2009 Funding of CLRSD Debt 12-04-2009

Brandon Township Levy for Payment of Debt to CLRSD Brandon Township was one of six townships that formed the Central Lakes Region Sanitary District (the CLRSD) in 2003 to develop and implement a plan for the collection, treatment and disposal of sewage around the lakes of Miltona, Lobster, Chippewa, Devils and Whiskey.  Each township appointed one of its township supervisors to represent their respective townships on the CLRSD Board. After five years of study and planning, it was determined that the cost of providing a central disposal system was neither cost effective nor feasible for the community and that alternate funding sources to defray the expense did not exist in sufficient amount to make the system cost effective.  Plans to proceed with construction were put on hold by the CLRSD in alte fall of 2008 while exploring alternative funding. Bowing to public pressure, Brandon Township and the other five townships all adopted resolutions of intent to withdraw from the CLRSD in early2009.  The CLRSD has since taken action to dissolve the district and to wind up its affairs to include disposition of all assets and satisfaction of all liabilities. Included in the liabilities that had to be satisfied were General Obligation Bonds in the principal amount of $3,400,000 issued by the CLRSD to fund engineering and legal costs of designing the collection and treatment system and obtain the necessary permits to operate same.  By resolution adopted in April, 2009, the CLRSD Board determined that the obligation to repay these bonds should be allocated to each of the six member townships based on the tax capacity of the parcels located within the CLRSD, based on the original boundaries established in 2004.  This is the same basis that was used by the CLRSD to allocate its annual operating levy. This resolution established Brandon Township's share of the bonds to be 17.63 % or $599,420 payable by November 1, 2009.  If the township had refused to make the payment to the CLRSD, the CLRSD had the authority to assess the properties in Brandon Township that are included within the CLRSD boundary for the debt. The Brandon Township Board discussed this situation at a number of meetings and decided at its August 17, 2009 meeting to issue $500,000 of General Obligation Bonds through Bremer Bank and use $99,420 of general fund reserves to fund the payment to the CLRSD.  The bonds will be paid off with ad valorem taxes - $400,000 levied on the taxable properties within the CLRSD boundary as defined and the balance of $100,000 plus interest and a mandatory 5% bond principal and interest override levied on all of the taxable properties within the township.  The township paid the legal and bond issue cost out of its general funds. The ad valorem taxes levied by Brandon Township are approximately $0.65 per $1.00 of tax capacity for  properties within the CLRSD Boundary and approximately $0.14 per $1.00 of tax capacity for the remaining township properties.  The levy is payable over five years and qualifies as property taxes for filing for a Minnesota Property Tax Refund and for inclusion in Itemized Deductions on the Individual Income Tax Form 1040.  The levy cannot be prepaid. The first installment will appear on your property tax statement for 2010.  To determine the amount included in your township taxes for this portion of the levy, multiply your property's tax capacity by 1/5 of the amounts in the preceding paragraph.  The tax capacity of your individual parcel(s) can be found at the top right corner of your annual property tax statement received from Douglas County.  This amount is generally 1% of taxable market value for residential properties and something less for agricultural and other non-residential properties.  Informational letter drafted on Dec. 4, 2009 by the Township Board

About Us

Township 129 Range 29

Established as Chippewa Township September 3, 1867
Renamed Brandon Township March 11, 1881

Vital Statistics -
Location: Douglas County, MN
Land Area: 30.4 sq. mi.
Water Area: 5.1 sq. mi.
Lakes With Public Landings: 6
Population: 744 
Households 309
Township Roads: 44.39 Miles

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