1994-11-07 - Laserfiche WebLink

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I I I Council Meeting Minutes November 7, 1994 Page 3 Council Business. continued Civil Engineer, Brian Olson. said an analysis was performed on a Windsor Green townhome valued at $100,000. If the utility fund were adopted, a townhome unit would be charged $7.19 annually as opposed to $15.49 annually through property taxes. The Windsor Green Complex resides on 33.5 acres and has 236 units. Following the last meeting, Fulton spoke with Mr. Carlson, a Windsor Green resident, regarding the analysis. When incorporating the income tax deductibility of property tax costs at a 30% income tax bracket; a Windsor Green owner would be eligible for an income tax deduction of $4.65 which results in a real cost of $10.84. In comparison, the annual utility fund cost for a Windsor Green unit would be $7.19; and would actually provide a $3.65 advantage over the property tax approach. Benke confirmed that lower valued residential properties would pay a small amount more with the utility fund method. It appears the breakeven point would be for properties valued at $87,000 or higher which would see a reduction when the utility method is used. Residential lots are classified on a per lot basis, and townhome complexes are classified on a per acre cost. Harold Kurtz. 1465--17th Ave. and Mounds View School Board Chair, noted the many cooperative ventures between the School District and the City; and the City is allowed to use District facilities free of charge. The proposal would charge the District about $3,500 annually. The Board understands the need for increased City revenue, but feels it should not be accomplished by shifting costs from one public body to another. Staff found that several cities residing within the District currently charge stormwater utility fees to the District. Benke said the proposal reflects the need to provide equity among City taxpayers, and the fee would directly assess those creating the costs. Benke acknowledged the joint ventures with the District; but the District is now being charged for water and sewer usage. Olson confirmed that Mounds View, Arden Hills, and Shoreview, which all reside within the District, currently charge the District a stormwater fee. Gunderman noted that five of the seven cities residing within the District currently charge this fee. Gunderman asked how the Board intends to revisit this issue. Kurtz said the Board may review the costs associated with providing the use of their facilities. On behalf of the Windsor Green Association, David Evans of 150 Windsor Ct., requests the City ensure that the Windsor Green Ponds qualify for a credit upon adoption of the utility plan. Evans feels it is unfair that lesser valued homes would be charged a larger fee than higher valued homes. Adelle Floren, 211 Windsor Ct., requests staff work with Windsor Green to ensure the ponding credit. Fulton does not see a problem with the request. Fulton said the philosophy is to resolve inequitableness of the current system and apply cost impacts to land classifications producing a greater amount of runoff. Evans questioned the analysis used to determine residential fees. Fulton said staff researched three differently sized residential lots to compute a determination of runoff. Benke acknowledged that neither sy~tem is perfect, but the City will attempt to pursue cost impacts which are proportionate to contributing land classifications. Council Business Stormwater Utility Plan Report 94-263