In September, the Rushford City Council set the maximum levy at $1,017,000, representing a 0% increase over the 2021 levy. At the December 13 meeting, more discussion on the topic was held with City Clerk Kathy Zacher presenting comparative and historical data, as well as updates on capital projects.
“In keeping it level this year, we’re decreasing some of our funds and we’re bringing some of the balances back down that crept up last year because we weren’t spending as much,” stated Councilor Sally Ryman.
“Every community around us went up,” said Councilor Jim O’Donnell.
“The average is close to 6% across the state. There were some that were much higher,” added Mayor Terri Benson.
“The budget is pretty much the same as last year,” noted Zacher. “We’re on the lower end despite the services provided to the citizens.” Rushford’s tax rate, the taxing levy divided by tax capacity, currently sits at 80.69 percent. This is the fifth lowest in the county and is considerably lower than last year’s 86.78. Also, helping offset costs is Local Government Aid (LGA) funding, which the state says is determined by a formula for city needs based on factors such as population, age of housing, and property market value compared to a city’s ability to pay measured by its local tax base. The city receives the third highest payout in the county.
As always, the council was reminded that if the city levy remains flat, it will not necessarily translate to a 0% increase to an individual or business’ property tax levy, as these are also impacted by changes in property market value of the property and increased levies by the school district and county. “If people’s taxes are going up, it’s because their values are going up. The way the homestead credit thing works is when you have a high-valued home, you get less of an exclusion, because you can already afford to live in a higher-value home,” explained Zacher.
Continuing with budget discussion, Zacher indicated some fine tuning, but very little change in some funds. Debt service is down, thanks in part to refinancing. It is all part of the larger plan for upcoming projects to come on line, without hopefully making too much of an added burden to citizens. The city is expecting to have a new bond next year for the state-required Highway 30 project through town. “With more cash in the fund we have the ability to use cash to make the bond payment and to have to levy so much,” noted Zacher.
“We are very lucky to be in a community that’s secure financially,” added Benson.
“The amounts we’re allocating into funds is remaining largely the same. We can put it in whichever category needs it,” continued Zacher. “Capital Funds looks rich, but there’s going to be some big projects coming out of there. It’s nice to know you don’t have to worry about how to finance.”
Following discussion, the council took no action, opting instead to wait until full council can be present to formally adopt the 2022 levy. Councilor Leigh Volkmann was absent. This must occur by the December 27 meeting.
In other news, the council did approve a request from the Fillmore County Auditor/Treasurer office regarding two parcels of land within residential districts. Notice was received by the county from the state that the parcels were to be forfeited for non-payment of property taxes. The council approved giving the county notice that the city is not interested in the lots and that they may be put up for public auction or auction to the adjacent property owners.
Both properties are of irregular size. The first, 107 East Park Street, is a 25-foot wide parcel, between two larger parcels with no structures on it. It is likely that an adjacent property owner would purchase the lot if available. The second is even further elongated and narrow, running between 101 and 105 North Elm Street. It encompasses a driveway to 103 North Elm Street and has property utilities below it. The adjacent property owner has attempted to purchase the lot in the past. There is no other access to the property at 103 North Elm without it.
Also approved was an Electrical Commission recommendation to use American Rescue Plan Act funding for infrastructure upgrades, including replacement of three old, problem circuit breakers in the city’s substation. Of the five there, one is new and a second is newer and still has reliability in parts and usage. The remaining three, however, will need replacement. The total cost is expected to be $70,000.
“The American Rescue Plan money can be used on infrastructure and this benefits the whole community,” noted Zacher. Use of the funds also frees up city dollars to be used on other projects. The city is working with Dairyland Power and MiEnergy on the project and no outages are anticipated with the upgrades.
“It’s one more step to improving reliability,” stressed Ryman.
Supplemental distribution of funds from the Coronavirus Local Fiscal Recovery Fund, under the American Rescue Act, was also approved unanimously. The first round of supplemental funding was allocated in November 2021 and the second is expected next year. These were a portion of funds that were left unclaimed by other cities. The $2,936 is just a fraction of the over $92,000 received by the city through this assistance, but will serve in helping all citizens in the long run.
Lastly, the council reviewed proposed changes for a 32-year old ordinance regulating public dances. If approved, the change would repeal the earlier ordinance, bringing it up to date with clear definitions and purpose. “We’ve been using it for 32 years. I don’t think we want to just drop it,” noted Zacher. “The positive parts are for the health, wellbeing, and general safety of everyone.” The matter will be discussed further at a future meeting.
The city will hold a special meeting Monday, December 20 with financial consultant Mike Bubany, of David Drown Associates, for the purpose of reviewing all upcoming projects for the city and the impacts they will have. The next regularly scheduled meeting will be December 27. Both meetings are at 6:30 p.m., at city hall, and are open to the public.
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