03.01 City Council Minutes - Laserfiche WebLink

Home Browse Search

City Council Minutes November 5, 2019 Page 14 of 16 ----------------------------- recommending the City Council send a similar letter and they have also reached out to the Chamber to ask them to submit a tetter. The consensus of the Council agreed to send a letter to TDS Telecom expressing the urgency for expansion of fiber optic infrastructure within the Pequot Lakes Grow Zone Overlay District. 10.4. 2020 Preliminarv Budqet Nancy Malecha presented the 2020 Preliminary Budget and noted the only change is an increase in State Aid-Police revenue. Ms. Malecha informed the Council the City did receive the proposed tax rate information from Crow Wing County and utilizing the budget presented the City's tax rate would decrease from 57.385% in 2019 to approximately 56.023% in 2020, which is a decrease of 1.362%. She stated the City's net tax capacity increased from $2,961,059 in 2019 to approximately $3,232,114 in 2020, which is the $271,000 increase. Ms. Malecha stated the Council will need to approve the budget in December before we actually get final numbers from the County as to our tax capacity and those numbers should be available in March of 2020. She requested Council direction to as if the budget should be presented as is for the December Truth and Taxation meeting. Council Member Pederson asked if the cost of the Public Works loader is included in this budget in the Highway 371 Fund and Ms. Malecha confirmed that it is. He inquired if it would be taken out as a loan and Ms. Malecha said it would not be paid back since equipment upgrades were included in the road turnback money in the Highway 371 Fund. Council discussion ensued about the anticipated use of the new loader, costs compared to contract senrices for snow removal, and the useful life of the current tractor being utilized. Council Member Swanson asked if they would trade in the current tractor and Mr. Gorr said he would like to get some money for it and there is an estimated value of$10,000 to $12,000 remaining. Council Member Pederson expressed his concerns with the high cost of the new loader and about the money not being paid back to the Highway 371 Fund. The Council consensus was to proceed with the 2020 Preliminary Budget as presented for the December Truth and Taxation Meeting. 10.5. Assiqnment and Assumption AQreement Nancy Malecha presented the Assignment and Assumption of Vacant Land Purchase Agreement. She stated that this is for the industrial park lot that the City currently owns. Ms. Malecha said it originally was to be purchased from Dotty Holdings LLP, which is Joe and Susan Dotty but they have requested a