December 22, 2022 at 2:50 p.m.
Lindstrom Council adopts 2023 levy, administrator to leave
There were about a dozen people in the audience who were advised by the mayor this meeting is not a public hearing and offered no public input. Mayor Stenson said any disruptive behavior would be met with expulsion from the meeting room.
The city was under no obligation to offer severance pay, as this is initiated by John Olinger as a voluntary parting, city attorney James Monge explained. Olinger made his wishes known Friday December 16 advising the mayor that he was leaving.
Council member Linda Merkel opposed the three month payment motion offered by Council member Laurie Burington, based on the brief notice given, she said. (December 30 is the last employment day.)
Regular Meeting
Lindstrom Council adopted the levy and budget as presented for 2023, estimated at an increase of 10.5 percent for all funds combined.
The citizens attending the levy hearing heard that expenses in 2023 will go up $274,000. Growth in property tax collections due to added parcels (development) and valuation growth translate to a taxation RATE decrease from 48.8 in 2022 to 42.9 in 2023 for Lindstrom taxpayers.
On sample properties in the residential category— the 2023 levy impact adds $73 per year to a tax on a house with a valuation set at $150,000. A residence at $250,000 can expect an impact of $122 added annually.
This budget package is presented to the public for input on the budget and line item questions, but the residents had more concerns having to do with their parcels. One man said his lakeshore parcel tax has gone from $6,000 annually to $13,000 and he will be priced out of his property if this continues. He used to be in the township, however. City Administrator John Olinger agreed to meet with the man and help him review taxation criteria that the county assessor has and make sure they are accurate. (If readers question the assessed valuation on your property, you should start with verifying the county’s data like lot size, house square feet, outbuildings, etc.)
City Director of Finance Kay Mattson explained that a six percent Cost of Living Adjustment is included within these budget numbers. She added that Lindstrom’s debt service line item is well below what similar cities collect to make payments. Property tax is being used to service General Obligation Bond debt for the fire equipment certificates and fire hall, and what was originally borrowed in support of a redevelopment area at Lakeview Motel. Council heard there has been no terms reached on a price for the motel so these funds will be “redirected’ elsewhere by official action. (A motion to table this “redirection” of bond proceeds was approved during the regular council meeting.)
The city is also putting funds into an account for a future public safety facility.
Lakes Area Police have asked for one-third of an approximately $9 million project to be paid for from state grant programs and the department awaits to see if the legislature agrees.
Council member Linda Merkel was the lone no vote establishing the levy/budget resolution citing a Cost of Living Allowance built into the numbers. She said residents paying this bill won’t be seeing six percent wage hikes and they can’t keep up with public employee salary growth. “No disrespect” to Lindstrom personnel, she continued, but a 4.5 percent COLA was given last year and Merkel felt that 4.5 percent also ought to suffice in 2023. She also has concern about looming infrastructure needs facing Lindstrom utilities and streets.
To better-position the city regarding sewer and water system expenses that are coming up, staff also presented a fee hike adopted by council.
Water bills, sewer bills and stormwater fees increased: there’s scale of usage and types of properties but on the low end, a basic house using 5,000 gallons per quarter will see the per 1,000 charge go to $18.85 from $14.50. A larger household using 20,000 gallons per quarter will be billed $86.15 per quarter, up from $66.25.
On the sewer charges: the $46.25 per quarter fee for 5,000 gallons of water use will increase to $48.10 per quarter. The 20,000-plus gallon example increases to $208, from $200 currently per quarter.
Stormwater charges are based on size of a commercial building so this impact will vary by property. RESIDENTIAL fee goes from $16,98 per unit to $23.78. Staff said the city needs to collect an added $52,000 per year to have funds for identified needs.
On a related issue a resident made a plea to reduce a utility billing he got, which he said is tied to irrigating sod at his new-build home on Irene Avenue. Chris Carey explained the sewer bill is excessive because the gallons of water he irrigated with never made it to the treatment plant.
There was lengthy discussion and back and forth on compromising and meeting in the middle and council ultimately okayed a credit of $1,100. Lindstrom already has a policy to allow $550 off a sewer billing cycle when irrigation is boosting a bill, so these two sums will be combined and reduce his $2,724 third quarter bill.
Normally the city could review history and find a median to charge, based on prior actual billings but this is a new home. Lindstrom staff also advised the resident the city has external use-only metering equipment available.
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