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City Council Minutes <br /> December 5, 2022 <br /> Page 4 of 9 <br /> COUNCIL MEMBER CLEMENT MOVED TO CLOSE THE PUBLIC HEARING. <br /> COUNCIL MEMBER SEILS SECONDED THE MOTION. MOTION CARRIED 5- <br /> 0. <br /> Mayor Gardner said there has been minimal increases in the last dozen years <br /> and the City did some substantial cuts to get the tax rate down last year. He <br /> stated that a couple staff positions were cut and now they are at the point where <br /> roads are falling apart. He stated that it has basically been stagnant for so long <br /> and this Council needs to decide on how they will catch up. Discussion ensued <br /> about percentages that Pequot and surrounding communities going up in the <br /> past several years. Council Member Pederson said they have struggled with <br /> keeping the City budget as tight as it can be and stated the Council's goal was to <br /> get to a 50% tax rate which they have accomplished this goal within the past <br /> couple years. Discussion ensued about market value, budget balance and lack of <br /> projects in past years. <br /> Mr. Czech asked what the drivers are for the budget this year. Council Member <br /> Ronning stated Mr. Spiczka has a list of projects that have been kicked down the <br /> road for years and said that if we don't fix this then we are going to have the yo- <br /> yo effect in the tax rate. He stated if we go down to 46% tax rate in 2023 then we <br /> just have raise the tax rate more in 2024. Discussion ensued that this in not the <br /> best time for the increase in taxes. Mr. Czech stated that a list of these drivers <br /> should be sent with to explain the increase. Mayor Gardner stated the timing they <br /> receive their tax statements is terrible as the Council has been discussing the <br /> budget for several months already. <br /> Mr. Czech stated that if he turned in a budget like this to his prior boss he would <br /> have been thrown out of the office. Mr. Spiczka explained that some of the line <br /> items Mr. Czech suggested to reduce were based on 2022 actual numbers to <br /> date which does not reflect the entire year of expenses yet. He stated the <br /> suggestion to cut some of the utility expense cannot be done as they are over <br /> budget already because of increased rates and the City is still waiting for the last <br /> two months of bills. <br /> Mr. Spiczka also explained that engineering fees and cannot be cut as the <br /> Council and City has learned drastically in the last couple years is that if we don't <br /> have money set aside to study a future project we cannot qualify for any potential <br /> free funding that exists. He stated there is a project sheet of things that are about <br /> five to ten years overdue already. Discussion ensued about cities with similar <br /> populations having approximately a million more dollars a year to operate each <br /> year and implementing a local sales tax. Mr. Spiczka explained the main sewage <br /> pipe bursting twice in the last two years and causing damage and how this aging <br /> infrastructure needs to be repaired and updated. Council Member Pederson <br /> stated insurance rates, utility rate increases and inflation is beyond the City's <br /> control but just like a household the City must plan for these increases. <br /> Pamela Johnson asked if one or two of the projects could be put out. The Mayor <br /> explained the force main project will be new debt which will be about$200,000 <br />