11-19-2013 Special City Council Minutes

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City Council Minutes November 5, 2013 Page 2 of 3 Council Member Pederson stated that he is concerned about an increase in taxes in the rural area of the City due to the tax equalization. The faster the tax rate goes down the better it will be for the economy. A higher tax rate is a hindrance to growth in Pequot Lakes. Council Member Pederson noted that there has been an increase in the roads and streets budget. Council discussion pursued regarding the need for the Nelson Road project. The Council discussed the necessity of increasing the size of Nelson Road. Council Member Pederson stated that this is not the City's number one priority as it mainly serves the gravel pit. Council Member Gardner stated that he feels the road generates a lot of traffic. The Council discussed the need to improve Old Highway 371 versus Nelson Road. Council Member Pederson questioned why the City is spending so much money improving Nelson Road and suggested keeping it the same size and not changing the hills. Council Member Sjoblad disagreed and stated that the road is designed to make it less dangerous. Mayor Adams stated that she does not want an increase in the levy because of the impact equalization in taxes will have on the rural property owners. Council Member Pederson concurred and stated that the tax rate must drop as quickly as possible. Discussion was held on the possibility of reducing the project costs on both Nelson Road and North Washington by 10%. Council Member Sjoblad noted that there is usually a contingency in the road projects and that a majority of the time this contingency is not used. Council Member Sjoblad stated he does not want to eliminate the Nelson Road project. MAYOR ADMAS MOVED TO REDUCE ROADS AND STREETS CAPITAL OUTLAY BUDGET BY $40,000. COUNCIL MEMBER SJOBLAD SECONDED THE MOTION. MOTION CARRIED 4-1. COUNCIL MEMBER AKERSON VOTED AGAINST THE MOTION. Nancy Malecha stated that this action results in a.23% levy increase from 2013. 3. Adiournment There being no further business, COUNCIL MEMBER TYLER MOVED TO ADJOURN THE MEETING. COUNCIL MEMBER AKERSON SECONDED THE MOTION. MOTION CARRIED 5-0. The meeting of the City Council adjourned at 7:27 p.m.