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Posted: 12/19/07

Stacy's 18% levy increase passes quietly

By Anne Thom

Only two residents had shown up for the truth-in-taxation meeting in Stacy on Dec. 10. On Tuesday, Dec. 11, at the regular council meeting, the proposed levy for 2008 passed quietly and with little comment. Only Stacy resident Esther Ashley during public comment at the Dec. 11 meeting had one follow up request. She urged the council to consider allocating money in the future for emergency preparedness. The city has worked on an emergency preparedness plan in the past and Ashley wanted to make sure emergency planning receives its due.

The council then approved a levy of $403,442.00 and a budget of $542,153.00 for 2008. The levy amount for the general fund jumped from $162.241.50 in 2007 to $229,410 for 2008. The levy for the Economic Development Authority (EDA) rose dramatically also from $6000 in 2007 to $12,500 for 2008.

The cost of city hall business was up nearly a third over 2007 to $64.546, legal services and fees nearly doubled to a combined $58.000 and planning and zoning nearly doubled as well to $19,800 for 2007. Notable was a decrease in the budget for Building Inspections, presumably due to the downturn seen in the housing market and the city's efforts to contract with a new service provider for 2008. Overall the numbers represent an approximate 18 percent increase from 2007 to 2008.

Councilor Robert "Bud" Wilson had complained that Chisago County deputies seem to be concentrated in the Rush City area. He addressed Sheriff todd Rivard, who was present at the meeting, asking, "What's the deal with (car numbers) 118, 120 and 138 constantly at Rush City?"

Rivard didn't seem to think Wilson's complaint was valid. "Shouldn't they (deputies) talk to each other? Shouldn't they be able to (talk) during their shift?" he asked. The Sheriff said he thought Wilson was bitter over the city not having a full-time deputy. Wilson maintained the major issue was the resulting wait time for a deputy to arrive. He claimed it is more than a half hour. Cpl. Chris Henricks, also present, said that in a non-emergency situation as determined by the caller, the dispatcher and the deputy, the response time for a car to arrive in Stacy was closer to 20 minutes and that an emergency response time of 11 minutes is maintained.

Sheriff Rivard reminded Wilson that county deputies also cover Rush City, Nessel Township. and Rushseba Township. He said the coverage the county provides is contingent on the public safety budget and that he was there this evening so the council would have a better understanding of the situation. "In a perfect world, I'd have 10-12 cars out at a time." Rivard said. He also told the council the Sheriff's budget is $3.7 million, most of which goes for wages.

The good news Rivard brought the council was that they will be charged $43.95 an hour, not $49.96 as was feared his office would have to charge due to the state of the county budget and the cost of the mobile computer terminals (MDCs). Deputy Cliff Sheppeck who has been assigned law enforcement duties covering Stacy, will remain on duty and Stacy will remain covered for 32 hours a week under the 2008 budget.

Stacy's financial advisor Todd Hagen of Ehlers and Associates was on hand with the results of a bond sale to finance the acquisition of the property directly to the south of city hall on Forest Blvd. The house has been foreclosed on and was marketed by HUD. The city received four bids, two of which came in at the same rate of 4.25 percent. One was from the First State Bank of Wyoming and the other from Horizon bank of North Branch.

Councilor Tony Olivolo asked if the city could simply tell both banks there had been a tie and try to get a lower rate submitted. The city could do that, Hagen advised, but the bid process would then also have to redone between the two low bidders. City Attorney Peter Grundhoefer explained in the event there is no difference in the terms of a bid the law states the winning bid is to be determined by lots. A coin was produced, heads and tails assigned to Horizon and Fist State Bank respectively. The coin landed as heads and Horizon was determined to be to winning bidder. Councilor Mel Aslakson asked, "Do we have to keep the quarter as evidence?" It was determined that wouldn't be necessary under the law as Hagen made his notations and the council agreed to close on the loan by Dec. 27. The amount of the bond will be approximately $73,000. Grundhoefer noted because it was a HUD property, the city had obtained a break in the price of $4800.

The council and Hagen then went to work on resolution 2007-12-3. The council has decided to go the route of internal loan financing in order to pursue a court case with the city of Wyoming and Wyoming Township over contested annexation as reported in September in the Forest Lake Times. The motion passed to draw up to $150,000 from the Stacy Ponds Business Park fund and repay that over 10 years. Mayor Daher verified with Hagen and Grundhoefer that the city would not need to borrow the entire amount at this point but could arrange to draw down up to that amount as needed for legal fees and court costs. Daher said, "We're still hoping Wyoming Township will listen to what their residents want and settle." The Post Review tried unsuccessfully to reach representatives of Wyoming and Wyoming Township for comment.



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