At the December 12 meeting of the Chatfield City Council, City Clerk Joel Young took a look back at 2016 and ahead to 2017.
During the Truth in Taxation hearing, Young detailed capital acquisitions made in 2016, topping the list was the purchase of a pumper/rescue truck. Some of the other capital expenditures included the replacement of the front steps of the Thurber Building and the Mill Creek Fishing Pier.
Service projects that are ongoing include the Charter Commission and the establishment of a swimming pool committee.
Young listed goals that were in the forefront while preparing the 2017 budget. The effort was made to maintain the 2017 levy as close to 2016 as possible and to minimize the sanitary sewer debt burden by allocating some General Fund dollars toward sanitary sewer debt service. The city will continue to maintain the services provided by public safety departments and the city’s infrastructure, including streets, storm water, and sanitary sewer. The city’s budget includes building up a funding source for the community’s storm water challenges. Finally, the city will work to maintain its positive bond rating.
The pay grid for the city will increase 2.75%. Young explained that the city has regularly consulted the Chained Consumer Price Index for Urban over the past 15 years. Using this index has not kept the city up to market rates and has required two upward pay adjustments over the years. The C-CPI-U this year was 1.5%, which is below the average increase of 3.1%. In order to keep pace with the market the 2.75% increase was unanimously approved.
Young commented that it is inevitable that tax levies go up, adding we try to get the best value out of it. New home construction has returned to normal with eight new homes in 2015 and 13 in 2016.
The council unanimously adopted the 2017 budget and levy. The total 2017 budget is $1,554,864; a $132,468 increase over 2016, or 9.3%.
Councilors commented on the increase in the budget and levy, noting the services the city provides, the increases in costs, and improvements to be made in infrastructure. Mayor Russ Smith stated that the unanimous approval of the budget and levy showed an understanding by all what has to be done.
Other business in brief
• A public hearing will be held in January 2017 on the Chosen Valley Senior Living Care Center’s request for conduit financing. Eric Lunde, Piper Jaffray, explained that the purpose of the refinancing of the tax exempt notes issued in 2005 through the city of Chatfield is to reduce interest costs. The refinancing will result in a shorter repayment period. Lunde said it will in no way impact the credit rating of the city. Tax exempt financing has to go through a local government unit.
• The second consideration of Ordinance 422, Charter Amendment was approved, as was its publication.
• Brian Burkholder, Public Works, reported that the drainage work on Union St. is on schedule. The upper portion was completed on December 9.
Installation of the new water meters is ongoing. Burkholder said of the 922 to be installed, 520 have been installed. The first pay estimate to Metering and Technology Solutions was approved in the amount of $328,122. Councilor Mike Urban voted no. It was noted that materials which are in the city’s possession are valued at more than the payment.
Burkholder said they are working on a second letter to residents who haven’t called in to set up an appointment to have a meter installed. Those residents are asked to call in to get an appointment set up.
• Smith presented plaques to the three councilors that are retiring from the council, recognizing and thanking them for their service; Ken Jacobson, Robert Pederson, and Dave Frank. Young said it has been a pleasure to work with each of them. City attorney Fred Suhler commented that he believed they did not serve for money or adoration from the community. He called Chatfield an exceptionally run city, telling the councilors they have done a great job.
• A land conveyance request from Peter and Leanne Erickson was approved. Five parcels they own will be combined into one parcel to build a single family home. The home site will be zoned R-1, Low Density Residential.
A land conveyance request from Linus Hammell was approved. His two parcels will be combined into one to allow for future commercial development. The combined parcel will be zoned I-1, Light Industrial.