06.a3 minutes Draft 09-07-2022 Work Session
September 9, 2022
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.
Acting Mayor Heather Benson called the meeting to order at 6:30 p.m. The following were
present: Council members Heather Benson, Jerry Cusick, Steve Kronmiller, and Patti Ray. Staff
present: City Administrator Ken Cammilleri, Public Works Director Charles Fischer, Fire Chief
Mike Hinz, Engineer Ryan Goodman, and City Treasurer Colleen Firkus joining remotely.
Capital Investment Committee members present was Perry Rynders.
APPROVAL OF THE AGENDA
Ray, second by Benson, moved to approve the agenda as amended. Motion carried 4-0.
CAPITAL EXPENDITURES PRIORITIZATION & SOURCES OF FUNDING
City Treasurer Firkus led the Council through an exercise to prioritize Projects in the city’s
Capital Improvement Plan. More detailed explanations of Projects were provided by Fire Chief
Hinz, Public Works Director Fischer and City Engineer Goodman. Discussion of Parks &
Recreation expenditures will be delayed until an ongoing survey of residents’ recreation needs is
completed. City Administrator Cammilleri expressed his concern about cash flowing the General
Capital Improvement Fund as most projects in there are not eligible for borrowing and the fund
must save up money for its Projects. Some duplications and inconsistencies between the 8/05/22
PlanIt Reports and the 09/07/22 Budget/Levy Reports will require the PlanIt Reports to be
updated to match the new numbers in the 2023 Budget.
Cammilleri requested and received the Council’s direction to change the scope of the Gateway
Trail plan to match the amount of the $2,689,000 grant through the State's Environment and
Natural Resources Trust Fund since the award is 88% of the estimated project cost of $3,070,000
needed for completion the Oakhill Road (Hwy 52) pedestrian tunnel and trail segment to the
village center. If the Trailhead and Parking Lot are phased in later, there is possible funding in a
DNR Parks & Trails grant allocated for Scandia. Washington County will be cash flowing the
project and there is also no matching required in this grant, so no expenditure allocation will be
needed in 2023 for the project.
2023 BUDGET PRESENTATION
Administrator Cammilleri presented a 2023 Budget/Levy Discussion that included line-item
budgets for all funds, a draft of the 2023 Proposed Capital Improvement Plan, and how these
budgets will impact the estimated fund balances, the proposed property tax levy, and the impact
on households. The 2023 Proposed Budget was based on the Council’s direction to match the
existing 2022 Tax Rate on Tax Capacity of 30.945%, and use Debt as a funding source for
Capital Projects. Recent unprecedented changes in property values have increased the tax
capacity by 31%. Under this scenario the proposed General Fund levy would be $1,759,213, an
11% increase over 2022. The Capital Funds and Debt Service 2023 Total Budgets are proposed
to be $1,325,122, a 33% increase over 2022. In keeping the Tax Rate on Tax Capacity the same
Scandia City Council Work Session
September 7, 2022
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as 2022, the proposed Total Tax Levy would be $3,084,335, a 19.59% increase over 2022. The
impact of the 2023 Estimated Tax Rates on households per thousand of value was presented. The
Council requested more detailed information on the impact of the increase over the prior year on
property taxes per thousand of value, as well as a budget at a lower Tax Rate and Levy to be
presented at the next City Council meeting on September 20, 2022.
ADJOURNMENT
Kronmiller, second by Ray, moved to adjourn the meeting. Motion carried 4-0.
The meeting adjourned at 9:00 p.m.
Respectfully submitted,
Colleen Firkus
Treasurer