12-04-2024 Work Session
December 4, 2024
A work session meeting of the Scandia City Council was held on the above date. The meeting
was conducted in the Council Chambers at the Scandia Community Center and over an
electronic platform. All participants who joined the meeting remotely could hear each other and
contribute to discussions.
Mayor Christine Maefsky called the meeting to order at 6:30 p.m. The following were present:
Council members Jerry Cusick, Steve Kronmiller, Mike Lubke and Mayor Christine Maefsky.
Staff present: City Administrator Kyle Morell and City Clerk Brenda Eklund.
APPROVAL OF THE AGENDA
Administrator Morell added discussion of the Treasurer position job posting as Agenda Item #4a.
Kronmiller, second by Lubke, moved to approve the agenda as amended. Motion carried 4-
0.
TRUTH IN TAXATION HEARING ON THE 2025 BUDGET AND PROPERTY TAX
LEVY
Administrator Morell presented the proposed 2025 budget and property tax levy for the Truth in
Taxation Hearing.
Administrator Morell explained that recommendations from the Capital Investment Committee
were incorporated into the budget, with six projects planned for next year. Projects include the
cold storage building, with a reduced project amount as most costs were expensed in 2024. The
tennis court project will have minor costs for completion, vehicle purchases for the fire and
public works departments, and a road improvement project. The levy amount for the 408 Road
Improvement Fund will increase by 10% ($400,000 to $440,000), and a levy amount of $125,000
proposed to support the other projects. Morell noted that the ARPA funds will be dispersed in
January for the new fire engine.
Administrator Morell summarized the tax levy, noting a 1.5% increase to the operating fund. The
budget includes personnel costs for a full-time treasurer position, personnel wage increases of
3.5%, and a City Council wage increase of 5.92%. Fire Department wages in the budget will
increase 23% to better reflect actual wages paid, as this line item has been under-budgeted in the
past. The Public Works road maintenance fund will decrease to $175,000 to offset other
expenses. Revenue to the General Fund is projected to increase 2.61%.
Administrator Morell stated that the estimated General Fund balance as a percentage of next
year’s projected expenses is 58.8%, exceeding the city’s policy.
Administrator Morell concluded with explaining the tax levy summary of $2,994,515, after
reducing for fiscal disparities of $123,679. The levy was reduced by $274,628 from the August
presentation. The tax rate is calculated at 27.834%, going up 1.13% over last year. A chart of the
tax impact on properties showed a 4.5% to 5.2 % increase depending on the value of property.
Scandia City Council Work Session
November 6, 2024
Page 2 of 3
The Council is required to adopt the budget and tax levy by December 27, 2024. Administrator
Morell stated that if the Council would like any changes, staff will bring revisions forward to the
December 17th meeting. If no changes, this is the budget that will be adopted at that meeting.
Mayor Maefsky opened the public hearing on the 2025 budget and tax levy at 6:41 p.m.
Roger Thomasen, 14757 Oren Road, asked about the tax rate increase. Administrator Morell
showed the spreadsheet of tax rate calculations according to information provided from
Washington County, explaining this is Scandia’s local tax, not other taxing districts. Estimated
taxes are based on property value.
Mr. Thomasen said he has concerns looking at his proposed property tax statement, with an
increase for the County portion at 13.5% and a 15% increase for Scandia taxes. Thomasen asked
what is the increase paying for? Morell explained the levy pays a road improvement bond
payment, new vehicles for fire and public works, and operation costs which reflect increases to
costs for fuel, gravel, tools and other materials.
Council member Kronmiller noted that Thomasen’s property value went up 13% from last year,
with a decrease to exclusions and deferrals line items. Administrator Morell advised Thomasen
to address this valuation question to the City Assessor or County tax department.
Mr. Thomasen asked how costs are collected on shared road projects. Administrator Morell
explained that project costs are evenly split with the adjoining municipality for that road, and the
engineer prepares the bills for the adjoining township. Scandia only budgets for the city’s half of
the project costs on a shared road.
There were no other speakers and Mayor Maefsky closed the hearing at 6:54 p.m.
Council member Lubke said the budget looks good and ready to pass.
Administrator Morell said a resolution to approve the 2025 budget and tax levy will be prepared
for adoption at the December 17th Council meeting.
REVIEW THE 2025 DRAFT FEE SCHEDULE
Staff presented the proposed 2025 fee schedule with additions including cannabis business
licensing fees, activity and participation fees for Parks, solar fees for electrical permits,
administrative permit fees set at $250 for ADUs, and Sealcoat Fees as recommended by the CIP
Committee. Rates were adjusted for the sewer users as recommended by the Wastewater
Advisory Committee. Staff clarified that seasonal rates for Big Marine Sewer users will be based
on the property’s County tax classification as seasonal.
No changes were suggested. The fee schedule will be adopted at the December 17th meeting and
become effective on January 1, 2025.
Scandia City Council Work Session
November 6, 2024
Page 3 of 3
ADDITION: TREASURER POSITION JOB POSTING
Administrator Morell reported that one application has been received since posting the part-time
Treasurer position one month ago, even though being highly viewed on social media accounts.
Morell said he recommends posting it as a full-time position of 32 hours per week through
December with expanded posting sites. Morell noted that this wouldn’t affect the 2025 budget as
it is budgeted for a full-time employee.
Maefsky, seconded by Kronmiller, moved to post the Treasurer position as full-time.
Motion carried 5-0.
ADJOURNMENT
Kronmiller, second by Lubke, moved to adjourn the meeting. Motion carried 4-0.
The meeting adjourned at 7:02 p.m.
Respectfully submitted,
Brenda Eklund
City Clerk