Fridley voters to decide on use of special elections to raise taxes

Fridley taxpayers sidetrack tax increase ordinance

By JIM ADAMS, Star Tribune

Last update: October 14, 2009 - 8:16 PM

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Foes of a plan to let Fridley hold special elections to raise revenue will see the matter settled by a special election.

Some background: The Fridley City Council voted 5-0 during the summer for an ordinance that would allow the city to raise taxes or broad-based fees exceeding charter limits by getting voter approval at either a general or a special election. Currently, such a referendum can be held only at general elections.

But the plan has been detoured by a petition drive that has led to a Dec. 8 special election, which will decide the outcome.

A brief Q-and-A on the issue:

What petition?

A citizens group, led by Charter Commission member Pam Reynolds, collected 886 certified signatures on a petition to stop the ordinance. That's well over the required 5 percent of registered voters. By law, that left the council two choices:

• Drop its proposal, or • Hold an election to let residents decide on the charter change.

The council voted 4-1 this week for option 2 (Dolores Varichak dissented).

What is the proposed charter change?

In addition to allowing revenue-increasing proposals to be voted on at special elections, the ordinance would modify the margin needed for approval -- from 51 percent of all residents voting in an election to a simple majority of those voting on the ballot question alone. As things are now, not voting on a proposal is effectively a "no" vote.

A charter provision, approved by voters in 2000, requires voter approval at a general election if taxes or broad fees are raised by more than the rate of inflation, with a 5 percent limit.

Why does the city need more revenue?

Council members say the charter change is urgently needed so they can act in a timely manner to deal with state aid cuts and dwindling reserves, which at current spending rates would disappear by 2012. The proposed 2010 budget of $10.1 million is short $750,000 in revenue, said finance director Bill Pribyl.

State aid cuts and unallotments by Gov. Tim Pawlenty have thrown cities and other local governments into "dire straits," said Council Member Bob Barnette at Monday's meeting.

"We have cut, cut, cut. I feel strongly that we need a special election to let people say yes or no."

What do the petitioners say?

Opponents say the change would allow a relatively small number of voters at a special election to approve higher taxes or fees, while general elections have much larger turnouts. Petition drives have stopped city attempts to lift charter restrictions on utility fee increases three times since 2000, Skogen said. The only successful effort came in 2007, when utility fee limits were removed in a special election that drew 2,545 voters. That compared to 14,351 voters at last fall's general election, according to city records.

"It is unfortunate that the council doesn't understand the need to not be utilizing special elections when asking for tax levy or fee increases," Reynolds said.

How much will the Dec. 8 special election cost?

City Clerk Deb Skogen told the council that the bill will be $12,000 to $15,000, mostly for six election judges at each of the city's 13 polling stations. City Manager Bill Burns said the cost could be covered by the reserve fund or unspent citizen survey money.

Jim Adams • 612-673-7658

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