Wednesday, September 25, 2013

County Board Notes-Sept. 24, 2013

A part of the OACCT's Public Policy efforts for 2013 is for volunteers from the Public Policy committee attend both City and County meetings and report back on items that are of interest/concern to business.

The County Commissioners reviewed the Ag Society's lease, barn partnership request and loan contracts. Some small modifications need to be made to article five, but the contracts were expected to pass at the 7 PM meeting that night.

Help wanted: Throw your hat in ring for 2014 elections

By David C. Olson

The Minnesota Chamber of Commerce is recruiting candidates now to seek a legislative seat in the November 2014 elections. Please step forward, and we’ll guide and support you through the election process. Our pitch is sincere and straightforward. It’s more important than ever that we send men and women, Democrats and Republicans, to the Capitol who understand what it takes to run a business in today’s dynamic economy.

Why the urgency? Witness the legacy of the 2013 Legislature. The session kicked off with a common theme of jobs. Yet the gavel closed one of the most bruising and challenging sessions for Minnesota employers and their employees. We ask you to join the Minnesota Chamber and our statewide network of local chambers to place a priority on electing pro-business individuals to the Minnesota House in 2014. We’re working on many fronts to build relationships with existing legislators as well as to identify pro-business candidates.

Here are a few ways you can help.
Offer personal tours of your business: Think about leaders in your community who understand what it’s like to operate a business, and encourage them to run for the Legislature. Invite candidates and legislators to your facility, whether you are a large manufacturer or have three employees. Seeing your business and your employees in action is a great way to educate policy-makers on the issues you face and your value to your community and Minnesota.

Communicate with your workers: Communicate with employees about the key issues that face your company and their paychecks. Do what works best for you, whether it’s including information in newsletters or conducting an information session over lunch hour. Then encourage and allow individuals to run for office if you can make it work for your businesses.

Support pro-business candidates: Seeking elective office can be a daunting task, especially for political newcomers. You can support candidate efforts in a variety of ways – from knocking on doors or writing a letter to the local newspaper to introducing them to other key business leaders or writing a check to their campaigns.

The Minnesota Chamber has a skilled team that works diligently at managing the risks that legislative decisions pose to you. Our ultimate success, however, depends on the individuals who cast the “yes” and “no” votes. Our work for the 2014 elections begins with targeting individuals who can bring their business acumen to St. Paul.

There’s no better place to identify candidates than within our working ranks. While we acknowledge the challenge for employers and employees alike with the time demands of today’s Legislature, we must make electing pro-business candidates a higher priority. The results of the 2013 session speak for themselves. Minnesota cannot afford more sessions like the one we just had.

David Olson is president of the Minnesota Chamber of Commerce – www.mnchamber.com.

OACCT Board of Directors Endorse School's Operating Levy

The OACCT Board of Directors is supporting the passage of the School District’s operating levy this fall.

A recent OACCT member survey, initiated by the OACCT Public Policy committee (chaired by Dr. Mike Peterson-McGregor Chiropractic), indicated support of Owatonna schools and support of the passage of the operating levy.

Reasoning behind this support stems from a great need for high quality preK-12 education in our community, focused on developing our future workforce.  Also, quality schools play into economic development and business growth of the area.

Additional rationale for this support was the fact that the additional $1.8 million requested will be used for financial stability and reaching learning and academic goals. If approved, the levy will be renewed for an additional seven years.  An additional reason for support includes the current Owatonna Public Schools operating levy of $3.9 million will expire in 2016 and hasn't been adjusted for inflation and is losing $1 million per year in purchasing power.

•Financial Status:
--The district’s current underlying rating, as issued by Moody’s Investors in April 2013 is Aa3 and is Moody’s upper 90th percentile of all school districts in MN.
--In the fall of 2012, the district refunded its existing debt of $8,690,000.  By refunding this debt at a lower interest rate local property owners will experience a savings of  $568,274 over the next four years.  The expense related to interest payments during this same period will be $237,975. If the district’s credit rating decreased by one notch, expense related to interest would be an additional $32,000.  A decrease of two notches in the credit rating would increase interest cost by $70,000.
--The state legislature has an additional $400,000 of funds to award the Owatonna Public School District if the levy passes or will be given to another district if the levy fails

• The Cost of Unfunded Mandates:
--The federal dollars come into the district in the form of Title VI – B.  Depending on the size of the district, and the year, these federal dollars could account for up to 50%  of the district’s total for all traditional federal aids and grants.  For a district like Owatonna, these numbers would be approximately $1.0 million and $3.0 million respectively.
--Around 1980 when IDEA became law, the federal government indicated it would fund 40% of all the costs related to the implementation of IDEA.  Today, that support is  actually about 19 percent.

• In 2004, the total levy (including bonded debt, operating levy, community ed, etc.) the board authorized that year was $7.536 million. The total levy the School Board will preliminarily authorize on will be $7.529 million--less than 9 years ago.

“The upcoming school levy is important to our school district. The cost of compliance with the unfunded and underfunded mandates from both the state and the federal governments create a tremendous hardship on our district. Combine that with the ever-increasing importance that quality public education plays in economic development and this becomes an issue we cannot afford to ignore.” Bill Owens, United Prairie Bank/OACCT Public Policy Committee

Wednesday, September 18, 2013

County Board Notes-Sept. 17, 2013

A part of the OACCT's Public Policy efforts for 2013 is for volunteers from the Public Policy committee attend both City and County meetings and report back on items that are of interest/concern to business.

Council reviewed and approved multiple actions and resolutions, including: licenses and permits for an on-sale with Sunday liquor license application for Agave Azul restaurant, 369 18th St. SE; move forward with applying for the Legacy Grant application for asphalt paving of the trail from North St. to 26th ST.; a 50/50 cost split with homeowner for a retaining wall replacement at 304 Lemond Rd; awarded bids for the 2013 Sanitary Sewer Lining project; set a date for the public hearing for utility liens; declared cost and order prep of 2013 mowing of weeds, grasses and other harmful vegetation and public hearing date of topic at October 15th council meeting.

City staff also responded to public comment concerns of the Charter cable contract and little movement with getting competitive bids for service (current contract has expired; in negotiations with Jaguar Communications and an October franchise meeting has been set). 

Meeting adjourned at 8 PM. 

Tuesday, September 17, 2013

School Operating Levy Survey Results

Recently the OACCT sent out a survey to the membership regarding the Owatonna School District's upcoming fall operating levy.  Below is a link to a summary of the results; an 18% response rate was garnered. The OACCT Public Policy committee will be reviewing the responses and discussing best approaches with this topic.

http://www.owatonna.org/pdf/2013 School Operating Levy Survey Memo.pdf

Here is link the the Owatonna School Districts Fact sheet: http://www.owatonna.org/pdf/DistrictLevy13.pdf

Monday, September 16, 2013

Congressman Walz in Owatonna-Hwy 14 needs to be in MnDOT 20 Year Plan

Owatonna Mayor Tom Kuntz describes the importance of Highway 14
being in MnDOT's 20 year plan. Federal dollars
will be virtually non-existent if the project's not included in the plan.
The recent announcement that TIGER grant dollars will not
be used for this project is a glaring example of how, federally,
the Congressman's hands are tied if the state won't support the
highway project by placing it in the 20 year plan.
 Congressman Walz stopped in Owatonna as a part of a three-community press conference centering around the importance of including Highway 14 in MnDOT's 20-Year Plan.

Lack of the highway in the 20 year plan limits the ability of Congressman Walz to direct federal resources toward Highway 14, which is frustrating when it comes to competing for future funds.

Let Commissioner Zelle with MnDOT and Governor Dayton know how important it is to get Highway 14 put in the 20 year plan!
OACCT President/CEO Jennifer Libby describes how
businesses are effected by the incomplete Highway 14; the
unfinished road creates economic impact concerns as well
as safety issues.

Wednesday, September 11, 2013

County Board Notes-Sept. 10, 2013

A part of the OACCT's Public Policy efforts for 2013 is for volunteers from the Public Policy committee attend both City and County meetings and report back on items that are of interest/concern to business.

County Commissioners reviewed CSAH 34 (26th St.) & Landmark Drive access agreement. The developer's engineer is proposing a 3/4 access at this intersection after reviewing the Gap Analysis Study. Three scenarios were presented to accomplish this.  Commissioners seemed concerned that the south side (not currently in development) would encounter the same situation once efforts were made to develop and are concerned with having to address this same situation in a few years. The County Engineer and Commissioners will review.

County staff reviewed the preliminary levy amount of 5.01% (can go down once set, but can't be raised) and an overall 8.56% total budget increase for 2014. Commissioners learned of budget details and were to vote at the 7 PM meeting on the preliminary levy amount (expected to be less than the 5.01%).

Thursday, September 5, 2013

Chamber Applauds City's 0% Levy Efforts

A recent letter of support of a 0% levy was shared with City Officials. OACCT President Jennifer Libby stated, “We applaud the fiscally conservative suggestion that you have taken in looking at this,” Libby said. “As the voice of over 580 members, we understand the rigor it takes to come forward with this kind of recommendation and the decisions that have to be made to be effective going forward without compromising the infrastructure, but we want to make sure that you hear our support.”

August 16, 2013

Dear City Council Member:

As an active participant of the City budget process over the last several years, the Owatonna Area Chamber of Commerce & Tourism (OACCT), representing more than 580 businesses, is pleased that the City target levy amount is set to remain at 0% increase from 2013 to 2014.  We applaud your fiscally conservative choice with tax payer contributions as you realize a 3.4% increase in LGA funding in 2014.  We value your partnership in representing a fiscally aware and conscious perspective to our community.

The OACCT would also like to commend your results in reducing personnel costs from 72% of the budget in 2008 to the projected 68% in 2014.  The business community can appreciate the actions that have been put in place that yield budget reductions results like these such as attention to detail, careful planning, living with the budget’s means and creating efficiencies.    We will be informing our membership of these disciplined choices.

The goal of the Chamber has been and continues to be an engaged voice in the budgeting process of the City.  We believe that transparency, efficiency and broad vision are key components of the budget process and the business community needs to share that responsibility for improving Owatonna. We encourage your utilization of the “central garage” concept, continuing to streamline processes and budgeting with less dependency on the volatility of government dollars like LGA.

If our organization can ever be of assistance, please do not hesitate to contact us.

Wednesday, September 4, 2013

City Council Notes-September 3, 2013

A part of the OACCT's Public Policy efforts for 2013 is for volunteers from the Public Policy committee attend both City and County meetings and report back on items that are of interest/concern to business.

-New 3.2% Liquor license for Aldi Foods

-On Sale liquor license for the new Italian Restaurant, “Andiamo”

-Airport Land Lease with Airport and Walser Automotive, to lease approximately   0.4 acres for auto display on airport property at a cost of approximately $4427.00 per year.

-Approve work order for Master Plan at airport for total cost up to $187,400.00 of which the City of Owatonna would pay 10% of cost.

-Agreement with ISD761 for Community Service officers in School

-Final Plat of Pillsbury First Addition

-Proposed Levy for 2014 Budget, Levy Amount 9,697,265 for City Levy, and 120,000 for HRA Levy.  Total City Budget of $23,872,821 proposed for 2014.  The final Budget decision will be made in December.

-Second Reading to rezone Pillsbury property from R-3 single and two family residential to PUD, Planned Unit Development.

-Owatonna Arts Center addition, reject bids and return bond monies to bidders, because bids exceeded funds available.

First Council Meeting in November , meeting date has been changed.

-Jennifer Libby, on behalf of Owatonna Chamber spoke during Public Comments section of meeting, expressing support of Chamber for a zero percent increase in the Levy for 2014 budget.


-Meeting Adjourned 7:40 pm

City Council Notes-August 20, 2013

A part of the OACCT's Public Policy efforts for 2013 is for volunteers from the Public Policy committee attend both City and County meetings and report back on items that are of interest/concern to business.

-Mayoral Proclamation for Owatonna Senior Center Month for September and Sept 19, 2013 as Owatonna Senior Center Day in honor of the 25th anniversary of SeniorPlace.

-Public hearing and resolution passed on receiving $400k grant on Viracon expansion project for equipment

-consent agenda passed with no discussion

-rezoning approved for Pillsbury College development.  Council expressed concern about reading about this first in the newspaper.  Public hearing planned to consider TIF for this project.

-Sidewalk project between Hoffman and Frontage rd rejected since lowest bid came in significantly higher than engineer's estimates.  Project to be re-bid in the Spring of 2014.