MINUTES

Special  City Council Meeting

Monday, September 15, 2008

  

  

  

       Call to Order.  Mayor Ted Shaw called the Monday, September 15, 2008, Special Meeting of the Moose Lake City Council to Order, at or about 5:00 p.m..  After calling the meeting to Order, Mayor Shaw asked those in attendance to join with the City Council in reciting the Pledge of Allegiance.  In addition to Mayor Ted Shaw the following City Councilors were in attendance:  Bill Carlson, Kris Huso, and John Unzen.  City Councilors absent:  Curt Yort.  Also in attendance was City Administrator David Talbot, Jr.

 

 

    New Business.

 

• 1. 2009 Preliminary Property Tax Levy. City Administrator Talbot reported that in accordance with Minnesota State Statute, the City of Moose Lake is required to adopted a ‘preliminary' 2009 property tax levy that must be certified to the County of Carlton by no later than September 15, 2008. All of the ‘preliminary' property tax levy data submitted to the County of Carlton will be used to prepare the 2009 ‘proposed' property tax statements that are to be mailed to property owners. According to City Administrator Talbot, the ‘preliminary' or ‘proposed' 2009 property tax levy will be discussed at the City's ‘Truth In Taxation Hearing' which will be held on Wednesday, December 10, 2008, at 5:00 p.m., in the City Council/Town Board Chambers, in the Moose Lake Area Civic and Community Center, located at 313 Elm Avenue, Moose Lake, Minnesota. If a Continuation Public Hearing is required, the date for said Continuation Public Hearing will be held on Wednesday, December 17, 2008, at 5:00 p.m., at the aforementioned location.

 

Although the City received a generous increase in the amount of Local Government Aid that the City is to receive from the State of Minnesota, City Administrator Talbot regretted to inform the Moose Lake City Council that he, Talbot, was proposing that the City Council increase the ‘Preliminary' 2009 Property Tax Levy by $25,000, which would increase the total property tax levy amount to $375,000.  The Mayor and several members of the City Council expressed their concern regarding the mounting costs of fees for service and the impact that increased property taxes have on segments of the community.  City Administrator Talbot stated that he, Talbot, and staff were in the process of reviewing all aspects of the organization to reduce operating and capital costs - however, given the increased cost of medical insurance and the wage increase of two and three-quarters percent [2.75%] that has already been granted for fiscal year 2009, the levy increase may be more than justified.  Mayor Shaw stated that this is the ‘preliminary' 2009 property tax levy and the City Council could keep the levy as that proposed by the Administration or it, the City Council, could lower the levy, but the levy could not be increased higher than that set today.  With a Motion being made by City Councilor John Unzen and with a second to the Motion being made and offered by City Councilor Kris Huso, the 2009 Preliminary Property Tax Levy was set at $375,000.  Motion carried unanimously via voice vote.  [4-0].

 

2.   2009 General Operating Budget.  City Administrator Talbot provided an overview of the comprehensive document that he, Talbot, prepared and was presented to the Moose Lake City Council for review and consideration.  According to the documents presented, the Administration was anticipating that the 2009 General Operating Budget for the City of Moose Lake would increase by $58,100.  City Administrator Talbot stated that although the City was anticipating an increase in Local Government Aid of approximately $120,000, Transfers from Other Funds is projected to be down and there was no provision for the use of diminishing cash balances in the Administration's forecast[s].  City Administrator Talbot walked the City Council through a number of documents that were included in the budget package that outlined the increased cost for medical insurance and the impact that City Council approved wage increases would have on the 2009 General Operating Budget.  City Administrator Talbot stated that he, Talbot, and staff would be working through the preparation of the final budget document that will be approved by the Moose Lake City Council in December of this year to ensure that all costs have been reviewed and increased only when warranted - such as fuel increases and anticipated inflationary price increases.  Mayor Ted Shaw and members of the Moose Lake City Council complimented City Administrator Talbot for the professional preparation and layout of the 2009 Preliminary Property Tax Levy and General Operating Budget document[s].  With a Motion being made by City Councilor Bill Carlson and with a second to the Motion being made and offered by City Councilor Kris Huso, the 2009 Preliminary General Operating Budget was set at $1,372,000.  Motion carried unanimously via voice vote.  [4-0].

 

           

3.   Carroll Inn Debt Settlement Agreement Proposal.  City Administrator Talbot reported that he, Talbot, and Mayor Ted Shaw have met with Mr. Isaac Wolter, the owner of the Carroll Inn, concerning the improvements that are to be made at the Carroll Inn.  According to Talbot, the City entered into an economic development agreement with the former owners who have since declared bankruptcy.  At a previous meeting of the Moose Lake City Council, with Mr. Wolter present, the Moose Lake City Council expressed an interest in bringing the matter to a conclusion and stated that the City would entertain some form of forgiveness of the original loan amount if the owner, Mr. Wolter, could demonstrate an equal expenditure of funds to justify the forgiveness of the loan.  City Administrator Talbot stated that at the direction of the Moose Lake City Council he, Talbot, has been working with Mr. Wolter, and in consultation with City Attorney, Marguerite Doran, City Administrator Talbot recommends that the City of Moose Lake agree to accept seven thousand five hundred dollars [$7,500], as full and final payment against the long outstanding loan.  City Administrator Talbot concluded by stating that Mr. Wolter was working with Mr. Pat Oman, Carlton County Economic Development Director, and City Administrator Talbot has been informed that the Carroll Inn has been approved for funding as part of the Carlton County Small Cities Grant Program award.  Mayor Ted Shaw stated his opposition of requiring Mr. Wolter to repay the City in that Mr. Wolter will be using quite a bit of his own money to improve the Carroll Inn and therefore, the City's interests would be better served if the City were to forgive the full amount of the outstanding loan under the condition that Mr. Wolter put the full amount to work and into the repair of the building.  Under a Motion being made by City Councilor Kris Huso, and with a second to the Motion being made and offered by City Councilor John Unzen, the loan was reduced to $7,500.  Motion carried via voice vote.  [3-1]  [Mayor Shaw voted ‘nay']. 

    Other Business.           None.

 

 

     Adjournment.            

  

There being no further business to come before the Moose Lake City Council, Mayor Ted Shaw called for a Motion to Adjourn the Monday, September 15, 2008, Special Meeting of the Moose Lake City Council.  A Motion to Adjourn was introduced by City Councilor Bill Carlson, and a second to the Motion to Adjourn was made and offered by City Councilor Kris Huso.  Meeting adjourned by Mayor Ted Shaw.

 

 

Respectfully submitted,

 

 

 

David R. Talbot, Jr.

City Administrator