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� <br />City Council Minutes <br />September 4, 2012 <br />Page 2 of 8 <br />COUNCIL MEMBER PEDERSON SECONDED THE MOTION. <br />MOTION CARRIED 4-0. <br />4. Open Forum <br />**Tom Ryan arrived at this time - 6:33 p.m. <br />John Ward, State Representative from District 12A introduced himself to <br />the Council. He noted that District 12A will now be 10A with the <br />redistricting. <br />Jack Schmidt addressed the issue of the annexation and the difference in <br />the tax rate for the urban and service areas. He noted that the taxpayers <br />in Sibley Township should know that they pay 50% of the taxes and <br />receive the same services as those in the urban area of the City. <br />5. Presentations <br />5.1. Update from PRASD <br />`-- Lee Bundy from PRASD and Tim Houle, WSN, updated the Council on the <br />brown water issue the City is experiencing. He noted that it is caused from <br />left over scale in the pipes. He stated that during the school construction <br />the contractors ran large amounts of water through the system which <br />caused the scale to move around. Lee explained the options which include <br />continuing to run the water to flush it out. He stated that there is another <br />process which is a chemical that coats the pipes. Tim Houle noted that the <br />City water is drinkable and meets all required standards. It was the <br />consensus of the Council to continue flushing the system. <br />5.2. Set Preliminarv Levv <br />The Clerk noted that the budget that was presented to the Council in <br />August has been revised to include the recommendations made by the <br />Council at the August 21St meeting. <br />• Decrease in LGA revenue of $30,000 <br />• IT budget reallocations to specific departments <br />• Reduced employee wage increase to 1.25% <br />• Reduced Council wages by $50 per month <br />• Elimination of the Sergeant position <br />These reductions reflect a general fund levy amount of $1,591,794 which <br />`-- represents a 6.72% increase from the 2012 levy. <br />