However if you include the rate increases as part of your tax increase it is deductible on your other tax filings. As a rate increase you can't deduct it.
Lisa McDonald
East Harriet
-- Original Message -----
From: Jeffrey StrandSent: Thursday, December 12, 2002 7:05 AMTo: [EMAIL PROTECTED]Subject: [Mpls] City Selling Services: Minneapolis Water and Sewer Utility Rate StructureCity Selling Services: Minneapolis Water and Sewer Utility Rate Structure
(((((((RE: [Mpls] Competency test for 3rd Ward Candidates - and other
office holders
Victoria Heller
Wed Dec 11 10:00:01 2002
These questions are based on the 2003 Budget that was distributed at the
Truth in Taxation hearing on Monday.
Question 1
The City plans to collect $329.4 million from selling services (primarily
water) and $158.6 million from property taxes.
Do you think it would be more honest to sell water "at cost" and double
property taxes - so taxpayers would know how much it really costs to run
the City?))))))
Though I am not a candidate for elective office, I will take a whack at one
of the questions posed by Ms. Heller:
I think it is absolutely honest for the Mayor and City Council to allocate
increases in the costs for water-sewer services to the rate structure
funding those services. The volunteer citizen appointees (33 authorized
positions) to the Capital Long-range Improvements Committee looked hard at
the proposed water, sewer, and combined rates developed as part of the
annual capital budgeting process. The rate structure developed by the
committee with technical assistance from the Executive Secretary Mr. Abeln
was included in the July 2002 recommendation to the Mayor and City Council.
The biggest change in the combined rate structure contained in the city's
budget document (page 44 of 68) on the web compared with CLIC's
recommendation appears to be an increase of 3.3% for 2007 rather than 2.3%.
It appears to some CLIC members that to some extent rate increases for
needed capital infrastructure improvements were put off in the c.1980's,
resulting in this generation having to step up to upgrade or replace the
WPA-era water works facilities.
By far the largest single project in the water program is "WTR09
Ultrafiltration Program" that entails an expenditure of $133,460,000 from
2003-2007 and constitutes over 50% of the total water program. The sewer
program is projected as $63 million and the water program is projected as
$215 million in the 5-year capital program.
I argue that the Mayor and City Council have been honest with the ratepayers
and taxpayers of the city in properly attributing these capital costs to the
sectors of services provided, namely water and sewer. The proposed
ultrafiltration program went through extensive advisory and scientific
review and testing. The program was judged necessary to protect the city's
potable water supply drawn from surface waters, since it is not feasible for
a number of reasons for the city to obtain its water supply from wells.
See the 2002 water customer report: http://www.ci.minneapolis.mn.us/water/
Some funding changes took place in the Library and Park Board sectors of the
capital program. The capital budget requests submitted by departments and
agencies for 2003-2007 totaled $654.2 million. If I am not mistaken, the
Mayor recommended 5-year capital program showed a total increase of $966,000
(+.2%) to $577,341,000 from the CLIC recommended amount of $576,375,000.
The public and neighborhood organizations were given notice and an
opportunity to comment on the program about mid-year through a joint
Planning Commission-CLIC public hearing. Mayor Rybak introduced a
constructive innovation this past year through inclusion of Council
President Ostrow, Ways and Means Chair Johnson, and Council Member Lane in
the July review of CLIC recommendations.
The capital budgeting process is an open process. Persons interested in
service on CLIC should refer to the city's web site on opportunities for
open appointments from the Mayor and Council Members.
Jeffrey L. Strand
Shingle Creek
4th Ward CLIC Appointee
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