Miscalculation made in TIF district taxes
Published 12:00 am Friday, July 11, 2003
An unidentified Austin city staffer informed Donna Welsh, Mower County finance director, that a mistake had been made, resulting in a miscalculation of a Tax Increment Financing District taxes.
The reason: the properties were not placed on the tax rolls. The $3,000 amount is for two buildings in the TIF district.
Welsh came to the Mower County Board of Commissioners Tuesday to correct the mistake.
The district in question is No. 11 or the property off 18th Avenue NW.
"I never voted for that TIF district when I was on the council," said Dick Lang, the former 3rd Ward Austin City Council member and now the 4th District county commissioner.
Lang was referring to the area now occupied by Cooperative Response Center, Inc. and Motor Supply Company.
According to Welsh, the city of Austin did not receive a $3,000 tax increment payment. How much the other taxing entities, such as the Austin Independent School District, received was not revealed.
However, the city wants the $3,000 now, while the other taxing entities will have their share of the settlement made in the form of an adjustment to their taxes next year. It will probably be deducted from any special assessments owed.
"Do we have the necessary checks and balances to prevent this from happening in the future?" asked Garry Ellingson, 5th District county commissioner and chairman of the board.
Welsh said, "Yes, we do" and described a check-list that will prevent similar miscalculations from occurring.
The miscalculation was made before Welsh was hired to be the county's finance director.
The area is in Richard P. Cummings' 1st district and the county commissioner made the motion to pay the city of Austin the $3,000 and made the other adjustments necessary to reflect the tax increment payments. Lang seconded it and all five commissioners voted "Aye."
In other action, the county commissioners:
-- Approved fees for licensing child care providers who care for up to 14 children. The new fees go into effect Sept. 1 and were authorized by the Minnesota Legislature. The renewal fee will be $150 for two years and the new license fee will be $250. The fee will help the county recoup more of its costs to grant the licenses.
— Agreed to seek bids for the sale of the Galloway Pit area owned by the county behind G&G Plumbing and Heating and the Austin American Legion Post headquarters. The sale price will include the $4,000 special assessment paid by the county to the city for street improvements in the area. The bids will be opened August 12 and the sale made August 26.
–Approved payment of $198.62 to the LeRoy American Legion Post for Memorial Day expenses. The LeRoy post billed the county for the exact expenses it incurred in its Memorial day activities. All Legion Posts in the county are allowed a maximum of $200 for the holiday expenses.
— Approved placing unneeded law books from the Mower County Attorney's office and the Mower County Law Library on the excess property list for auction later this year. Both the county attorney and Third Judicial District judges say they are no longer needed for research.
(Lee Bonorden can be reached at 434-2232 or by e-mail at lee.bonorden@austindailyherald.com