Budget Amendment Brought Questions
by Mari Radtke
A proposed budget amendment was duly published and properly opened at the December 9 regular city council meeting. One individual, Francis Hinspeter, asked if it had been posted, which it had been. There were no additional comments during the public hearing. Following closure of the public hearing, council held a public hearing for accepting a loan for $130,000. They were asked what the $130,000 was for. City Clerk Robin Harvey explained it paid for digging and results of a test well on the west side of town. Mayor Pat Bunt explained that it is a 0%, 3-year loan. Council was asked why the test well was dug at the west location. Bunt explained it was to determine if the aquifer would provide better and sufficient water, which the new site failed the test. After asking about the next steps it was announced that the well is expected to be a deeper well at the current location. Further testing and design work continues. A public meeting will be held with the engineers to explain findings in late January or early February.
All resolutions to take additional action to authorize the loan passed.
The consent agenda included approval of city minutes and financials; the budget amendment, regular funds transfers from the general fund to other specific funds, a change order form Ten Point Construction, snowmobile route requests, Community Center alcohol license, a grant application for the library and the Nelson/Grey garage façade application. It passed.
Todd Martin attend with the Marcus Community Center spoke to the council on behalf of the Community Center Board. He asked about the decrease of $6000 city funding cut. He asked the council will reconsider the move. Harvey explained when the state answered the call to reduce property tax burdens, the state removed every city’s ability to maintain and collect a voter approved levy that specifically funds community centers. If the city is going to continue to support the community center it would have to be put into the regular budget and come from the general fund collections.
Isaac Cruz of Cruz Electric came for a follow-up if the council is going to participate in a rebate program to change light fixtures to LED. The theory is that the savings from the electric use and the rebate would pay for the project in a couple years. After discussion, council approved proceeding with the project.
A request to establish “No Parking” on West Locust was considered. Council and Police determined a part of the street was wider than the rest of Locust Street. It was stated that an ambulance would not have a problem getting through and the motion was denied.
Clerk Harvey reported to council some of the expectations for Urban Revitalization funding. The state legislature passed House File 718 which went into effect on July 1. That law changes the city’s tax abatement. The Cherokee County Assessor notified Harvey the change requires the city to update its policy to be in compliance. Requesting help from Iowa League of Cities, it was revealed that there is not agreement on what the city needs to do between entities and she was further referred to the city’s bonding attorneys. They told her there is no legal requirement to adopt a plan, but advised the policy be changed to stay consistent and “reflect current laws.” The legal change is that when a tax incentive is approved, the city can no longer waive any other taxing entities portion of property tax – i.e. school, county, extension, etc. Only the city’s portion can be waived under the new law for property improvement. She is unclear how the commercial changes will work. A commercial sliding scale can no longer be used. SIMPCO was approved to do the new policy at a cost less than $2000. The money will be considered at the budget workshop to be held in April.