The Rushford City Council met December 14, via online platform, to finalize the property tax levy payable in 2021. While the deadline to approve was not until the next meeting, concern over possible weather issues and pandemic restrictions saw Councilor Sally Ryman motion to approve it at this time. The preliminary levy was set in September at $1,017,000, which represented a 4.5% increase over last year’s $936,000, which was a 3.95% increase at that time. The council approved setting the final levy with the recommended increase.
The increase is due to an increase in both levy service and capital projects. As noted by City Clerk Kathy Zacher, the increase does not necessarily translate to an increase in individual property taxes. Zacher presented a thorough account of historical data regarding the levy rate, state of accounts, and budget data. Despite the fluctuating and restrictive year, the city did spend more this year. “We did a lot of things this year,” noted Zacher. “There’s also a decent amount to cover upcoming things in the future.”
General fund reserves are healthy and have been built up over the years on the recommendation of auditing and bond rating entities. “They look at debt and your cash on hand to see how much cash you can get your hands on if you have to,” added Zacher. “They also look at historical things. We have the ability to get our hands on cash if we need it and that’s what they didn’t like about our last rated bond issue.” Next year will see increases in only three areas: General Fund ($13,367), Debt Service ($10,633), and the Airport Fund ($200,000), the last of which will likely see hefty reimbursement upon completion of projects.
The city’s new tax rate, the division of the levy by each taxing district by the taxing capacity, is 86.7%, which is the average from the last seven years.
“It’s another level we want to monitor, so we don’t jump that number up and down. We want it between 85 and 90,” noted Mayor Terri Benson.
“If it’s under 85, there’s not enough to maintain fund balances,” added Councilor Sally Ryman. Rushford’s new rate puts them as the fifth lowest in comparison with other cities in the county. Only Rushford Village, Whalan, Fountain, and Wykoff are lower. It was noted by Administrator Tony Chladek that it’s important when looking at comparison of rate to look at taxable market value and what cities actually levy.
“What we’re budgeting is what they’re spending. It’s healthy but not over-abundant funding each year,” noted Benson. “We’ve had the numbers for a while and I feel comfortable moving forward with as is. It’s respectful of the taxpayer’s money and respectful of the projects coming up.
In other news, the council approved a labor contract negotiated with AFSCME Local 1944 and IBEW Local 160 for city employees. The new contract term runs January 1, 2021, through December 31, 2023. Benefits will increase $65 in year one, $75 in year two, and $85 in year three of the contract and the wage rate increase is 3% per year. A wage and benefit increase was also approved for all non-union, full-time employees, in this case the Administrator Chladek and Library Director Beth Nelson, at the same rates as those provided to full-time, union employees.
Also approved was a renewal of legal service agreements for 2021 with Michael Flaherty, of Flaherty/Hood, for general legal services, and Dwight Luhmann, of Luhmann Law, for criminal legal services. Flaherty’s contract increased slightly while Luhmann’s remained the same.
The Economic Development Authority (EDA) recently recommended the council approve discharge of an outstanding Revolving Flood Loan for Kevin Klungtvedt/Rushford NanoElectroChemistry Co. Judgement was filed September 14 and showed no assets from which the EDA could collect and it was therefore recommended not to pursue collection of the loan. Kungtvedt passed away in February 2020, after having been diagnosed with brain cancer.
“Even if we discharge it, the court judgement stands in place until 2025. If whoever has the patents starts making money, we could get reimbursed, but the chances are pretty nil,” noted Ryman. It was noted the loan was given in 2012 for the purpose of staff and supplies
“Visiting with other scientists, the nature of the businesses was trying to create,” said Zacher. She also noted that loans that are in a state of forbearance continue to accrue interest and that amounts are not all cash out of pocket.
“Collateral wise, it was tough, because it was ideas,” added Benson. “The technology and science he was using is cutting edge, but because of that, biggest businesses sometimes get there first.” The council approved the recommendation of the EDA to discharge the loan.
Another item of notable discussion included a resolution of commendation acknowledging Luther (Lupy) Myhro’s 30 years of service as an election judge and authorizing the planting of a tree at Veteran’s Memorial/Creekside Park as a token of appreciation for his service. Myhro recently celebrated his 96th birthday.
The next regularly scheduled council meeting is Monday, December 28, at 6:30 p.m., at city hall. The meeting is open to the public. Those wanting to attend can do so in person or virtually via Zoom and are encouraged to contact city hall regarding attending.
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