SR city budget to increase 4.3 percent, new building permits up, too

by Dave DeMars

news@thenewsleaders.com

The Sauk Rapids city budget for 2017 will be 4.3 percent higher than this year’s budget because of a need for increased staffing, including the hiring of two more police officers. The city’s estimated tax-levy increase will be a 3.9-percent increase.

The Sauk Rapids City Council held two public hearings at its final council meeting for the year on Dec. 12. The first hearing was to discuss the city’s proposed budget and property tax levy for 2017, and the second was to discuss proposed changes in the fee schedule.

City Finance Director Jack Kahlhamer guided the council through the key points of the budget and levy information. Kahlhamer noted the budget will be increased by 4.3 percent.

“With the growth of the city, it really shouldn’t change the taxes much – maybe $3 to $5 on a $650,000 home,” Kahlhamer said. “The overall tax rate has gone down mostly due to the county. It went down 2-percentage points from 67 to 65, and the school went down a little bit.”

The final total budget estimates for 2017 is $5,437,200.

In the Enterprise Fund areas, Kahlhamer said he expects a 2-percent increase in water-usage charges; a 3-percent increase in sewer usage rates; a fifty-cent- per-month increase in storm-water sewer fees; and a 60-cent-per-month increase in street-light utility fees. That latter fee is a 25-percent increase over 2016, rising from $2.40 per month to $3 per month in 2017 for residential customers.

“The average utility bill will go up about $20 per year,” Kahlhamer said.

Mayor Brad Gunderson called for any public input, but there was none and the hearing was closed. No discussion was forthcoming from members of the council either, and the motion to accept the final 2017 tax levy of $3,552,000 passed the council unanimously.

Motions adopting the 2017 general-fund budget and another adopting the Enterprise Fund and Special Revenue Funds followed quickly and passed unanimously without comment or discussion.

Gunderson then opened the second public hearing to consider proposed changes and increases to the fee schedule. The fee schedule covers such things as charges for fire calls, fees associated with developments such as the Creekside Addition and rental fees for city-owned public buildings.

In Appendix I of section 3.81 of the city code, storm-water sewer rates reflect an increase of 50 cents in 2017. Examination of the rate per homeowner per month shows an increase each year since 2015 and projecting forward to 2018. The cost in 2015 was $2.50 per month, $2.75 in 2016. The cost for 2017 will be $3.25 per month with an increase projected in 2018 to $3.75 per month. That amounts to a 50-percent increase in four years. Annual homeowner cost rose from $30 per year in 2015 to $39 per year in 2017 to a projected $45 per year in 2018.

During public comment, Jane DeAustin of the Central Minnesota Builders Association, addressed the council. She complimented the council for keeping a lid on fee increases for builders who saw double-digit increases in some past years.

“We encourage the city to carefully consider fees associated with development and building,”DeAustin said.

DeAustin went on to say that while the city has kept fees in check, cost of land and materials have been steadily rising making it difficult for builders to navigate the market and continue development. She noted there are increases in the water-and-sewer access charges (WAC and SAC fees), but said the predictability of the fees gave builders a chance to recoup costs through planning.

“Builders building in spring will probably already have their building spec’d (specifications drawn up) and costed out,” she said. “We are always working six to nine months ahead and that is why predictability of increases is very important.”

DeAustin then gave a brief update on building in the Sauk Rapids area. A total of 274 single-family home permits were issued in the city through the month of October. That is 62 more than were issued in 2015 during the same time period, representing a 29-percent increase in building in Sauk Rapids. As the economy has improved, more homes are being built. In 2012, only 115 permits were issued. DeAustin said as long as things are stable with no increases in mortgage rates or other areas, there’s every expectation that 2017 will see the same types of numbers as 2016.

After Gunderson closed the public hearing, the council unanimously approved the fee schedule update and in a separate action approved the publication of the fee schedule.

In other business, the council took time to recognize retiring Mayor Brad Gunderson. City Manager Ross Olson presented Gunderson with a plaque in recognition of his years of service to the city of Sauk Rapids.

During the Mayor’s Communications portion of the meeting, Gunderson thanked the city residents, staff, fellow council members and city employees.

“It’s been 10 years, and we had a great run and we got a lot done,” he said. “I’m very proud of what we have done and accomplished. Thank you. Oh, I’d also like to thank my wife for putting up with this ride – and uhh – I won’t do it again.”

Under the consent agenda, the council took the following actions:
• Approved Law Enforcement – St. Cloud Area Child Response Initiative.

• Approved request to purchase tasers to replace current tasers.

• Approved and authorized amusement permit for Circus Pages International Inc. circus.

• Approved plumbing contractor licenses for 2016.

• Approved sending police officers to Minnesota Juvenile Officers Association Conference.

• Approved ordinance amendment to the Liquor Licensing Code to clarify the requirements of licensee in the event of a name change that does not cause a change in ownership.

• Approved R.A. Morton’s capital planning proposal for government buildings.

• Approved personnel policy updates.

• Approved purchase of exterior lighting for liquor store.

• Approved purchase of heater for entryway at liquor store.

• Approved cable franchise agreement extension.

• Approved senior-citizen application for special-assessment deferral

• Approved the 2017 SEH (the city engineer) hourly rate schedule.

• Approved termination of employment for cause.

Other council items of note included the posting of a city-council vacancy. Information can be had by contacting city hall or consulting the city website. Also noted was the log building located in Municipal Park will be under construction and there will be no rental until work is completed.