Council approves modest increase in 2018 budget

by Dave DeMars

news@thenewsleaders.com

The St. Joseph City Council moved quickly through its agenda Aug. 21, stopping only for brief discussions of the preliminary budget for 2018, approving a partial release of an easement after a public hearing, approving a new alcohol matrix and approving the application for a grant.

City Administrator Judy Weyrens presented the preliminary budget to the city council, reminding the council members they have been dealing with the budget for some time and staff members have gone over the budget several times, paring out those items they could. What remained for consideration is a budget consisting of $3.1 million in the general fund, $1.3 million in operating levy and $857,290 in debt levy.

The Stearns County Assessor’s Office has issued a conservative 5 percent taxable market value, which will change the tax capacity rate by 1 percent, Weyrens said. Actual numbers will be released in October or November. The budget does not reflect Environmental Action Fund dues, a decision the council will probably make in the future as to whether it will participate or not. The fund originates from the Coalition of Greater Minnnesota Cities, and dues would be used to challenge regulations impacting utilities.

According to Weyrens, property owners would see an increase in taxes of about 4 percent. What that means is the average $200,000 home would see an increase of $44.97. A business valued at about $1 million would see an increase of about $478. A $1 million 20-unit apartment complex would see an increase of about $311.

Weyrens explained how the funds would be used and what increases in operational items would be funded through the increases.

“I’m OK with the preliminary – I emphasize the word preliminary – for right now, but I’d like to see them at that 2 to 2-1/2 percent bottom line,” said council member Bob Loso.

Weyrens explained the budget would be a continuing item and the council would be discussing it regularly until they made a final approval. There are some things that simply cannot be nailed down at this time – things such as labor costs, and equipment maintenance costs, Weyrens added.

“In seriousness, me personally, I’d like to see some pencil sharpening whether it’s $1,000 or $5,000, you know,” Loso said. “Take a second look.”

Weyrens issued a caution to the council, saying to buy down the budget through cuts can be detrimental to the entire process.

“I think one of the things in this budget is some people are saying can’t you buy down the budget, for example, using surplus revenue – the fire board went down that road and realized they may just be delaying the inevitable,” Weyrens said. “So we’ve spent the last three years funding what we didn’t fund in the past number of years. So this payment reflects the last payment the fire board has to do to make their revenues equal their expenditures. They did just that. They thought they would buy down the revenues. It makes sense, but it doesn’t.”

Loso moved to accept the preliminary budget with the caveat the staff members keep their pencils sharpened in order to cut any fat from the budget. Included in the motion was the establishment of the Truth in Taxation meeting, set for 6 p.m. Monday, Dec. 4. The motion was adopted.

Public hearing

The council held a public hearing to consider granting a partial easement to Robert and Marjory Rice for property at 108 Sixth Ave. SE. A blanket public easement had been granted in 1972. Since the Rices were selling the property, a hearing needed to be held to appraise all parties of easement existence and to determine if confining the easement to the back portion of the lot would cause some issues for the various utility companies.

There was no public input, and with little other discussion, the council approved the partial release of easement.

Cloverdale grant

Weyrens presented the council with background on an application for a grant from the Central Minnesota Housing Partnership. The city had gotten this type of grant in 2013 in order to rehabilitate housing in a portion of the city. The program was very successful and for that reason Weyrens said it would be a good thing to apply for a second grant to improve another area of the city, the Cloverdale additions.

The request was for the council to authorize the grant application with the Department of Employment and Economic Development and to authorize matching funds in the amount of $25,000 as seed money to strengthen the grant application. The motion was approved.

Alcohol matrix

The final item of the evening was consideration of the Alcohol Matrix dealing with violations of ordinances dealing with the selling of alcohol. Weyrens presented the new matrix fines and actions that would be as follows: $500 fine for first offense, $1,000 for the second offense, $2,000 for the third offense with a suspension of license at that time. The history of offenses stays with the violator for 24 months.

The council members questioned the length of time the history of offenses stays with the violator but saw no real problem. Another question had to do with implementation and whether past offenses would be counted if the new matrix was adopted. It was decided all violators would start with a clean slate and the history of violations would start from the adoption date of the new matrix. The motion to adopt was approved.

Other business

The council heard from City Engineer Randy Sabart, who gave a general update on street construction and repair in the city.

Under the consent agenda, the council: approved outdoor liquor licenses for Bad Habit Brewing for events on Sept. 9 and 23; authorized issuance of a liquor license to Kay’s Kitchen; authorized a street closure for Millstream Arts Festival Sept. 24; authorized the mayor to pay for the Field Street Project in the amount of $106,621; and authorized staff to submit grant applications seeking funds in the amounts of $7,500 and $3,000 respectively from the Initiative Foundation and Computer Financial. Funds would be used for planning assistance for East Park.