What is Happening With The State Audit of Centerville?

Here is what we know today. (Re post of April 1st)

The audit was completed between November and January.
Centerville will be charged approximately $60 per hour for the investigation. We do not know how many hours will be billed.

The audit is currently under review.
Centerville will not be charged for the review process.

The review completion is done in multiple steps.
The audit of Cambridge was not released for nine months.
Link to audit Here
At this time we are waiting for a phone call from the State and have no inside information as to the approximate completion date.

Per Minnesota Statute 6.715
Data that support the conclusions of the report and that the state auditor reasonably believes will result in litigation are protected nonpublic data or confidential data on individuals, until the litigation has been completed or is no longer being actively pursued.
Link to statute Here

Whether the formal proceedings against a Centerville business is related to the audit or simply coincidence is unknown to us at this time.

CENTERSTONE TITLE LLC
Respondent created and controlled sham affiliated business arrangements; and provided other forms of kickbacks to referral partners in exchange for the referral of title insurance business.
Link to findings Here

Thank you to everyone that has supported the State audit. We will continue to do our best to keep you informed of our findings.

Council Members Moving Forward With Finance Director Replacement

While many question the necessity of hiring a new full time replacement, the council will conduct the first round of candidate interviews Saturday, May 9.

“I’m not aware of anything [concerning Meyer’s job performance] that would raise any huge red flags,” Larson told The Citizen. “If he was resourceful enough to generate a few dollars on the side in a consulting business, that’s fine, as long as it didn’t affect his job here.”
Full Story Here
Mr. Larson was the supervisor of our last finance director and as such, isn't he obligated to investigate all information available? Maybe Centerville can survive with only a part-time director or hire a consulting firm on an hourly basis.

"City Administrator Dallas Larson and Mayor Mary Capra confirmed that Meyer concurrently completed work for other cities, but Larson said none of the work Meyer did outside of Centerville presented a conflict."

Read More About Work With Other Cities Here

"Capra said Meyer was a good employee who brought in more than $3 million in grant funds for the city, and that resident inquiries into Meyer’s personal file are costing the city tax dollars because of attorney fees."
Full Story Here

What Capra does not mention is how much money Centerville must spend in matching funds for these grant dollars. She also does not state why the City is spending money for attorney fees in this matter. Why not allow the residents to view the personal file (attendance records) of a former or current City employee that is known to work with other cities?

"Larson said the blog has “nothing good to say about Centerville, ever.” (Link Above)
The City officials have always been encouraged to contact the blog regarding information they consider incorrect.

How Does Centerville Compare With Other Cities?

Comparing Property Taxes on Average Value Homes in 117 Metropolitan Communities, 2007-2008
The link shows how well our City officials have been managing your money. The nearby City of Columbus with similar population ranked 94 while Centerville remained at number 3.
Bear in mind that since the chart was created, our officials have been busy with:

Increasing Centerville taxes by 6.6%
(The highest allowable by law)
Imposing 4+ million dollar street improvement assessments.
(Still no dedicated road fund)
Chasing a downtown dream and placing bets.
(Approving hundreds of thousands in engineering fees)
Link Here
Link Here
Creating a"Fire Protection Fee" for those without City water.
(Not considered a new tax)

Read confirmation email from the City Administrator below.

Monday, January 5, 2009 9:21 AM

From:"Dallas Larson"

To: Centervilleblog@yahoo.com

Your blog states that the city water charge of $84 will apply to all residents. The charge at $80 is already on the bill of the majority of residents (all who are connected to city water) and for them only the 5% increase will apply. This fee will be new to those that are not connected
to city water, but receive benefits due to the fire insurance rating.

Dallas Larson, Administrator
City of Centerville
651-429-3232

City Council/Finance Director History Circa 2005

Click the above images to enlarge and read the approved City minutes.

Mary Capra, Tom Lee, Jeff Paar and Linda Broussard-Vickers all questioned his job performance (section two) in January 2005. A full six months before he accepted a position with Lightowler, Johnson and Associates. Today they claim there has never been a problem?

“I’m not aware of anything [concerning Meyer’s job performance] that would raise any huge red flags,” Larson told The Citizen. “If he was resourceful enough to generate a few dollars on the side in a consulting business, that’s fine, as long as it didn’t affect his job here.”
Several council members, including Tom Lee and Mayor Mary Capra, say they were aware that Meyer had a consulting business, a fact that Lee says was disclosed at the time of Meyer’s interview in 2004.
The Citizen


For a little history (section three) on our City Administrator
CLICK HERE

The Citizen 4/15/2009

Does Centerville Need A Full-Time Finance Director?
By Deb Barnes

The Centerville City Council is actively engaged in a search to replace former city finance director John Meyer, who retired last January for health reasons. But some Centerville citizens question whether the city really needs a full-time finance director.
Since Meyer’s departure, the city has relied on intermittent assistance from Abdo, Eick & Meyers, the city’s auditors, to keep its financial wheels turning.
Centerville is counting on cost savings realized by Meyer’s departure to help whittle its budget in 2009; even after accounting for the costs of temporary help until a new finance director is hired, it appears the city will be $22,000 ahead. But although the city may have been paying for a full-time finance director, Centerville resident Stephanie Blomseth wonders if it had one.

Records show that while Meyer was employed by the city of Centerville he actively pursued other work, both as a consultant to Minnesota municipalities and as a part-time employee of an engineering consulting firm in North Dakota.
Lightowler Johnson Associates in Fargo, N.D. lists Meyer as an employee on the company’s Web site. Meyer has worked up to 35 hours per week as Project Developer/ Finance Advisor for the architectural/engineering firm since July 1, 2005, sources say.

“I’m not aware of anything [concerning Meyer’s job performance] that would raise any huge red flags,” Larson told The Citizen. “If he was resourceful enough to generate a few dollars on the side in a consulting business, that’s fine, as long as it didn’t affect his job here.”
Several council members, including Tom Lee and Mayor Mary Capra, say they were aware that Meyer had a consulting business, a fact that Lee says was disclosed at the time of Meyer’s interview in 2004. But how much outside consulting he did, or whether Meyer arrived at City Hall “refreshed and ready for work” as the Personnel Policy requires, has apparently never been discussed.
Meyer did not return a phone call in time for this story.

To be fair, the above is only part of a much lengthier, detailed story. Of course, we chose to shorten it up for the blog. To read the entire article
Link HERE

2009 Street Improvement

Bid Opening April 14, 2009 - 10:00 a.m.
Apparent Low Bidder to Apparent High Bidder

Rum River Contracting $1,237,968.09
Forest Lake Contracting $1,337,737.25
Knife River Corporation $1,358,740.30
Dresel Contracting, Inc. $1,368,097.75
Tower Asphalt, Inc. $1,404,004.00
T.A. Schifsky & Sons, Inc. $1,579,013.99

The new bid amounts are apparently much lower than expected. Will the savings (approximately $300,000) be passed on to our assessed residents?

Centerville Property Values Drop 10.3 Percent Over Year

Taxes are payable in 2010
by Loretta Harding
4/14/2009
CENTERVILLE — The Centerville City Council heard appeals to the payable 2010 property tax assessments prior to the April 8 meeting at City Hall.

As required by state law, at least three council members became board certified to address property owners who take issue with valuation and classification of their property at the annual Board of Assessment Appeal and Equalization Hearing. City Assessor Ken Tolzmann attended the meeting to answer questions, and Diana Stellmach represented Anoka County, as required by state law.

Assessors in Minnesota use real estate sales in a given community between October of 2007 and September of 2008 to determine current market value of homesteaded residential property. Qualified sales for purposes of market valuation don't include bank sales, foreclosures or sales to relatives.
Full Story Here

Do City Officials Care When the Employment Policy is Violated?

Apparently they all have turned a blind eye to it here in Centerville! Our last finance director John Meyer, split town (citing health issues) in the midst of a State audit and left us high and dry on the 2009 Centerville budget. It has come to our attention that the Centerville City officials (including Mayor Mary Capra) knew our former finance director was working with other cities at the same time he was employed with the City of Centerville. They also knew he owned his own business upon choosing to hire him in 2005. Mr. Meyer did all this with their knowledge even though it most likely was a violation of Centerville's employment policy.
See actual policy documentation above.

To learn more about his activities while working for us,
CLICK HERE.

Maybe it's time to question what is going on behind the walls of City Hall during working hours and the judgment of our elected officials. To some, this appears to be further evidence of selective enforcement. To others this is a violation of public trust and reckless use of taxpayer dollars.

Suggestions Being Accepted for Naming the New Road

The City Council is looking for resident suggestions for naming the "Backage Road" located 20th Avenue and 21st Avenue. We will be accepting names via email at tbender@centervillemn.com until May 31, 2009.

A Finance Director Is Needed... Why?

Could the positions of City Administrator and Finance Director be combined? If the Finance Director has to "step up" to fulfill the role of Administrator in his absence, why is our Administrator unable to fulfill the role of the "subordinate" Finance Director position?
Finance Director Employee Position Description Here
What exactly does our City Administrator do for the $90K+ salary (with full benefits) he receives?
Incidentally, the Finance Director position pays another 80K+ with full benefits.

In the interest of saving money and covering our current $120,000 budget shortfall, is this a bad idea for a city of our size?

What About That State Audit?

We have been hearing from residents questioning the status of the State audit. Here is what we know today.

The audit was completed between November and January.
Centerville will be charged approximately $60 per hour for the investigation. We do not know how many hours will be billed.

The audit is currently under review.
Centerville will not be charged for the review process.

The review completion is done in multiple steps.
The audit of Cambridge was not released for nine months.
Link to audit Here
At this time we are waiting for a phone call from the State and have no inside information as to the approximate completion date.

Per Minnesota Statute 6.715
Data that support the conclusions of the report and that the state auditor reasonably believes will result in litigation are protected nonpublic data or confidential data on individuals, until the litigation has been completed or is no longer being actively pursued.
Link to statute Here

Whether the formal proceedings against a Centerville business is related to the audit or simply coincidence is unknown to us at this time.

CENTERSTONE TITLE LLC
Respondent created and controlled sham affiliated business arrangements; and provided other forms of kickbacks to referral partners in exchange for the referral of title insurance business.
Link to findings Here

Thank you to everyone that has supported the State audit. We will continue to do our best to keep you informed of our findings.
Have a great weekend!

Centerville Anticipates Up To $120,000 In Budget Cuts

No Word Yet On State Audit Costs
By Deb Barnes

CENTERVILLE – Although the City of Centerville isn’t quite sure how big the 2009 budget funding gap is going to be, one council work session on the topic has already been held. City Administrator Dallas Larson is getting the city’s ducks in a row to meet the shortfall, which he says may be as high as $120,000, or almost 5 percent of the city budget, set at $2,604,320 last December. That number, however, does not include charges for the state audit report, which is still under review by the Office of the State Auditor. Since that time, it has become clear that some expected revenues will not be headed for the city’s coffers aft er all. City officials anticipate that $63,500 in 2009 Market Value Homestead Credit revenues will not be forthcoming from the state, and staff is taking steps to deal with that expected loss.

“We need to cut a minimum of $80,000, perhaps as high as $120,000 [from the budget],” Larson said. Those budget cuts will be accomplished in a number of ways. The city will see at least a net $22,000 in savings because of the vacancy in the finance director position following John Meyer’s retirement in January.

The Citizen
Full Story Here

Twin Cities home prices take a 20% plunge

In the Twin Cities, home prices fell 20 percent in January from a year earlier, the largest annual decline on record.
Housing continues to grope for a bottom in the Twin Cities, new numbers out Tuesday show. Local home prices in January took their steepest annual dive yet, according to the latest Standard and Poor's Case-Shiller home price index, while the number of residential construction permits issued locally in March fell to one of the lowest monthly totals on record.
The upshot: Housing, the economic sector that triggered the nation's worst recession in generations, remains ravaged by foreclosure-related activity and still has a backlog of inventory. Buyers benefit, but the slide in values is squeezing household balance sheets and wallets. In the Twin Cities, home prices fell 20 percent in January from a year earlier, according to the Case-Shiller index of home prices in 20 major metropolitian areas. That's the area's largest yearly drop on record, though the index declined less in January than in December, possibly indicating that the bottom is nearby.
The association has been tracking the two local markets separately to illustrate the different dynamics behind the Twin Cities overall median sale price, which now stands at a very low $150,000.

By JENNIFER BJORHUS,
Star Tribune Full Story Here
March 31, 2009

In a Fix: Fill Potholes, Empty Out Wallets

For cash-strapped Minnesota residents, street upgrades are a low priority. In metro-area suburbs, they're letting local officials know it.
When Michelle DeMarre learned that Maplewood was planning to slap a $7,000 tax assessment on her home to pay for new street and storm sewers, she was incredulous.
"During these economic times, they're asking for $7,000!" DeMarre exclaimed. "There were people at these public meetings [on the street proposal] who didn't even have a job.
We told the city, 'Now is not the time.'" It's a message being heard in suburbs across the metro area. With bulldozers revving up for spring construction season, many suburbs are finding loud opposition to local construction projects that in better days were OK'd by area homeowners with little more than a grumble.
Homeowners boast some success.
Last fall, Centerville chopped in half the $7 million price tag for a street improvement after bitter community complaints.
In January, Maplewood canceled its construction plans for DeMarre's neighborhood.
Last month, Bloomington sliced 1 mile out of its 5-mile road construction plan for 2009.
Some cities, however, worry that delaying repairs could end up costing more in the future. While residents have opposed these tax assessments in the past, it's been particularly swift and vocal this year, said Chuck Ahl, public works director for Maplewood.
Plymouth homeowners, for example, began organizing against a street improvements plan this winter long before a public hearing was even scheduled, said Lori Ahrens, city manager. "I think you'll see an overall downturn in normal public works projects," said Jim Miller, executive director of the Minnesota League of Cities.
In the current market, "it may be more difficult to demonstrate that property values will rise in relation to the amount of the assessment, which is required by law. And people may not have the ability to pay."
Star Tribune Link

Keep standing tall Centerville residents! Together we have a voice and together it will continue to be heard!!

Two Centerville Pond Projects Postponed

The Centerville City Council learned at its March 11 meeting that two of the city's pond projects have encountered obstacles.
The 2009 Pond Dredging Project could not be completed before warm weather and weight restrictions imposed by the Minnesota Department of Transportation set in. City Engineer Mark Statz said the project would be abandoned until January of 2010 or earlier, depending on when the ground freezes again.One pond project was originally meant to drain water from downtown redevelopment into land owned by St. Genevieve Catholic Church. According to City Administrator Dallas Larson, it was suggested that the proposed pond be relocated to the southwest corner of Laurie LaMotte Memorial Park due to complications at St. Genevieve.
Now there are complications at the park.
The city's Parks and Recreation Committee said the southwest corner chosen for the pond is the only area in the park suitable for a soccer field, and that the Soccer Association has already invested money in that field.
The parks committee recommended that the pond be located in the southeast corner of the park for safety reasons, but the city preferred the larger storage capacity of the southwest corner.
On March 4, the Parks and Recreation Committee unanimously opposed the pond being located in the southwest corner of the park.
If the city is unable to secure the southwest corner, Larson and Statz said they’ll look at other alternatives and keep the southeast corner in reserve, in case they don't find another site for the drainage pond.
Quad Press

Link Here to view Centerville LGA history.

Link to 3/3/2009 story Here

Bill could clear path to local tax hikes

Annual 'truth in taxation' hearings would be optional
Associated Press

Legislation advancing in the Minnesota Senate would let cities and counties raise property tax levies without state interference, published notices in newspapers or annual hearings where taxpayers vent their frustrations. Senate Taxes Committee Chairman Tom Bakk said extra state aid was supposed to help local governments cope with levy limits, but the money has dried up with the meltdown. He said Democrats held out for the aid as part of last year's budget deal with Gov. Tim Pawlenty.
Bakk's bill would nix "truth in taxation" hearings late in the year — annual meetings where taxing authorities present their budgets and taxpayers react and ask questions. Bakk said the meetings are costly but don't always draw crowds. He suggested that governments could let the public weigh in at their regular meetings instead.
The bill's next stop is the Senate Rules and Administration Committee.

The city administrator cautioned to be careful what is said on this blog about the preliminary 2009 budget.

We choose to say nothing, yet. The preliminary budget speaks for itself. Click image for larger print.

Phasing Out of Phase One?

Click on map to bring up larger image.
Last evening the Beard Group addressed phase one. The sections include B, C, D and I.
Ron Mehl of the Beard Group made a presentation to council suggesting increased demand for affordable rental housing. Section D appeared to be the only area being seriously considered at this time.

B 14,000 SF Rental/Office
(This is a hard sell for an anchor tenant. Capra interested in bringing Trader Joe's to town).

C. 48 Multi Family Units/15,000 SF Rental/Office
(Lenders are not financing at this time without 75% pre-sold).

D. 41 Multi Family Units (Affordable)
(Increased funds and demand for this now but purchase agreement must be renewed with Centerville).

I. 40 For Sale Town homes
(There's been a 40% decrease since 2007 and National builders have no interest at any price).

Ron Mehl concluded the meeting by stating to Council, "If you would like to talk with other developers at this time, we are fine with that. We don't want to hold the City up." He also mentioned that he was not interested in "entering a suicide pact."

To view the entire Downtown development plan as outlined last year
Click Here

Process Begins for New Centerville Trails

At its Feb. 25 meeting, the Centerville City Council started the process of making sure the Transportation Enhancement Trail Grant project becomes reality.
“We want to make sure we are poised to take advantage of that money if it comes available to us,” said City (Bonestroo) Engineer Mark Statz. The Minnesota Department of Transportation has said that Centerville is a viable candidate to receive funding, he added.

The first order of business for the council was to approve consideration of a plan and fee proposal from Bonestroo, a St. Paul-based engineering firm, for the Transportation Enhancement Trail Grant project. For its designs and permit submittal work, Bonestroo will receive $128,000 in fees.
The next task for the city is to make offers to purchase right of ways from property owners along the proposed trail.
In other actions, the council:
*Unanimously awarded the contract for the 2009 Pond Dredging Project to the lowest qualified bidder, Dresel Contracting Inc., for $73,525.
*Unanimously approved consideration of Bonestroo's scope and fee proposal of $3,000 for construction services on the 2009 Pond Dredging Project. Work will begin immediately to take advantage of cold temperatures and last approximately three weeks, Statz said.
*Unanimously authorized the city administrator to enter into a contract for soil borings and engineering reports, not to exceed $10,000, for a pedestrian bridge.
*Unanimously authorized the city attorney to begin litigation for delinquent assessment payments against Fairview Street (Royal Oaks Realty).
*Approved special assessment agreements for the 2009 Street Improvement Project.
Quad Press
Full Story Here