Stacy budget problems may delay fire department agreement

By Barbara Brown
The City of Stacyís financial burdens are making it difficult for the city and Lent Township to come to an agreement on how much each government body should pay for a new joint powers agreement that would rule the Stacy-Lent Area Volunteer Fire Department.
The town and city have been going back and forth for more than a year ñ meeting at least once a month ñ trying to hash out a new joint powers agreement for the area volunteer fire department.
Three of four parts of the agreement are settled, but the one that would determine the share of operational and maintenance costs still hangs in the balance.
Lent asked to be released from the current agreement, which expires in June, so the town could strike a new deal with the city after it built the new fire hall on CR 30, just south of Stacy City Hall.
The current agreement is set to expire in June.
Now, with the deadline for coming to a new agreement quickly approaching, the two governments are wrangling over how much money Stacy will have to contribute to retain its stake in the department.
Stacy officials said in a work session meeting last week that they donít mind contributing for the operational cost of the department for this year, but a clause that would split the cost of buying new equipment and purchasing expensive parts for the fire trucks has the city stretched beyond its means.
City Councilman Lee Schultz said in the meeting that the city had budgeted enough to cover its expenses for the coming year, but proposed cuts to the cityís state aid and a possible law that would not allow the city to raise taxes for the next budget year mean Stacy cannot put up any more money than what it already has.
The city has saved about $17,000 and budgeted $10,000 in the fiscal 2003-2004 budget for fire hall and fire department expenses.
Beyond that, the city really doesnít have much of a plan.
Two catches are working against the city in the funding department.
In order to increase the cityís tax base, the city needs to increase residential development.
The first step of that ñ annexing about 80 acres just south of the city limits ñ was completed last fall.
Now the city is waiting to hear development plans, but those plans would include connection to the cityís water and sewer systems.
That connection may not be able to take place if the city does not repair, upgrade and improve its current water and sewer systems.
The plan is to replace and repair sewer lines, upgrade the cityís settlement tanks, build a new water tower and improve water pressure and flow throughout the city.
With those improvements come high price tags, which the city started budgeting for in the current budget and would seek additional financing in coming years.
With the water and sewer problem in front of it, the city will have a hard time trying to find additional money to stand increased expenses in the fire department through a proposed new truck purchase ñ at more than $200,000 ñ and a new exhaust system for another truck.
Lent Supervisor Lyle Johnson said in a Tuesday, March 4, telephone interview that Lent could offer the city a service contract if it was requested.
He said working rough numbers, he believed the contract would cost the city about $50,000 a year, but the cityís share of costs to also have a stake in ownership is about $60,000 per year.
Johnson said buying new equipment is essential for the department to work smoothly. He said the trucks in the department are on a replacement schedule that pushes big ticket items off 20 years.
Johnson said he spoke for himself, not for the board, when he said he was ìflabbergasted when I found out that 65 percent to 75 percent was Lentísî share of fire department expenses.
When the Stacy board met March 6, the members in attendance agreed to present a proposal to Lent.
Schultz, member Barb Otterson and Mayor Michael Carlson said Stacy would accept the joint powers agreement if the new purchase clause were removed.
In addition, the city looked at ways to cut spending to free up money in case it sees a significant cut in local government aid from the state.
Stacy is bracing itself for a potential $11,000 or more for 2003 and an additional to $20,000 cut from the state for 2004.
The city may also be required to call for referendum votes from the citizens in order to take out loans.
Carlson attended a meeting at Lent Town Hall for the fire department at which he told the fire board and township supervisors about the cityís plight.
ìThe bottom line is that we as a city cannot make any financial commitments beyond what is already levied until we hear the outcome from the legislature concerning our ability to levy and whether or not we need to take all future indebtedness to referendum,î he said.
The council members at last Thursdayís meeting said some potential cuts to the Stacy 2004 budget could come from the $55,000 budgeted for police protection, a part-time clerk position, an ice rink attendant and possibly from the park fund.
The council also expects to receive more from the municipal liquor store by the end of the year, but it cannot bank on that until an audit is completed and the city gets a better idea about the storeís profits, Otterson said.
Schultz said he didnít feel like Lent really wanted much of a partnership and was not being as understanding as it could be when it comes to the cityís financial problems.
ìInitially it was supposed to be that we will take care of each other,î Schultz said.
ìYou know how all this started was they were shaky and weak in the beginning and they come to us and we helped them out,î Schultz said.
ìNow weíre shaky and itís supposed to come back around.î

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