1992-10-06 Council Workshop Ivy Falls CreekCITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Ivy Falls Creek Workshop
Held Tuesday, October 6, 1992
Pursuant to due call and notice thereof, the Ivy Falls Creek
Workshop of the City Council, City of Mendota Heights, was held at
6:30 o'clock P.M. at City Hall, 1101 Victoria Curve, Mendota
Heights, Minnesota.
City Administrator Tom Lawell called the meeting to order at 6:30
o'clock P.M. The following members of the Council were present:
Councilmembers Cummins, Smith and Koch. Mayor Mertensotto had
notified the Councilmembers he would not be present. Councilmember
Blesener was not present. The following staff members were
present: Administrator Tom Lawell, Public Works Director Jim
Danielson, City Engineer Klayton Eckles and Senior Secretary Kim
Blaeser. Also present were City residents Leon Goodrich and
Marilyn Miller.
DISCUSSION ON IVY FALLS
CREEK FUNDING OPTIONS
City Engineer Eckles briefly explained funding options
which had been discussed by Council at previous meetings:
1) Do Nothing, 2) Funding from West St. Paul 3) Assess
100 percent of project high benefit /low benefit 4) Set up
a special taxing district 5) Use of General Tax Levy; 6)
Set up a Sanitary Sewer Surcharge; 7) Set up a Storm
Water Utility; 8) Use Tax Increment Financing and 9)
Assess part of the Project 10 percent to 20 percent.
He further discussed the different assessment percentages
researched by City staff in helping to finance the
project. He stated a 100 percent assessment rate would
be unrealistic, a 20 percent assessment rate would be
easy to justify but the assessment rates would be high
and many properties would be included, and a 10 percent
assessment rate which would be easier to assess but hard
to finance.
Engineer Eckles discussed the main points of a storm
water utility: 1) Charged based on impact on
storm system; 2) Rates set according to area
and land use of property; 3) Quarterly charge
goes on sanitary sewer bill; 4) Set up appeals
process for properties that reduce impact and
5) Requires an adopted policy and a public
hearing.
He further explained examples of typical quarterly rates
golf/cemetery, institutional and industrial. He
explained the quarterly rates could be charged per lot
for single family, per unit for multi family and per acre
for golf/cemetery, institutional and industrial.
In response to a question from Councilmember Smith,
Engineer Eckles explained undeveloped land would not be
charged. He further stated, at this point, the
industrial rates proposed are low compared to other
Cities in the area. He further stated he is currently
researching a Storm Water Utility Policy and is
researching other City's policies.
Engineer Eckles briefly explained the funding needs which
include the Ivy Falls Creek Project, Lexington Diversion
and Future Projects. He stated $1.4 million is needed.
He explained where some of the income to help finance the
projects would come from. He briefly explained the other
sources of income which could be generated to help
finance the Ivy Falls Creek project: City of West St.
Paul, Tax Increment Financing and assessments. He stated
these sources of income are only ideas at this point.
In response to a question from Councilmember Cummins,
Treasurer Shaughnessy explained it is important to start
collecting funds now for future projects so there will be
enough money to help pay for projects in the future. He
further stated that continuation of the tax levy
initiated to fund part of the original Ivy Falls Creek
project several years ago would finance part of the storm
water improvement costs for the Ivy Falls Creek
improvements and other needed projects.
Councilmember Smith stated she is comfortable with the
use of Tax Increment funds in helping to finance the
project for public portion - on City property.
There was a brief discussion on future engineering
projects.
Councilmember Cummins stated he agrees in assessing the
properties as it will enhancement the properties and
there is a benefit in preserving the natural resources of
the area. Councilmember Smith concurred and stated she
feels a 20 percent assessment rate is too high. She
stated she would be more comfortable with a 10 percent to
15 percent range.
In response to a question from Marilyn Miller,
Councilmember Smith stated rain is a factor and that
development in the area has also contributed to the
amount of water flow and erosion problems. She stated
the entire district should be responsible in funding the
correction process.
correction process.
Engineer Eckles stated he is looking for some direction
in implementing the plan. He stated the Council should
consider the options available for funding.
Councilmember Koch stated she would not like to see a
continuation of a creek tax. She stated the City should
look into Tax Increment Financing. Councilmember Cummins
stated he does not want to see Tax Increment Funds used
as there will be no increment generated by this project.
Councilmember Smith stated Tax Increment Funds have been
used on other projects that have been assessed in the
City.
Councilmember Cummins stated he agrees with the
initiation of a storm water utility and that the costs
proposed to be funded by TIF should be covered by the
storm water utility and that benefitting properties
should be assessed. He further stated the City should
not be abusing the TIF. Councilmember Smith stated she
agrees that the Tax Increment Financing process should
not be abused and that she does not consider the use of
these funds for this project an abuse. She stated the
use of Tax Increment Funds will help the community in
defraying expenses of the project.
It was the consensus of the Council and staff that this
matter be continued for discussion at the regular meeting
scheduled tonight. Administrator Lawell noted that Mayor
Mertensotto and Councilmember Blesener were not present
at the workshop and should be given an opportunity for
input on the different options for funding presented
tonight.
The workshop was adjourned at 7:30 o'clock P.M.
Respectfully submitted,
Kimberlee K. Blaeser
Senior Secretary