Budget Process

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

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

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

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

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

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

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

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?

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

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

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

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

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.

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.

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

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

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

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

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

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

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

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

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.