By Clark Natalie

The proposed budget for Harris for 2006 is pretty straightforward ñ approximately an 8 percent increase in income and property tax increase. The total income is $475,869 of which property tax makes up $292,950 of that figure. Total expenses are $474,939.

In that budget, the fire protection budget increased from $127,000 to $160,813. Public works increased from $90,430 to $109,814.
But with the increase in their city taxes and county taxes, the residents of Harris that attended the meeting had some questions for the mayor and council.

Mayor Rick Smisson explain-ed some of the steps they have taken to make the city more efficient. Smisson explained that
they had spent $2,500 on new financial software for the city. By doing this, the outside auditor would take less time to complete reports required by the state and it would save money in the long run.

The last audit cost approximately $8,000. The accountant said with the time spent preparing it, it should have cost $12,000. With the new software, the cost should be closer to $5,000.

Smisson used that example to explain how the city is having to spend money now to save later. Smisson explained the city will ìnot take short term approaches.î

One of the first items questioned by the residents was the increase in legal expenses. The line item went from $$20,000 to $52,000.
Smisson showed on the proposed budget that the next item was ìtransfers to third parties.î This is a reimbursement by developers for legal services done by the city attorney to prepare the proposals. The developers must repay the city for these services. Although this had been done in other years, there was no line item for it.

The council also explained that the city is having to review city ordinances, including zoning ordinances, to bring them into line with state statutes.

These ordinances are legal documents and must be prepared correctly, thus the need for an attorney to prepare them. Once these fixed costs are paid, the legal expenses should go down.

The residents also asked what taxes had been spent on in 2005. Jeanette Danielson of Stark Road Ct. said they lived on a dirt road and it had not been kept up. Other residents there pointed out that only one road in Harris is paved.

The council explained that one of the problems they dealt with the replacement of the city grader. It had literally broken in half. The cost to replace the grader would be $180,000, or a $6,000/month lease. Rather than take that route, the council is trying to contract this to independent businesses that already have the equipment. This will save the city the cost of the grader, plus personnel, plus workmanís comp cost and reduce the liability of the city.

Smisson said this summer Harris will be able to see what the increase in taxes will bring.

The wastewater treatment facility will begin construction, along with a new water treatment plant. Both of these items will help to bring new development, along with new businesses to the area. Smisson said the best way to reduce taxes to the residents was to bring commercial/business taxpayers into the city.

The businesses pay at a higher rate than the residents. The council indicated that there are four developments ready to go, as soon as the sewer and water are in place.

The council said one of the ways they are aggressively trying to cut future costs is by going after grants. The water treatment plant cost will be cut by $800,000 because of a grant they obtained. This was based on the fact that those houses on the existing system have the lowest incomes, and can afford the upgrades the least. The wastewater treatment facility should be funded at a rate of 21?2 percent instead of conventional rates.

The fire department is also trying to obtain grants for those items they need. That will allow the council to shift proposed expenses back to the general budget.

Chris Sears said that he had heard that TGI Fridays had wanted to go in by the freeway, but the SAC and WAC fees were $450,000.
The council was quick to point out that this was not the case. The cost was not for sewer and water access, but the cost of running the lines from where they are out to the proposed site.

The other rumor that was quelled was that the city had purchased a new car for the city clerk to use. The council was quick to point out that they had looked at a general purpose vehicle for the city that they could pick up through the DNR, such as the vehicles they had obtained for the fire department. But they were unable to do that, as all items obtained from the DNR, must be used for the fire department. If the clerk used even 20 percent of the time, the vehicle would have to be returned to the DNR.

Council members expressed their concerns at the increase in taxes, but said it was a necessary step to take. So many items, such as the grader, have become old and broken down, they are having to fix everything at once.

Smisson did point out that Harris had the lowest increase of any entity in the area. Smisson said that his goal is to see that taxes donít go up next year. But there was no fat to cut this year.

When maintenance supervisor Mike Kriz insulated the garage in City Hall, he had to borrow the hammer, skill saw and other items to do it. There will be no reserve ìfor a rainy day, it is raining,î the mayor said.

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