City Clerk Joel Young reported on the proposed 2019 budget and levy during the Truth in Taxation hearing at the city council’s December 10 meeting. This will be the council’s last meeting of the year.
The city staff budget will cause a tax levy increase of 4.97%; these increases are structural and driven by inflation. The main driver of the tax levy increase for 2019 will be debt service for the new swimming pool in the amount of $284,000. The second driver, which the city does not have any control over, is the fact that the legislature did not reauthorize the Small City Aid program, causing a loss in revenue of $24,000, which would have been used for street maintenance.
The city council unanimously adopted the 2019 budget/levy needed to continue services at the current level. The total levy will be $2,032,036, which is an increase of $390,340 over 2018, or a 23.77% increase.
The employee pay grid will be adjusted upward 3% in 2019.
The tax capacity of the city is gradually increasing due to growth of new homes; 15 in 2016, 19 in 2017 and 20 in 2018. There has also been $10 million in commercial permits, most involving improvements to Chatfield Public Schools.
Due to the fact that water and sewer funds have been operating in a deficit, sewer rates will increase 10% and water rates will increase 5%. There will be no increase for garbage services.
This year Enterprise Drive has been completed, swimming pool construction has begun, a citizen alert system has been deployed, and a Capital Improvement Plan has been adopted.
Goals for 2019 include, to name a few, transition to new ambulance director, upgrades for fire department including the purchase of UTV (utility task vehicle) for trail rescues, new sponsors for Chatfield cable television, library improvements including installation of a custom alarm security system, the development of an alarm system for city wells, lobbying for Phase II funding for Chatfield Center of the Arts (1916 building), updates to administrative code and city Charter, participation in the upgrade of Highway 52, acquiring park land, completion of a Safe Routes to school sidewalk plan, and the development project for a General Dollar store.
Wayne Halverson posed some questions after Young’s presentation. He wanted to know about the extent of future levy increases, saying “My main concern is where we are headed; how many years can we keep increasing the levy at this rate?”
Young noted the long term debt payment for the swimming pool will be about $315,000 per year. So, we are about 90 to 95% there. A little more of an increase next year will be expected to service the swimming pool debt, but in future years it will be leveled out. Young said the purpose of the Capital Improvement Plan was to better understand what will be needed in the next five years.
Halverson asked about fundraising efforts for the pool. Councilor Paul Novotny explained the referendum that was put before the voters did not reflect any promise of money coming in to pay for the pool through fundraising. It was acknowledged that fundraising has not been very successful.
Halverson said the levy increases are a big shock, especially to people living on fixed incomes. Novotny insisted his goal is to keep levy increases in the range of 3 to 6%. He doesn’t see any realistic possibility of increases being any less than the 3 to 6% range.
Mayor Russ Smith maintained that there is a lot of discussion and thought that goes into the budget every year.
Other business in brief
• An authorization was approved to request that MnDOT complete installation of crosswalks at the intersection of Highway 52 and Fourth St. and at the north entrance to Chatfield High School. The city will be responsible for the cost of the installations and maintenance.
• The oath of office was administered by Young to Samuel Judd, a new Chatfield patrol officer. Police Chief Shane Fox administered the law enforcement oath.
• Fire Chief Ryan Priebe reviewed 2018. There were six less calls than in 2017, or a total of 44 calls. An air compressor was replaced as was the 1998 tanker. In 2019 there are plans to purchase a UTV and to replace SCBA air bottles, a computer, four sets of turnout gear, and pagers.
The list of fire department officers presented (Priebe, Brian Burkholder, Luke Thieke, Chris Musty, Steve Schmiedeberg, Peter Erickson, and Cole McKean) was approved. A quote from Ancom for 26 pagers was approved at a cost of $18,566.
• The second consideration of Ordinance # 438 Fees charged by the city, licenses or services was approved as was its publication.
• The final payment to Fraser Construction Co. for demolition of the old pool, which is complete, was approved.
• The third payment to Benike in the amount of $164,323.94 for the pool project was approved.
• A public hearing was set for January 14 to consider the request of Hiawatha Broadband Communications (HBC), Winona, for a cable television franchise.
• Approval was given for city hall to start using a U.S. Bank purchasing card when appropriate.