Willmar City Council Faces Financial Challenges Amid 2024 Assessments and Property Transfers
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Meeting Type:
City Council
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Meeting Date:
09/16/2024
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Recording Published:
09/16/2024
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Duration:
145 Minutes
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State:
Minnesota
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County:
Kandiyohi County
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Towns:
Willmar
- Meeting Overview:
The Willmar City Council meeting focused on addressing citizen concerns about the 2024 property assessments, the city’s financial health, and property transfers.
The most pressing topic was the extensive discussion surrounding the 2024 assessment roll. City Engineer Jared Goli presented this roll, which included numerous objections from property owners. These objections, raised during a prior public hearing, were addressed individually during the meeting. Concerns ranged from financial hardships to the perceived inequity of assessments, particularly for those with disabilities. Goli assured the council that deferments were available for eligible residents and outlined the application process, noting the November 1 deadline for consideration in the current assessment cycle.
The assessment discussions revealed a complex web of financial and procedural challenges. Residents expressed frustration over the lack of transparency and clarity regarding assessment calculations. One property owner on Grace Avenue Southwest voiced concerns about the removal of trees and the associated costs, while another highlighted access difficulties during construction. The council reiterated that all assessments were calculated per city policy and emphasized the long-term benefits of these improvements to property values.
In an effort to provide clarity, Goli explained that the assessments included various costs such as construction, administrative fees, testing, engineering, and legal expenses. He also addressed the confusion surrounding a $4 monthly utility improvement charge, clarifying that this fee supports ongoing utility projects, including wastewater upgrades. The idea of raising this fee to $8 monthly was floated as a more straightforward alternative to implementing a wheelage tax.
Further objections included cases where residents felt blindsided by the assessment amounts. One notable objection came from a property owner on Grace Avenue Southwest, who contested the necessity and cost of the improvements. The council maintained that the assessment process followed legal and policy guidelines, aimed at equitable cost distribution among benefiting property owners.
The council also explored potential alternative funding mechanisms to ease the financial burden on residents. Suggestions included lobbying for different funding sources or increasing utility fees. A half-cent sales tax was considered, though it was noted that an existing half-cent sales tax for recreational facilities and storm sewer projects would not expire for several years. Discussions also touched on the possibility of a wheelage tax, though some council members questioned its feasibility and legality.
In addition to the assessment discussions, the council reviewed objections related to specific properties. Adjustments were made for certain cases, such as a corner lot on 13th Street Southwest, where an error in the initial assessment calculation led to a reduction of $1,632. Other objections, including those from properties previously assessed, were methodically addressed.
The financial health of the city was another major topic of discussion, highlighted by the presentation of the 2023 audit. The audit revealed that the general fund had fallen below the minimum fund balance policy of $7 million, ending the year at $6.2 million. This shortfall raised concerns about budget management and the need for future adjustments. However, the community investment fund showed a positive trend, with increased market value due to better investment performance. The local option sales tax fund also saw an increase, attributed to ongoing projects requiring additional funding.
The audit also highlighted budget overages in various departments, particularly in legal fees, police department payroll, and public works. These overages were attributed to increased personnel costs and additional projects. The auditor suggested that future budgets be adjusted to better align with actual expenses. The city’s debt situation was another area of concern, with an increase of $5.7 million due to bond issuance. The auditor emphasized that much of this debt was supported through special assessments rather than property taxes.
The meeting also dealt with property transfers, particularly the sale of the Care Center property to Cura. This transfer was part of a broader effort to amend existing leases and ensure the continued operation of the long-term care facility. The council approved a lease amendment to remove the Care Center property and two additional parcels from the operating lease with Rice Memorial Hospital. The city also moved to acquire two Rice Home Medical properties, with future plans to authorize the sale of the Redwood Falls property.
A donation of a fire prevention smoke escape house trailer from the city of Renville was accepted, with plans to store it at the old wastewater treatment plant. The council also discussed improving communication strategies for public hearings, suggesting the use of social media, local radio stations, and traditional newspaper announcements to better inform residents.
Doug Reese
City Council Officials:
Carl Shuldes, Michael O’Brien, Vicki Davis, Julie Asmus, Rick Fagerlie, Justin Ask, Audrey Nelsen, Tom Butterfield
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Meeting Type:
City Council
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Committee:
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Meeting Date:
09/16/2024
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Recording Published:
09/16/2024
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Duration:
145 Minutes
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Notability Score:
Routine
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State:
Minnesota
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County:
Kandiyohi County
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Towns:
Willmar
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