City Clerk Joel Young presented his message on the budget at the Chatfield City Council’s September 28 meeting. Councilors unanimously approved a resolution certifying the preliminary 2021 levy at $2,247,789, which is a 3.98% increase over the 2020 levy, or an increase of $86,101. The resolution sets a public hearing on the proposed budget/levy to be held on December 14, 2020. The final budget/levy will be set after this hearing.
Mayor Russ Smith noted this is the smallest levy increase in three years.
Young detailed some of the budget objectives, which included maintaining a steady local tax rate with the long term goal of reducing it over time, maintaining positive reserves in the sewer and water funds, and maintaining public safety and public works programs. The primary cost drivers are equipment, technology, insurance, personnel, and inflation.
Seven new homes were constructed in Chatfield during 2020 providing additional tax capacity. Monthly utility bills are expected increase less than 1%.
Before the vote on the motion to adopt the preliminary levy resolution, councilor Paul Novotny questioned whether or not they should consider providing a cushion in the event that the state reduces the allocation of Local Government Aid, saying, “Have we given any thought to the huge state deficit?” The state is facing a significant shortfall. Novotny said we have not discussed this as a group. Councilor Mike Urban acknowledged once the levy is set there may have to be some tough decisions down the line. Young said there will not be a lot of options if state aid is reduced.
Once the preliminary levy is set, it can be reduced but not increased.
A resolution was approved unanimously setting the pay grid effective January 1, 2021. All employees, full and part time, will receive a pay increase of 3%.
CARES Act expenditures
The council approved September costs and planned expenditures related to COVID-19 totaling about $133,000. A possible expense for electronic door openers in the amount of $20,000 was not included in the approved motion. Door openers may be brought back at a later meeting; councilors wanted to look into them more. Included were costs of productivity losses due to split shifts or absences, technology upgrades, personal protective equipment, LUCAS device for the ambulance, an upgrade to the drop box, election related expenses, and police radio upgrades. Some expenditures were approved last month and some will be brought forward for consideration in October.
The EDA has developed some guidelines for businesses. The council authorized $40,000 of CARES Act funding to be available for small business and non-profit organization assistance. Chris Giesen said businesses can apply for interruption expenses related to the pandemic. Applications will be due October 15 and can be emailed to chris.giesen@cedausa.com or dropped off at city hall. Applications that were submitted to Olmsted or Fillmore Counties can be forwarded. The businesses or non-profits have to have a physical presence in Chatfield. The EDA will have a recommendation for awards at the second October council meeting.
Other business in brief
•Mitch Irish and Steve Schlichter, wastewater treatment, asked the council to consider the purchase of a 2004 Vactor 2100 jetter/vac truck from Macqueen Equipment for $100,000. Irish said Macqueen will bring it down to demo it and if it doesn’t perform well, they can refuse to buy it. They said there are a lot of uses for this truck. The purchase was approved as presented.
•The second consideration and publication of Ordinance #448 (annual compensation for persons holding elective office in the city) were approved.
•Approval was given for a Premise Permit Application for sale of pull-tabs at 128 S. Main St.(Pawprint Brewery, LLC). Approval was given for Off-site Gambling application for Bar Bingo at 128 S. Main St. (Pawprint Brewery, LLC).
•Mayor Smith proclaimed October 2020 to be Preservation Month. This year’s theme is “Discover Chatfield’s Hidden Treasures.”
•Congratulations to Deputy Clerk Beth Carlson. Municipal Clerks and Finance Officers Association of Minnesota announced Carlson has earned designation as Minnesota Master Municipal Clerk. This is the highest achievement one can achieve in the state.
Urban commented that Carlson’s and Mitch Irish’s (Class C Wastewater Operator of the Year) awards speak to the quality of people we have working for us.
•A letter of support was approved for a feasibility study to continue trout habitat improvement in the parks and fisheries easements in Chatfield. The study will be at Trout Limited’s expense. Minnesota Trout Unlimited and the Minnesota DNR are looking at stabilizing stream banks for better trout habitat.
•Young announced Fillmore County Journal readers have chosen the Chatfield Swimming Pool in its best of the best competition. Mayor Smith said having the pool ready to go and keeping it open was a good decision.
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