Minutes of Oak City Town Board Public Hearing
3 held August 15, 2019
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The meeting was held at the Oak City Town Hall beginning at 7:30 p.m.
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8 The following were in attendance:
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10 TOWN OFFICIALS
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11 Mayor Ken Christensen
12 Council member Dave Steele
13 Council member Craig Dutson
14 Council member Warren Rogers
15 Town Clerk Karen K. Lovell
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OTHERS
Nathan Nielson
Hans Lovell
Shawn Gonder
Russell Finlinson
Preston Finlinson
Tom Nielson
Dale Pratt
Shim Callister
Cameron Nielson
Leslie and Lynette Lovell
Trevor and Courtney Finlinson
April Finlinson, Oak City Days Chair
Council member Monica Niles was not in attendance.
An Invocation was given by Warren Rogers.
The Mayor opened the meeting by giving a little history on how the law doesn't allow the Town to increase the amount of monies collected from taxes unless there is a Truth in Taxation Public Hearing. He explained that the Town increased taxes in 2010 then again in 2015, which was a bigger increase than what is being proposed at this time. The Mayor would like to see small increases more regularly so a larger increase isn't necessary again.
Tom Nielson asked if the Town receives extra money when the County gets a tax increase. The Mayor said, 'No'. When the County's taxes increase, the Town still gets the same amount of money as the Town's tax rate is lowered so that the monies the Town receives is always the same amount. The law prohibits a Town to make more money from tax revenues unless the public is notified of it in a public hearing.
Warren Rogers asked if he understood right then that in order to even stay up with inflation, the Town has to have a Truth in Taxation Public Hearing to raise taxes? The Mayor said that this was correct. The tax increase would only amount to about $4,300 for the Town annually.
Craig Dutson pointed out that the Town isn't getting its fair share of County tax increases if it doesn't raise taxes to get part of those increased monies.
The Mayor pointed out that the State recommends a tax increase of 2% every year or every other year. With the tax increase four years ago, this has allowed the Town to have about $30,000 in savings instead of almost nothing in savings.
Tom stated that he appreciated the Council informing the citizens on this proposed increase and where he is on a fixed income, it will effect him but he believes it is necessary to keep the Town solvent.
Shawn Gonder asked if the Town had a five year plan or something as to how to spend the monies the increase would bring in. The Mayor explained that the Town has no such plan, the monies are needed just to keep up with inflation and buy the absolutely necessary things the Town needs and will need in the future. Shawn asked if the Town contracts any services out? The Mayor explained that the only services contracted out are for the Power system. The Town hires Flowell Electric for its power needs. This can be pricey sometimes but they are the only option the Town has. The County Commissioners are now having quarterly meetings with the Mayors so the Town should be aware if any things coming up that might help or effect the Town.
Cameron Nielson asked if the $4,300 or so that this tax increase would give the Town would be enough to even keep up? The Mayor stated that it would probably not be quite enough but it should be good enough for a couple of years and then the Town would need to raise the taxes again. This is what the Town should have been doing all along but no one was aware that the Town's tax revenue did not increase along with the Counties.
The Mayor explained that the Hall renovations that are happening right now, are not coming out of the Town's Capital Funds but from donations and money from Hall rentals. The increased monies would just be to keep up with expenses.
Lynette Lovell asked about the possibility of obtaining grants for Town needs. The Mayor explained that the Town has tried multiple times to obtain grants but the Town usually doesn't qualify for any grants due to the fact that the Town has a very low tax rate compared to other towns and it per-capita income level. The Town will continue to try for any grants possible, however.
Russell Finlinson asked what the Town's yearly operational budget was. The Mayor said that amount was $19,038 last year not including departmental budgets but just the General Fund. The Mayor explained that he feels the Town needs a power rate increase also as this budget is very stretched.
Shawn Gonder asked what the Town's quarterly income would be. The Mayor said that he wasn't positive on this amount but
Shawn could ask the Town's Treasurer, DeAnn Steele, who would have this figure. Shawn also wondered if the Town was penalized for saving money. The Mayor said that there is a limit on the amount a town can have in savings without having issues. Shawn expressed appreciation to the Council for being up-front on the proposed tax increase.
Dave asked if the Council members were all okay with the tax increase. The Mayor said he was. The Council members agreed that the increase was necessary. Warren said that at first, he wasn't sure about it but since finding out that the Town isn't even able to keep up with inflation without an increase, he is okay with it.
Preston Finlinson stated that it is nice to know what the increase was needed for.
This ended the Public Hearing.
Warren moved, seconded by Dave, to adjourn the Public Hearing. Roll Call Vote: Mayor Christensen-Aye. Dave- Aye. Craig-Aye. Warren-Aye.
The meeting adjourned at 8:18 p.m.
Respectfully Submitted,
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Karen K. Lovell, Oak City Town Clerk
Approved by
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Ken Christensen, Mayor
Notice of Special Accommodations (ADA)
NOTICE OF SPECIAL ACCOMMODATION DURING PUBLIC MEETINGS
In compliance with the Americans with Disabilities Act, individuals needing special accommodations (including auxiliary communicative aids and services) during this meeting should notify Karen Lovell at 435-846-2707.