It looks like the south shore of Lake Minnetonka is not alone in handwringing over what the new development should look like. Our friends on the north side of the lake are entertaining the third proposal in five years to redevelop the Wayzata Bay Center.
http://www.mnsun.com/articles/2007/11/16/news/wz15baycenter.txt
Wayzata is obviously on a different scale than the hamlets on the south shore, but the issue is not all that different: How much leeway on factors such as density or building height should be given to an "anchor" project, one that will set the tone of the community for decades to come. It isn't unlike Tonka Bay taking great care in what happens at the Tonka Bay Center, or Excelsior being careful about what goes in on Water Street, or Deephaven being cautious when it comes to new development at Chowen's Corner.
While we can sometimes be too restrictive to developers who want to use their resources and creativity to help improve our cities, there is a reason for due process on big projects like this. What the Wayzata Bay Center redevelopment is asking for -- a height variance of nearly 100% for starters -- will require careful consideration and community input. In the end, I think the entire community (which I consider the south shore to be part of) will benefit from the Wayzata Bay Center location being thriving and energetic, however that may best occur.
Wayzata Bay Center
Estate Taxes, part 2
My earlier post on estate taxes omitted some important observations. I want to provide further thoughts on this interesting topic (no, really - it is) and then move on to more local discussions.
My original statement that some form of estate tax is not bad, especially in that it encourages charitable giving, still stands. I'm not defending a tax-and-spend mentality, I'm just observing that this one by-product is positive for our society.
With that said, there are a few things wrong with our estate taxes that cannot go without pointing out:
1. As it stands today, our planned estate tax exemption amounts for upcoming years are a bit of a joke. Through 2008, the exemption is $2 million. In 2009, the exemption increases to $3.5 million. In 2010, there are no estate taxes. And in 2011, without further action by congress, the estate tax exemption would revert to $1 million ongoing. The message? Choose carefully when you die. This needs to be changed.
2. An exemption is absolutely critical, and the exemption amount should (in my opinion) be at least $3 million, and should be indexed to inflation, just like minimum wage should be. Without indexing, both topics predictably become political footballs every few years.
3. Certain small businesses, such as farms, should have a creative exemption. Passing a small business to heirs is not so much giving them wealth, but rather giving them a mechanism for wealth if they are willing to work hard. There could always be a "lookback" period to ensure this stipulation isn't abused.
4. As i mentioned earlier, I'd like to see this shifted from being an "estate" tax on the person dying to an "inheritance" tax on the receivers. Death shouldn't be a taxable event, but you could argue that receiving a windfall of $3 million or more might be.
Estate Taxes on the Agenda
The US Senate spent time last week discussing the future of the estate tax. The Federal Estate Tax, established during World War I, has become a staple of the nation's revenue stream. The tax generates revenues in the neighborhood of $25 billion yearly. The estate tax threshold is now $2 million -- an estate valued over that amount pays a significant amount to the government upon its transfer. The tax is on a gradual phase out plan, but would be back in 2011 for estates valued at $1 million or more unless a change is made.
An unlikely guest of the Senate Finance Committee last week was Omaha Billionaire Warren Buffet. His presence wasn't what was unlikely; his message was. Buffett believes that the estate tax needs to remain in place at a level that would catch a fair number of wealthy estates. Buffett, the 2nd richest person in America, would have stood to have billions go to the Federal government upon his death until he arranged to give most of his money to the Bill and Melinda Gates Foundation, circumventing the tax burden.
Buffett argued that America is at risk for perpetuating a system where a few families hold all the power, and that redistributing the wealth of the very richest upon one's passing is as good a way as any to level the playing field a bit.
There is another reason for keeping some form of estate tax, one which Buffett is showing by example even more so than by what he is saying on the Hill. Having an estate tax encourages philanthropic giving. Some estimates are that the effect that the estate tax has on giving may be as much as $25 billion annually, roughly the same amount as what the government collects through estate taxes! To me, this is the reason to keep a form of the estate tax in place.
While I don't have alot of faith that the $25 million that goes to Washington DC is spent with efficiency, I am very pleased to know that an equal amount is going to innovative organizations that directly help people. I'd love to do a head-to-head analysis of the $25 million that goes to the Feds and the $25 million that goes to private foundations, and see which chunk had the more profound impact on peoples' lives. I think I already know the answer.
There are flaws of course -- small businesses shouldn't be subject to the full tax. A family business valued at $3 million may only throw off $150,000 per year of total income to its operators (and there could be multiple operators) -- taxing them at 50% could force the business to fold. And I'd far prefer a tax that focuses on what is inherited rather than what is given -- if $5 million is left to 25 different grandchildren and their families, that is alot different to me than the entire $5 million going directly to one person.
So ends my estate tax rant.
Thank You to November Readers
Since the inception of this blog, no month has ever possessed the readership that November has. I won't divulge all of the numbers, but the day before the 11/5 School Board elections alone had more visitors than what I had hoped I'd get in a typical week ongoing.
Through a nifty little tool called Google Analytics, I can get a sense of what people are interested in reading about. One of the categories that is on the Google report is "Top Keywords". That is, which keywords were people searching for most often when Google or Yahoo routed them to your site.
In November, Virtually all of the top keywords had to do with the election. Things like "Minnetonka School Board", "Minnetonka Referendum", and individual candidates' names were all in the top 15 keyword searches. Additionally, 4 of the top 10 search terms had something to do with Bill Wenmark. While I wrote before the election that wasn't thrilled the election was becoming about one candidate's history rather than today's pressing issues, I admire that people of the area took it upon themselves to research the issue on their own, as is evidenced by the number of search hits on that topic.
Writing a blog like this can be a crapshoot. Staring at the monitor while writing a column, it reminds me of the line from Pink Floyd's Comfortably Numb that goes "Hello, is there anybody in there?" I'm glad to know that there is indeed someone in there, and that whoever they are care about local civic issues.
Minnetonka to lose 427 hardwood trees
About a month ago on this blog, we posted that we admired Minnetonka's new tree preservation policy. They had taken steps to implement a city tree preservation ordinance which far surpassed that of most cities in the area. Given that it takes multiple generations to create a true specimen tree, we thought this was a good policy. The magnificent hardwoods that are such an asset to the South Lake area could not be recreated in our lifetimes if they were to fall.
It was with interest and concern, then, that we read the article from today's Strib pointing out that as many as 427 hardwoods in Minnetonka will need to come down for a road project on Shady Oak Rd. http://www.startribune.com/west/story/1555213.html
We know that we need to balance nature with human needs, convenience, and safety. We just find it unfortunate any time established trees that can never truly be replaced have to be razed.
3rd Congressional District Candidate Update
Since we just finished one election, why not turn our attention to the next one? I have a feeling that the next 357 days will give any political junkie their fill of news and analysis, and Minnesota will be in the middle of everything.
In addition to the historic Presidential election and what has the makings of a lively Senate race (Norm Coleman vs. Ciresi or Franken or Pallmeyer), our own 3rd Congressional District race is being listed as a toss-up by many. Ever since Jim Ramstad announced his retirement, names of potential replacements have been swirling about. Ramstad did the opposite of Martin Sabo in 2006, who gave the 5th CD short notice on his retirement, causing a mad scramble. Ramstad provided over a year of notice, something I believe will result in a more thorough vetting process.
While at least a couple dozen names have been mentioned for the 3rd CD, by my count there are only 3 official candidates in the race, with 1 unofficial but very likely candidate:
Terri Bonoff, DFL, is a State Senator from Minnetonka with a business background. She was probably considered the early front-runner, but things have evened out with recent events.
Ashwin Madia, DFL, is a Minneapolis lawyer with ties to the 3rd CD. As it stands today, he is the only Iraq Veteran in the race.
Jim Hovland, DFL, is the Mayor of Edina and Partner in a local law firm. He is a centrist who considered himself a Republican in the past. Just entered the race this week.
Erik Paulsen, R, is a State Representative from Eden Prairie with a business background. He has not formally announced but has an exploratory committee (something you don't do unless you are serious.) He is considered a more traditional Republican than Ramstad.
I'm sure others will emerge, but the diversity of candidates on many fronts (age, military, gender, backgrounds, ideology) is encouraging for a productive, interesting race. This is a terribly brief and vague summary of each candidate, but I'll have a year to elaborate.
A Resounding "Yes": The Minnetonka School District Referenda
Two SD 276 levies passed with wide margins yesterday: A general operating levy (65%) and a technology levy (64%). A quick scan of the Star Tribune's election results shows that of the 65 metro-area school referendum questions on the ballot, only one school levy question (Edina - 72%) passed with more support than the two in Minnetonka.
There could be several theories on why this occured. It may be that the tax neutrality of the deal made it easy to vote for. Or perhaps the "Yes for Excellence" campaign was incredibly effective.
In scanning the election results, a correlation emerges: The two districts who supported their referenda by the largest margins, Edina and Minnetonka, happen to also be two of the top ten academic districts in the state. I'm not arguing a causal relationship -- I don't understand enough about the innards of school operations to do so. I just find it an interesting correlation.
The chicken-or-the-egg question comes in to play: Are these two districts really as good as they are because voters support spending tax dollars on them, or do voters feel better about their "yes" vote to a levy because of the pride of already having a great school district? Or maybe the same effective management of the district which persuaded us that these levies were truly necessary does a great job in other aspects of district management as well. The message of "this well-run district only asks for money when it truly needs to -- and this year it truly needs to" resounded with many, I believe.
Now that the levies passed, it will be important for the community to stay engaged with district. The district should continue to show us that funds are used wisely, innovation doesn't end, new ways to stretch an education dollar so it can impact more kids sought out and found. If they do, the next time they come with a similar referendum, whether it is 3 years or 10 years down the road, it will be another no-brainer for the community.
Minnetonka School District Election Results
All election results can be found here, based upon your zip code:
http://mpls.startribune.com/news/politics/elections/myvote/pf.php
In case you don't want to wait, the operating and technology levies passed by 65% and 64%, respectively. The four candidates elected to the school board were Lisa Wagner, Calvin Litsey, Paul Luehr, and Karen Walcowski.
Where to Vote on Tuesday, Nov 6
To find your voting location for Tuesday's School District polling, go to the Secretary of State's website and type in your zip code and street. Voting locations are based on where you live.
http://pollfinder.sos.state.mn.us/
This mailer from SD276 also summarizes where you should vote based upon your home location:
http://www.minnetonka.k12.mn.us/referendum/mailer/P08.pdf
Reasoned Referendum Argument
Occasionally I like to post one of the submitted "comments" as an actual blog entry, especially if it presents information in a way that is more succinct and cogent than I've been able to. Attached is a comment from Peg Keenan in response to one of the comment posts from a recent thread:
Response to the Admiral:I can’t speak to what is going on in Westonka, where you live; however, I know in the Minnetonka School District the need for the referendum is real. With only a 1% increase in general education funding for 2008-2009, Minnetonka is facing a $3.4 million deficit. Minnetonka School District wisely used the 4% increase appropriated in 2005 to stretch all the way through 2007-2008 without budget cuts. They have had the authority to go to referendum since 2003 and have held off until 2007. The District is very well managed and only has approached voters when it became absolutely necessary. I also applaud the School Board for their plan to neutralize the tax impact of the operating referendum by decreasing the levy for long term maintenance. Residents should check out the online tax calculator at: http://www.ehlers-inc.info/taxInformation/Minnetonka/Our referendum investment in 2002 has provided great returns on our investment and student achievement has increased by almost every measure. I encourage everyone to read the Minnetonka School District Annual Report to see the incredible achievement. It is online at www.minnetonka.k12.mn.us/annualreport.pdf
Peg KeenanChair, Committee for Quality Academics
Much Ado About Wenmark
A story that has gotten alot of press lately is that of School Board Candidate Bill Wenmark's educational history. The Lakeshore Weekly News, Sun Sailor, Chanhassen Villager, and now the Star Tribune have all reported that Wenmark didn't attend the US Naval Academy as a cadet, but instead served there during his military involvement. Statistics have also been provided regarding his attendance at meeting and workgroups which has been lower than his peers.
While the authors of this blog don't know Wenmark personally and have not endorsed any candidates, we find the fact that this has made the Star Tribune unfortunate. It reminds us of the shallow national politics aired on Fox News or MSNBC -- digging up an inconsistency in what someone said once, and then make that the entire story. While we have seven candidates campaigning on the issues for four school board seats, the main story a week before the election is about how one individual classified an experience that occured 35 years ago. Does this type of story really make the top people in our community want to run for office?
We also are curious if the same diligence was placed on validating claims from the other candidates, or if Wenmark was singled out.
The meeting attendance point, in our view, is more germane and something voters ought to be able to factor in to their consideration.
We aren't saying you should vote for Wenmark or should not. We're simply saying it is unfortunate that here, a week before an important local election, a personal story about one candidate has somehow become the news, just like seems to happen in national elections.