Friday, September 16, 2016

Lake Usage Letter 2016

Dear City Council Members and Mayor Candidates,                                        
September   2010

Over the last several  years we have had an ongoing discussion, as it relates to spending tax $ on lake improvements, AIS control, and  the relative importance of the lake to the community.

In 2010  the City's Lake Improvement Committee and the Forest Lake Lake Association   obtained data which confirms  the importance of Forest Lake as a recreational and economic asset to our community. We thought it was important you have this information

Attachment 1 ( DNR data labeled Percent) shows that of the 6,910 residences in FL, over 50% have at least one watercraft permit. And of the 3605 watercraft permits in FL, 34% live on the lake and 66% do not live on the lake. This dispells the common notion that the lake is primarily used by lake residents.

Attachment 2 (DNR Creel Surveys, labeled Outside) shows the importance of the lake to attracting visitors to Forest Lake. During the summer 53% of the boaters on the lake lived OUTSIDE Forest Lake and 47% lived in Forest Lake.  The winter usage of the lake was similar, with 57% of users coming from OUTSIDE Forest Lake.  

These thousands of people represent a strong economic opportunity for our local businesses in bait, gas, lake supplies, food/refreshments, and restaurants / bars, etc.  Finally, from the previous chart we saw that of people living in FL and using the lake, 66% did not live on the lake. So when you combine that statistic with the 53-57% of the lake users that DO NOT live in FL, then it turns out that 85% of FL users do not live on the lake . The lake then is a community asset utilized much more broadly than by just  residents on the lake.

Attachment 3 ( Washington  County tax data, labeled  TAX),looks at the impact on city residential property tax revenue of lake property on FL. This data came from both :

(1  The City's 2009 financial plan for 2010 projected revenue and
(2)  A special report on 2010 (E) Residential Taxable Mkt Value for properties on Forest Lake run  on 8-10-2010 by Kevin Corbid, Director , Property Records and Taxpayer Services.

The 984 residences on the lake accounted for $449 million taxable residential mkt value. This represented 34% of the City's total taxable residential mkt value, while the 984 lake properties represent only 14.2 % of the total FL residences.

 Of the 2010(E) residential tax levy of $4.372 million, $1.53 million (34%) came from FL lake residences. The critical point here is that $857,000 of the $1.53 million lake property tax revenue came from a tax premium paid because the residences were on FL. This extra tax is paid over and above the normal value of their lot and home and is assessed based on a lake frontage estimated mkt value assessment of $4400/ft  for main lake residences and $2200/ft  for bay residences.

The $857,000 lake property premium tax revenue represents nearly 20% of the city's 2010(E) residential tax levy. Forest Lake  is a lake asset for the entire community and not just for lake residences...and should receive a higher funding  priority.

Finally, Attachment 4 (labeled Parks ) look at the importance of parks as a spending priority and  compares FL parks to the lake:

             1.  There are 204 acres of parks in 2016, up 11% from 2010. The Lake is 2,300 acres  and brings in  a minimum of $857,000 in extra tax revenue.

              2.  The city will spend $404,000 on park maintenance and park programs in 2016 compared to $205,000 in 2010. Lake spending dropped  from $62,000 in 2015 to $55,000 in 2016.

              3.  The city's key park is on the lake and the key park program "Arts in the Park" is on the lake and probably one reason it draws 200-250people / Tues nite. The lake, as we have seen, draws thousands of people both during the summer and winter and 53-57% of the people come from outside FL.

We agree that parks are important to the community and should be in the long range plans to maintain and improve. Based on the data presented, the Lake is definitely undervalued as a community asset  and should be elevated to a priority in the city's long range goals and future spending.

Finally, I had the opportunity to work our FLLA booth at Arts in the Park the last two weeks. I met a fella (who did not live on the lake) who was raving about how much he enjoyed Arts in the Park and he commented he especially liked the fact it was on the lake.

I couldn't pass up the opportunity to ask him the question we have been debating for the last three years". How important do you feel the lake is to Forest Lake?"  '' Well heck", he said" without the lake, we'd just be another Wyoming on hwy 61".  From all our debates and now current facts, I don't think any of us could have verbalized the importance of the lake in more realistic and understandable terms!

We look forward to receiving your support. Thank you,

Steve Schmaltz
City lake Improvement Committee Member
 Board of Directors, FLLA
        



No comments:

Post a Comment