We are taking nominations for July. This was a lot of fun and helps to highlight the positives of our community.

Great Weekend II

I will turn back to City business in a few days with a Council update and a number of postings on the numerous fiscal issues and budget shortfalls the city will be facing. I am preparing a paper on the budget and developer fee issues. This will be published on the website http://www.georgewimmer.com/ and portions on the blog Monday night.

I want our focus this week and weekend to be on our great Rodeo and Jubilee celebration. The pig roast starts at the Rodeo grounds at 3pm today. I will be pitching in by helping cut up the meat.

Our parade tonight starts at 6:30. This family fun event is always a great success. I have the privilege of selecting a winner for the Mayor's best float award.

Friday we have the Community Pride picnic 11am to 2pm. Free lunch and kids events are provided.

I will post more on the weekend events Friday.

Any questions, comments or concerns during our Rodeo/Jubilee Days please call me on my cell phone 763-442-8749. I will be out and about the whole time and want to make sure if any issues do arise we address them immediately. Thank you.