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12-07-2022 Work SessionDecember 07, 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. Mayor Christine Maefsky called the meeting to order at 6:30 p.m. The following were present: Council members Heather Benson, Jerry Cusick, Steve Kronmiller, Christine Maefsky, and Patti Ray. Staff present: City Administrator Ken Cammilleri and Treasurer Colleen Firkus. Fire Chief Mike Hinz joined remotely. Public Works Director Charles Fischer joined the meeting at 7:37 p.m. APPROVAL OF THE AGENDA Benson, second by Ray, moved to approve the agenda as presented. Motion carried unanimously. TRUTH IN TAXATION HEARING ON 2023 BUDGET AND PROPERTY TAX LEVY Administrator Cammilleri presented the 2023 budget and noted the changes made since the previous meeting at the direction of the Council to cover transition costs by transferring revenue and expenses of $112,500 from the Capital Improvement Fund to the General Fund. City tax rate was reduced from 2022 by -4.71% from 30.9455% in 2022 to 26.2355% in 2023. Changes in valuations and assessments reflect a County wide increase in valuation of 23% as well as heightened property sales in 2022. A chart gives an estimate of the impact on city property taxes for different categories of homes. The certified preliminary levy was $2,803,556. A Financial Management Plan proposed a scenario of using a combination of levy and debt to meet the capital expenditure needs of the city. The General Fund budget reflects a 15.9% increase in expenditures and a 16% increase in revenue. Details of changes in the Departments of the General Fund were outlined. The General Fund balance is expected to increase by $29,909 to maintain a balance that reflects 62% of next year's expenditures. Councilmember Ray suggested the levy be reduced to keep the general fund balance at 50% of next year's expenditures. Cammilleri recommended to keep a healthy fund balance for emergencies and to not reduce the levy or General Fund Expenditures. Costs for a new city administrator have not been determined yet. Transfers out of extra General Fund balance will be determined after the end of 2022. The 2023 Budget can be amended in 2023 to reflect the need to cover unanticipated expenditures. Capital Fund expenditures were highlighted for the General Capital Fund, the Park Improvement Fund, the Equipment Replacement Fund and the Local Road Improvement Fund. Future Park Improvement Fund projects will need to be revisited to address the projected negative fund balance. PUBLIC HEARING Mayor Maefsky opened the meeting for public comments at 8:05. Shaun Collier, 19960 Maxwell, asked how she can find the budgets for the city's utilities. It was noted that material is in the November 15th meeting packet accessed through the city's website. Scandia City Council Work Session December 7, 2022 Page 2 of 3 Collier asked the source of Park dedication fees and what is signage for Orwell/Liten Park and Hay Lake park. The City has a legal obligation when land was acquired from the DNR to provide specific improvements to Orwell/Liten Park including a sign. Collier noted health care expenses seem exorbitant and asked for an explanation of health insurance costs and the city's ability to shop for health care in the open market. Collier asked for clarification of her tax statement and the breakdown for the Culture & Recreation line item. Lonnie Gee, 12275 205th St. N., said it was difficult to read the figures on the projector and would like a printed copy. The public copy was offered to him. Administrator Cammilleri said he would make the information more accessible on the city's website. Mayor Maefsky closed the public hearing at 8:26. RECYCLING SERVICE DISCUSSION Max Dalton, Washington County Environmental Specialist, joined the meeting remotely to discuss the city's options for recycling now that the city's new trash hauler, Waste Management, needs a new recycling contract separate from the trash hauling contract at a much higher cost. The city has only $30,100 in the 2023 budget. Dalton said rising recycling costs are a concern in many communities. Benson asked if it is normal that the city pays recycling costs. Dalton indicated it is usually a resident burden. Interim Administrator Hurlburt noted it will be a big change for city residents to pay for recycling. Waste Management has not provided data as to what the service would provide and the cost for recycling and number of households anticipated to be served. The contract has been extended to end of January at no charge to the city or residents. Councilmember Kronmiller recently switched from Waste Management to SRC which halved his costs. Other city residents using Waste Management were unaware of the city's provision of free recycling through a contract with SRC. Councilmember Benson asked if the city regulated trash haulers and how do we get other haulers to come into the area. Administrator Cammilleri said the city does not, but it has a requirement that residents do have a waste hauler and a licensure of trash haulers that it doesn't enforce in Ordinance No. 8. Republic was reluctant without a full RFP from the city. Cammilleri suggested the city license haulers and review rates and the justification of any increases. Hurlburt said there is nothing in current ordinance about recycling. Hopefully the county can provide assistance with a sample ordinance. There is a need to communicate with the community as to what is going on. The issue is between having a monopoly and having wear and tear on roads with multiple haulers. The city has to have a contract for recycling to get the get the recycling grant from the county. Dalton would work with the city so the city can receive its usual grant while it works out its recycling contract. There is always a lag between City submission and County grant approval. The County has resources to help the City that comes with the grant program. Staff time but not legal costs could be used by the grant. Next steps are to work with the County and communicate with the residents preferably by Waste Management. APPROVING HIRING OF SEASONAL ICE RINK MAINTENANCE WORKER Benson, seconded by Cusick make a motion to approve the hire of Joe Murphy for the position of Ice Rink Maintenance Worker at $15.50 per hour. The motion was approved unanimously. Scandia City Council Work Session December 7, 2022 Page 3 of 3 Benson, seconded by Ray made a motion to adjourn. The meeting adjourned at 9:06 p.m. Respectfully submitted, Colleen Firkus Treasurer