City Council Agendas & Minutes

MINUTES CITY COUNCIL MEETING FRUIT HEIGHTS CITY 910 South Mountain Road August 6, 2024 WELCOME: Mayor John Pohlman called the meeting to order at 7:00 pm. PLEDGE & OPENING CEREMONY: The Pledge of Allegiance was led by Council Member Florence Sadler, with Council Member Gary Anderson conducting the opening ceremony by offering a prayer. COUNCIL MEMBERS PRESENT: Mayor John Pohlman, Council Members Gary Anderson, Florence Sadler, Eileen Moss, George Ray, and Mark Cottrell. CITY STAFF PRESENT: City Manager Darren Frandsen, Public Works Director Layne Leonard, Deputy Recorder Hailee Ballingham and City Administrator Assistant Crystal Kunkel. VISITORS: Rod Larkin, Huy Trang, Fred Bergold, Harlan Heninger, Jim Morgan, Bruce Allred, Marjorie Allred, Jeff Lund, Dale Kunkel, John Barker, Jeanne Groberg, Nancy McPherson. Todd Stevenson, and Howard Hess. CITY COUNCIL TRAINING: Mayor John Polman: PRESENTATIONS: None PUBLIC HEARING: 4.1Truth in Taxation Hearing to Receive Public Comment on the Certified Rate and the Fiscal Year 2025 Budget. Background: The Fruit Heights City Council adopted a tentative budget for the fiscal year 2025, on May 7, 2024. They set up a public hearing on the certified tax rate and proposed budget for August 6, 2024. The council is now proposing adopting the fiscal year 2025 Budget, which includes a tax rate increase from 0.001529 to 0.001789, consequently requiring a “Truth in Taxation” hearing. Council Member Eileen Moss made a motion to open the public hearing. Council Member Florence Sadler seconded the motion. It was unanimously approved by the council (0:07). Rod Larkin: I want more information on property taxes. We need to understand the total expenditures to make informed decisions. There is an annual tax increase for property taxes which can impact on us all. The budget shows an income, but we don't know if anything will decrease. The property tax budget revenue is projected to increase by 17%, which may require a tax increase. We need more data for better decision-making and financial planning. Mayor Pohlman: Residents were paying about $500 a year for their city fees. A 17% increase, although it sounds like a lot, is a 17% increase on $500, which equates to an average increase of about $100 a year. Council Member Moss also commented that the city does not hold a Truth in Taxation Hearing every year. This is the only time we can adjust the percentage of revenue received based on property value changes. This year, despite a decrease in property values, the county slightly increased the rate due to house price fluctuations. She also asked City Manager Frandsen to pull the form for the county that eligible residents earning around $40,000 or less can apply to have their property taxes abated in the county. This option can help lower income individuals facing increasing property values despite stagnant income. Get a form to apply today and spread the word to those who could benefit. This information was shared in a public hearing to raise awareness about the available assistance. Fred Berghold: He is concerned we are going into a recession and are going to have to budget for that. We will be looking at falling house prices, so we need to look at these numbers and understand that the city does need to raise taxes now. Mayor Pohlman: He talked about a fixed amount of $1.5 million, regardless of rate fluctuations due to price changes. Council Member Moss also pointed out that next year our fire and police services will be going up. The city already has those numbers, and we need to start prioritizing now. Jeff Lund: He wanted to know how many employees the city has and if pay increases are included in the budget? He enjoys having his utilities on and the roads in the city maintained. He asked for the city to take care of their employees so the residents can continue receiving great service. City Manager Frandsen: He commented there are 8 full-time employees and two part- time employees. Five are in the office and five in public works. The City Council said they all wear many hats and do many different jobs. Mayor Pohlman stated he is a firm believer in not increasing across the board but believes in merit-based increases when employees take on more responsibility and are willing to do more. That is more effective and helps the city because that’s one less person or another consultant the city would have to hire. Dale Kunkel: For the past 12 years I have lived in this city and attended several city council meetings. I am impressed that we rarely have to take out bonds for funding and maintaining a balanced budget. However, our savings are not as strong as before due to increased expenses. Considering the economic challenges, it is crucial for the city to tighten its belt. Utilizing volunteer labor for matching grants could help address funding gaps. Additionally, the decline in volunteer organizations has impacted our community. Monitoring volunteer hours can provide insight into community engagement levels. Mayor Pohlman: The city has been successful in obtaining grants over the past six years, bringing in $6.5 million in outside funding. This has allowed for the completion of projects sooner than they were on a ten-year plan. For example, a $1 million grant enabled the connection of homes with higher pressure water. Additionally, the city has implemented a fire mitigation plan that requires community service hours for funding in case of a wildfire. This proactive approach has been successful in obtaining grants and ensuring the safety of residents. Overall, the city's efforts in securing funding and executing projects have been spearheaded by the city manager and staff, who work diligently behind the scenes. Council Member Cottrell wanted to add to that commitment. He has talked with City Manager Frandsen and Public Works Director Leonard and has planned a service project for Just Serve in September, along with 10- 12 new service projects for different organizations in the city. More opportunities for service will be publicized. Council Member Moss stated that the city must maintain a minimum amount of money in a fund for emergencies like earthquakes, wildfire or major water line repair. There is also a maximum amount allowed in city funding. Currently, funds are low due to grant matching. Projects may need to slow down to rebuild funding for the future. Todd Stevenson: He is not opposed to the tax increase. He did ask about the city parks and is disappointed with the way they look. He feels like the parks are the face of our city. He enjoys walking around the baseball diamonds and wishes to see them in better shape. He is hoping with this tax increase that more money will be allocated into fixing up our city parks. He also asked about the money that was earmarked for the cemetery. He understands that it got used in other projects. He was wondering if the city would make and start funding a cemetery. Mayor Pohlman: He said the UDOT project hurt our parks significantly. The project turned off a lot of the water and restructured part of the park. The public works team has been working hard to bring the park back by replacing sprinklers. To answer the second question is the change in leadership. When City Manager Frandsen took over leadership it was not properly communicated to him. He noticed the funding was no longer there and had been used in different parts of the budget. Council Member Moss spoke with City Manager Frandsen specifically to introduce the cemetery as a line item in our capital projects and to start funding it. Jared Tingey: He commented on the YouTube Live, Mayor and Council Members. Thank you for your hard work and trying to do the best you can. Council Member Florence Sadler made a motion to close the public hearing. Council Member Mark Cottrell seconded the motion. It was unanimously approved by the council. (0:38) BUSINESS ITEMS: 5.1 Resolution 2024-010 The operational budget for fiscal year 2025 after holding a public hearing to increase the 2024 tax rate to 0.001789 and the adoption of the final budget. City Manager Frandsen: He acknowledges and appreciates the mayor and city council for their valuable input on the budget. He highlights the increased costs for the city in areas like the sheriff and fire departments. Capital projects have seen a significant rise in costs, with examples like fire hydrant replacements doubling in price. The city faces a $3.5 million plan for essential projects like road work and water line replacements, emphasizing the need for planning and prioritization. At this point Mayor Pohlman looked for a motion. Council Member Mark Cottrell made a motion to approve Resolution 2024-010 The operational budget for fiscal year 2025 after holding a public hearing to increase the 2024 tax rate to 0.001789 and the adoption of the final budget. Council Member George Ray seconded the motion. Council Member Moss: She stated that not one of the city councils wants to raise your taxes because they don’t want to raise their own, but every month we are trying to provide the services that this city needs, and we must prioritize. As the City Council we are not excited to do this, but we recognize this is what needs to happen to maintain the bedroom community that we live in. Many years ago, the decision was made to be a bedroom community and to not have commercial businesses on every corner. People have moved to the city because they want that community feel and that comes with a price to pay. Council Member Cottrell: He wanted to add that during his campaign he noticed people were concerned about the condition of the parks in the city. As decisions are made, we must consider whether to invest in parks or maintain essential services like snow plowing equipment. It's important to balance the needs of the community while being mindful of increasing costs. We must prioritize services like snow removal and public safety while finding ways to manage expenses. Council Member Ray: He reviews the budget monthly but doesn't oversee spending. He trusts the staff’s responsible spending, though he may not always agree with it. It is important for staff to monitor spending efficiently and effectively. Council Member Mark Cottrell made a motion to approve Resolution 2024-010 The operational budget for fiscal year 2025 after holding a public hearing to increase the 2024 tax rate to 0.001789 and the adoption of the final budget. Council Member George Ray seconded the motion. It was unanimously approved by the council (0:50). TABLED ITEMS: None CALENDAR: None REVIEW AND APPROVAL OF MINUTES FROM PREVIOUS MEETINGS: None CITY COUNCIL REPORTS: None MAYOR REPORT: None CITY STAFF REPORTS: None ADJOURNMENT: Council Member Eileen Moss made a motion to adjourn the meeting with Council Member Gary Anderson seconding the motion. It was unanimously approved by the Council. (7:51) Not approved until signed. /S/:_________________________________ Hailee Ballingham, City Deputy Recorder Date approved by City Council: August 20, 2024