OtsegoNewsletter_Winter2011CITY OFOTSEGO
ON THE GREAT RIVER ROAD
MVHE Impacts
The impact of the new MVHE program will vary among cities but will
generally reduce the overall value of property within the City that will
cause an increase in the City’s tax rate to maintain the same services.
This is because the City’s portion of property taxes for a given year is
based on several factors:
First is market value, which is the assessor’s estimate of what the
property would be worth if sold. Second is class rate, the percent of
market value set by state law used to determine the value of the property
for calculating taxes known as its tax capacity, which is the third factor.
The City’s tax rate is determined by dividing the cumulative tax
capacity of all properties into the fourth factor, the tax levy, or the
amount of tax revenue the City needs to fund its annual budget. The
property tax for an individual property is calculated by multiplying
the City tax rate with the tax capacity of the property.
Otsego’s TAX CAPACITY
The largest reduction in tax capacity
valuations is in the residential home-
stead property classification. While
some of this is reduction is due to
declining property tax values, the
majority is the result of the new MVHE
program. Below is an example of how
a residential homestead property’s
value for tax purposes will change
under the new MVHE program:
Property Tax Capacity Valuation
2011 2012
Estimated
Market
Value
$175,600
$175,600
Market
Value
Exclusion
—
21,436
Taxable
Market
Value
$175,600
$154,164
Property Type 2011
Preliminary
2012
%
Change
Residental Homestead $7,547,244 $6,400,635 -15.19%
Commercial & Industrial 1,917,554 1,861,218 -2.94%
Non-homesteaded Property 1,251,967 1,167,033 -6.78%
Agricultural 606,587 544,344 -10.26%
Personal Property 283,499 279,502 -1.41%
Other 53,275 53,371 0.18%
Total $11,660,126 $10,306,103 -11.61%
State Budget Issues Effect Property Taxes
The State has eliminated the market value homestead credit (MVHC) program
as part of it’s efforts to address the State’s reoccurring budget issues. The
law changes enacted by the State have made budgeting for all cities
even more challenging than usual in these difficult economic times.
Previously, residential homesteaded properties valued between $76,000 and $413,800
were eligible for a State paid credit on their annual property taxes. The MVHC was $304
for residential homestead property valued at $76,000 and declined to zero when property
values reached $413,800. Under the MVHC program, qualifying property owners paid
a reduced property tax and the State was to pay the City an amount equal to the MVHC
credit. However, for the last three years the State has been giving the credit to property
owners while withholding the MVHC payments of $237,000 per year to Otsego.
The elimination of the MVHC program is forcing residents and businesses to bear the burden
of the State’s on-going budget shortfalls through higher property taxes. The State has implemented
a new Market Value Homestead Exclusion (MVHE) program that will exclude a portion of homestead
market value from taxation. The effect of ending the MVHC program and adding the MVHE program is
higher property taxes overall and a shift of the property tax burden to high value residential, commercial,
and industrial property.
NEWSLETTER – WINTER 2011
OtsegoVIEW
PUBLIC
SAFETY
29%
GENERAL
GOVERNMENT
28%
PUBLIC
WORKS
28%
DEBT SERVICE
9%
PARKS AND RECREATION
6%
Otsego
2012 Budget
The preliminary levy is based
on a budget to finance the City’s
general government operations,
public safety including police
and fire services, public works
including maintenance of streets,
trails and parks, and recreation
services. The City has certified
a preliminary tax levy of
$4,261,000 for taxes payable
in 2012. This is an increase of
approximately one percent for
the same services in 2011. This
preliminary levy can be reduced
but cannot be raised when the
City Council adopts the final tax
levy on December 12, 2011.
THE PUBLIC IS INVITED
TO PROVIDE INPUT ON
THE BUDGET MEETING
7:00PM AT CITY HALL
~Jessica Stockamp
Greetings Neighbors!Notes
from the
Mayor
Snowmobiling continues to be an enjoyable, safe winter activity in Otsego due to the efforts of the Otsego River
Riders, a local club having over 80 members with new members being added as the new season approaches.
The Otsego River Riders work together with the City and local land owners to answer questions or address
concerns related snowmobiling in the community. The Otsego River Riders also maintain 17 miles of groomed
trails within Otsego including posting all directional and warning signs. A new overland trail extending from
Odean Avenue/CSAH 37 all the way to the Waterfront commercial area at TH 101/CSAH 39 is planned to add to
the trails already available to provide needed and convenient access to gas and local restaurants.
Education about snowmobiling is also an important part of the Otsego River Riders activities. The Otsego
River Riders annually host youth safety classes at the Otsego Pubic Works Facility to teach about safe
snowmobile operation as well as provide information about local and state laws. Snowmobilers are
responsible for informing themselves about local regulations for snowmobiling including areas of Otsego
where snowmobiling is allowed. A summary of Otsego’s City Code regulating snowmobiling follows:
____________________________________________________________________________________________
• Persons under 14 years of age may ride on City streets only when accompanied by an adult. Minors age 14 years but under
18 years of age may ride on City streets with a valid snowmobile certificate in their possession.
• Snowmobiles are prohibited from riding upon public sidewalks and paved trails or within City parks or other properties.
• On City streets with curb, snowmobiles must be ridden on the street, single file in the direction of traffic as close as
practical to the curb; where no curb exists, snowmobiles may ride off of the paved surface but not more than six feet
rom the edge of the pavement.
• Snowmobiles may only be operated in the City between the hours of 8:00 a.m. to 11:00 p.m. Sunday through Thursday and between
8:00 a.m. and 1:00 a.m. on Friday and Saturday.
• The City has designated residential areas where snowmobiling upon City streets is prohibited except to go to/from your property to
a designated trail. Snowmobiles may not exceed 10 MPH within these designated residential areas. A map of the designated areas is
available on the City website or from the Otsego River Riders.
• Information statewide snowmobile trails and regulations can be found at http://www.dnr.state.mn.us/snowmobiling/index.html.
• If you have any concerns about snowmobiling in Otsego please do not hesitate to contact City Hall or Otsego River Riders
President Pat Hilden at 763.274.0229.
____________________________________________________________________________________________
The City Council greatly appreciates the efforts of the Otsego River Riders and would encourage snow-
mobilers in the community to support them. Information regarding the Otsego River Riders is available at
their website at www.otsegoriverriders.com. The City Council also appreciates that all snowmobilers in the
community be safe and respectful of their neighbors while enjoying their rides.
The Wright County Sheriff’s Office in cooperation with Wright County Environmental Health has
instituted a household pharmaceutical waste Drug Take Back Program. Residents are encouraged
to bring their unused or expired medications to the Sheriff’s Office and place them in the secure
repository. The Drug Take Back Program was established in an attempt to reduce the volume of
unused medications being flushed down the sewer systems as these compounds are increasingly
being found in our lakes, streams, and rivers. Research has shown that flushing medications can
damage the environment as the current technology at wastewater treatment facilities is unable to
remove these compounds from the wastewater or would be untreated in an on-site septic system.
If you have any further questions regarding the Drug Take Back Program, please call the Wright
County Sheriff’s Office at 763.682.1162.
WRIGHT COUNTY
DRUG
TAKE BACK
PROGRAM
The Public Works Department uses about 800 TONS OF SALT and 200 TONS OF SAND each
winter season to keep Otsego’s streets clear of snow and ice. About TWO-THIRDS OF THE SALT
SUPPLY USED IS IN NOVEMBER AND DECEMBER as drivers are again getting used to winter
conditions through the Holidays. The City’s newest plow truck, which is assigned to plow collector
streets, is equipped with tanks to PRE-TREAT THE SALT TO START THE MELTING PROCESS
QUICKER as well as allowing melting at lower temperatures. The PRE-TREATMENT PRODUCT
MADE OF A BYPRODUCT OF BEET PROCESSING (ESSENTIALLY BEET JUICE).
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Report Street
Lights Out
With the end of Daylight Savings
Time more people notice when a
street light is not working. If you
observe a street light not working,
please contact City Clerk Tami
Loff at 763.441.4414 to report it.
City staff will contact the appropriate
utility to have the street light
repaired to ensure the safety of
motorists and pedestrians.
WINTER RULES IN EFFECT
The City of Otsego has adopted several regulations as part of the City Code to
protect public safety and aid the Public Works Department in maintaining streets
during winter that residents need to be aware of, which include:
• There is no parking on any public street between 2:00 a.m. and 6:00 a.m. between November
1 and April 30. Vehicles parked on public streets during these hours are subject to immediate
ticketing and/or towing.
• There is no parking on any public street after a snowfall of 2.5 inches or more until after the
street has been plowed to its full width. Vehicles parked on public streets during a snow
emergency are subject to immediate ticketing and/or towing.
• Snow from private property may not be deposited on the traveled portion of any public
street, sidewalk or trail.
• Property owners are responsible for removal of snow, ice and other debris from concrete
sidewalks adjacent to their property within 12 hours after the snowfall has stopped.
• Property owners are responsible for clearing snow from around fire hydrants and mailboxes.
Mailboxes can be especially vulnerable to damage from snow removal operations. The City
assumes liability for mailboxes damaged during plowing only if it is determined that the plow
made direct contact with a mailbox that was properly placed in accordance with City standards.
• The City is not responsible for damage to plantings other than grass within the boulevard
portion of the yards. The boulevard is the area within the public right-of-way that is approximately
16 feet behind the curb along local urban streets (or between the curb and sidewalk), 10 feet behind
the curb for cul-de-sacs and that part of the ditch approximately 18 from the edge of pavement or
gravel of local rural streets.
Motorists are also urged to use caution during winter weather conditions and be aware of possible
City, County and MN/DoT snow plowing operations. Slow down and stay behind the snowplows.
Drivers should allow at least five car lengths between their vehicles and snowplows. The street
behind the plow will be the safest place to drive: Stay back stay alive.
EMERGENCY SIRENS
The City has installed new outdoor emergency warning sirens to increase public safety. The existing
siren near Otsego Elementary has been replaced and sirens installed at new locations at City Hall
and the West Waste Water Treatment Facility. The City located these new sirens in consideration of
coverage areas for the existing sirens and those in adjacent cities to provide coverage to almost
all of the residential areas within Otsego. The sirens are operated by Wright County and sounded in
the event of severe weather or other public emergency. There are two additional sirens in the City
operated by Xcel Energy with one located west of CSAH 19, north of 80th Street and the other at
Lilly Pond Park. Outdoor emergency warning sirens are not intended to be audible within homes or
businesses so people are encouraged to purchase a weather alert radio.
The Otsego City Code
is available for review
on the City’s website
at www.ci.otsego.mn.us.
If you have any questions
regarding the information
at left, please do not
hesitate to contact City
Hall at 763.441.4414.
Your cooperation in
following these rules
this winter season is
greatly appreciated to
ensure the safety of
Otsego residents and
motorists within the
community.
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Santa Day
Santa Claus is coming to town on Saturday,
December 10 from 10 a.m. to 1 p.m. at City Hall!
This annual event hosted by the Parks and Recreation Commission
is in its ninth year. Planned activities include children visiting with
Santa Claus, cookies and hot chocolate and horse drawn sleigh rides
for the whole family. Quality Photo will also be present to take
pictures of your children with Santa for purchase or you may
bring a camera and take your own. People attending are also
encouraged to bring food goods for donation to CAER
in the spirit of the season.
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RECYCLE YOUR
HOLIDAYS
Don’t know what to do with those
old or non-working holiday lights?
Making the switch to energy efficient
LED holiday lights? Recycle your old
lights with our unique holiday light
recycling program!
The City is participating in Recycle
Your Holidays, which is a one-of-a-
kind statewide holiday light recycling
program in Minnesota. Residents can
drop off their unwanted light strands
at Otsego City Hall starting November
15 and running through the end
of January.
This program employs over 200
individuals with developmental
disabilities at vocational centers
throughout the State of Minnesota.
Every bulb of the light strand is
dismantled by vocational center
clients and then properly recycled
in Minnesota.