by April Scheinoha
Reporter

The Thief River Falls City Council held a Truth in Taxation meeting Tuesday, Dec. 6 to outline its proposed 2023 property tax levy and proposed 2023 city budget.

In September, the council adopted a preliminary 2023 property tax levy of $3,374,156. That’s an increase of about 14% over 2022. The levy increase is expected to raise an additional $414,332, which includes an increase of $273,934 in the General Fund and an increase of $140,398 in bonded debt.

According to City Administrator Angie Philipp, the proposed 2023 budget features a 2.2% increase in health insurance premiums and a $65,000 transfer from the General Fund to the Greenwood Cemetery Fund. It also takes into account a $65,834 increase in Local Government Aid. Philipp said there is no use of budget reserves.

If the council approves the 2023 property tax levy as proposed, city taxes would decrease $9.97 for a $100,000 home. They would decrease $25.09 for a $200,000 home. For a $200,000 commercial property, city taxes would decrease $45.11. Those decreases take into account an increase in tax capacity, but they don’t take into account a change in the estimated market value of a particular property.

The council will consider the 2023 property tax levy and 2023 city budget at its next meeting Tuesday, Dec. 20 at 5:30 p.m. at City Hall. At that time, council members may lower the preliminary property tax levy; however, they can’t increase it.

REGULAR COUNCIL MEETING
At the regular council meeting, City Council approved an agreement with the Northwest Minnesota Multi-County Housing and Redevelopment Authority. The NMMHRA will administer a $600,000 grant. The grant will pay the cost to administer the grant.

The city received the Small Cities Development Program grant for renovations to multi-family rental units. Up to 44 units will be renovated in multi-family buildings that are 25 years or older, according to city consultant Mark Borseth. Owners will receive a deferred loan and a low-interest loan. They will also have to provide 30%. About $12,000 per unit will be awarded.

Property owners have already signed up for the program. However, in the event someone bows out, Borseth encouraged interested property owners to contact Ashley Hejlik in the Public Works Department at 218-681-8506 to be added to the list.

By a vote of 6 to 0, with one abstention and one absence, the council approved 2023 memorandums of understanding with the Teamster 320 Public and Fire unions, Law Enforcement Labor Services, non-union employees, city administrator and human resources coordinator. As part of the same motion, the council tabled a 2023 memorandum of understanding with the Management, Administrative Professional and Supervisory Union. The memorandums of understanding pertained to the implementation of a market study by David Drown Associates.

Council member Jason Aarestad abstained from voting. Council member Anthony Bolduc was absent from the meeting.

Among other things, the memorandums of understanding include pay increases retroactive to Oct. 1 as well as cost-of-living adjustments starting Jan. 1, 2023. Without the MAPS union included, the cost to implement the memorandums of understanding is $40,066.

Over a year ago, the city started a market study. Since then, the city has rewritten job descriptions, reviewed job titles and graded where appropriate. As of the evening of the council meeting, the MAPS union hadn’t met to vote on the changes.

During the council meeting, Aarestad didn’t state why he chose to abstain from voting. Afterward, he told The Times that he wished the council had been provided information ahead of time. He also referred to the fact that the MAPS group hadn’t yet approved its memorandum of understanding.

The council approved an increase to the Volunteer Fire Relief Association pensions. Provided the member has reached age 50 and completed at least 20 years of active service, $3,500 will be paid for each year that the member has actively served. Previously, the amount was $3,000.

Trevor Swanson, a volunteer firefighter, said the amount hadn’t been raised in 16 years. He said the plan is well-funded and they were told a higher amount could have been selected, but they wanted to be fiscally responsible.

Council member Curt Howe thanked the Thief River Falls Fire Department for its work saving a life. “It wasn’t a human life, but it was one trophy deer,” he said.

A day earlier, firefighters rescued the deer from the Red Lake River south of the Mark Boulevard bridge. The department’s Facebook page featured the rescue. A couple hours before the council meeting, Interim Fire Rick Beier had checked the department’s Facebook page. At that time, the post had already reached more than 250,000 people. His phone had also been ringing off the hook.

Council member Rachel Prudhomme thanked participants in Small Business Saturday, including businesses and customers. Peder Engelstad Pioneer Village also held an event that day.

Prudhomme voiced her disappointment regarding social media posts made by Advance Thief River. She said the organization is sharing misinformation about the city’s budget. Prudhomme specifically referred to accusations that the city was creating an economic/community development position for specific individuals. She added that Advance Thief River knew for a long period of time that the city planned to create such a position. Prudhomme also voiced her disappointment that Advance Thief River hadn’t communicated with council member Steve Narverud, an ex-officio member of the Advance Thief River Board, before disbursing such information in a negative light.

In November, the Committee of the Whole agreed to discontinue a $25,000 allocation to Advance Thief River. Instead, the budget line item will be classified as marketing for the city in the 2023 city budget.

The next council meeting is scheduled Tuesday, Dec. 20 at 5:30 p.m. at City Hall.