The first draft of the 2023 budget was reviewed and discussed at the city council’s September 6 meeting. City Administrator Ryan Throckmorton noted some of the challenges they faced, including the fact that the administrator position cost is no longer split with Preston Public Utilities. The revenue coming to the city from the utility in 2022 for that position was nearly $55,000.
Other challenges mentioned were inflation and increases in health insurance which is expected to increase 7.5%. Cost of living increase is proposed at 2.5% for employees.
Street improvement fund was lowered about $27,000 to accommodate the 2021 bond and the contingency fund is at $53,000 (down $68,000 to help offset bond and other increases in budget items).
Throckmorton said he met with every department head individually and looked at any capital outlay plans. Most departments kept to their needs, not their wants.
The draft budget as presented will increase the levy by $55,522, or 5.14%. The budget will be brought back at the September 19 meeting. The council will need to certify the preliminary budget at that meeting. When the final budget is approved in December it can be reduced, but not increased. Mayor Kurt Reicks noted the preliminary budget is used to determine proposed property taxes received in the fall. Reicks and councilman Charles Sparks were pleased that the levy increase had been kept down to around 5%. Councilman Steve Hall asked questions to more educate himself about the details of the budget, for example, how the city and utility work together sharing some employees.
Other business in brief
•Throckmorton reported that the city currently updates Crown Hill Cemetery maps with a pencil in a thick binder. City staff received two quotes to provide a record keeping and searchable data base. A quote from Chronicle (cemetery management software) with a set-up cost of $2,140 and an annual fee of $360 was approved. The interactive software will allow staff to track plots, create deeds, and keep records. The website will be searchable by the public to see what plots are available.
•An application was received from Dave Gardner, owner of Julia Claire Consignment & Variety (152 Main St.), for a Small Cities Development forgivable loan in the amount of $2,000. The building is home for a business and an upstairs apartment. The total project to paint the (green) faded siding is estimated to cost about $2,800. About $800 or more of the project will be funded with private money. The loan was approved as presented and as recommended by the EDA.
•Throckmorton reviewed the progress of street improvements, including the 2021 Street project, Circle Heights Dr., and the Veterans Home entrance. Staff met with Alcon Construction on a deadline to complete a list from the 2021 Street Improvement project (September 9) and a timeline for weed control and seeding. Prep should start shortly for the stormwater project (Brownsville St.); completion is expected by late October. Circle Heights Dr. is nearing completion; contract completion date is October 31. The Veterans Home trail is graded and surfaced; it will be blocked off during Veterans Home construction. The Veterans Home entrance construction is to begin this fall and will lead straight into the Main Entrance of the Veterans Home. It will tie into Overlook Dr.
•The Minnesota Municipal Utilities Association (MMUA) Safety Contract which provides safety services for the city/utility for 2023 was reviewed and approved. The cost is shared by the city (45%) and the utility (55%). The total cost for the city is estimated to be $8,522 for 2023 (an increase of $895 for the city).
•A contract with MuniciPay for a credit card processing service was approved contingent on city attorney approval. There is no cost to the city. Residents who use the service will pay a minimum of $1.50 for the service when paying for permits, licenses, and fees.
•Approval was given to pay 2022 League of Minnesota Cities dues in the amount of $1,669.
•Throckmorton updated progress on the construction of the Veterans Home. An administrator for the home will likely be hired within a month.
•The city council will meet next on September 19.
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