Becker Blog

Problems become Opportunities

2008-08-22T09:30:00.001-05:00

More ball fields have been approved for the expansion of the Becker Athletic Complex (BAC) as the development of the project continues. As you may know the city had acquired approximately 7 acres of property to the south of the present ball field complex known as the BAC. This property was on the other side of the parking area. The project as originally approved provided for 3 football/soccer fields to be developed with irrigation to provide more green space. In an earlier blog I had discussed in more detail the project as a whole.

In accomplishing the construction of the project a contractor will typically salvage the top soil by stripping it off and saving it for final application before seeding. In planning for this step we had determined there was approximately 12 inches of top soil throughout the site. Once scrapers and dozers were on the site it was found in the areas closest to the trees on the west side that we had roughly twice the thickness of top soil material. With this additional material we had a problem and an opportunity. The problem was we had more top soil than was needed on the project and we had to move it someplace. The opportunity was we had a space that could be utilized for some junior ball fields and using this material in that manner was a constructive option.

With the construction of the project we had taken out two junior ball fields that were established in the 7 acre parcel. We had salvaged the lime material used in the infield for later use. Now we had additional top soil. Having a vacant area that had been considered for junior ball field use in the future collided into the possibilities that perhaps we can make this happen now.

With a small amount of effort and additional funds the junior ball fields could be replaced. We also have the irrigation line running adjacent to the area and so watering of the fields was a possibility. The proposal included the trucking and spreading of the top soil from one area to another. We also looked at a small extension of the irrigation system to provide for a “center” pivot irrigation head that would water both junior ball areas. Seeding would need to be provided as well bringing the total estimated cost at $6,000 for the additional work. These costs will come out of the contingency amount for the project so funding was available. The additional expense was approved.

Looking at the total project, it is anticipated that seeding for all areas will occur in the next few weeks. We’ll get some growth yet this year. Growth will need to continue next season to fully establish the fields into playable turf. With any luck we’ll have suitable conditions for play next fall but in the worse case we’re in business for the spring of 2010.

Looking for Great Leaders

2008-08-19T16:31:00.001-05:00

Filings for office for City Council open on August 26 and remain open until 5:00 pm on September 9th. There are two council seats and the mayor seat open. These all carry 4 year terms. The filing fee is $2. Applicants must be a resident of the city for the past 30 days and be at least 21 years old upon assuming office.

Application is simple; just fill out a form for candidacy. Upon filing at city hall for candidacy you will be given a good deal of information. The packet includes among other things a Campaign Manual; financial reporting forms; two chapters from the League of Minnesota Handbook discussing council structure and role and Form and Structure of the city; a map; city and MnDOT sign information; and other city specific items.

The State of Minnesota through the Secretary of State will offer a new service on the web providing for an official listing of candidates that have filed for an office. This will be updated daily. Anyone interested in seeing who has filed can get the information online at www.sos.state.mm.us . These listings will be under municipal election searches and by looking for Becker you can look up either Candidate at Large or Mayor filings.

The election is held on November 4th, 2008 from 7:00 am to 8:00 pm. Pre-registration is encouraged however you can also register the day of the election. A valid picture ID is needed which shows a street address to verify residency. You can also bring a neighbor or someone that can vouch that’s a city resident to verify residency. One issue that comes up each year is where do you live? Becker is a community of people that live in a number of different jurisdictions. If you live in Becker Township your polling place is the Town Hall on Hancock Street. As a city resident your polling place is City Hall at 12060 Sherburne Avenue.

Pre-registration can be accomplished in a number of different ways. City and county offices will have registration cards available. If you call the county of residence they will mail out a card to you. When renewing your driver’s license you can also be registered. All mailed registrations must be received by your county of residence by October 14 to be placed on the registration role for voting.

Participating in the election process either as a candidate or a voter is one of the most important freedoms we have. Please exercise that freedom and get out and vote.

Bids or Quotes

2008-08-06T10:25:00.001-05:00

Procurement for some goods can be a maze when you look at how cities operate. Some purchases are just out right purchases. These generally involve day to day needs. Other purchases are quotes and some are bids. Sometimes we request proposals from businesses to offer services to us. These are generally for professional services of consultants when used. Knowing what is what can be confusing but knowing what to do is a matter of law.

So what’s a quote and what’s a bid. Sometimes these words get used interchangeably but really there is a difference under law. A quote is a formal amount quoted by a business to provide a certain product. Minnesota law was recently amended to provide for quotes in government purchases for amounts up to $100,000. However any quoted amount over $25,000 needs to have at least 2 quotes so we’re assured we have a competitive quote for the work to be accomplished. Typically we try to get at least two quotes on any purchase of significance.

Under current law quotes can be received for items up to $100,000 but there is one other requirement for quotes over $75,000. This requires the city to receive a performance and payment bond for the purchase. These are separate bonds which provide for security. The performance bond guarantees the “project” gets built or provided in accordance with the specifications or needs of the purchaser. The payment bond provides and assurance to subcontractors that they will be paid. Without that assurance a subcontractor could seek payment from the city even though the city paid the contractor.

A bid is a much more formalized process. Bids are required on all procurements in excess of $100,000. This process involves a public notice to be published in the official newspaper of the city and often in other trade publications. The notice requires bids to be received at a specified time and date. At that time bids are opened publicly and read aloud. Typically the low bidder receives the award. With this process the bidder has to have a bid bond. This bond addresses the issue of signing a contract to do the work at the price bid. If the contractor makes an error and doesn’t want to sign a contract after being awarded the bid he relinquishes the bid bond. These are typically for 5% of the amount of the bid. The thought here is that the city may need to rebid the project and the bid bond addresses the expense of doing this. It also however places the onus on the bidder to do his homework so the process can move smoothly.

There are exceptions to the bidding/quote requirements. Professional services are one of those exceptions. We however periodically do a “Request for Proposals” for some professional service work. We have done this primarily for public works projects in using the services of an engineer. This allows us to evaluate the services being offered and also look at the expense of the engineer for the project. This process takes a bit more time but the ability to select the most qualified or least expensive or other criteria can be accomplished when additional information is received.

It may seem like there are hoops to jump through when dealing with a city but when you look at the reasons for them they becomes easier to understand. There is a method to our madness.

BAC Expansion

2008-07-29T14:22:00.001-05:00

As the Co. Rd. 24 trail project is coming to a close another project is just about to get started. The Becker Athletic Complex (BAC), otherwise know as the ball fields; will see an expansion of an additional green area for youth sports. This area contemplates 3 playing fields but can be used in a number of different ways.

The project contains almost 7 acres of land directly south of the existing parking area which is presently an open field of scrub grass and small trees. These multi-use fields can be used for any outside sport. They can be used for football, soccer, lacrosse, small field softball and tee ball and other activities as needed.

The project included a number of pieces to accomplish and meet other goals of the city. The first part of the project was a directional boring component which brought pipe from the golf course to the ball field area. This was done to get water from the golf course water source and wells to the ball field area. By bringing this water into the area we were able to connect the ball fields irrigation system to this water source. By removing the present connection to the domestic water supply we eliminated some costs as we don’t need to use treated water for irrigation and we reduce the quantity of water used from the domestic system. The benefit of this may be obvious but having increased capacity in the domestic system not only supports household use it also reduces the use of the existing water wells we use for drinking water. This reduction is 200,000 to 400,000 gallons per month in the summer months. This new water source will also serve the new green areas in the BAC. Running the water from the golf course used existing capacity there while saving a new well from being installed at the BAC. Over all this was a cheaper option while providing for some added goals.

Our estimate for this work was $37,500 and the quotes came in far less than that at $20,855.48. The low quote was received was from R.P. Schroeder Construction of Big Lake.

The actual excavation and utility pipe work at the site was a larger project that needed bids to accomplish. The original estimate for the dirt work, storm sewer and sanitary sewer was estimated at $283,625. After some discussion and review of the existing soils the topsoil borrow was reduced by $54,275. Prior to bidding this topsoil was again reduced to project in exchange for a soil amendment of peat to be incorporated into the existing soil at the site. With the estimate of $230,891.10 the city went out for bids.

Bids were received on Monday July 14, 2008 from 13 bidders. Bids ranged from a high of $215,594.35 to the low bid of $139,932.15, with the majority of the bidders in the range of $170,000. The low bidder was RL Larson Excavating from St. Cloud. This bid was almost $27,000 under the next bidder. Having the project come in almost $90,000 under the estimate was amazing.

To finish up this was the final addition of the irrigation equipment for the new fields. The estimate for this was $37,500. This quote came in at $26,680 from Rocky Mountain Construction of Zimmerman. An additional controller will be added to this at $2500 bringing the total to $31,180.

Overall the city was able to reduce the cost from the original estimate by $112,906. Total project costs are at $255,944. It is expected that the project will be installed and seeded by this fall. Grass growth will be needed to occur next year with the possibility of play in the fall of 2009 or spring of 2010. This soft economy does provide for some bargains.

Balancing Act

2008-07-18T13:44:00.001-05:00

As the city prepares for the 2009 budget a host of issues consume our thoughts. What will fuel prices be? How much will utilities cost? What increases are expected for health insurance? How much will this or that cost next year?

Also being considered is how can we make our efforts more efficient? What things can go undone? Where can we find some savings in the cost of operations? Can the equipment we have last another year? What will the State of Minnesota do to us this year?

Also thrown into the mix is deferred maintenance. These are things like the street has seen better days, we need to do something about it. Park equipment is wearing out and needs to be replaced. Computer systems that were patched together need to achieve better interoperability and have greater security. The cable broadcast equipment is failing and patchwork replacement is difficult given the change to a digital format. More police officers are needed. Energy conservation retrofits would reduce utility costs but at a price. Different equipment would be more efficient but needs to be purchased.

And so the balancing act begins. There are short term goals and long term needs. There are levy limits for the next 3 years which keeps general levy authority in check. There are numerous “special levies” that occur outside of these limits which may cause the limits, in a general sense, to be exceeded. The point is priorities need to be exercised to do the most with what is available. Looking at all of these factors can make it difficult to weigh the benefits or detriments of various spending decisions but doing so is all part of the budget process.

The budget process takes a number of months to complete. We start in May some years and generally by June with budget worksheets and preliminary numbers. The process continues to be refined in terms of costs, revenues, projects and expenses. By mid September a preliminary levy is established and certified to the county. This amount is the maximum levy the city can exercise. After certification the city continues to look for greater efficiencies and costs that can be cut. The first meeting in December is one where we hold our budget hearing and after comments and final adjustments are made, the final levy is adopted at the second meeting in December.

All in all a great deal of time is expended in each year’s budget. The task requires a good deal of effort and consideration. The end game however is to find that balance of meeting the needs of the city while being good stewards of public funds.

Safety Along Co. Rd. 24

2008-07-15T14:46:00.000-05:00

Ya Know, some things just take time! We’re finally finishing up the Co. Rd. 24 (Central Avenue) trial project. With all good intentions of this being done at least a year ago we’re seeing the end. With the safety of pedestrians in mind as well as a better solution for crossing of Sherburne Avenue we’ve arrived at the end, or almost. There is a small section to accomplish yet on a separate contract.

This project was the result of a “Safe Routes to School” grant program. Our application was one of the few to be funded and was in the mix of the first group to be funded under this program. Having said that, a procedure hadn’t been developed for federal review and funding, state review, and county action. The process was probably more involved than it needed to be. The federal government established the program and funding for it. State was to do the review and make the funds available from federal dollars. As the roadway was a county state aid highway the county had to administrate the construction and pay the vendors. On the way MnDOT was involved in the bidding process along with Sherburne County. The city did the engineering and design. The city and the county had to approve the project. Pay requests needed to be approved by the city, county, and state. The county received the grant funds from the state and makes the payments to the contractor.

This was my first experience with this type of project. Having all these parties acting on a project doesn’t seem to be warranted. Perhaps it is necessary to make sure it meets federal requirements for grants and standards for safety. Perhaps the process hadn’t been defined. After all we were part of the first group to be funded. Perhaps this was seen as an exciting new program and all those who could participate wanted to do so. I’m not sure about the how’s or whys but I do know we have gotten through it and have a proud addition to our pedestrian safety network. Hopefully this saves lives or injury and promotes the health aspects of walking or biking. It will also assist drivers in the school zones in slowing down and stopping for pedestrians. I think it is a win-win for everyone.

We still have a bit more work to do on this project with the separate contract. We have the paperwork to finish. I’m glad the county has to do most of that, Sherburne County was great to work with. I’m sure we’ll have final cleanup and punch list items to address but the users get the last of this. They get the benefit of a successful project.

Freedom Days

2008-07-03T11:10:00.001-05:00

With the passing of Freedom Days in Becker I do want to express my thanks to all those who made the day a success. It is difficult to name each individual or organization that participated as it really has become a community event. The Freedom Days Committee spent a great deal of time shaping the weekend but other organizations also participated in the planning and eventual outcomes for the public to participate and enjoy. Even the eventual participation of the public itself lends to magic of the day. As a community event the community participated and we all joined in the celebration of fun and a successful day! Thank You All for your participation and enjoyment as fun begets fun and it seemed apparent there was plenty of this throughout.

On a more serious note the establishment of Freedom Days is to commemorate the freedoms we have as citizens of the United States. Our ancestors worked diligently to create a model that respects the rights of people to live in a society that recognizes the needs of people. This model is being strived for by many nations throughout the world as the best approach to governance. Celebrating the 4th of July is not only a tradition that celebrates the American Way but also one of family. The anniversary of the declaration of independence is something to celebrate in your own way but take stock in the advantages and meaning that our fore fathers bestowed upon us with their actions. I wish everyone the best over this holiday!

A Permanent Solution to Permanent Aid

2008-06-17T18:30:00.000-05:00

As I have discussed in the past the State of Minnesota through the Department of Revenue established a new way to value utility property. In doing so the value of the Sherco Power Plant and other utility property declined by 21.8% in the City of Becker. In the last hours of the legislative session the Legislature developed a plan to provide aid to those jurisdictions that lost value and therefore tax revenues as a result. The resulting aid program is described as permanent aid.

The good news is the city will be provided with $553,947 in aid for 2009. For 2010 the aid amount increases to $1,107,894. A little history, the rule change changed the way power plants are valued and was to be phased in over a period of 3 years. This was done with a 20% reduction the first year(2008), 50% the second and 100% the third. This explains the change in aid amounts. This aid was given to cities and townships that lost 4% or more of their value in utility property. The total amount of aid provided for in this amounts to approximately $6 million state wide for 2009 and 2010.

The unfortunate part about the way the law was drafted is the amount of aid decreases as the tax base increases. So any addition in tax base only offsets the amount of state aid paid. If you think about this a little you’ll see that adding commercial or industrial property to our community does nothing to reduce taxes. Adding 100 homes doesn’t help either. This only increases our costs for service with no additional revenue to provide those services. If you are a high growth community such as Becker or Monticello, both affected by this, growth becomes a detriment. Replacing that lost value is slightly more than a Medtronics Campus!

As you can imagine this really doesn’t make sense. Given this was done in the middle of the night, on the last day of the session, it would appear this was one of those unintended consequences of legislators trying to do the right thing for the right reasons. They got us the aid we needed, which is very helpful. We’re breathing a little easier now but the future is still a concern. As I discussed we can add all the tax base we want and only the state benefits with reduced aid payments. As tax base increases so do our expenses in serving these properties. So a permanent solution to the permanent aid needs to occur with the next legislative session.

With this uncertainty in future funding, the city has taken the conservative tact of reducing expenses while banking available resources. In doing so we’ve approached the budget for 2009 in a different way. Each department was given a figure in which to work with for their department that represented a cut in expenditures. Revenues will be lower with interest income and building permits off. The state imposed a 3.9% levy limit for the next three years which also adds to the constraint of finances in Becker.

In any event we have some room in time to get these things accomplished but as they say it’s always something.

2008-06-17T16:37:00.000-05:00

No Video

2008-06-10T11:48:00.001-05:00

The broadcast of our council meeting of June 3^rd didn’t go as planned. Somewhere along the line the video part of the board cast was lost and bringing it back wasn’t successful. There was a bit of a scramble dealing with it but to no avail. We were able to provide the audio portion however. This got me to thinking that the equipment was installed when the building addition was done and most of the equipment is 14 years old.

I know I discussed this issue briefly when another component failed not to long ago. Not only is the equipment we use getting to the point of failure but technology has changed drastically since 1994. The video equipment costs we experienced then were about $70,000. Over time we have added to this and replaced some equipment but we’re rapidly getting to the point of looking at the future to determine where we’re going with all of this. Replacing all the equipment at once isn’t in the budget and may not be cost effective. However waiting for everything to die, a piece at a time is also not a prudent approach.

We will hopefully have the situation resolved for the June 17^th meeting providing we can replace the component that failed. Our consultant thinks he knows what happened and is trying to get a replacement to install when he comes to check it out. During that meeting we’re also going to have the other discussion about the future and what changes need to be made.

In terms of revenues we have some options that aren’t property tax dollars. When Connections established their franchise for video services we required them to provide some capital financing for equipment needs to operate the local access cable broadcast channel. Some resources still exist from these funds. In addition there is a cable tax that is applied to users’ monthly bills. These funds are paid to the city on an annual basis. These funds have been used to pay for the existing equipment and some routine maintenance and operations expenses but need to be dedicated to replacement.

For now we’re going to hobble along but dealing with this larger issue needs to become a priority. I’m sorry for any inconvenience this may cause and thank you for your patience. If anyone would like a copy of the minutes please give city hall a call and we’ll send out a copy to you.

Utility Host Community Aid

2008-05-22T15:36:00.000-05:00

High on my list of concerns for the city has been the issue of lost property tax values of the Sherco power plant in the city. The State of Minnesota, through the Department of Revenue, determines the values of power plants within the state. The way they determined value was a product of an outdated formula that was being challenged by utility companies. To address this concern the state hired a consultant to help the state develop a better way to value power plants and utility properties. The process of review and recommendation took about 2 years. Upon the conclusion of the study a draft rule was made, hearings held and an administrative law judge ruled in favor of the change. The governor signed the revised rule it into law.

The result of revised rule is a devaluation of utility property in Becker by 21.8%. The rule had provided for a phase in of the rule over a period of three years. The city had already seen a 20% reduction (of the 21.8%) for 2008. The next two years we were to see the value drop to 50% and then 100% in 2010. The net tax capacity that was being lost is $3,598,675, the largest loss in the state. Putting that in perspective the loss is in excess of that created by the new Medtronics campus in Mounds View.

Dealing with the resulting loss of taxes has been an ongoing concern for us and one year of cuts have already taken place for 2008. Looking forward we had developed a contingency plan to address the loss however we felt it nearly impossible to assume cost cutting measures that would be deep enough to make up the difference without raising taxes. More than $1 million is needed. This is particularly true when you factor in the amount of debt service we have as a percentage of the budget. Our overall levy is about $5.15 million where 31.6% of that involves debt service where no adjustment can be made.

During the past two legislative sessions the legislature has provided in the tax bill a provision to adjust the tax rate paid by utilities to make up for the change in value. Last year the governor vetoed the bill which included the change. This year it was again included in tax bill and through negotiations of the legislature and the governor in the final hours of the session a compromise was obtained which addresses the issue. The compromise provides the city with State Aid in an amount equal to replace the lost tax revenues formally paid by the utility companies. This aid is considered permanent aid and reduces over time until a threshold is met.

The budget issues as a result of lost value from utility property have been addressed with adequate aid payments from the State of Minnesota. Our hard work and those of legislators who assisted us in this effort have provided a solution. I thank everyone who played a part in getting this accomplish. I’m sure there will be other battles concerning utility taxation in the future but for now we have the resources to move forward.

More Water

2008-05-16T13:18:00.000-05:00

Water for the domestic use is and has been a concern for some time now. I’ve written about the failing well and the new well and wellhouse in Rivers Edge Park. I haven’t however discussed one of our existing wells, number 3.

Well number 3 is located in the golf course behind the golf maintenance building. The well house there supported both well number 3 and number 5. Well number 5 was the well that failed this past year. Using these two wells at the same time posed some problems as they were too close together. Pumping both of them produced less than each rated capacity so we would alternate their use. Upon further analysis it was noted that well number 3 had a larger pumping capacity than the pump was sized for. This pump was originally sized to pump 350 gallons per minute. When this well was installed the city didn’t need the larger capacity that could be achieved from a larger pump so a smaller more efficient motor was installed.

Up until well number 5 failed it didn’t make sense to upgrade the motor as the interference between the two wells wouldn’t have given us any more water. Now with well number 5 out of the picture, the interference problem isn’t there and the full capacity of the well number 3 can be utilized. Recognizing that the city has been in the process of swapping out the 30 hp motor and installing a 40 hp pump motor in well number 3. This change out will give us significantly more gallons per minute. We’re hoping to get 600 gpm but it may be 550 gpm.

In making this change over a good deal of existing equipment is being used in the well house. The piping for the larger well number 5 is being used now for the upgraded well number 3. The VFD (variable frequency drive) controller from well number 5 is being reused to better control the system with slower startups of the pump and use to match the needs for water demand. This not only saves energy but it also reduces wear on the pump motor extending its life. All the disinfection equipment continues to be used as well.

Making these changes is accomplishing more with the resources we have. With these upgrades we benefit with the potential for 60 to 70% increase in the production of the well with limited additional costs. This additional capacity in production doesn’t quite get us to the point of what was lost with the well number 5 failure but it does get us close. With well number 6 coming on board we should be ahead of the game for the summer season.

A Safety Culture

2008-05-05T14:26:00.000-05:00

I was struck with the celebration that occurred at LPI this past week as it isn’t often that an organization takes the task of safety to the heights they have. They have achieved almost a million man hours with no lost time due to an injury. That’s not on the heals of luck but rather on a continued hard focused effort to have and maintain an safe environment. They have enrolled in the state sponsored Volunteer Prevention Program which is type of partnership with the state and OSHA to self direct their safety program. They have a very active safety committee which directs their safety effort. These actions have netted them the Mn Star Worksite designation.

As Mike Fiterman, CEO of Liberty Diversified Industries, the parent company to LPI stated they have an obligation to each employee to operate a safe environment. Each employee needs to return home at the end of the day with all the parts he came to work with. The celebration was one of honoring each employee for their commitments towards a safe environment. The celebration included representatives from Minnesota Department Labor and Industry. Commissioner Steve Swiggin congratulated them stating that LPI has a better safety record than 87% of all industries in Minnesota.

I believe we all have something to learn from these efforts. Being safe is something we can get excited about. Having a safe employment situation is possible with hard work and dedicated effort. The lack of lost work days due to injury at the job is worth celebrating and TRULY is a worthy goal. Accomplishing that goal requires a work ethic to operate in a safe manner and as such LPI has been successful in accomplishing that culture. Congratulations to the employees at LPI for your success!

Extenting Utilities

2008-04-23T15:16:00.000-05:00

Sherburne County has a schedule for upgrades and replacements of the county highway infrastructure. They have a long range plan and also a 5 year plan. They budget on an annual basis and schedule projects throughout the county based on needs. Next year they have scheduled two projects for Becker. One is a mil and overlay of asphalt on Sherburne Avenue from Highway 10 to Co. Rd. 16. The other is a reconstruction of Co. Rd. 67 starting at Co. Rd. 24.

With a reconstruction of a roadway the city has an opportunity to install utilities of water and sewer while the roadway is dug up. This saves the costs of rebuilding the road at a future time, if utilities were installed later. Doing so is important not only from the standpoint of costs savings but also in the context of this area being our growth corridor. Making the installation of utilities at this time gets us ahead of the curve providing a proactive approach.

In working through this the county has been great to deal with. We have good cooperation and through our joint efforts will see a project that works for both parties. The process includes the county setting grades and designing the roadway and drainage. The city designs the water and sewer installation and makes that information available to the county for a joint bid, which will probably take place in February of 2009. The city provides for inspection of the pipe work and the county provides for inspection of the roadwork. We pay our costs associated with the contract to the county who administrates the contract.

In addition to the pipe work the city will also be looking at an additional well and well house to be located towards the north end of the project. Installing another well should get the city positioned ahead of the needs of the residents and their demands for water. This will reduce our heavy dependence on just a couple of wells. Addressing the water issue should give us breathing room to meet present and future needs.

Looking at all this from a financial perspective is where we start to grown a bit. Having the utilities installed in our growth corridor gets us ahead of the game but the needs for growth have certainly cooled in the last couple of years. The city is fortunate that we have adequate resources to accomplish these tasks due to planning and anticipating these needs. Opportunities now exist to work together and accomplish the right thing, a joint project. However it may not seem apparent to accomplish them at this time as the times of change are moving slowly.

In looking at this two things come to mind. With the timing of the roadway project we would be considered foolish to not take advantage of the opportunity to install utilities. The well as an additional water supply is also hugely important to the residents of the city. Yes, doing all of this is costly but planning for our future from an infrastructure and fiscal standpoint addresses the responsibility of managing the affairs of the city and continues services to our residents.

Hope for Another Time

2008-04-16T15:36:00.000-05:00

A good number of years ago the city and NSP had started discussions about the possibility of a trail through NSP’s buffer property south of Sherco and north of the Mississippi River. The idea was pursued and floundered and raised again and met a number of setbacks, mostly due to funding. A couple of years ago Senator Wergin championed the cause and got a portion of the funding approved from the State on Minnesota in the bonding bill. That funding was too provide 50% of the costs and the city and county were also to kick in 25% each to fund the project.

With funding in hand we had high hopes to be able to accomplish the project providing for a trail in almost untouched property owned by Xcel to be available to hikers and bikers. The trail consisted of 2 parking areas and with both paved and dirt trails. This all provided an opportunity for all types of users to enjoy nature and the vistas available on the trail that was to be created. We had, along the way, also assembled a number of supportive groups. Habitat restoration was worked on as well as the elimination of invasive plant species. The National Park Service was also helpful in coordinating efforts along the way.

The final step before construction was the need to negotiate an easement that was acceptable the city, county, the State of Minnesota and Xcel. Working through the easement agreement was difficult for the city and county but became very difficult for Xcel and the State of Minnesota. The use of “Bonding” funds from the state requires a higher standard of ownership than perhaps a DNR trail grants program would require. Xcel also wanted a higher standard of ownership with a reverter clause which would allow them to get the easement back if there was a “business” concern that prompted the need for the property.

It is with great sadness I state that the parties could not agree on a solution that was workable and the project has now been declared off the table and essentially dead. The state has withdrawn the funds from this project to be applied to another worthily cause.

Working through these issues was a good deal of talented people who all need recognition but three stand out in my mind. These include Dave Heberling of NSP who started with the idea. Kelli Neu, of my staff, worked diligently on the project with countless meetings and activity. She really took the lion’s share of the project under her wing. Finally, Randy Thoreson, from the National Park Service, who was able to leverage interested parties as well as enthusiasm in making the final push a reality towards funding. In the end we had many, many people who participated, perhaps numbering in the mid 20’s, all interested in the project. All of them deserve credit for the contributions.

Perhaps at another time this could be raised again as I believe those that contributed had a great deal of hope for what was to come. I also feel that this hope continues.

Going "Green" at Pebble Creek

2008-03-28T12:13:00.000-05:00

With the golf season quickly approaching us the city has been active in getting our house in order for play at Pebble Creek. One area of change will be that of golf cars. Pebble Creek has had Club Car cars since it started operations in 1988. Our fleet started with gas engines. We have since phased in a complete change to electric carts. This was seen as a great move to a quieter and more energy efficient solution for the future.

We have now moved into another change in golf cars for Pebble Creek. With the conversion of the fleet many golfers were impatient with the phase out. Everyone wanted the electric cars and with several years of change we got to the point where the last two years of phase out occurred in one year. This meant we acquired approximately 30 carts rather than 15. With a rotation that provided for 15 carts to be replaced annually we sort of hit the wall with increased maintenance costs needed to replace batteries in approximately 15 carts. This is a rather large expense with limited value given the age of the cars. So options were pursued to obtain the best value for Pebble Creek.

The leasing of carts seemed to be the best option and to maximize the benefit to the golfing public a new fleet of cars was considered. After consideration and getting quotes from two makers of golf cars a decision was made to replace the fleet with 84 new EZ Go cars. In doing this all the existing cars would be traded in which brings our lease cost down.

The terms of the lease are for 5 years at a cost of $28,224 per year. This compares to an annual cost of roughly $50,000 given the past purchase option we had used. Part of the difference is we’re trading equity in the existing cars for a reduced lease payment. In thinking about this and looking at the end of the lease if the city wishes to acquire the cars we have an obligation of $1250 per car. If we choose not to acquire the cars we can look at another lease however the annual cost will be much higher than this initial lease. Keeping the differences in mind it is the intention to budget and reserve capital dollars over the lease term so that funds would be available to either acquire the cars or enter into a new lease with available funds to lower the annual cost.

The EZ Go cars will not only be a change for the golf course they are a radical change in the industry for golf carts. These carts are manufactured with mostly recycled materials. They have 350 less moving parts than previous models. They carry a 4 year bumper to bumper warranty which should dramatically reduce our maintenance costs. The motor is an AC electric motor which takes less current to run and the battery system is 30% more efficient. More total uses per battery are also part of the enhancements. The motor locks when not in use eliminating the need for a brake or for the golfer to set one. Maintenance costs are further reduced with a closed battery fill system allowing for quick service.

Looking at the end product the units will include windshields and roofs. Added features will include a rain cover for clubs and a different look. It’s a great change for the future and with a more environmentally friendly design. Please take the time to enjoy Pebble Creek while also enjoying our new golf cars.

Utility Tax Breaks

2008-03-10T12:51:00.001-05:00

The legislative session is in full action with bills being heard and debated. As I have written in the past, the city continues to look at the utility rule change regarding valuation and the impact it has had on the city. A tax bill which included a change to the class rates for utilities was proposed. Previously we had looked at a change from 2.0% to 3.0% to bring utility property to a neutral tax considering the before and after rule change outcomes. The first year of the phase in for the rule change took effect for 2008 so all cities with utility property saw some degree of impact as a result. Almost every taxing jurisdiction has utility property of some sort. Think about pipelines, transmission lines, and substations, it doesn’t have to be a power plant. However cities with power plants see the largest impacts.

With the impact of the first year behind us the bill was amended to reflect a utility rate of 2.8%. This is a reduction of 0.2% in the rate and a tax cut for utilities. A “non-controversial” tax bill was proposed dealing with the work that was completed last year but vetoed by the governor. During the process however utilities were opposed to class rate changes and the Commissioner of Revenue warned of a possible veto by the governor if this provision continued to be included in the bill. The House passed the bill as drafted but in moving to the Senate the bill was stripped of the class rate changes for utilities. It passed in the Senate and returned to the House to be passed as amended. This bill was forwarded to the Governor for his signature.

The Governor has given his supplemental budget which provides for Transition Aid for two years for host utility cities. This only postpones the outcome for a couple of years. What the city and other host communities of power plants want however is a permanent fix to the problem. This problem was created by the state yet they want the host communities to finance the fix, another unfunded mandate. By this I mean all the tax payers who reside in host power plant jurisdictions would see a shift from utility to other tax payers.

There seems to be a commitment to find that permanent fix with a class rate change for utility property but if it happens it will be in the final tax bill that balances the states budget. A lot can happen when the state is looking at a $935 million shortfall and a governor who doesn’t want to raise taxes. What seems to be missing in all of this is the class rate change doesn’t increase taxes for the utilities; it only adjusts for the reduction in value the state imposed. Without a class rate change, taxes will increase for businesses and residents as a result of shifting burdens away from the utility taxpayer.

Utilities, state wide, since 2001 have seen tax concessions of approximately $48 million. When the rule change is fully implemented in 2010 they would receive an additional $34 million in tax breaks. Should the state continue to support tax breaks for utilities? What do you think?

Please let your Senator and Representative know what your thoughts are on this issue. Senator Wergin’s email is sen.betsy.wergin@senate.mn and Representative Olson’s email is rep.mark.olson@house.mn.

Water Progress

2008-03-06T16:25:00.000-06:00

Spring isn’t here yet but not far away, summer will sneak up on us before we know it and that means watering season. Wow do we use water in the summer months! It seems everyone enjoys green grass in the summer and with the soils we have here in Becker, black sugar sand, it takes a good deal of sprinkling to keep the grass in top condition. So we use water in mass quantities much to the chagrin of the Mn DNR, but that’s another story.

Last year I wrote about the loss of one of our municipal wells and our efforts to replace that well. We searched all over the town looking for a good supply and finally found an area that should produce adequate quantities of water. During the winter we developed plans and specifications for a well and well house to provide for a new water source. Once they were approved, advertisements for bids were made with bids received on March 4^th.

Given the early season for bids we had a lot of interest in the work. There were 7 bids on the well house and 6 bids on the well. Both of these bids were very competitive in nature and I feel the city saw good value in the bid amounts.

The well house had a low bid of $352,697.00 from Preusser Construction of St. Cloud. They have built a number of well houses in other communities. The second bid for the well house was within 1% of the low bidder’s amount. We had originally talked about an estimate of $300,000 for a well house but increased the size to accommodate three well runs and also improved the architectural look somewhat as this will be located in Rivers Edge Park. Locating it in the park required a longer than normal for the driveway and related pipe work to get to the street.

With the well estimate we had 6 bids but one had to be eliminated. That bid had failed to acknowledge an addendum which expanded the work to be included in the bid. The lowest acceptable bidder was LTP Enterprises, Inc from Fargo, ND. There bid was $77,020.00 to drill the well and provide the related equipment. We had originally estimated the well at $75,000 but changed it to a larger casing, moved from a 12 to 18 inch to improve flow from the well and hopefully avoid a failure like we recently experienced.

One snag in the project is that of a Department of Heath permit. We have applied for it and the review has taken place. It appears we have met the requirements for paperwork and the related DNR water conservation plan but no permit has been issued. We believe it to be a matter of a few days for issuance and in the meantime the contracts and contractors bonds and insurance requirements are being prepared. Generally this process can take up to 10 days so hopefully there won’t be a delay on the project. Once the permit and contract issues have been resolved the contractors can start their work, weather permitting. We hope to have the well on line for the summer watering season but will continue to work on water resources as we have a thirsty demand for water in Becker.

North American Marsupial

2008-02-26T11:33:00.000-06:00

The other day I came home and was in the garage when my neighbor comes over to ask about a curious animal he had seen under his bird feeder. After talking about it we thought he had seen an Opossum. Generally I think most of us think these to be a southern creature not venturing this far north but over the past decade the opossum has moved into Minnesota presumably with warmer winters making it easier for them to survive.

Sure enough after getting a flashlight and looking under the nearby structure he had a full grown opossum. These are large cat sized creatures with pointy pink nose, grey or black fur with pink feet and a naked pink tail. These are solitary nocturnal animals. They generally move very slowly and when frightened could hiss or growl but generally become unable to flee and fall into a state of involuntary movement laying down and “playing possum”.

Although we’re not accustomed to these animals they are rather unique. They are North America’s only marsupial mammal. The female carries its young in a pouch until they are 2-3 months old and then carries them on her back for another 1-2 months. They eat insects, snails, rodents, berries, over ripe fruit, grasses, leaves, occasional snakes, corn or other vegetables. They are very adaptable and live wherever there is water, food and shelter. They are at home in trees and use their prehensile tail to stabilize themselves but don’t hang by their tail as many people think. They generally live 2- 4 years and are very prone to be killed by predators such as dogs and cats, owls, other wildlife and humans with cars.

Checking the next day the opossum had moved on to where ever it had been living but it got me to thinking. Perhaps I had been too quick to blame the squirrels with the bird feeder being empty in my backyard. I won’t be filling it soon. I don’t believe you have much to fear about opossums as they are very placid animals but I’d like him or her to move on. I don’t want my vegetable garden to get raided this summer.

Fast Thinking

2008-02-21T13:22:00.002-06:00

Perhaps you have had one of those days when things just don’t go they way they should. I think we all have and sometimes, it seems nothings seems to go right. Well we had one of those moments in fire drill fashion just before the council meeting on February 19^th. Just before we’re about to broadcast the meeting we go to turn on the DVD recorder and it’s dead. No lights, no power, nothing. The meeting is about to start and the means for recording isn’t available.

No problem, in the past as we had two VCR’s that did the job. If one went down the other would be used. Our back up now is the VCR and having not used it for several years it wasn’t automatic to switch it over. Fast thinking was in play however to save the day. We had another VCR in the building set up so it could record the broadcast as it was accomplished live. The fast thinking was great but not fast enough to catch the start of the meeting and we didn’t capture the first 3 minutes or so.

In retrospect the equipment we have been using is coming to the point where reliability is an issue. The DVD recorders weren’t that old but had seen a number of year’s worth of service. Our backup is original equipment now about 12 years old. An investment in not one both two DVD recorders seems to be in order. And unfortunately with the VCR recording of the meeting the quality of the recording isn’t what we have had in the recent past.

Given most of the equipment is 12 years old and was never of TV studio quality it probably is time we look at some upgrades. I guess it takes a “now what do we do” moment to get back on track. Thanks to Greg Pruszinske for saving the meeting recording.

Celebrate the new Wastewater Treatment Facility

2008-02-15T11:24:00.001-06:00

As some of you know the city has been in the process of building a new wastewater treatment facility. The plant was constructed to meet several needs of which the most pressing was that of meeting discharge requirements imposed with our permit issued by the Pollution Control Agency. We were at capacity with the old plant and it had exceeded its useful life.

In accomplishing the goal of a new facility a great deal of planning was accomplished. The effort of planning had the city looking at different approaches to not only the types of systems that could be utilized but also the collection system and the degree of treatment. The city now has tertiary treatment in place to protect the receiving water of the Elk River and the environment.

Dave Pesola, our Lead Wastewater Treatment Operator, has provided us with a look at what has occurred.

The many lift stations located throughout the city were improved with the installation of radio monitoring to ensure these are operating correctly. This was done prior to construction of the new facility.

The three existing wastewater treatment lagoons were drained and decommissioned. These have been filled in and graded. Taking these ponds out of service should greatly reduce odors from the plant.

The new facility was designed by Camp Dresser and McKee, Inc. The task of construction was awarded to John T. Jones Construction Company. The new plant was constructed on the site of the decommissioned lagoons.

The project included a number of changes and major items to the wastewater project included a new influent pumping station, a new headworks building, two oxidation basins, two clarifiers, a sludge pumping building with a chemical feed room, an effluent filtration building, an ultraviolet disinfection building, an effluent re-aeration chamber, and an odor control system.

This project also provided for the elimination of a heavily used lift station by construction of a new gravity sewer line to a deeper new influent pumping station.

Construction of the new facility started in October of 2006. On February 4, 2008, the facility began accepting wastewater from the city. Only one half of the facility is presently in use, while testing and construction continues on the other portions of the new facility. The transition has gone smoothly and without any major problems. As the use of the plant progresses the efficiency of operations will improve through both operations and efficient biological action.

The old facility has been taken off line and is presently being dismantled. The building which housed the old facility is be reused and remodeled into a new administration building which will contain a new laboratory, offices and a maintenance garage. The old administration building at the plant site will be used by the water department.

The projected completion date for complete project completion is scheduled for June of 2008. Once the plant is completed in entirety the capacity to treat domestic wastewater will be 1.25 million gallons a day. This will serve the community for a great number of years and position the city very well for future growth.

Thank you Dave for that great summary! It is gratifying to know we’re well set for the future and we’re meeting the more stringent requirements imposed by PCA and being environmentally responsible.

Annual Audit

2008-02-12T08:22:00.000-06:00

Each year the city has accomplished through an independent auditor an audit of the city books. This audit process is time consuming and comprehensive. All funds of the city are reviewed including operating funds, community center, debt service, project funds and enterprise funds of golf, water and sewer. The activity involves verifying account activity of transactions and balances. The audit process generally takes 3 or more auditors about 3-5 days of activity in our office to accomplish and then assembling the reports takes a month or two before the process is completed with a report to the city council.

Looking at this in an organized manner the following activities occur during the audit:

Verification of golf inventory
Verification of fixed asset inventory
Reconciliation of cash and investments
Verification that revenues and expenditures are reported appropriately
Comparisons of actual revenues and expenditures to budget are done
Analysis of project costs is completed
Verification that all liabilities are recorded
Verification that all receivable are recorded
Compliance with bid requirements is checked and verified
Reconciliation of bond funds is accomplished
Assessments and delinquencies are reconciled
Tax revenues and delinquencies are also reconciled
Internal controls are reviewed and tested

As the audit is accomplished the Auditors use Government Accounting Standards along with accepted accounting principles in reviewing the finances of the city. Over the past few years the Governmental Accounting Standards Board has changed the way governmental accounting is accomplished. There goals have been to create a more transparent view of the finances of a governmental entity by moving the reporting more towards that of business. They have also wanted to improve fiscal controls and accountability within the reports. Adding these requirements each year provides additional information but also more complexity to the audit process.

The goal when completed would be to achieve an unqualified opinion from the auditor concerning the finances of the city. Along with that would also include good fiscal health of the city’s finances. These have been achieved in the past and our expectation is that that would continue with the 2007 audit.

Mn Legislature Covenes February 12th

2008-01-31T09:08:00.000-06:00

It seems like each year the city of Becker and other communities that host power plants are involved with legislative concerns about taxation. This coming session is no different in that tax rates on utility property is still the concern it was last year. With the governors veto of the tax bill we lost the relief we had worked so hard on to solve our concerns.

So where does this put us? A little history first. The Mn Department of Revenue has implemented a rule change to adjust the way power plants are valued. This change resulted in a decrease of approximately 15% of the taxable property in the city. In implementing this change the rule provided for a phasing of the “loss” in value over a short period of time. A 20% reduction in power plant value was applied for taxes payable in 2008. In 2009 we’ll see the reduction at 50% and with taxes payable in 2010 the entire reduction is implemented. Using the tax rate and values of 2007 this means a loss of about $750,000 in taxes paid to the city by the utilities when fully implemented in 2010. Keep in mind they see a reduction in county and school taxes as well.

A two prong approach was accomplished to address this issue. The first involved a contingency plan to address the possible short fall in tax revenues. The second was legislative relief moving the tax rate on electric generation property from 2.0% to 3.0%. Making that change would negate the rule change to the extend that the loss in value with be picked up by a higher taxable value so essentially the same amount of taxes would be paid.

A bill was drafted in both the Senate and House to address the concerns of lost value on utility property as a result of this rule change. The bill dealt with both electric generation and pipeline taxes. The bills were passed by both groups and made it through to the final tax bill but as said previously was vetoed by the governor primarily for other reasons.

So we’re back working the bills that were developed last session and trying to get some relief from the rule change. This session could go well or not. We have the same group to deal with but we’re one year later. Has the issue changed in peoples minds? Certainly the rate from 2.0% to 3.0% will be an issue. We have already seen a small decrease in value which would be difficult to assume will be made up. You as tax payers in Becker continue to have a job to do in talking with your legislators. They need to address this issue with a helpful change in tax rates for utility property. This issue is very important for the city as well as other utility cities so please take the time to do what you can.

I will address this and the contingency plan in future entries.

Survey

2008-01-25T10:00:00.000-06:00

Each year the Becker Chamber of Commerce sponsors the Becker Expo. This event gives the community a chance to get together and showcase businesses and organizations that serve our community. This event is usually attended by a great number of people and has been a success from the start.

The City of Becker has participated in this event annually. Periodically we have done surveys to better understand the views of residents of the community. In the past we have asked about what businesses the community would like to have and be used by the residents. In part this has helped the city establish the clinic, the grocery store, and a fast food establishment. Other entries such as a bowling alley have been listed and will hopefully get accomplished in the coming year.

This year we will again have a city survey. Here too we are no different in asking this question of what businesses are wanted and needed within our community. But we also are interested in knowing some additional information about residents to assist us with Economic Development pursuits. Things like how far do you travel to work, gives us an idea of the work force available within the community. Knowing this may assist us in locating new companies who will create job opportunities within our community.

One area of concern has been that of a Railroad Quiet Zone. What this is is the ability to create a corridor where the train doesn’t have to blow its whistles. Creating a zone requires a formal study of the circumstances concerning individual crossings and analyzing the safety at each. Generally if a quiet zone is to be established certain requirements need to be met. These include cross arms and sometimes median islands or 4 cross arm gates rather than the general practice of 2. The use of whistles greatly improves safety at crossings but some people and businesses feel them a nuisance. Having a better feel from the public about the issue of railroad whistle noise will help us gauge how to think about this issue.

Responses to our survey will be posted on the web site in the near future so when the curiosity of knowing how it comes out strikes you, check it out. Thank you for your participation as our intention is to create a better Becker.

We got them all

2008-01-18T14:46:00.000-06:00

In my last entry I discussed the need for another bond to finance the wastewater treatment facility. The additional costs were prompted largely by the additional treatment we’ll be providing on wastewater which produces a cleaner effluent.

In doing a bond sale there are a number of steps involved. Some regard legal requirements and some involve providing the market place with information about the city and its finances. An Official Statement is prepared which is similar to a prospectus for a corporation. This document provides disclosure on the status of the prospective bonds among other things. Things like taxable or tax exempt bonds and bank qualified bonds or not are discussed. These items affect the interest rate that will be offered by bidders of the bond offering.

Another area that affects the interest rate is that of the rating of the bond. This is done by an outside firm to determine the degree of credit risk of the bond. It generally refers to the ability of the issuing agency to repay the bond. The cities finances play into this as well as the tax capacity of the city. The higher the rating, the less the risk and the lower the interest rate bid on the bond. If you have a good rating the interest rate is less than if you have a lower rating. With this issue we were again given a rating of A3 which is a very good rating for a city our size. It is also referred to as investment grade which means that most financial institutions can carry this within their investment portfolio.

Lastly rates are determined by the market, and the implicit timing of the market. The market, as I think we all know, rises and falls with the economy. Generally speaking when stocks are down bonds become more desirable and when stocks are good bonds become less desirable. People generally gravitate to the investment vehicle that provides the best rate of return while preserving the initial investment amounts balancing the risk reward in investing.

In planning for this bond sale we had the opportunity to determine when would be the best time of the year for a sale. We looked at historical trends and felt January would a god time to look for lower interest rates. We scheduled the bond sale to take place on January 15^th. We went to the market expecting 3-4 bids and an estimated aggregate rate of 4.15% on the bonds. It is difficult to know why bidders do what they do but the city received 6 bids on our bonds. The low bid from United Banker’s Bank came in at a true interest cost of 3.565%. This is 58.5 basis points under the estimate. A truly excellent bid! The result of this is an interest savings of roughly $7,000 per year. Not bad!

Sometimes you get lucky. Sometimes you plan effectively. Sometimes the market plays your way. In this instance I think we got them all.

Expensive Infrastructure

2008-01-07T14:54:00.000-06:00

Wastewater treatment plants are probably the most expensive items a city deals with. These involve a great deal of equipment and structures to effectively treat wastewater to meet the stringent requirements of Minnesota Pollution Control Agency. These requirements keep our receiving waters clean.

Financing the Becker Wastewater Treatment Facility wasn’t as simple as selling bonds and applying debt service but we did do that as well. The city had taken steps to provide for these types of structures by anticipating some of the costs. We also used other funds that were available for use in lowering the debt necessary to finance the facility.

Outside of debt service the next largest funding source are SAC funds. SAC is short for Sewer Availability Charge. The city uses a system of determining the residential equivalent(s) for each intended use of the sewer system. One household is considered a residential equivalent. Presently the SAC change for a residential equivalent in Becker is set at $4000. This fee is paid at the time a building permit is issued and represents the new homeowners share of the costs for a wastewater treatment facility. $835,000 of SAC funds were used to reduce the amount of debt needed in building the present facility. SAC funds will also be used on an annual basis to write down the levy requirements on the bonds sold to finance the facility.

Other funds were used to lower the bond (loan) amount. Unspent construction funds on an earlier wastewater project were used to provide $243,000 of the project costs. $75,000 of sewer use funds were used. The project provided for the elimination of a lift station and as such some trunk funds were used in the amount of $365,000. A portion of the project involved upgrades of the industrial sewer portion of the plant. The industrial portion of the project upgrade was estimated to cost $1,282,871. Industrial user fees to cover the cost of capital were used to cover this cost. Two other funding sources were taped for an additional $1,000,000. These funds were set aside for future needs.

The remaining costs were bonded for. As we set out to accomplish the project we were faced with the question of tertiary treatment. This is a final cleanup of wastewater to bring the discharge pollutants to a very low level. Making the choice to move ahead with this was a responsible choice for the environment but added about $1.7 million in additional costs. These costs were not initially bonded for so additional debt service will be accomplished with a bond sale on January 15^th. The good news with this is the annual debt service was anticipated and already part of the city levy.

Overall the wastewater treatment facility will serve approximately 3500 residential equivalents of users. Additional expansion to the plant has not been anticipated until 2020, so we will be set for many years to come. With an overall cost of roughly $14.7 million dollars we can’t afford these types of improvements too often.

Budget Process

2007-12-28T15:22:00.000-06:00

One of the final actions taken by the city before the end of the year is that of setting the levy for city taxes to be paid in 2008. In getting to this end a number of actions and activities occurred before a final number was arrived at.

The budget process starts in June typically, this year we started in May, with copies of the financial statements being sent to department heads for them to consider their needs for the coming year. The reason we started in May this year was help us all better understand the budget process and the impact of the Department of Revenue rule change which changes the way power plants are valued for purposes of taxation. That being said the rule change will be phased in over a period of three years, the first resulting in a reduction of value equal to reduction in taxes to be paid by Xcel to the city proposed at $145,000. When the numbers were finally calculated the loss in taxable value of all utility property was $546,206. All utilities will pay an estimated $120,459 less in 2008 than they did in 2007 towards city taxes.

Working through the budget process the council was asked to consider a number of things. Obviously we needed to consider the decrease in tax capacity. We considered budget “growth”. We worked through the contingency plan and identified what items were suitable for consideration in this budget cycle. The plan has identified both revenues increases and expenditure decreases. The council also considered basically 3 budgets from each department. There was a zero based budget, a small increase budget, and a perceived needs budget.

With the wealth of information it took some time to wade through all the factors. It was felt the contingency plan should be reviewed by departments and changes made to reduce operating expenses or increase revenues. Both of these were recommended. It was also felt it difficult to provide for no growth in the expenditure side of the budget. With these considerations the budgets from each department were assembled into a preliminary budget and the impact in terms of tax rate was developed. After some minor changes this became the preliminary budget and associated levy request.

Within Minnesota we’re required to certify a preliminary levy by 15 September. The preliminary levy becomes the cap, or the most that we could levy. From that date until the final levy the city has the opportunity to adjust the levy downward as the budget is better refined and costs become known. With the understanding the budget gets started in May or June the actual expenditures for the majority of the year are unknown at that time. Having the benefit of actual expenditures of 10 months helps with the assessment process in making final cuts.

The Truth in Taxation hearing is held during the first meeting in December. At this time proposed final adjustments to the levy are made. This year we were able to cut an additional $96,581 from that of the preliminary levy. In the end our levy was $49,837 less that that for 2007. Unfortunately with the reduction in Tax Capacity, due to the rule change, the tax rate will increase slightly for 2008.

As we consider the 2009 budget we’ll again need to consider the same factors we did for the 2008 budget period. The need for fiscal prudence continues as we face challenges of tax base and operational expense. Some changes may be made to the process but I think you can agree the budget process involves more than one may think.

Trunk Charges

2007-12-13T14:42:00.000-06:00

As a city grows, it develops needs to expand its infrastructure to meet the needs of added population. We may start with new subdivisions but they require the support of wastewater treatment facilities, wells, water towers, lift stations and other trunk facilities to provide the public improvements we all expect to have in a city.

Financing these types of facilities can be challenging and also can be handled by a number of different approaches. Each one has its pros and cons depending on how you look at them and whether you are a developer or not. In Becker we have chosen a number of different approaches to address the costs for infrastructure with charges and fees that support their establishment and replacement. Some infrastructure is supported by taxes, but most are not. They are largely supported by some form of user fees.

One of these mechanisms is that of Trunk Charges. Through a study of the infrastructure needs for water, sewer, and storm sewer the city looked at the need for trunk facilities that would be needed to serve the community when fully developed. Trunk facilities are the wells, water towers, lift stations, and over sized water and sewer mains as examples. They are primarily items we all need for the properly functioning systems we use, but serve the whole rather than individual households. Once we quantified the needs of these types of systems we attached price tags to them, looked at the comprehensive land use plan to ascertain densities of development and determined the “price” for trunk facilities of water, sewer and storm sewer. This becomes a fee a developer pays to the city for developing in the city. This charge is based on a per acre cost for the amount of land developed. In exchange the city pays for and installs these trunk facilities that provide development with the needed public improvements.

In managing this system a few things stand out as concerns. One involves the time of development. The city council in controlling trunk facilities controls the extent of development through capacity in the trunk facilities developed. They also control the timing of construction of these facilities. If a developer wants to move ahead of the city with development and the city doesn’t have the resources to install it, the developer can install these trunk facilities at his expense. This comes with a few provisions. The council needs to be agreeable to the situation, the developer pays all costs associated with the trunk facility that meets our expectations and the developer is not given credit for the trunk facility he installs. He is still expected to pay the city for the trunk costs associated with his development.

One of the cons to this approach is that of cash flow. Essentially the city has to finance the establishment of a trunk facility prior to development taking place. As such, early on there are expenses without cash support. In the middle term cash flow seems to meet needs. As the city becomes more fully developed, cash flow becomes less of an issue. In recognizing that problem a slow and deliberate approach is utilized in managing growth.

There are other methods Becker uses to recover costs which I’ll address another time. Keeping finances in perspective helps in managing growth and its consequences. In the end, maintaining control is in everyone’s best interests.

The Bottom Line at Pebble Creek

2007-12-06T12:57:00.000-06:00

Each year the city council sets rates for Pebble Creek Golf Course, this year being no different. The discussion however this year centered around a change that would make the course profitable. Pebble Creek has not made a profit since 2001. There are a number of reasons for the change, most notably that of an increase in golf courses but also a declining number of players.

Pebble Creek continues to be a fabulous golf course in excellent condition. The goals of the council continue to be to maintain the course to that extent but also to bring the charges in line with the costs of running the facility. Steps have been taken to reduce the maintenance budget this coming year by 5-6%. This is on the heads of a reduction in maintenance expenses over the past couple of years.

Looking at balancing the budget, revenues were looked at along with the mix of play between season pass holders and green fee paying customers. It was noted that 75% of the play on weekends was played by season pass holders. With weekend play being the premium time, this is when the course needs a stronger mix of green fee paying customers to generate revenues.

Another factor in dealing with revenues is the cost for a season pass. With many members playing a large number of rounds of golf their cost per round was very low in comparison to green fee rates. This is the advantage of a season pass but the benefit to Pebble Creek was felt to be inadequate in terms of the price paid for a season pass. Making an adjustment to these rates was needed to meet the revenue requirements of the facility along with a rate that was fair and comparable to other area golf courses.

In reviewing these factors and accomplishing a business plan to address expenses and revenue needs a partial change in direction was needed. What was proposed and accepted by council is one season pass rate of $1200. This is an increase of slightly over $200 for non-residents but a large increase for residents of a little more than $500. We recognize that some members will not participate at that rate but part of the goal is to see more green fee paying customers. Freeing up playing time during prime times in the weekend is a benefit with the change of player mix.

The bottom line is we need to change the bottom line and we felt making these changes will improve the finances of Pebble Creek. Without these, the fund balance for golf will run in deficient. The city no longer has an option to keep rates as low as they have been but rather run the course as a business while maintaining a positive cash flow.

Periodic Financial Reviews

2007-11-29T16:27:00.000-06:00

Periodically we look at the long term debt of the city and see if there are opportunities to make a change that benefits the finances of the city. Recently that effort was done concerning a couple of issues. The first involved the Tax Increment District 1. This district was established about 24 years ago with intended development to occur along the frontage road, most of which occurred in the area of Sherburne Avenue and Highway 10. There was also development that occurred along Bank Street as part of the original district. Tax Increment takes the value before development and freezes it at that rate and when development occurs a new value is determined. The property owner pays taxes just like any other property but the “increment” between the before and after value creates a tax that is collected separately and used for economic development purposes.

As development occurred the city collected increment to offset costs associated with public improvements. The area of benefit expanded in 1994 to include a larger improvement district and as debt was incurred the proceeds of this district were pledged to debt service for the 1996A Tax Increment Bonds.

As time progressed and revenues were collected the city recognized that these bonds could be called as adequate revenues were available to pay off the debt. As there were sufficient revenues to address the debt the need to continue the Tax Increment District was unnecessary. Dealing with that the city decertified the Tax Increment District which places the property within that district out side of a tax increment district becoming part of the entire tax base of the city.

With the early payment of the bonds the city was able to reduce the required levy to met bond requirements recognizing an impact of approximately $35,000 per year. The city also saves in interest expense over the remaining life of the original issue for the bonds that will be paid off. These bonds also had assessment income pledged to debt service so with the bond paid, that revenue comes to the general fund until the assessments are paid in full.

Managing debt service involves more than making payments and keeping the books. The benefits of periodic reviews of debt service seem to be apparent with this example. The tax payers of the City of Becker become the winners when these actions are taken.

Advisory Committees

2007-11-16T13:48:00.000-06:00

The City of Becker has a few advisory committees that are served by residents of the community. These include the Planning Commission, Economic Development Authority and the Park and Recreation Committee. Each year terms expire for incumbent members which allows for others to participate in serving their community in an advisory role. These position are voluntary however a per diem is paid.

For 2008 the city has 2 seats on the Planning Commission that will expire and one seat on the Economic Development Authority that expires. If anyone is interested in applying for these positions please request an application. You must be a resident of the city to apply. We have posted a form on the web site at www.ci.becker.mn.us or a copy can be mailed out or emailed as you prefer. The number at city hall is 763-261-4302. Requesting a copy by email please use nfiereck@ci.becker.mn.us.

Hockey Arena

2007-11-08T16:06:00.000-06:00

Hockey Arena

The Becker Big Lake Ice Association has been diligently working on a plan to provide an ice arena for use by Becker and Big Lake participants. This organization has worked hard to address ice time needed to practice and play. They recently have submitted a working plan to provide for an arena in Big Lake on property they acquired in the Big Lake Marketplace.

Their plan provided for a joint powers board to be established among those entities that would participate in the funding of the facility. Having the facility on property owned by the association not only would diminish some of the costs associated with construction it would allow the Association to use that as collateral in seeking a loan to finance a portion of the facility. The association also intended on providing additional funding for construction costs. They had asked the cities of Big Lake and Becker for assistance with the remaining costs of construction. They had also wanted to seek participation from the associated townships as well.

In allocating costs the Ice Association devised a formula using 4 factors. These factors were (1) population and number of skaters (2) budget (3) users and (4) responsibility. These factors were used in conjunction with each other to determine an appropriate share of costs, and benefits, of an ice arena.

The city council held workshops to discuss and address questions concerning the proposed facility. As part of the follow up, alternate locations were also discussed and the impacts of cost shifts as a result were also reviewed. The council was impressed with the Ice Association’s level of organization and will to fulfill the association’s dream of an ice arena. There was a good deal of honest hard work accomplished to find a proposal that was fair for those parties involved.

The council discussed the matter at its November 6^th meeting and felt the City of Becker was not willing nor in a position to participate at this time. They cited location and cost per participant as issues. They also felt our present tax base situation did not lend itself to financing. They did feel this to be a good project but difficult to participate in.

Director of Golf

2007-10-31T07:51:00.000-05:00

Those people who are part of golf in Becker know that we have seen Jeremy Lupinek depart for a job with Ping Golf in Arizona. Although we wish Jeremy well in his new pirsuit he has left a large void to fill at Pebble Creek. Jeremy did a great job and will be missed. Upon learning of his decision the city immediately started the recruiting process. An advertisement was accomplished and the notice period for applications began. We received approximately 40 applications for the position and these were reviewed and scored to bring the most qualified applicants to the top of the list. After further review 6 candidates were brought in for interviews. After conducting these interviews the list was reduced to three candidates. The final interview was conducted with department heads and council members sitting on three panels for rounds of interviews. It was noted we had three very qualified candidates and any one of them would have done a great job. During this final selection process one of three candidates dropped out leaving the city with the choice of the two remaining candidates.

In the end the council chose Troy Malo, a PGA Professional presently working in Deer Run Golf Course in Victoria, MN. Troy's formal education includes a Bachelor on Business Administration with majors in marketings and management from the University of North Dakota in Grand Forks. He also has a PGA Professional Golf Management Graduate degree.

Troy's most recent experience has been with Deer Run where he has been working for the last 9 years. Prior to that he worked in various capacities at Baker National Golf Course for three years. His formal title at Deer Run was Business Manager/Assist Golf Professional. Troy brings a number of great ideas with him to improve operations and provide a fun, relaxed atmosphere.
He will be starting at Pebble Creek in mid-November. We welcome Troy Malo as a member of our community and look forward to his leadership at Pebble Creek Golf Course.

Progresive Decision of Cooperation

2007-10-23T08:31:00.000-05:00

When we look to the future some of us think about family goals. Others think about job goals and how to be better at what we do. Still others think about accomplishing some task such as getting that degree. With the city and township a goal of working together was established. More specifically the City of Becker and Becker Township agreed to an Orderly Annexation Agreement.

So what's that? An agreement such as this can take a number of different forms but it generally provides for the terms and conditions under which the city can annex property from the township to become part of the city. In our instance the the agreement provides for all of Becker Township to someday become part of Becker. It also provides for the terms and conditions under which the city may annex. The agreement provides for a joint advisory planning board to review land use applications. When finally assembled this board will review applications and recommend actions to the township board for final action by them, rather than Sherburne County.

Accomplishing these tasks is not a minor matter. The township needed to develop a comprehensive land use plan. They will need to establish a zoning and subdivision ordinance. They will also need to take the final steps of removing county authority and establishing their own authority. They are effectively creating their own destiny while working with the city to plan for a better community of Becker.

The plan does not annex anything at this time. The plan doesn't change taxes. It does specify how annexations will occur and under what conditions. It clarifies the city can't annex by ordinance. Only through cooperation can the city annex. The Orderly Annexation Plan also effectively lets the communities of Monticello and Big Lake know in legal form that Becker Township is off limits for annexation. This too provides for addressing our own destiny.

We look forward to working with the township in a more proactive way. They have the best interests of the community at heart and want to move Becker in the right direction. We have an interest to not only do the same but also work towards the community of Becker moving in the same directions. This may be a historic decision but it really is a progressive decision of cooperation. I applaud and thank our political leaders for their foresight. They have made a responsible decision for the future of Becker.

Who will survive?

2007-10-10T14:12:00.000-05:00

We’ve heard it a bunch of times. Why is the city letting all these exercise businesses into town?

When it comes to competition some business owners fell the city can and should restrict certain uses from occurring because there already are enough businesses providing that service. The city can’t and won’t regulate these activities. We have no authority to do that and it would really destroy the free market system that exists if we did. There are a lot of arguments to support a free market system. The majority of these arguments address the needs of the consumer but they also address the rights of a business person to establish a business.

In Becker we take pride in creating land uses that are functional and attractive but we have no control over the number of exercise facilities or restaurants that exist within a community. The market dictates what will be supported and what businesses will survive. The city only has authority over zoning matters. That being said if a “use” is permitted in a district the city has no authority over the establishment of it. If it is a conditional use we have review authority and the ability to control certain aspects of the development of the property. We can establish conditions on it but still have no say in whether the use should exist or not.

All this being said business people create the business climate and who operates what business. We hope they do their homework and understand the market place as we want to see their businesses survive and thrive. You as a consumer play a role in this by supporting the businesses you use. Perhaps there is room for all the exercise facilities and perhaps there isn’t. Your use or non use and some time will give us the answer to who will survive.

Zoning

2007-10-03T15:36:00.000-05:00

I believe the majority of people understand we have zoning laws which address areas for specific land uses. The primary districts are commercial, residential and industrial zoning districts. Within these broader categories we may have subsets like single family or multiple family residential as examples.

What may not be as broadly known is that within each zoning district there are Permitted, Accessory and Conditional uses. Permitted uses seem obvious, a list of those activities that are permitted in that district. An accessory use is something that is used in conjunction with a permitted use. A detached garage or shed are examples found in a residential district. A Conditional Use is a use that is generally permitted with conditions attached. The conditions make the use acceptable within the district in which they are located.

In the area of commercial growth a good deal of land uses are conditional uses. They require a Conditional Use Permit. The zoning ordinance lists those types of businesses and business activities that require a permit. Application is made and the business activity is viewed from a zoning perspective to determine what conditions will make the business acceptable. Things like screened trash areas, lighting that doesn’t spill over to another property or even the need for fencing to separate uses are the types of concerns addressed. The permit then specifies what conditions are needed to make that use compatible.

The use (business) itself is not something we can regulate except to say that a use not authorized in a district, isn’t acceptable in that location. It can however be located in a district that allows that use. Use variances are not legal. This would be allowing a use otherwise prohibited in a district.

The use of zoning has long been seen as a means to protect property values but it also is a means to provide standards in development. It further defines the “common sense” in land use to help us all work together. It may have its detractors but zoning has been held by the courts as a reasonable use of police powers and brings order to our lives.

Orderly Annexation

2007-09-24T10:35:00.000-05:00

Do you know where you live? I think if you ask anyone who lives in the Becker area where you are from they will tell you Becker. Although everyone is correct there are two Becker “entities”. There are those people who reside within the city limits are from the City of Becker. A good number of residents of our community reside in Becker Township, even more in terms of numbers, than within the city itself.

As the city grows and expands its boundaries we go through a process of annexation. This moves the political boundaries of the city out to include additional properties. Generally speaking as a matter of policy the city has only annexed property that has petitioned to be annexed. There may come a time when that policy isn’t practical but it is not the intention of the city to annex property for the sake of annexation. Property owners petition for annexation for a number of reasons but primarily it is for development with water and sewer utilities.

The Becker City and Township have recognized that the community should grow in an orderly fashion. We also recognize that development in an urban fashion is more efficient and reduces the need for services to be applied over an expanded area. They further recognize that the Community of Becker includes both the township area and the city. In realizing this, the relationship between the governing bodies has been good. We have an Annexation Committee that is jointly served by both groups. Annexations are reviewed by this body to determine if a need exists and the process of annexation is done in a joint fashion. Both the council and the township board adopt a joint resolution that is sent to the state for boundary adjustments.

In furthering our relationship an Orderly Annexation Agreement is being considered. This agreement provides for the eventual annexation of the entire township. In saying that, the plan for annexation will continue as it has been with annexation as petitions are received and the need for annexation is demonstrated. This places the properties in Becker Township in waiting to eventually be part of the City of Becker and the Community that we live in.

A public informational meeting with be held at 6:30 in the Becker City Hall on October 2^nd. This meeting will be a joint meeting between the Becker Township Board of Supervisors and the Becker City Council. The meeting will be held to consider any comments concerning the proposed Orderly Annexation Agreement. Those persons interested are invited to attend.

Sherco Electric Generating Plant

2007-09-18T13:19:00.000-05:00

We sometimes take for granted the marvel of a power plant we have in our backyard here in Becker. The power plant in Becker, known as Sherco, was named after Sherburne County. It is the largest power plant in the state of Minnesota. This plant is the 15thth largest power plant in the entire county! With the plant sitting on 4500 acres of property it is difficult to get the proper perspective to see how large it really is.

Sherco contains three generation units. Units 1 and 2 generate each 750 megawatts. These were built in the 1970's. These units cost at the time of construction $370 million. Unit 3 was built in 1983 to 1987. Sherco 3 cost approximately $1 billion to construct. This unit generates 900 megawatts of power. The combined total of electricity generated at Sherco is 2,400 megawatts.

The plant burns coal at a rate of 30,000 tons everyday. That can be up to 3 train loads of coal. This works out to about 9 million tons of coal a year. The coal used is a low sulfur bituminous western coal to keep pollution levels down. The coal comes to Becker by train from Montana and Wyoming in 105 to 117 car train loads. A train car of coal holds up to 120 tons. There is a 88 acre coal storage pile at Sherco usually having a 40 to 55 day supply on hand for the plant.

The boilers that produce the steam are more than 200 feet tall. The boilers in units 1 and 2 weigh about 8 million pounds each. Unit 3's boiler weighs about 9.8 million pounds. All three boilers combined burn more than 1,300 tons of coal per hour. They also use about 3,335,000 gallons of water an hour to produce steam. The steam produced in units 1 and 2 is about 5 million pounds per hour at 1000 degrees of temp. Unit 3 produces 6.125 million pounds of steam per hour.

So when your driving down Highway 10 and you see the plant off to the south of the highway consider what an engineering marvel it actually is. An besides providing tax base to Becker it benefits us all with electricity to serve our daily needs.

New Law Enforcement Tool

2007-09-06T15:08:00.000-05:00

Over the past several years the legislature, in balancing their budget, starting adding surcharges to traffic tickets as a way of generating revenues. What used to be a $80 traffic ticket quickly increased to perhaps $125. As the costs for tickets increased so too were the complaints to police officers, county attorneys and even judges. In addressing hardships the courts sometimes reduced the ticket fine amount. When a reduction was made the state share of the fine couldn't be reduced but the local share could and did.

Over time the inequity of who was doing the work of enforcement and who was collecting the fine revenue became too much for some jurisdictions to tolerate. They created an Administrative Citation structure where fine amounts for minor offenses were drastically reduced and the funds collected would be collected by the jurisdiction doing the work. This structure did more than just create a revenue source as it gives police officers another tool to use towards adjusting behavior of those making minor violations. Rather than a ticket with a large price tag or a warning there is something in between. A modest financial penalty becomes an option.

The program is however voluntary. A person who is subject to a ticket has the option of a regular ticket or an Administration Citation. In assuming the Administrative Citation the person admits to the offense and pays the penalty. In doing so the citation is exempt from Minnesota driving records and is only recorded with the local police. The penalty must be paid within 7 days or a state ticket will be mailed out to you. If you feel the ticket is unwarranted or wish to contest it, a state ticket will be issued and your due process rights will be addressed in the court system just as it has been done in the past.

The City of Becker has joined a number of law enforcement agencies throughout the state in establishing this system of citations. There are some individuals who contend cities do not have the authority to take this approach while there are others who feel in absence of a law restricting its use it is acceptable. Time may tell if and when the legislature weighs in on this issue but for now the city has another tool to use in curbing minor offenses within the city.

2007-08-30T14:31:00.000-05:00

With the creation of the newest industrial park in Becker in 1994 the city has been actively providing land for industrial development. From the land purchased from Fred and Vivian Doering in 1993 the city acquired 121 acres. Of that amount all but 30 acres were developed into lots with roads and utilities. When we look at whats left we have only four platted sites. One site will not be sold as it is the future site for the North Star Corridor Station. One lot of 2.38 acres is adjacent to Advanced Extrusion. This lot is potentially available but there is some interest in it. There are two other 1 acre lots which are under an option until January 1, 2008. It is anticipated this option will be undertaken so these properties will soon be occupied.

This brings us back to the undeveloped 30 acres the city has for future industrial development. The city has been looking at options concerning development of this property for some time. The development of this property is somewhat expensive as it requires higher development costs in needing a lift station for sanitary sewer. Addressing these costs is one issue but another is defining the best approach in development.

The city has recently authorized a study to determine costs, layout and construction time lines for the potential development of this site. The study will determine a layout for proposed sanitary sewer, water main and storm drainage for two different alternatives. The study would also analyze storm water run off from each alternative along with a statement of probable costs. Finally it would identify and calculate the preliminary assessments that would be placed on the property.

Taking these steps moves us in the direction of providing additional land for industrial development and thereby generating tax base and employment. Once the time lines are know for the construction of the project the city will be able to better plan and discuss the development with the city council and potential developers.

2007-08-22T11:21:00.000-05:00

I have been speaking quite a bit about the need for water and the problems associated with providing it that we've experienced. Well #5 has failed and needed to checked out to see if it could continue to be used by the city. This is one of our bigger wells. Bringing this well back on line has been interesting and frustrating as there area number of steps to go through to see if the well can be rehabilitated and reused. The city started the process only to determine the well is no longer viable and a new well is needed to be constructed.

Several options have been considered for replacement. The city had been going down the path of constructing a new well on the east side of the river to address future needs. This path of construction had a number of issues which were felt to be workable but required a good deal of coordination with Sherburne County, as we were going to use their right of way, and the Department of Health. When establishing a new public well there are numerous steps that must be undertaken to meet their standards. One of these requirements is a Well Head Protection Plan and subsequent zone. Presently the city has a plan and zone but it doesn't include the proposed well on the east side of the Elk River. Expanding the plan and designating a new zone takes considerable time and effort. Given the need for a replacement well before next summer it was felt it may not be in our best interests to pursue this option at this time. That being said it is important that we move in this direction with a new well field in a different area in the immediate future but we need to focus our energies on what will meet our needs in the shortest time frame.

Looking at our existing wells and present wellhead protection plan it is easier to locate a new well within our existing boundaries of the established zone. Two options were discussed which involve new wells near existing ones which can take advantage of the present well houses and also avoid some of the more lengthly requirements from the Department of Health in establishing a new well. The first option was to build a new well near the existing failed well. This well is located in the golf course. We hope we can find a location where water can be pumped without influence on the other existing wells in this location. The second option would be to replace the small well located in Carl E. Johnson Park off of Riley with a larger well. This too would take advantage of an existing well house. The replacement well could be reused for irrigation of the park as an added benefit.

Both of these options have merit and only upon doing the preliminary pilot wells and hydrology studies will we know if one or both sites will work out. We're optimistic that at least one site will work but until the preliminary work is completed it is difficult to be certain. Establishing a new municipal well is not an inexpensive endeavor. It has been estimated that costs will range from $70,000 to $80,000. This figure could increase if additional piping is needed. The goal is to get a well on line prior to next summer. This is achievable but also means we need to act as quickly as we can.

I want to recognize the efforts of Karla Eggink, the city's Public Works Director and City Engineer, for considering all options and thinking outside of the box. Given the existing use and need for additional water resources, sooner is better. With any luck we'll have some answers for the council to consider at their next meeting.

Milestones

2007-08-09T14:27:00.000-05:00

At the city council meeting on August 7, 2007 the council discussed and approved the sale of property along Highway 10 for a proposed bowling alley. The property is between Starcor Credit Union and County Lumber along Bank Street. This is another milestone event for the city when it gets built. The city in the past had done a public opinion survey to ask what businesses the residents wished to see in the city. A bowling alley ranked 7th as a need within the community behind some of the things already accomplished. These included fast food, grocery store, pharmacy and clinic. Having a bowling alley accomplishes another goal and provides an outlet for recreation and entertainment that was lacking in our community.

The proposed facility is contemplated as a 15,000 square foot building that would start with 8 bowling lanes and a 4,000 square foot banquet area. The building would also include a bar/dining area and potential game room. The plans include an expansion for an additional 8 bowling lanes as demand dictates. Mr. Gary Cox, a resident of the Becker community, is the developer on the project. He hopes to start construction next spring.

A lot needs to happen over the next several months to pull all the pieces together. We wish Mr. Cox the best in this pursuit. Having this facility within the community is not only a change in the landscape but another way to bring the community together. Hats off to Mr. Cox for recognizing the need and taking action.

Preliminary Levy

2007-08-02T15:21:00.000-05:00

The Minnesota Department of Revenue (DOR) made a large change this year with the way utility and pipeline property is valued. The result of the change involves a devaluation of Investor Owned Utilities in Electric an average of 27%. In Becker the overall reduction in net tax capacity will be 15% by 2010. Given the large decrease in values the rule change made by DOR will be phased in over a 3 year period. In 2008 we’ll see a reduction of 20% of the difference between the old value and new reduced value. For 2009 that difference will increase to 50% and with taxes payable in 2010 the reduction will be complete with the total devaluation, due to the change in rules, taking place.

The city council has been working on a budget that anticipates cutting of some expenditures ($173,900) and a small increase in taxes. The preliminary levy shows an increase of $35,944. This increase is 0.69%. Keeping the increase low is good news but the resulting estimated tax rate, given the reduction in taxable property values, has been estimated to increase from 31.33 to 32.9075. This is an increase in rate of about 1.6.

The council, by law, must set the preliminary levy by September 15, 2007. This means the preliminary levy will be set on September 4th. With the preliminary levy set the amount can not increase but can decrease. The city will continue to look for ways of trimming the budget until the final levy is set at the end of the year. Any feedback the public may have concerning the budget would be appreciated prior to the September 4th meeting and subsequently thereafter.

As many of you know legislation this year was pursued to address the loss of value. A bill was passed in both the House and Senate and included in the final omnibus tax bill. After the session closed the governor vetoed this bill for other reasons. By doing this the rule change became effective and created the loss in value we’re addressing within this budget. As indicated above we have two more years of phasing to address. We also have a strong desire to again seek legislation to resolve the problem of lost value with the legislature next year.

Safe Routes to School

2007-07-27T12:38:00.000-05:00

The City of Becker received a Safe Routes to School grant this past year for a project consisting of a sidewalk along Co. Rd. 24 from Rolling Ridge Road to County 23 and 3 pedestrian warning lights for crossings. The project has had some administrative obstacles to overcome but it is hoped the project will be built in the next few months. The city was approached by a contractor to provide for a demonstration project as he knew we were pursuing the grant project. This contractor, Decorative Pavement Marking of Plymouth, was willing to provide a product and installation if the city was willing to participate to the extent of providing new asphalt for the crossing location. The product is made by DuraTherm Products from Canada. It is a plastic material made with bright colors and glass beads to provide high visibility.

To install this product the pavement needs to be fresh so that it can be heated and provide for some give. Once the asphalt is heated a template is placed on the surface and rolled with a compactor to make an indentation in the asphalt. The plastic material is them placed in the indentations and melted into place. The result is an extremely durable crosswalk marking said to last up to 40 years. The city paid $1500 to have the path installed and the contractor paid the remaining costs. Generally this crosswalk costs about $4600. This seems like a lot of money for a crosswalk but considering the painting costs on an annual basis it is cost effective in the long term. I wish to thank Decorative Pavement Marking for there efforts and contribution to our safe routes to school grant.

If you get a chance take a look at this crossing. It is located on Bradley Blvd. directly in front of the school. It is a great looking crosswalk!

Conservation

2007-07-19T09:33:00.000-05:00

Last week I discussed the need for conservation of water. I also discussed the need to look towards the future but really we need to focus on now when we discuss water and its conservation. The City Council at its July 10th meeting placed a sprinkling restriction in place. This restriction provides for an odd even water schedule. What this means is if your house number ends in an even number you may only water on the even numbered calender days. With an odd number you may only water on odd number days. With this in place we feel we can manage water supply better to take care of domestic water uses while also preserving water for fire emergencies. Violations of this restriction will carry a penalty. The penalty involves a warning the first time a violation occurs. Subsequent violations will result in fines of $25 for the second offense and $50 for the third offense. Keep in mind that those with automatic sprinkling systems will need to change their system to address this. It is also important to remember to change it at the end of the month as with 31 days in a month we'll have two odd days in a row.

We ask residents to please think about water usage and conserve where you can. Having green yards is attractive and desirable but not necessary. Lawns are extremely resilient. They go dormant when water isn't available resulting in brown crunchy turf but will rebound when water is available again. With the sandy soils we have in Becker it takes a lot of water to keep turf up. Allowing your lawn to go dormant saves water and expenses.

Water is a valuable resource, please use it wisely.

water supplies

2007-07-10T13:52:00.000-05:00

The City relies on wells to provide domestic water needs for the residents of Becker. We have 4 wells but only 3 are used at any one time. They provide a capacity of 1050 gallons per minute of output. This provides the city with a pumping capacity of 1,512,000 gallons per day a maximum capacity. These wells are considered shallow at 45 to 55 feet deep. We can't go any deeper as we hit bedrock with these. For the months of May and June the city delivered 56.8 million gallons of water throughout the city. This is generally a July/August amount of water consumption. In June alone we averaged almost 1.5 million gallons per day, just meeting our capacity to provide the water. What occurs is the pumps are running 24 hours per day and filling up the water towers and during the day the use draws them down. Looking at these quantities we can't help but look towards the need for a new supply well. But we also need to look towards water conservation. By far the largest use of water is sprinkling of lawns. Keeping our lawns green can be seen as important but meeting domestic water needs for drinking and other domestic uses is far more important. In addressing this problem the city council is considering the addition of an additional well but in the meantime domestic water usage takes a priority. Please consider water consumption as a valuable resource.

Freedom Day Parade

2007-07-05T09:14:00.000-05:00

The parade that occurs on each Becker Freedom Day celebration takes a good deal of time and effort from all the participants as well as city staff. Some people like Walt Doring take considerable pride in showing off his tractors requiring weeks of advance preparation with cleaning, tuning and getting drivers. Others show up with a new or existing equipment to advertise their business, all in the name of fun, handing out candy or other items to parade watchers. The bands, horses and clowns are all appreciated.

This year was no different in terms of parade watchers. We had, I believe, a record number of participants. What was different was the way the parade was set up and managed this year. Jamie Cassidy set up a Freedom Days Committee this year to address all aspects of the days festivities. One change which was made was the assigning of "slots" or numbers for each participant. In the past the parade was set up mostly on a first come first serve basis with certain participants having select locations. As an example the fire equipment that attends are lined up on County Rd 24 and are first to go through the parade. They do this to have an avenue of escape to answer emergencies if the need arises. This happened last year with the Clear Lake Fire Department as they didn't make the parade but were lined up and ready to go when an emergency changed their plans.

The first come first serve approach worked well but had its pitfalls. It required participants to get lined up early if they wanted to be near the front of the parade. It also prompted problems with participants who were on a float that couldn't find the float. What would happen is they would drive up and down the parade lineup looking for their float. Lots of traffic was generated and some frustration occurred with this activity. The solution came with the assigning of numbers for each participant. With preregistration participants received a number and gave information concerning what type of entry they were participating with. With that in hand the proper amount of space was planned for. Stakes were then placed along the parade line up area and participants lined up. Those people who knew the number were directed to the appropriate location. Traffic hazards were reduced significantly, more order was achieved in the line up, and people could show up closer to the start of the parade rather than get there early. Many favorable comments were received from participants.

This didn't happen by itself as a lot of people who volunteered made this happen. The Freedom Days Committee needs to be congratulated and thanked for their good work. The parade organizers who worked to make it orderly that day also need to be thanked as we had a great parade. I hope you have fun enjoying the parade.

tax base

2007-06-26T15:55:00.000-05:00

The city has for some time been addressing a change in the rules that determine how power plants are assessed. This change occurred in February with the result of the city loosing approximately 15% of it tax base as a result of a change in the power plants value. The rule that was adopted provided for a phase in of the adjusted values so that for taxes payable in 2008 the city is faced with a 20% reduction of the total reduction we'll see. That phase in continues with it going to 50% reduction in 2009 and full reduction of value in 2010. In addressing this rule change we worked with legislators to change the tax rate to make the situation of value change revenue neutral. The class rates for electrical property are presently 2% and by changing them to 3% we would be able to keep taxes and budget consistent. The bill that advanced that change was passed in both the Minnesota House and the Senate and made it into the final tax bill. In the end the governor vetoed the bill. The result is reduction in the amount of tax dollars created at the existing city rate. To make up for that either cuts are made or the tax rate will increase. Presently the effort is to find cuts in expenses to address the problem.

The Xcel Trail

2007-06-19T09:55:00.000-05:00

As some of you know the city has for some time been working with Xcel to establish a trail within the buffer property they own adjacent and north of the Mississippi River in Becker. Funds have been secured from Sherburne County and the City of Becker as well as from the State of Minnesota through an appropriation in legislation known as a bonding request. This request provided 50% of the funds for the project. As the city moved to establish the project we encountered problematic restrictions in the use of these funds dictated by state rules for using bonding resources. These involve land covenants which make the project infeasible to accomplish as the property will remain in Xcel's ownership with the city/county receiving a long term lease on the property to establish and maintain the trail. After a great deal of effort from a number of parties it was recognized that given the present state of requirements for the bonding funds the project can not be constructed. Our remedy seems to be going back to the legislature in 2008 with a project specific bill authorizing the expenditure of state funds in a manner that is acceptable to all parties.