Friday, December 17, 2010

ABC News - highlight items, for as long as they stay online - guess at that, I don't know ABC's changing policies and practices.

My HRA is bigger than your HRA; this link.

And do you suppose that if Blaine had that mayor back whose favorite word might still be, "Oberstar," that this reported situation (this link) would be any different:

Public hearing comment

During the truth in taxation public hearing, John Erar, 2543 Tournament Players Court, addressed a number of concerns about city salaries, the proposed 2011 tax rate and levy.

Erar said his property tax statement showed a $35,000 drop in valuation from 2010 to 2011 and he would pay $45 more in estimated city taxes next year.

“I object to the council approving $250,000 in employee salaries, steps and benefits,” Erar said. “I object to the council spending almost as much in 2011 as you did in 2010, while taxpayers see a significant decline in tax values.”

Erar told the council the city shouldn’t be exempt from tightening its budget belt in tough times.

“Citizens and taxpayers have lost their jobs and have had to make do on smaller salaries,” he said. “They don’t have the luxury of just raising the tax rate to make the same revenue they earned the year before.”

“The unfortunate truth in this taxation hearing is that hearing residents’ views is just a formality, a bureaucratic mechanism meant to satisfy requirements with the letter, not the spirit of the law being observed. Raising tax rates by almost 10 percent is an act that ignores the state of our economy and almost a 10 percent unemployment rate.”

Erar said many homeowners were barely holding onto their properties and city leaders needed to consider property tax relief.

“My message to this body is freeze employee salaries, steps and benefits, reduce the tax rate to 2010 levels, reduce spending to a corresponding level and appoint a citizens’ committee to review department expenditures and tax and spend decisions,” he said. “This isn’t just about raising the tax rate. It’s about raising the rate on people who are losing significant value in their homes.”

Commercial conundrum

James Selmer, who owns property at 11452 Central Ave. N.E., asked why his taxes had increased. His former residential property is now commercial.

“It’s 4.6 acres,” Selmer said. “It was residential non-homestead and this year it went to commercial-industrial, and that’s an increase of 174 percent.”

Selmer said this year, the property taxes were approximately $13,000, including road assessments; next year they will be $25,046.

He also had a question about the fiscal disparity portion of his property tax bill. “That’s $4,672,” he said. “It think it’s outrageous.”

City Manager Clark Arneson explained that part of Selmer’s tax.

Since 1971, the Twin Cities’ commercial and industrial tax base has been shared according a pooled arrangement that redistributes revenue according to communities’ needs, Arneson said.

In the past, Blaine has received money back from the pool. “This year, it looks like for the first time Blaine will be a net contributor to the pool,” Arneson said.

“Our commercial and industrial base is contributing more than we are getting back from the pool. On your statement, you are paying into this pool just like every other property. The rate is set by the legislative auditor.”

Selmer wasn’t pleased with that explanation.

“It sure doesn’t sound very fair,” he said. “This property is only 4.6 acres and it’s going to be a big jump from one year to the next. My valuation went down.”

Arneson asked Selmer to schedule a meeting with city staff to discuss his tax situation. After Selmer agreed, Mayor Tom Ryan closed the public hearing.

And only four folks in Blaine bothered to show up. Do you think the remainder of the population might have thought you can't fight city hall? It seems that feeling might be a county-wide norm. Press on, into the Big Muddy, and all.