09-01-2021 Work SessionSeptember 1, 2021
A work session meeting of the Scandia City Council was held on the above date with
modifications. The meeting was conducted in-person 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 6:42 p.m. The following were present:
Council members Heather Benson, Steve Kronmiller, Patti Ray and Mayor Christine Maefsky.
Absent: Jerry Cusick. Staff participating: City Administrator Ken Cammilleri, Public Works
Director Charles Fischer, Fire Chief Mike Hinz and City Treasurer Colleen Firkus. Capital
Improvement Committee members present were Perry Rynders and Dominic Mitchell.
APPROVAL OF THE AGENDA
The agenda was amended to add to two proclamations. 1) To honor the 223rd anniversary of the
drafting of the Constitution of the United States of America, the St. Croix River Chapter of the
Daughters of the Revolution requested the City of Scandia proclaim September 17 through 23 as
Constitution Week. 2) At the request of the Scandia-Marine Lions Club, the City has been asked
to proclaim October 15, 2021 as White Cane Awareness Day to promote blind citizens ability to
live full and independent lives and to travel safely. Maefsky, second by Ray, moved to approve
the proclamations. Motion carried 4-0.
Addition 3.a) to request approval of the expenditure to remove and reinstall the solar panels on
the Public Works/Fire Department building as part of the roof replacement.
Ray, seconded by Benson, moved to approve the agenda as amended. Motion carried 4-0.
USE OF CITY LOGO FOR FUNDRAISER
Ray, seconded by Benson, moved to approve the use of the City's logo for fundraising
activities for the Arts & Heritage Center by the Scandia Heritage Alliance. Motion carried
4-0.
FIRE HALL/PUBLIC WORKS & ANNEX ROOF REPLACEMENT
Fire Chief Hinz requested the Council approve a reroof bid of $93,070.56, plus $26,047.87 to
remove and install the solar panels for a total of $119,118.43. Bid for the Annex roof came in
less than projected so the total cost for both buildings will be $141,166.87. This is $11,166.87
over the budget of $130,000. Ray, seconded by Benson, moved to accept the bid to include
the additional $26,047.87 to remove and reinstall the solar panels. Motion carried 4-0.
DISCUSSION OF THE CITY'S 2022 DRAFT BUDGET AND CAPITAL
IMPROVEMENT PLAN
Administrator Cammilleri presented a Budget Transmittal Letter to review conditions that will
affect the City's 2022 Levy and Tax Rate. 1) Population from the 2020 Census is less than
projected in 2010; 2) Property values are estimated to increase 2.90%; 3) the City's fund balance
policy to maintain a healthy fund balance; 4) increase in permit activity and revenue, 5) Salary
and wage compensation increases; 6) replacement of server; 7) two elections in 2022; 8) increase
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Scandia City Council/Capital Improvement Committee
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in Legal expenses; and 9) repairs to the Community Center grounds and kitchen equipment are
some of the items that are projected to increase the General Fund Levy by $201,500.
The Capital Bud -gets were presented with three solutions to smooth out the spikes of yearly
revenue needs for identified projects. Reallocating the timing of projects, or cash funding with
debt are two solutions to smooth out these revenue need fluctuations. None of these options
include the use of American Rescue Plan funds.
Option 1 — Cash Funding — no debt
Strictly rely on levy as a finance option to pay for capital projects and drawing down fund
balance reserves. Levies and the Tax Rate would fluctuate to meet the cash needs. The current
budget anticipates a 4.52% Tax Rate increase in 2022. But following years would require a much
larger increase such as 17.7% and 21.58% to meet revenue needs for projects in those years.
Option 2 — No Tax Rate Impact or Lower Tax Rate
Reallocate projects to keep revenue needs stable, or eliminate projects, to keep a stable Tax Rate.
This option shrinks and spreads spending over time.
Option 3 — Use Debt
Use a long-range financial plan to cluster and coordinate projects using debt instruments to
handle revenue deficiencies. This option as proposed now would increase the tax rate by 4.52%
in 2022 and the levy by 6.98%.
Challenges to Utilities are anticipated. The Council approved a request for state bonding to help
cover half the cost of a $1 million upgrade of the Bliss Wastewater Treatment System required
by the MPCA to be completed in 2023. The balance of the project would require increased User
Fees for its 112 users as well as Debt and the use of the federal funding windfall of the American
Rescue Plan dollars. The replacement of the Bliss Lift Station #2 is projected to be clustered into
this project at $375,000.
The Uptown Sewer is at or exceeding daily capacity and requires an expansion expected to cost
$500,000. With only 9 Users on the system, this will be a challenge to fund.
Next Steps:
1. Identify which funding Option the Council would like to pursue to meet funding needs.
2. Review and prioritize the capital projects.
3. Council directed staff to prepare a budget showing no increase in the tax rate, and an
option using Debt with a small tax rate increase.
Rynders stressed that there needs to be an increase in annual spending on roads as the current
plan only meets half the fund needs to maintain the roads as identified by the City Engineer.
Kronmiller concurred that priorities need to be shifted to increase spending on roads. Ray
reminded the Council that broadband spending should be completed in 3 years, and there may be
federal funding becoming available for roads.
The next meeting is scheduled for Monday, September 13, at 6:00 p.m.
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Scandia City Council/Capital Improvement Committee
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ADJOURNMENT
Ray, second by Benson, moved to adjourn the meeting. Motion carried 5-0.
The meeting adjourned at 8:45 p.m.
Respectfully submitted,
Colleen Firkus
Treasurer