MINUTES OF THE

TRUTH IN TAXATION PUBLIC HEARING AND

REGULAR FRANKLIN CITY COUNCIL MEETING

Monday, December 12, 2011

 

 

A Truth in Taxation Public Hearing and Regular Meeting of the Franklin City Council were held on Monday, December 12, 2011, at 7:00 p.m. at City Hall.  Council members present were:  Degner, Hoffman, and Lyon.  Arriving late were Schacher and Wiese. Staff Department Heads present were:  Degner, Kokesch, and Pederson. Guest present was:  Wayne Miller.

At 7:00 p.m., Mayor Degner called the public hearing to order.  Mayor Degner presented the proposed 2012 Budget and Levy.  Miller was addressed and reported that his property taxes on his shop jumped 82%.  The council explained to Miller that the increase was due to the state tax shift and removal of the homestead credit, being the city’s levy increased just 6.983%, the bulk of the increase had to be due to the new tax formula. It was recommended that people contact their state legislators regarding the tax changes and to check with the county regarding the actual tax calculation.  The council felt there were no budget or levy changes needed.  As there were no other citizens, Mayor Degner closed the public hearing at 7:11 p.m.

Mayor Degner called the regular meeting to order with roll call showing Schacher and Wiese absent/late.

Mayor Degner called for approval of the agenda.  Pederson recommended amending the agenda to include the Resolution 2011-12, Approval of Advance Agreement with Minnesota Rural Water.  Hoffman motioned to approve the amended agenda and include Resolution 2011-12 with the Utility Improvements portion of the agenda, second by Lyon, RCV-3 Yes, 0 No.

Mayor Degner called for approval of the minutes of the November 14, 2011 Regular Meeting.  Hoffman motioned to approve the minutes as presented, second by Lyon, RCV-4 Yes, 0 No. 

            No citizens were present. 

            Water samples from the Well #5 project tested lower for nitrates and arsenic and a little higher for iron.  The B.O.C. results are not in yet.  Bolton and Menk recommended the council approve the certificate of substantial completion for Ervin Well Co.  Lyon motioned to approve the Certificate of Substantial Completion for Ervin Well Co., second by Hoffman, RCV-3 Yes, 0 No.

            Kokesch met with Bolton and Menk and the final construction plans for the utility improvements should be completed soon.  Rural Development approved payment of the project engineering invoices causing the need for interim financing.  Pederson will pay a portion of the invoices with city money, fulfilling the city’s obligation to the project expenses.   Hoffman motioned to approve Resolution 2011-12, Advance Agreement with Minnesota Rural Water, second by Lyon, RCV-3 Yes, 0 No.

            A summons was sent on December 2, 2011, to Renville County District Court and to Navigators Insurance Company regarding the Gaub warranty issues.

            The financial status of the city was reviewed.  November receipts totaled $9,868.06; current bills were presented for payment in the amount of $117,631.39.  Lyon motioned for approval of the bills and financial report as presented, second by Hoffman, RCV-3 Yes, 0 No.  

            Department Heads were addressed.  Kokesch reported that there are about 120 various varieties of trees at the boatlanding and 53 have been marked for removal; Myron Gehrke has expressed interest in cutting down the trees and would remove the stumps as well.  It was recommended that Gehrke to sign a hold harmless waiver.  Lyon motioned for Kokesch to negotiate with Gehrke on a removal cost, second by Hoffman, RCV-3 Yes, 0 No.  Kokesch is having great difficulty in locating bulk wood pellets, noting that since corn prices are high more wood pellets are being burned and demand is higher.  Last year the ag pellets cost $190/ton and are not available at this time; wood pellets were $212/ton and are now $275/ton.  Dan Reek stated that even at the $275/ton it is more cost effective than Lp or electric heat.  Hoffman motioned to purchase 12 tons of wood pellets, second by Lyon, RCV-3 Yes, 0 No.   Kokesch reported that he has inventoried the street lights and was able to identify most of the lights and locations the city pays for.  Pederson presented Christmas and New Year ads to the council, and due to budget constraints, the council chose to decline paying for ads.

            There were no new zoning permits.

            Pederson presented the 2011 Fire/Ambulance Wage report.  Lyon motioned to approve the 2011 Fire/Ambulance Wages, second by Hoffman, RCV-5 Yes, 0 No.

            Schacher motioned to approve the Amendments to Ordinance 03-2003, fee changes for 2012, second by Hoffman, RCV-5 Yes, 0 No.

            Lyon motioned to approve the 2011 Audit Engagement of Uhlenkamp and Associates, second by Schacher, RCV-5 Yes, 0 No.

            The 2012 Budget includes:  General Fund income $159,160, expenses $407,642, transfers in $70,300; Water Fund income $83,550, expenses $51,350, transfers out $38,100; Sewer Fund income $96,500, expenses $58,400, transfers out $38,100; Debt expenses $119,109; Government Aid $132,996; net 2012 levy $164,295, an increase of 6.983% over 2011.  Hoffman motioned to approve the 2012 Budget  and Budget Summary as written, second by Wiese, RCV-5 Yes, 0 No. 

            Wiese motioned to approve Resolution 2011-11, 2012 Property Tax Levy, second by Schacher, RCV-5 Yes, 0 No.

            Wiese motioned to not waive monetary limits on municipal tort liability with LMCIT, second by Schacher, RCV-5 Yes, 0 No.

            Schacher motioned to approve Katie Joehnck, who is currently an EMT, to the ambulance department, second by Wiese, RCV-5 Yes, 0 No.

            Pederson presented the GASB-54 Fund Balance Policy that was reviewed and found acceptable by Mike Uhlenkamp.  Lyon motioned to approve the GASB-54 Fund Balance Policy, second by Schacher, RCV-5 yes, 0 No.

            Mediacom has indicated that they wish to renew the franchise agreement with the city.  Pederson questioned whether the council wished to turn this over to the attorney or to suggest the terms of the current agreement be renewed.  The council consensus is to renew with the same agreement. 

            A draft 2012 Annual Appointment list was presented, there were no changes requested.  It will be formally approved in January.

            There were no councilor requests.

            At 8:06 p.m., Mayor Degner called for adjournment, with Hoffman motioning for adjournment, second by Wiese,  RCV-5 Yes, 0 No.  The next regular city council meeting will be held Monday, January 9, 2012, at 7:00 p.m. at City Hall.

 

Respectfully Submitted by

                        Wendy Pederson, City Clerk/Treasurer