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FAIRMONT-- The Fairmont City Council again discussed the 2027 preliminary budget and levy at its meeting on Monday, which it approved in a 3-2 vote at a 10.8 percent levy increase.
This came following three budget workshops in recent weeks.
The council was looking at 10.8 percent increase with the tax rate impact at a 10.9 percent increase.
Finance Director Paul Hoye said, "Prior years we've had enough growth in our tax capacity that it actually offsets some of our levy increase, this year we actually had a slight decrease in our net tax capacity, very small, less than $100,000."
He said if someone's market value on their property stays the same from 2026 to 2027, they should see a 10.9 percent tax increase on the city's tax.
For a $250,000 home, it would amount to $177.52.
Council Member Randy Lubenow made a motion to approve the budget with the removal of 1984 road grader replacement for $450,000, the general government feasibility study of $20,000, the facilities condition assessment of $105,000 and the operational staffing needs assessment of $100,000. Council member Britney Kawecki seconded the motion.
Council Member Jay Maynard said, "That can is getting awfully dented from getting kicked down the road so much."
Council Member James Kotewa asked for confirmation on the facilities condition assessment and governmental feasibility study and Hoye said that the city was asked by council to undergo it.
"So that's stuff that council has repeatedly asked for?" Kotewa asked, to which Hoye said, "yes."
Kotewa also asked whether the motor grader was beyond its useful life, which Public Works Director Matthew York confirmed.
Kotewa asked Lubenow why he wanted the studies/assessments removed and Lubenow said he thinks there is staff that can do the work.
"If staff is willing to reduce that... I'm willing to consider it. As far as the road grader, we have one road grader and it doesn't seem to me like the citizens are asking that we update that road grader," Lubenow said.
He added that a high amount of wages is paid to department heads to do the studies/assessments.
"Almost a quarter of a million dollars is too much in my books," Lubenow said.
Kotewa pointed out that the preliminary budget and levy can be lowered but not raised once adopted.
Lubenow made a motion to amend his motion to include the three studies/assessments for a cost of $100,000. The motion received no second and failed.
Kawecki said that while the council has asked for some studies/assessments, she didn't feel like these particular ones were exactly what the council has asked for.
She said she supported removal of the 1984 grader and a 1993 dump truck for $260,000 but was okay with leaving the studies/assessments in the budget with the need to redefine them. That was made into a motion. Lubenow seconded the motion.
Hoye said that the changes in the motion will not affect the levy.
"If the motion is to lower the levy, just saying we're removing a piece of equipment to be funded in 2027 doesn't lower the levy," Hoye said.
She made a motion then to reduce the levy by $710,000.
"Ultimately this is what results in tax increase... and I believe the goal of us as council is to reduce this levy," Kawecki said.
Lubenow seconded the motion, which was to approve the preliminary 2027 budget and levy with a reduction of $710,000 from the tax levy with removal of the dump truck and motor grader purchases.
Hoye said that lowering the levy by $710,000 would result in an ongoing cut to the capital project levy.
"When I was talking about a deficit of $2.7 million in our five year Capital Improvement Plan, that pushes that deficit to $3.4 million," Hoye said.
Mayor Lee Baarts asked for a vote on Kawecki's motion, which Lubenow had seconded. The motion failed 3-2 with just Kawecki and Lubenow in favor.
Lubenow then made a motion to approve the preliminary 2027 levy as originally presented and Maynard seconded it. In a roll call vote, the motion passed 3-2 with Lubenow and Kawecki opposed.
"There, we just saved a lot of time," Lubenow said.
Next, the council voted on the preliminary 2027 budget, which passed 3-2 with Lubenow and Kawecki opposed.
The final 2027 budget and levy can be lowered from this point but not raised and needs to be approved in December.