There is a serious movement underway to re-do Xcel Energy property valuation formulas which will affect their tax status to their home communities. That was an issue for discussion before the Becker City Council in executive session Wednesday evening.

 

City Administrator Greg Pruszinski and the council met for 20 minutes, outlining the details on a Minnesota Legislature House File 1985.

 

That legislation, if approved, would combine Xcel Energy’s two tax rates into one, making it easier to compute. Xcel has for the past several years been assessed property valution for two forms - their property and for their distribution lines.

 

Pruszinski and Councilman Rick Hendrickson sat in on a 2 1/2-hour conference call last week with representatives of Flaherty/Hoods, PA., the lobbying firm for their seven-city Coalition of Utility Cities.

 

The coalition consists of seven host cities to power generating plants in the state, including Monticello, Red Wing, Cannon Falls, Hoyt Lakes, Cohasset and Oak Park Heights.

 

“We want to explore the merits of this (legislation),” said Pruszinski. “It looks like it’s beneficial to Becker.”

 

Hendrickson agreed: “The scenario is the best for Becker,” he said. “And the legislature is only interested in this if the cities (of the coalition) and the utilities are on board with this.”  

 

They noted the utilities companies are in agreement with a single-valuation on which to base taxes, for it would make their accounting simpler.

 

And an affect of a single tax formula would lessen the annual volatility in tax income to host communities.

 

Pruszinski distributed a flyer to the council which could provoke additional questions regarding the makeup of the agreement.

 

The information also needs to be shared with the Minnesota Dept. of Revenue and Becker Public Schools.

 

Dan Weber, community development director with Sherburne County, was also in on the conference call. A single-formula tax proposal for Xcel, to include its plants in Monticello and Red Wing, would have an affect on their home counties.

 

The Becker councilmembers were asked to contribute further questions and comment by Thursday.

 

Public Works Director Dan Pesola met with the council - also in executive session - to solicit discussion on a new policy regarding residential and commercial water line freezeups, which could occur this season due to cold temperatures and little snow cover.

 

He said conditions are similar to the 2013-14 winter when freezeups did occur.

 

What to do about freezeups before they occur was his mission.

 

They will have another discussion on this in the near future, but Pesola was inquiring about cost liability in the event of freezeups.

 

He’s asking residents to monitor the temperature of the water coming into their home or business by turning on the cold water faucet and allowing the water to run for a minute or so before checking its temperature. The water temperature should be around 45 degrees. If it is less, the owners should run the cold water at the thickness of a pencil.

 

If lines do freeze, owners should continue to run the water, because it will take several weeks before ground frost leaves.

 

The city has thawed lines before, but will only do so in emergency situations. Residents are responsible for line thawing if it occurs between their building and the water shutoff near the street. Pesola provided a list of local contractors who can help with line thawing.

 

Residents with questions can contact the energency number - 1-320-250-4526.

 

In their 45-minute meeting prior to the executive session, the council attended to a number of items. They:

 

• Approved the purchase of a collection basin-jet rodder from Flexible Pipe and Tool Co., at $344,903;

 

• Approved two resolutions regarding alcohol beverage licensing and regulation code updates;

 

• Met with Development Director Marie Pflipsen and approved the spending of $20,000 for the study and adoption of a new city logo and related “branding” instruments;

 

• Also apporved a new point system for tax abatements, a business assistance-subsidy program;

 

• Met with Joe Danielson and approved $150,000 in the purchase of a new front end loader and attachments for public works-streets, from TDO Equipment;

 

• Agreed to a new fee schedule for licensing and property-related fees;

 

• Approved a new workers compensation insurance policy at $90,565, up from $75,734 last year. The increase is due to increasing payroll and medical costs.