Marc Sather, Jailhouse Inn, insisted that the 11% increase in his property taxes is too high. He raised numerous questions at the Preston City Council’s December 6 meeting.
City Administrator Joe Hoffman reviewed the numbers in the preliminary budget/levy for 2017 during the city’s Truth in Taxation public hearing. The total levy for 2017 is expected to be $831,494, or a $34,450 increase from 2016, which is a 4.32% increase. He noted that 47% of the city’s revenue comes from the tax levy. Twenty-eight percent comes from state aid, which now provides revenue for a much smaller portion of the city’s budget compared to 10 to 12 years ago.
The city will reinstate efforts to build its street maintenance fund with a $90,000 increase. A little over $22,000 will be dedicated to the storm water fund. Hoffman explained that property tax increases are predominantly due to payments for the 2014 Street Improvement Project.
Hoffman pointed to the state’s $1.4 billion surplus and suggested that near future state aid should be stable.
Sather noted that many people in the community are on Social Security. However, Social Security income is going up just a fraction of 1%.
Sather asked about city plans for the former Dairy and Farm property. If the city buys the property it will no longer be taxable property. Mayor Kurt Reicks said the city has added more taxable acres than will be lost due to the annexation of property for new Dairy and Farm and Gehling developments.
Hoffman suggested the increase in Sather’s property taxes is in part due to his increased property value. The final budget/levy will be set at the council’s December 19 meeting.
Wood burning
Dave Keene (Preston’s fire chief), 217 Preston St. NW, explained a Cease and Desist order for wood burning was placed on his property in 2011. He wants to burn wood to heat his garage. Since the order was put into place, he has improved the existing chimney and replaced a reconditioned stove with a certified stove. The wood has been seasoned appropriately. Keene said he is just asking for the same privileges as others in the city have been allowed. He insisted that he has went above and beyond with the improvements. Keene added that he only heats his garage periodically.
Neighbor Dianne Ruud requested that the council not remove the Cease and Desist order. Keene’s garage is only about one foot from her property line. She insisted nothing about the location of the burning has changed; the outdoor smoke stack is low and because they are in a low area, the smoke stays in the area. She cited the city’s ordinance concerning public nuisances that affect health. Ruud concluded that all she is asking for is the right to clean air in her own home.
Sargeant Blaise Sass said they had received numerous calls before the Cease and Desist order. It is his understanding that the stove and chimney have been upgraded. He reported that on April 7, 2016 smoke from the upgraded stove appeared clean and he did not notice an offensive odor.
Reicks suggested that Keene be allowed to use his wood burning stove over the next 30 days. Ruud asked if she can still call the police during this period. She was assured she could. The council approved a 30-day trial period, after which the parties can report back to the council.
Other business in brief
• Approval was given for the Ambulance service to change its billing service to Expert T/Advantage Billing as recommended by director Ryan Throckmorton. The service will be contracted for five years.
• Lisa Pickett, Lisa’s Klip n Kurl, requested 2 two-hour parking spots in front of her business on St. Paul St. She explained that she has received numerous complaints from clients, many who are elderly, about access to close parking. Reicks was concerned about enforcement. Councilman Robert Maust suggested limited parking all around the courthouse square on one side of the street. Hoffman was directed to find out from the county what the city can do and also the cost of signs.
• A quote from Luhmann Law for city attorney for 2017 was approved. His was the only quote received. The annual retainer will be $19,440, which is a $1,400 increase over 2016. This is the first increase since 2012.
• Only one quote was received for the Official Newspaper. Hoffman said the rates are about the same as 2016. The official paper will be the Fillmore County News Leader/Bluff Country Reader.
• The council accepted the only proposal received for the 2016/2017 audit. The Smith Schafer two-year proposal is for $16,000 for 2016 and $16,500 for 2017.
• Hoffman discussed options for the city hall project. Improvements are being considered for the roof, stucco finish (EIFS), and the canopy. He reviewed pros and cons for hiring a general contractor, as opposed to contracting each portion of the project to individual contractors. The work planned will involve concrete work, electrical, painting, a new sign and landscaping, and installation of the mural. He suggested hiring a general contractor will add 5 to 15% additional cost to the project. No action was taken.
• City Attorney Dwight Luhmann has drawn up a proposed purchase agreement for the Dairy and Farm property. Preston Dairy and Farm is reviewing the agreement. It is expected to be brought back for discussion at the December 19 meeting.