Mazeppa City Council Working Session
Tuesday, November 1, 2022
The working session and special meeting of the Mazeppa City Council was called to order at 6:00 PM by Mayor Chris Hagfors.
Pledge of allegiance was said.
Present: Mayor Chris Hagfors. Council Persons Michael Hammes, Dustin Wiebusch, and Erica Young.
Others Present: City Administrator Clerk Karl Nahrgang, City Engineers Matt Mohs, Jeremy Tri, John Betcher, Adeline Betcher, and Mike Bubany from David Drown Associates.
Absent: Councilperson Steve Liffrig.
Motion by Hammes, second by Young to approve the agenda. All in favor, none opposed. Carried.
Mike Bubany of David Drown Associates gave a financial comparison to other communities in our area in the areas of cost of services, tax rates, and rates for services (water and sewer). OF the comparison communities, Mazeppa carries next to the lowest public debt per capita, has the 3rd lowest tax rate and 3rd lowest water/sewer rates. The City also has the 3rd lowest cost of services of the communities compared.
The communities compared were of similar population size and distance from larger communities. The community of Zumbrota was included also because of its proximity to Mazeppa, even though it has a greater population and a more varied tax base.
Mr. Bubany demonstrated the amount of funds needed over time to maintain the status quo, make improvements, and pay for future projects.
The requirements of the USDA RD loan/grant program requires that the City build a reserve over time in addition to loan payment for a new WWTP plant. The City would be looking to set aside $50,000 per year for future funding of maintenance and operation. With the City’s current reserves, we may be able to use that amount to act as the first 10 years of building the reserves, thus allowing rates to be raised in a more gradual fashion.
Alternate plans using a combination of tax dollars and water/sewer rates were discussed to fairly distribute the cost of project among households and businesses.
An agenda item will be added to the next regular meeting to set a hearing explaining the rate increases.
Mr. Bubany will send rate suggestions at a combination level for discussion at the November 9, 2022 Council meeting.
Motion by Wiebusch, Second by Young to adjourn the meeting. All in favor, none opposed. Carried.
Meeting adjourned at 8:20 PM.
Next meeting will be 6:00 PM, November 9, 2022.
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