City approves 5.7% levy increase
FAIRMONT– On Monday evening the Fairmont City Council approved a 5.7 percent levy increase following the truth-in-taxation hearing. This generates an additional $320,426 from last year. No one from the public spoke up during the hearing.
City finance director Paul Hoye said the tax impact would be a 2.6 percent increase so a $95,000 home would see about a $15 increase in property taxes.
Hoye went over the $45,843,513 budget.
As for the general fund expenditures, Hoye said they’re increasing 2.7 percent. Public safety, public works, general government and parks and recreations makes up the vast majority.
“Some of the things we’ve included are $40,000 for a zoning code update. There is an increase to our IT budget, too,” Hoye said.
He said there’s about a $76,000 increase in the parks and recreation budget, the majority coming from part time wages, including seasonal employees at the Aquatic Park and Gomsrud Park beach.
Moving to special revenue funds, Hoye touched on the local option sales tax, which has increased $125,000 over the last year.
Hoye said they first started collecting sales tax at the end of 2017 and in the first 12 months $721,000 was collected. He said in the last 12 months, just over $1 million was collected.
“That’s about a $360,000 increase in about four years. Hopefully that trend will continue. It’s a good sign,” Hoye said.
He said it helps now that they’re able to collect sales tax for online purchases.
Hoye shared that all of the sales tax that they’re collecting goes into the community center fund. Council member Bruce Peters asked why all of the funds are transferred there. Hoye said that for 2022 council hasn’t identified any projects to use it for.
“So if in fact we do, we can pull that money back up?” Peters asked.
Hoye said council can use the funds for whatever it wants.
Moving to capital project funds, Hoye touched on a few of the projects, which total $1.4 million. He said $25,000 goes to the Humane Society roof project and $200,000 goes to a new plow/dump truck.
Under parks, $20,000 is budgeted to replace some playground equipment near Hengen Street and $10,000 is set aside for updating the skate park.
“There’s $30,000 in there for the Gomsrud boat landing. That’s really the start of the evaluation of looking at that whole parking lot and landing area,” Hoye said.
The council talked about the $150,000 budgeted for the Cedar Creek Park trail extension.
Council member Britney Kawecki questioned when the project was discussed and City Administrator Cathy Reynolds said it was added following council discussion at a work session in September.
Council member Randy Lubenow asked if this was just the start of putting money away for the project.
“It’s a starting point, it’s not an ending point,” said Reynolds.
Peters said that ward one has wanted the trail extension for as long as he’s been on the council.
Kawecki said she doesn’t think it’s a bad request to re-evaluate the parks and street budget.
“This is not the first time everyone in this room has seen the budget and now is not the time, when we’re having the truth-in-taxation hearing that we’re having these discussions. These should have taken place long before,” said Mayor Deb Foster.
When it came time to approve the budget, the council made an amended resolution to add $50,000 out of the local option sales tax for a shelter structure at Veteran’s Park. Ultimately the council approved a $45,893,513 budget for 2022.
During staff/liaison reports, City Engineer Troy Nemmers shared that most of the exterior work is complete on the new public works building. He said there is now heat inside the building and the flooring is currently being worked on. The final completion date is scheduled for Feb. 28, 2022.
In other action, the council:
— Set the registration fee for vacant buildings at $100.
— Recognized Cade Hartwig and Bryan Kastning for 10 and 15 years of service, respectively, with the Fairmont Fire Department.



