1% Local Option Sales Tax Update

Just this morning, the County Board took the recommendation of the 1% Local Option Sales Tax Steering Committee to include (7) community projects in the proposed 1% Sales Tax:

• Community Center Outdoor Recreation Area in Grand Marais
• Community Center (with Aquatic Center) in Grand Marais
• Birch Grove Recreation Complex
• County-wide Broad Band
• Public Library Addition
• District Energy (Biomass) Facility in Grand Marais
• Improvements to Superior National Golf Course

You've likely heard a lot about the 1% Local Option Sales Tax opportunity for Cook County. You may be unclear about what it is, what's actually being proposed in each of the (7) projects and how it will affect you. That's understandable, there is a massive amount of information to absorb and much of it is complex. But, it's important to understand this proposed tax in order to make an informed decision when you vote in the November 2009 Referendum.

Efforts are currently underway to further educate the public about the (7) projects, as well as the Sales Tax itself. Watch for information in the coming weeks. Take the necessary time to understand the benefits and the issues surrounding the proposed Sales Tax; it's important.

Good News for the Pool

Mayor Hakes, supported by Councilors Kennedy and Sivertson, Mike Roth, Kim Dunsmoor and Dave Tersteeg, came before the County Board this morning to ask the County Commissioners to re-affirm their March 2009 committment to partner with the City in financing the operation and maintenance of the Grand Marais Pool. (See Mayor Minutes March 4, 2009).

After a brief discussion, the County Board agreed to share 1/3 of the Pool's Operating Deficit for the Year 2009. They also agreed to share 1/3 of the Year 2010 Pool Operating Deficit up to $75,000. Both the City Council and the County Board recognize the Pool as an important community asset.

Budget Worksession and City Council Meeting

Mayor Hakes and City Councilors Tim Kennedy, Bill Lenz, and Jan Sivertson were in attendance at today's City Budget and City Council meetings. Councilor Kay Costello was absent. Also in attendance were Mike Roth and Kim Dunsmoor. Together they welcomed newly hired City Attorney Christopher Hood of Flaherty & Hood who participated in the regular City Council Meeting via telecommunication.

Budget Worksession

City Department heads are currently preparing their 2010 budget requests; departments supported by the General Levy will will appear before the Council to present their budgets at the end of August. The preliminary levy will be set in early September.

Significant considerations to the budget include wages, Local Government Aid cuts, the potential impact of State of Minnesota budget deficits (~$7 Billion), capital planning, and funding for the advancement of 2009/2010 priorities including a new maintenance facility, marina/safe harbor and Rec Park Master Planning.

Council also spent a significant time discussing the Pool finances; the Pool lost approximately $219,000 in 2008 with a similar loss anticipated annually. This loss is supported by the City with Rec Park profits and levy dollars. Last April, County Board representatives Bob Fenwick and Bruce Martinson expressed willingness to cost-share the Pool losses with the City and agreed to ask the County Board to increase their participation in the pool funding. The City has submitted a letter requesting additional funding as part of the County's 2010 budget process.

City Council Meeting

Open Forum
Nobody from the public opted to address the Council at today's meeting.

Planning Commission Report
The Cook County Tennis Association was granted a variance from the side yard setback to construct a wall for a tennis practice court near the existing tennis courts. The Planning Commission supported this request 4-0. The City Council approved this variance 4-0.

David Mills and Beth Ferry were granted a variance from the front yard setback to construct a deck and (3) dormers on their building in the R-1 district. The Planning Commission supported this request 4-0. The City Council approved this variance 4-0.

Tim Kennedy informed the Council that the Planning Commission will be reviewing Roof Signs and making a recommendation to the Council.

IRR Community Business Partnership Grant
Council voted to accept the Community Business Partnership grant from Iron Resources Board for $25,000. Combined with a $12,500 (2 for 1) match from the storefront loan program, there is a total of $37,500 to create a grant/loan program for business rehabilitation projects.

Lake Superior Coastal Program Grant for North House Folk School
Contracts and paperwork were received by the City for a previously awarded project from the MN DNR's Lake Superior Coastal Program. This $90K award will be used at North House Folk School to make improvements to the outdoor common space including planting trees & shrubs and replacing old asphalt with pervious surfaces. The work will also include relocation of parking, managing storm water runoff and improving the driveway entrance. The project is being matched with $151K of North House funds for a total of $241,300 to do this work.

Council & Staff Reports

Tim Kennedy updated the Council on several issues.

1% Sales Tax--The County Board has scheduled a Public Meeting on Monday August 24 at 7 PM to give the Public a very brief overview of the projects currently under consideration for funding through the 1% Sales Tax. The City Council unanimously supports the inclusion of a Community Center--including a swimming pool--on the referendum ballot. The Council would like to see the cost of the Community Center reduced to approximately $6M, assuming development of a sound business plan.

Biomass District Heating Project --The Biomass Project Working Group meets weekly and is making its way through the many issues surrounding this project.

A long-term affordable and reliable supply of biomass is critical to success. Patty Johnson is scheduling a meeting with potential suppliers of biomass to begin addressing this need. Seeking a commitment from the Superior National Forest (USDA), Fish and Wildlife (USDI), and the MN DNR that biomass will be available for life of the facility was also discussed. The Forest Service is also conducting a technical review of the technical aspects of the proposed project. Buck Benson is working to identify major commercial end users for the heat produced from the project; Mike Roth will talk with SMMPA. Ehlers & Associates--the City's Bond Counsel--is scheduled to meet with the City Council on August 28 at 1:00 PM to discuss the feasibility of selling bonds to support the proposed biomass facility. Ways to raise public awareness and understanding about the project were also discussed.

County-wide Broad Band Service--The County is pursuing federal stimulus funds, as well as 1% funding for County-wide broad band services. The total project cost is estimated to be $51M with $32M funded through a federal grant, $9M requested to be funded with 1% sales tax monies, and $10M funded through bonding.

Sue Hakes reported that she followed up with DNR personnel (Stan Linnell, Les Ollila, Larry Killien, Cheryl Erickson) by thanking them for their participation in the July Meeting in Grand Marais. Killien updated Hakes on the progress being made on the Joint Powers Agreement to be drafted by the DNR; other priorities have taken precedence, but the draft document is anticipated to be completed soon. Hakes will also explore the status of the Water Resources Development Act as a possible funding source with Jackie Morris of Congressman Oberstar's office.

Mark Your Calendars
Mon Aug 24 7:00 PM 1% Sales Tax Public Meeting at Courthouse
Wed Aug 26 4:30 PM City Council Meeting
Fri Aug 28 Morning Time TBD Budget Meetings w/Department Heads
Fri August 28 1:00 PM Ehlers & Associates Bond Counsel Meeting
Wed Sept 9 3:30 PM Worksession Topic TBD
Wed Sept 9 4:30 PM City Council Meeting
Wed Sept 30 4:40 PM City Council Meeting