Council OKs budget with a tax hike

Published 12:00 am Tuesday, December 5, 2000

Money was the primary focus of the Austin City Council on Monday.

Tuesday, December 05, 2000

Money was the primary focus of the Austin City Council on Monday.

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The council approved its budget and tax levy for 2001 on 6-0 votes. As a result of the approval, city taxes for a homeowner with a home assessed at the city’s median of $59,900 will pay an additional $10 to $12 in the coming year.

The council also approved a $2.31 million tax levy for the coming year in a 6-0 vote.

Councilwoman Jeanne Poppe stated that through spirited finance committee debates, she was grateful that members Dick Lang, Dick Chaffee and herself had managed to agree on a fiscally responsible and future-oriented budget.

Finance Director Tom Dankert was thanked for his services to the council, as was Poppe for chairing the finance committee.

The council also passed a resolution canceling certain tax levies from 1993, 1994 and 1997. They were canceled because there is sufficient fund balance available in debt service funds to pay for all or some of the principal and interest on the bonds, which are due in 2001.

In another money matter, an ordinance was passed for a public hearing on Wednesday for the issuance of tax-exempt bonds. The bonds will be sold to upgrade the industrial portion only of the wastewater treatment plant in the early to middle part of next year.

Hormel Foods Corp. will pay for the cost of the bonds, the fees and the interest over a 20-year period. They will be issued through the city to the lowest bidder. If the average coupon rate of the bonds comes in more than 6.5 percent per year, they will not be sold.

In other business:

n Mayor Bonnie Rietz and the council took a moment to memorialize Dave Quinlan, husband of Annette Quinlan of the Austin Public Library, and Linda Granle, wife of recently retired Austin Police Officer Gary Granle.

n Nancy Clingman and Monica Rollie of the Mower County employee relations committee presented a traveling plaque to the city for the annual city of Austin-Mower County food drive. The city raised a total of 888 pounds of food, while the county raised 810 pounds. A total of 1698 pounds of food were collected, bringing the eight-year total to 8,600 pounds.

n The council passed a resolution to approve an update to the Flood Plain Repetitive Loss Plan. This plan reduces insurance costs for those who participate and grants the city additional points on a flood-rating scale. Austin currently ranks at about a seven on a scale of one as the best and 10 as the least restrictive.

Despite its apparent need for improvement on the scale, Austin is in the top 20 percent of the 100 participating cities in the country.

n City Engineer Jon Erichson informed the council that he, along with Community Development Director Craig Hoium and City Administrator Pat McGarvey, met with an individual from the Army Corps of Engineers on Nov. 21 to discuss the flood situation in Austin. There will be an additional meeting in January.

n Police Chief Paul Philipp informed the council that three recent hires are in the process of being trained. This brings the number of police officers to 27. Until the three are completely trained, they will not be hiring a 28th officer.