With the county poised to set its maximum 2013 levy amount, Grand Marais City Administrator Mike Roth went before the county board on September 11, 2012 to request that they discuss with the city a plan for how future bond payments on Cedar Grove Business Park—owned by the Cook County/Grand Marais Economic Development Authority (EDA)—will be made.
In a letter to County Auditor-Treasurer Braidy Powers, Roth wrote, “For the first time since the construction of the business park, the City of Grand Marais will be levying property taxes for the bond payment. In the past this payment has been made through a combination of lot sale proceeds, grants, and other EDA funds.”
The amount due in 2013 will be $118,287.50, and Roth said the city would be including “all or a large portion” of the 2013 bond payment in its preliminary levy. He asked the county board to consider allowing the EDA to levy $60,000 to cover roughly half of this payment. The payments increase each year to a final payment of $130,875 in 2031.
Roth said the city is responsible for ensuring that the bond payments are made, so if the county doesn’t authorize a county or EDA levy increase to make next year’s payment, the city will have to increase its own levy to cover the full amount.
Commissioner Sue Hakes suggested that discussion of this debt be part of a larger discussion on costs the city and the county share such as the Grand Marais Public Library and snowplowing city streets. The county is hoping the city will share the cost of operating the proposed new community center and pool, just as the county has helped—to greater and lesser degrees through the years—with the funding of the Grand Marais Municipal Pool.
Commissioner Jan Hall was not sympathetic to the EDA’s plight, with most of the business park lots remaining unsold years after it was developed. “It’s pretty simple,” she said. “They only want to be partners when they need money.” She said she thinks they should require the EDA to cut back on its budget in the amount needed to make next year’s bond payment rather than raising the levy.
“It’s just like us,” Hall said. “We need to tighten our belt and choke ourselves every time we need to write out checks we don’t have the money for.”
Commissioner Sue Hakes agreed they should discuss the budget and levy with the EDA. “We have to talk about that because we’ve had some huge disappointments and disagreements over how they spend their money.”
“We are in this together,” said Commissioner Fritz Sobanja. “It’s a partnership for our county’s economic survival.” He recommended that the entire county board meet with the entire EDA board. He said the EDA has been a “sore thumb” for 20 years. “Why can’t we get ourselves in a positive zone on this?” he wondered.
The board passed a motion agreeing to share the cost of next year’s bond payment with the city, which it could cover through the EDA levy. It has until December to decide on the amount of the EDA levy.
“They’re rudderless,” said Commissioner Hakes of the EDA. She did not foresee the EDA being allowed to levy what they have asked for, which was $200,000, not including the bond payment.
Commissioner Jim Johnson said they will need to “establish a relationship of cooperation” with the city regarding the potential biomass heating plant and the proposed community center, so working with them on this as well might be good.
The EDA’s first levy, in 1989, was $41,448. The amount it can levy is based on a percentage of the county’s taxable market value. It levied the maximum allowed until 2001, when it started levying less than the maximum allowed. This year it levied $148,566, although it could have levied up to $305,379.
County levy limit set
The board set its maximum 2013 levy at $6,334,001, up 5.76 percent from this year’s levy of $5,989,187. Between now and December, the board will discuss trying to cut the budget to get the increase down as much as possible.
Departmental budget requests would have required a levy increase of over 16 percent, but the county will be taking out $2.33 million in bonds at 2 percent interest over seven years in order to avoid such a high levy increase.
The bonds will be used to pay for Highway Department road equipment and Highway Department and Sheriff ’s Office communication equipment compatible with the state’s new Allied Radio Matrix for Emergency Response communication system.
Fire hall loan
The board approved a loan of $200,000 over 20 years at 1 percent interest to the Gunflint Trail Fire Department. The money will be used for fire hall expansion and construction at Sea Gull Lake, Gunflint Lake, and mid-Trail. The county gave the fire department a $220,000 loan a year ago and tentatively approved this year’s loan.
The project will involve building a new fire hall/incident command post at Sea Gull Lake, installing a bathroom addition to the fire hall at Gunflint Lake, and construction of an incident command post building and a storage building mid-Trail.
Lakeshore septic inspections
The board approved an application by the Planning & Zoning Department and the Cook County Soil & Water Conservation District for a state Clean Water Fund Grant for septic inspections on Tom, Greenwood, and McFarland lakes. The Planning & Zoning Department has plans to inspect all Lake Superior properties as well over the course of time.
Human Services resignations
Public Health & Human Services Social Work Supervisor Grace Bushard informed the board of two resignations in her department— Social Worker Kristine Swanson and Financial Worker Molly Wickwire.
Swanson will be moving to Wisconsin to be closer to family and Wickwire took a job dealing with the broadband build-out at Arrowhead Electric Cooperative Inc.
The board authorized advertising for their replacement.
Time capsule
With the courthouse’s 100th anniversary celebration coming up on September 21, Cook County Historical Society Director Carrie McHugh is still taking suggestions on what to put in the time capsule that will be buried that day.
The commissioners and Board Secretary Janet Simonen discussed ideas, which included a local election ballot, a cell phone, a flash drive, and fiber optic cable. The Cook County News-Herald, of course, will be providing one of its editions.
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