The Spring Valley City Council held their Truth and Taxation hearing prior to their December 9 meeting. The council reviewed their proposed property tax levy, which will be collectable in 2025, with the numbers set as such, the general operating budget at $676,158, parks at $182,000, the economic development authority (EDA) set at $81,427 and library at $170,000. The total debt levies are $771,072. The total preliminary levy is $1,880,657.
The budget for 2025 budget has the legislative budget staying the same at $38,295, the administration dropping to $159,279, legal staying at $50,000, city hall’s budget also stayed steady at $20,000, the police budget rose to $397,745, the fire budget came in slightly higher at $117,613, streets stayed relatively the similar at $462,582, and the library came in at $268,420.
The parks department had a marginal increase of $2,603 for a total of $229,252, which is split into the four branches of the department. The pool is at $20,448, recreation is at $20,448, the community center is set at $25,200 and the parks at $127,618.
The ambulance budget is $611,050 and the Waste Water Treatment Plant (WWTP) is at $763,709.
The local government aid is at $1,025,570 and the general fund will see $646,158.
“Nothing has changed from the initial budget with the exception of capital expenditures there is $100,000 set aside for engineering. That is in anticipation of the city getting a grant for the project downtown,” City Administrator Deb Zimmer said. “It is a pretty tight budget.”
This addition caused a controversy amongst council members and members of the public.
“I don’t feel we should tag this capital expenditure of $100,000 for engineering. I think we should leave it in the capital funds for our projects that we originally talked about and discussed and look for grant funding for these engineering costs,” Councilor Luan Ruesink shared.
Councilor Greg Brooks expressed his concern with taxpayer money going toward a project when the recent survey regarding the community’s thoughts on the Broadway Project, which was demonstrated this summer, showed 65% of those who responded do not want the project to continue.
Councilor John Dols clarified the engineer costs may not total $100,000 as it would depend on how much grant funding is received.
“We have to have the money set aside from somewhere, but it’s not to say we are going to spend it,” Dols said.
“Taxpayer money should not go toward the downtown project, because they (the Spring Valley Business Alliance) said it wouldn’t cost anyone anything,” Mayor Tony Archer said.
Archer expressed concerns regarding funds already paid by the city for the project, which to date has totaled $43,429.64.
“Taxpayer money is what we have and we should not be paying for the cost towards what the taxpayers said they didn’t want. We should be looking out for the many not the few,” Archer said.
Council member Justin Mlinar asked the council to consider how this project could boost the economy and spotlight the community. Mlinar noted the project will make the downtown safer with slowed traffic and less wrong way drivers.
“This is not the one solution for our community, but this is one thing we can do,” Mlinar said.
After the hearing closed, the council heard from members of the public in regards to the project.
“Each of the council members, even though I disagree with some of your decisions, you take what you are doing seriously and you are trying to do what is best for this community,” Greg Melartin said. “If we don’t do the Broadway Project it’ll just stay the way it is now. If you are not moving forward, you’re are moving backwards.”
Spring Valley Business Alliance (SVBA) representative Dan Freeman thanked the council for their support last month when the council voted to move forward with the project as a new grant from the Minnesota Department of Transportation (MnDOT) became available.
“In past discussions the SVBA has committed to not having this cost the city any taxpayer money. Obviously, no one anticipated there would be an opportunity to receive up to $1 million for the Broadway Project in one grant,” Freeman said.
Because of this, Freeman explained the SVBA does not have the upfront costs of the engineering available, but noted this does not change their commitment. He said the SVBA will strive to pay back the money through fundraising and grants.
Business owner and SVBA member Alex Slifka told the council to consider how important the project is from a safety aspect.
After hearing from the public, the council approved a resolution certifying the 2024 final property tax levy and the 2025 budget.
Staff Reports
Dols shared Parks and Recs director, John Fenske’s report saying the community center continues to be busy, winter rec is up and running with the first tournament scheduled for January 4. Fenske thanked Julee Warren, Jiles Thomas, Thomas Lentz, Dylan Osterhus, Jim Hubka, Mike Lecy, Larissa Wolfgram, Lisa Kimball, Greg Bernard and Paisley Baker for volunteering their time as coaches.
Economic Development Authority Director Chris Hahn reminded the council the Spring Valley Food Shelf will be receiving an award from Kemps Foods. The Spring Valley housing study surveys are closed as of December 13. The final presentation of the results are expected in February.
A new furnace will be installed at city hall, according to Zimmer, as the old furnace is malfunctioning and leaking into the ceiling.
Ambulance Co-Director Sue Puffer reported 55 calls in November with 56 patient contacts. The department has assisted in holding CPR classes in the area.
Fire Chief Dustin Johnson shared there was one vehicle accident, one Mayo One assist and a kitchen fire last month. Their training for the month focused on ropes and knots.
Ruesink reminded residents the winter parking ordinance is now in effect. She also thanked Archer and Brooks for their service through the years on the council and within the community.
Dols also thanked Archer for his numerous years helping the community as a council member and mayor.
Archer thanked all council members and Zimmer for everything they’ve done though the years alongside him. He wished Mlinar luck as he takes over the role of mayor.
“It’s time for me to step back, relax and get into my retirement,” Archer expressed.
Other Business
• The council approved a resolution adjusting the pay scale for a 3% increase for all city employees.
• A resolution designating the Spring Valley Community Center as the city’s polling place was approved.
• Resolution committing the capital project revenue sources was approved. The city will commit funds of $222,232 for fire equipment and the building, $71,691.99 for street equipment, $126,906.22 for building maintenance, $1,475,461.71 for general projects, $8,381.49 for emergency management and $107,432 for ambulance replacement.
• The fee of $25,750 for the Smith Schafer audit of the city’s financial statement in 2024 was approved.
• A special meeting will be held on December 26 at 6 p.m. to review final payables for street projects. A special meeting will also be held on January 2 for the Oath of Office and to discuss the vacancy left on the council with Mlinar being elected mayor.
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