Photo by Kirsten Zoellner
In January, Rushford Village received an initial report from the League of Minnesota Cities’ appraisal of all city property. There were wide discrepancies and the city’s insurance agent, Butch Johnson Insurance, offered to check into whether or not errors were made on the figures as the appraised amount will greatly affect the insurance premiums for the year.
At the March 1 council meeting, Johnson was present to discuss his findings. “I’m nervous about the building costs and the updated values,” he began. He noted one open-sided shelter, with only a roof and concrete floor, had increased from a valuation of $21,500 to $73,500, the equivalent of $59 per square foot and it did not include the concrete in the value. At the city’s lift station, equipment value was listed at $91,000 and the city recently purchased it for just $48,000. The old maintenance shed, which the clerk noted was in terrible shape, increased from $13,178 to $48,000.
“I don’t know how much they’re going to give. They’re going to do every city and township in the state in the next seven years,” added Johnson. “They’re going to cap this at a 30% premium increase. Our main concern is the value. How do you justify it? I can’t.”
Ironically, items of city property, which included engineering to design and build, didn’t go up and in some instances went down in value. Johnson and the city’s Public Works supervisor, Trenten Chiglo, went over the league’s details for each building, measuring and reviewing materials. “I’ve got a lot of questions about how they arrived at this. We don’t know what the rates are going to be this year. I’m just baffled by what they’re doing.”
“Do we keep going after them to justify it?” asked Overland.
Councilor Bob Hart, who appraises properties professionally, noted that the league is using a Marshall and Swift valuation. “It’s the same data that I use. You and I could enter that [the property details] in there and see the value. I’ll bring you my cost valuations and you can use that however you want.”
“I think we should see if anyone else in the southeast is having these issues. Rushford and Peterson haven’t had it done yet,” added Councilor Mike Ebner.
The council will continue pushing the league for justifications for new valuations and will discuss the matter at the next meeting when Hart has brought his data back.
The council also reviewed a proposal from American Facility Services for cleaning of the Village Hall and community center. It was discussed last month, but at the time, it was unclear whether or not the price would remain the same on an as-needed cleaning basis. The company agreed to keep the $85 rate, for four hours of cleaning, working as needed.
A public hearing date of April 5, at 6:45 p.m., was set for the purpose of modifying the proposed changes to the council’s pay increase, which will take effect in January 2023. The council is considering modifying the ordinance to not require a public hearing every time the council pay is raised. City Attorney Joe O’Koren noted some cities operate this way and do amend salaries more frequently. Rushford Village Council hadn’t raised their rate in 20 years.
The next regularly scheduled council meeting is Tuesday, March 15, at 7 p.m., at the Village Hall. The public is encourage to attend.
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