6.a2 Draft minutes 10-27-2020 Work Session
October 27, 2020
A work session meeting of the Scandia City Council was held on the above date with
modifications. Due to the health advisory issued by the State regarding the COVID-19 outbreak,
to avoid public gatherings and limit social contact, the meeting was conducted over an electronic
platform. All council members and staff who joined the meeting remotely could hear each other
and contribute to discussions. City Administrator Cammilleri was present in the Council
Chambers. Cammilleri was the presenter and displayed the meeting materials for participants to
view on their remote screens.
Mayor Christine Maefsky called the meeting to order at 6:03 p.m. The following were
participants to the meeting: Council members Jerry Cusick, Steve Kronmiller, Chris Ness, Patti
Ray and Mayor Christine Maefsky. Staff participating: City Administrator Ken Cammilleri, Fire
Chief Mike Hinz, Public Works Director Adam Hawkinson, and City Treasurer Colleen Firkus.
DISCUSSION OF THE CITY’S 2021 BUDGET
Administrator Cammilleri used a power point presentation to recap how tax rates are calculated
and offered four options for the Council’s consideration for setting the levy based on differing
City Tax Rates.
Option A: Proceed with approved Preliminary Levy for a 7.6% increase in tax levy over
2020 with an estimated City Tax Rate increase of 1.1% or 31.825%.
Option B: Lower the Preliminary Levy by $29,000 for a 6.3% increase in tax levy over
2020 and an estimated 0% increase in the City Tax Rate (31.455%).
Option C: Lower the Preliminary Levy by $55,000 for a 5.3% increase in tax levy over
2020 and an estimated City Tax Rate decrease of 1.1% (31.123%).
Option D: Lower the Preliminary Levy by $103,000 for a 3.3% increase in tax levy over
2020 and an estimated City Tax Rate decrease of 3% (30.509%).
Any excess funds that exceed the City’s fund balance policy minimum of at least 50% of the
year’s budgetary expenses could be allocated towards road maintenance such as chip and crack
sealing, or distributed to another area of need. The first three options estimate the City will end
the year with an excess fund balance above the City’s policy minimum. The last option would
require cuts to the 2021 budget to balance the budget and maintain the City’s fund balance policy
minimum.
The City is waiting for the County to release the final tax rate information. Page 7 of the City’s
Budget/Levy draft shows the Estimated Impacts on Tax Bills based on the Preliminary Tax Levy
and City Tax Rate of 31.825%. Council asked Cammilleri to provide this information on Option
B.
Ray, seconded by Kronmiller, moved to explore Option B and its impact on the Tax Levy
and City Tax Rate. Motion carried 5 – 0 by roll call vote.
There was no further discussion on budget line-items or capital expenditures. Cammilleri noted
that the Sewer Committee will meet in December and anticipate recommending a 7% increase to
October 27, 2020
Scandia City Council
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the Big Marine Sewer rates and a 5% increase for Uptown Sewer rates. A final Council budget
discussion will be held at the December 2nd work session prior to approving the final tax levy on
December 15th.
ADJOURNMENT
Ness, seconded by Ray, moved to adjourn the meeting. Motion carried 5-0 by roll call vote.
The meeting adjourned at 6:38 p.m.
Respectfully submitted,
Colleen Firkus
Treasurer