HomeMy WebLinkAboutCharter Commission Memo (Miller) Oct 20122401 Highway
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Mounds
View, MN 551
12-1499
Phone:763,717.4000
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Fax:763,717.4019
October 22, 2012
Jean Miller
2291 Hillview Rd
Mounds View, MN 55112
RE: Charter Commission Correspondence
Dear Jean,
I sent the attached email out to Charter Commission members on Friday of last week,
and knowing that you do not receive email correspondence, I wanted to make sure you
had this as well.
In summary, I'm simply asking that the Commission consider some potential changes to
the proposed language, pointing out potential issues which may or may not have been
considered.
The City Council and I appreciate all the work the Commission is doing to improve the
Charter to ensure it is easy to understand and relevant, however I remain concerned
that by amending this Chapter, Section 8.01 specifically, may create some unintended
consequences.
If you have any questions, please do not hesitate to give me a call.
Sincerely,
Jim Ericson
City Administrator
Encl.
Equal OpportuniPy Employer
From: Jim Ericson
Sent: Friday, October 19, 2012 5:19 PM
To: 'JThomas'; Jason Reiling; Brian Amundsen; Jim Battin; James Miller
Cc: Mark Beer; Nick DeBar
Subject: Charter Commission Meeting - Oct 10 12, 2012
Attachments: Chp8upd_9-12-12.pdf
Good afternoon Charter Commission Members.
I've had an opportunity
to watch
the Commission's
Oct 10th meeting and review
the Chapter 8
draft version dated Sep
12, 2012,
and have a few
observations and comments to
share. I
apologize in advance for
the long
(LONG!) message
but feel the points are worth articulating.
First, there was some discussion about Line S. I too wondered about the draft language and
I'm not sure how that was resolved. I'll await the revised version before the next meeting.
Keep in mind that the City adopts a Tax Levy. We do not levy "revenues" or "dedicated
revenues", although clearly the taxes levied represent revenues of the City, once collected.
We can levy taxes FOR dedicated purposes, of course, which is essentially what we do every
year when we adopt a budget --a certain amount is levied for administration, a certain amount
is levied for public safety, a certain amount is levied for the street improvement program,
and so on.
Regarding the proposed definition of Dedicated Revenue in Line 44, is it intended to be
limited to ONLY dollars collected through an assessment process? The word "assess" or
"assessed" would suggest the act of certifying a special assessment upon a property. The
word "collected" would seem to convey a more generic and appropriate description, in my
opinion.
Still in Line 44/45, if "Dedicated Revenue" means monies collected for a "specific public
improvement or purpose..." then ALL taxes levied and collected would be defined as Dedicated
Revenue, as the general fund levy supports very specific purposes within the operation of the
City. "Public Improvement" alone in the definition would make sense, but not the addition of
"or purpose".
Finally, to close out this definition in Line 44/45, and I paraphrase, "dedicated revenues
are monies collected for a specific public improvement from businesses, citizens and
residents of the City." Is it not redundant to indicate citizens and residents? Who are
these citizens of the city?
In line
6, to restate
what I indicate above, I think "collect"
is preferable over "assess"
for the
reasons noted,
especially since it looks like you were
intending to remove assessment
in the
first place.
What about the following, instead:
"The City
may
make
any type of
public
improvement not forbidden by law, and collect dedicated
revenue to
pay
all
or any part
of the
cost..."
But removing or separating this Chapter from special assessments would seem to pose other
issues that would need to be addressed.
At the tail end of the above sentence in Line 7, the reference to "as are of a local
character" would no longer seem to apply with the expanded reference to dedicated revenue.
For example, let's say the City decides to levy taxes for a city-wide parks improvement
program. (We already levy taxes to maintain the parks.) Clearly such a program would be a
public improvement, but how does that reconcile with the "as are of a local character"
7
qualifier? Or we can use the Streets Program as an example. Clearly it's a public
improvement, but I don't think we can say it's of a local character. I would assert that any
city-wide improvement or program on its face is NOT of a local character. In my line of
thinking, it seems that the "local character" qualifier was there specifically to tie back to
special assessments. If we're no longer talking about special assessments strictly, then I
don't think it makes sense to retain the limiting "local character" qualifier.
Continuing on in Section 8.01, in lines 9 & 10, if the Commission eliminates the connection
to special assessments, the following sentence would no longer seem to apply:
"No collection of dedicated revenue shall exceed the benefits to the property." This clause
relates to special assessments. With the expansion of dedicated revenue to include OTHER
sources of revenue (tax levies, fees, funds) the ability to show "benefit" becomes a
challenge. When assessments are NOT part of a project's funding, requiring that the City
show a direct benefit to the individual property owner would be impractical --if not
impossible --to do, and could add significant cost to the project attempting conduct such
analyses.
As a result of all the proposed changes, the next line in Section 8.01 (Lines 10/11)
contradicts the process and procedures relating to public improvements paid for with
dedicated revenues:
"This Chapter does not apply to public improvements funded only with general funds or
bonding."
If the public improvement is not paid for in part or whole using special assessments, then it
is paid for using tax dollars, in which case this chapter does not apply. This clause again
is based on the notion of assessment or no assessments. Leaving this line in the Charter
will negate almost all of the additional limitations being proposed by the Commission.
An exception to the above would include the water tower reconditioning project --a project
funded wholly through enterprise funds. Another exception would be the new park buildings at
Random Park (and Hillview and Groveland Parks before it) which were paid using Park
Dedication Fund dollars. These two projects then WOULD be covered under the Chapter, thus
we'd have to show a benefit to property owners. How?
Finally (regarding Section 8.01, anyway) the new sentence starting on Line 11 could be worded
differently:
The sentence begins, "All public improvements which may levy and collect Dedicated
Revenue...." IF
An "improvement" cannot levy or collect revenue. Perhaps it should read, All public
improvements FUNDED WITH ANY LEVEL OF Dedicated Revenue shall be exclusively controlled by
this Chapter...." Or something similar.
The sentence goes on to say that such projects "shall exclusively be controlled by this
Chapter and the Charter, as a whole..."
Since in reality every "public improvement" is funded and implemented using dedicated
revenues, this sentence seems to contradict the preceding sentence, which excludes
improvements paid for using general funds. Unless the Commission intends to clarify the
definition of dedicated revenues to exclude general funds or bonds, it would seem that one of
these two clauses at the end of 8.01 would need to change.
OK, moving on to the definitions...
Assessment District: This definition is confusing. Did it come from statutes? What is a
Local Improvement Plan? It's "capped" so is there a corresponding definition? The following
phrase seems particularly difficult to translate: "Upon Council approval of the Local
Improvement Resolution, the collection of all benefitted properties specifically identified
by County Property Record number in the resolution and notice sent to the property owner of
record prior to the Council action to approve the resolution." After reading that three
times, I'm fairly certain something is missing because as it reads, it's not even a complete
sentence.
Benefitted Property: This definition needs to be tweaked as well. It says, "The property or
properties which will be improved or maintained as a result of the improvement being
completed." With very limited exception, the city will not undertake any improvement upon
private property, which this definition seems to suggest. I also have questions about the
"procedural" language that follows but will refrain from commenting until such a procedural
section has been prepared.
City Services. The word "sited" in the first sentence should be "cited".
Dedicated Revenue. I think the definition is too broad. Does this include special
assessment dollars? See comments above.
Local Improvement. The change proposed by adding the words "or by other dedicated revenue"
negates the need to have a separate definition. The Charter presently defines a local
improvement as "a public improvement financed partly or wholly from special
Assessments." The proposed change makes "Public Improvement" and "Local Improvement" the
very same thing, in essence.
Local Character. I disagree with the definition as proposed. Local character simply means
that the improvement is one in which the benefits are limited to a smaller area of the City
and thus warranting or justifying the use of a special assessment against the benefitting
properties. The City determines the benefitting properties and the resident has the right to
appeal any such inclusion or assessment, per statute, 429.081. It is NOT in the City's best
interest to broadly interpret a benefitting area as appeals cost the City money and will
often delay the implementation of a project.
Public Improvement. As I've stated previously, I think the definition is overly broad. Work
done to increase value or bring about a more desirable condition? Cutting the grass in the
right of way, plowing the streets, replacing a sidewalk panel, fixing a pothole would all be
considered public improvements according to the definition. Granted, the statutory
definition of Improvement in statutes (429,081) is quite extensive in and of itself, so not
sure what to suggest.
Public Improvement Project. This definition builds on an overly broad definition of Public
Improvement and City Services, and includes procedural steps, which I'll refrain from
commenting upon until that section is prepared and considered. That said, a Public
Improvement Project is specifically defined as multi -year project completed in segments or
steps. That being the case, in reality, almost all projects undertaken by the City would NOT
be a Public Improvement Project, since most projects are completed in one year or less. One
could argue ONLY the Street and Utility Improvement Program would be considered a Public
Improvement Project. Was it the Commission's intent to create such a limiting definition? I
fear however that the narrow definition could be construed to include normal maintenance
operations (city services) which may be segmented over many years, such as testing 20% of
stormwater ponds on an annual basis, or inspecting 25% of the rental units on an annual
basis, or striping 30% of the roads on an annual basis, or seal -coating roads every five
years, etc.
E
While I did not want to address procedural issues, I'll make just one statement (assuming
anyone is still reading at this point): As was stated at a recent Charter Commission meeting
and as proposed in the draft provisions to Chapter 8, one intent of the Commission in
revising this Chapter is to empower residents with the ability to petition against a street
project despite there being no special assessments. Has the Commission discussed the
rationale behind why an expansion of the right to petition is warranted?
In conclusion (I now, FINALLY, you think!) I look at Chapter 8 as a complex series of
interwoven controls relating to public improvements delicately balanced upon the premise of
special assessments. If you remove the special assessment linchpin, and in its place insert
something different, the entire chapter begins to wobble under the weight of unintended
consequences. It would almost make more sense to leave the chapter as it is, and simply
create a NEW section to address the process/procedure for projects that do NOT incorporate
assessments (in part or whole) as a funding source. That way, the integrity of the chapter
relating to special assessments is preserved while at the same time resolving the perceived
need to address projects NOT funded through special assessments. I know the Commission has
already invested significant time into the proposed revisions and I do not mean to minimize
or dismiss any efforts up to this point, I simply offer the suggestion as an alternative for
your collective consideration moving forward, with all due respect.
If
anyone
has questions, feel
free to call or write
if
anyone
feels that would be
helpful.
Again, sorry for the prolific message.
Best regards,
Tim Ericson
City Administrator
City of Mounds View
2401 County Road 10
Mounds View, MN 55112
763-717-4001 (Phone)
763-717-4019 (Fax)
763-464-9644 (Cell)
www.ci.mounds-view.mn.us (Web)
BCC: City Council
I'll plan on attending the next meeting
J
I CHAPTER 8
2 (Draft Version dated Sep 12, 2012)
3 PUBLIC IMPROVEMENTS AND DEDICATED REVENUE-, SSES&ME TS
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Section 8.01. Power to Make Improvements and Levy. " ••T�^^ ��nts collect Dedicated Revenue . The City
may make any type of public improvement not forbidden by law and levy and collect dedicated revenue
sp inn ts-to pay all or any part of the cost of such improvements as are of a local character. The
total amass collection of Dedicated Revenue for any local improvement may not exceed the cost of
the improvement, including all costs and expenses connected therewith, with interest. No ^^^^ems etA
collection of Dedicated Revenue shall exceed the benefits to the property. This Chapter does not apply to
public improvements funded only with general funds or bonding. All public improvements which may
levy and collect Dedicated Revenue for any portion or act to complete the improvement shall exclusively
be controlled by this Chapter and the Charter, as a whole, as allowed under MN Statute 429.1 11, as
amended
8.02 Definitions — Application. For the purpose of this chapter, the terms defined in this section, shall have
the meanings ascribed to them.
Assessment District: The collection of all benefited properties, which shall be specifically identified in
the Notice of Hearing for a proposed Local Improvement Plan and published in the official
newspaper. Upon Council approval of the Local Improvement Resolution, the collection of all
benefited properties specifically identified by County Property Record number in the Resolution and
notice sent to the property owner of record prior to the Council action to approve the Resolution.
Assessment Procedure: as described in MN Statute 429.061, as amended, shall apply to this chapter.
Benefited Property: The property or properties which will be improved or maintained as a result of the
improvement being completed. (The benefit to the property shall be identifted as a dollar value to the
property owner by the City whenproposing the improvement. The identified benefit shall not require
any type of certification or verification by a thirdparty. The identified benefitnaay be nullified as a
result of a properly filed petition using the Petition Process by the properties for the proposed
Assessment District, or individually modified by the Council as a result of an oral request of the
property owner directly to the City Council at a City Council meeting. Nothing in this definition will
preclude a property OWner from their rights under MN Statute 429.081 to appeal an assessment to the
District Court. this section to be moved to process area of chapter.)
City Services: Include those services sited under MN Statutes Chapter 471 (Municipal Powers), as
amended, in exchange for the taxes and fees citizens or residents pay. Basic city services may include,
but are not limited to, sanitation (both sewer and refuse), water, streets, inspections, public safety (fire
department, police, ambulance) snowplowing, and other health department issues. City Services may
be delivered directly by a City department, employee, City approved volunteer, authorized and
appointed commission, elected official, or be sub -contracted to a third party.
Dedicated Revenue Asse ^° m^nn: Funds, fees, or taxesAs�^�^s:;.e;t collected for a specific public
improvement or purpose fiom business, citizens and residents of the City.
Local Improvement: A public improvement done by special assessment under the authority of MN
Statute 429.021, as amended, or by other Dedicated Revenue.
Local Character: (Provide a high priority to maintain to be moved to process section) The
predominate appearance and use of an area.
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Public Improvement: Work done that increases value, brings into a more valuable or desirable
condition, or betterment of property, or right-of-way owned by the City, County or State.
Public Improvement Project: A City Service project comprised of one or more public
improvement(s) defined or completed by segments or steps that span multiple years, approved
through a single resolutions which shall define or describe all improvements to be done for the
total project to be completed, its steps or segments, the set of engineering standards to be applied,
the benefit to properties involved, the local character to be maintained or modified, the
assessment process(es) and(or) the financing method(s) which will be used to pay for tine project.
A Public Improvement Project, whether financed with assessments or not, shall have both a
public hearing and a public comment period of not less than sixty calendar days. A Public
Improvement Projector Resolution shall not prevent each annual segment from the citizen's
right to petition the engineering standards or the financing method being applied to work
scheduled for that calendar year, to be moved to process section.1
Requirements: A Public Improvement Project will be approved by resolution on a per build -out,
per segment process.
Service, (conflicts as used in current section 8.05):
Special Assessment: Any assessment made to an individual property or collection of properties which
but or is identified as being improved by, or maintained by, a result of the local or public
mprovement being completed. The Assessment will follow the process as stated in MN Statute
429.061, as amended, and be controlled by MN Statute 429,05I,as amended.
Section 8.03. Local Improvement Ordinances and Rep_ulaYions. Within 90 days after this Charter goes
into effect, the Council shall enact suitable ordinances) governing local improvements and special
assessments. The ordinance(s) shall provide a complete working code covering the determination of
assessments and assessment Districts, public hearings, appeals from a collection of assessments,
penalties for delinquency in making payments, financing of said assessments, and the certifying of
unpaid assessments for collection by the proper county officer. Said ordinance(s) shall also provide for
installment payments and notices to be given thereof, appellate procedure, reassessment, if necessary,
and all other matters appropriate to the subject of local improvements and assessments. After the
adoption of such ordinance(s) providing for local improvements, all procedures in compliance therewith
shall conform to the regulations as set forth in such ordinance(s) and as otherwise contained in this
Charter.