12-03-07 T in T
December 3, 2007
The Truth in Taxation Public Hearing meeting of the Scandia City Council was held on
the above date. Mayor Seefeldt called the meeting to order at 7:00 p.m. The following
council members were present: Council members Pete Crum, Michael Harnetty, Dolores
Peterson, Mayor Dennis Seefeldt, Donnette Yehle. Staff present: Administrator Anne
Hurlburt and Treasurer Colleen Firkus.
Administrator Hurlburt gave an overview of the Proposed 2008 Budget, answering
questions as they arose.
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Mayor Seefeldt opened the public hearing. Cliff Gugggisberg, 12780 182 St., asked if
the City Council felt the Fire Department budget was comparable to other Fire
Departments with similar numbers of runs. Mayor Seefeldt responded that our volunteer
firefighters have a lower remuneration compared to others in the area, and that the City
does compare their rates of pay with other cities. Mr. Guggisberg also asked if the cost
of the Fire Hall building was in the Debt Service part of the budget. Mayor Seefeldt
indicated that it was all in the Debt Service and that the cost of the Public Works/Fire
Hall bond is not taken out of those department’s budgets. Mr. Guggisberg indicated that
the true costs for the Fire Department are not reflected in the budget for that department
and that all departments should reflect true costs. Mayor Seefeldt commented that our
Fire Department just went through an insurance rating review and kept its ISO rating of
7, which is the best rating it could have, and saves a significant amount in property
insurance premiums for the city’s residents.
Rod Negus, 23120 Melanie Trail, asked about the expenses directly related to
incorporation; what were the estimated expenditures and when did the expenses end. Mr.
Negus also asked how the Council gets feedback on the issue of increasing services
versus increased spending. Mayor Seefeldt explained the many different ways the City
obtains public input.
Ernie Kertscher, 21350 Olinda Trail, commented that 19% of the General Fund spending
goes to the Fire Department. He asked if May Township is spending 19% of their General
fund budget on fire protection, and that perhaps they should if they aren’t. Mr. Kertscher
said we shouldn’t be subsidizing their fire protection.
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John Lindell, 11240 218 Street, asked several questions:
1. What was the Washington County Tax Settlement line was in the Revenue Budget? It
was explained that this was the levied property taxes.
2. Did Personal Services expenses in the Administration budget double in two years?
Yes, because we added personnel and basic benefits.
3. Why were there no numbers in 2005 & 2006 for Personal Services in the Planning and
Building Department? This was a previously contractual service that has been brought in-
house.
December 3, 2007
Truth in Taxation Public Hearing
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4. How is paving being paid? How much is paid by city and how much is assessed? It
was explained that paving is paid by bonds with about 25% of the cost being assessed to
property owners. He suggested that debt service could be reduced by assessing more.
5. Why are there differences between bonds for principal and interest payments?
Different outstanding bond balances and interest rates make for different payments.
6. The theme of incorporation was that services wouldn’t change and thereby there would
be no budget changes. He sees expenses significantly higher than proposed in 2006 for
incorporation. Mayor Seefeldt replied that any changes made would have been made
regardless of whether Scandia was a city or a township.
The public hearing was closed at 8:47 p.m. and will not be continued. The final budget
will be adopted on December 18, 2007 with a possible budget work session on December
17, 2007.
The meeting adjourned at 8:50 p.m.
Respectfully submitted,
Colleen Firkus
Treasurer