At the December 11 meeting of the Chatfield City Council, City Clerk Joel Young reviewed in detail the city’s budget; expenses and revenues. The Truth in Taxation public hearing ended with no comments from the public.
Young listed expenses affecting the 2018 budget. Expenditure differences pointed out for 2018 for public works total $142,000. This will pay for additional chip sealing, Industrial Drive utility debt service, water meter debt service, and Industrial Drive improvement debt. There will also be a 2.75% pay grid increase.
The city has, for the past 16 years, used the Chained Consumer Price Index for all Urban Consumers (C-CPI-U) to determine pay increases. The Personnel/Budget committee for this budget has used a different way to calculate pay increases to avoid larger than normal increases in any one year, which has been necessary on two occasions in the past. Effective January 1, 2018, the city employees will receive a 2.75% increase, which is more than the current C-CPI-U (2%), but below the average 3.1% pay increase necessary to keep pace with the market over the past 16 years.
Young pointed to expected revenue increases which include $20,000 total in tax abatements, $19,000 increase in Local Government Aid, and $24,000 increase in Small City Aid. The Industrial Drive improvements could add revenue as the city-owned property adjacent to the road is sold. These sales will also increase the city’s tax capacity.
Tax capacity increased in 2017 with the construction of 19 new homes (compared to 15 in 2016 and 8 in 2015). Construction of a new swimming pool will not impact the 2018 levy.
The Charter Commission is meeting for a second year. The city’s website is being upgraded and the city has expanded its credit card capability.
The League of Minnesota Cities awarded Chatfield a 2017 “Cities of Excellence Award” for its water meter and meter reading improvement project. The city recently received the Local Government Innovation Award for planting intermediate wheat grass in a wellhead protection area to aid in the reduction of nitrates in drinking water.
The council approved the final budget proposal with a tax levy increase of 5.6%. The total levy for 2018 will be $1,641,696. The levy increase will be $86,832. This represents about half of the increase considered at the beginning of the budgeting process. A total of $277,800 of the levy will go toward debt service. The 2.75% pay grid adjustment was approved.
Young noted that property tax notices that have been received were based on the preliminary levy numbers which were higher than the final levy. Not every property owner will experience the same changes in property tax. Valuations vary depending on which side of the county line a property is located. Industrial property taxes have actually decreased in last five years as residential property taxes have increased.
The second consideration of ordinance #428 Fee Schedule and its publication was approved. The fee schedule includes a 5% increase in water rates and a 3% increase in sanitary sewer rates. Garbage rates will be unchanged.
Other business in brief
• Young reported that there were three applicants for the CCTV administrator position. All were interviewed. The hire of Melissa Burnett effective January 1, 2018, was approved. CCTV administrator Craig Manahan retires at the end of this year.
• Officer Matthew Verdick took the oath of office administered by Young and the Law Enforcement Oath of Honor, administered by Police Chief Shane Fox.
• Fire Chief Ryan Priebe reported that the department responded to 50 calls in 2017. In 2018 the department is looking at purchasing a new air compressor and a tanker. A slate of officers was approved for 2018. The hire of Melissa Burnett as firefighter effective January 1, 2018 was approved.
• Pay estimated number 3 in the amount of $151,255.49 was approved to Edge Contracting for work on the Industrial Drive project. The project is 62% completed. Brian Burkholder noted they will be back in the spring to complete the project with curb and gutter, sidewalk, paving, and sewer testing.
• Burkholder explained that the city’s 2002 Pelican Street Sweeper is in need of repairs expected to cost nearly $4,000. MacQueen Equipment has offered a 2009 Elgin Pelican sweeper for a total price of $85,755. The price was reduced from $105,000 by a reimbursement of 80% of 2015 repairs or $6,745 and 20% of 2002 sweeper purchase price or $12,500. Burkholder said the purchase would fit into the budget. It is the new style, hydraulic driven, and in good condition. The purchase was approved as recommended by the Public Works committee and Burkholder.
• Approval was given for a land conveyance request of .47 acre submitted by Geoff Griffin. The triangle shaped piece will be conveyed from Lot 2, Block 1 Hilltop Estates second addition to the remaining parcel at the west end of Wisdom Lane. Councilor Mike Urban explained the piece is useless otherwise because of a drainage ditch.