Richmond City Council August 2024 Summary

 

APPROVAL OF THE CITY COUNCIL MEETING MINUTES FROM JULY 18, 2024.

Approved.

PUBLIC HEARING TO DISCUSS THE PROPOSED INCREASE IN PROPERTY TAX REVENUE FOR THE CITY. THE RICHMOND CITY TAX ON A $448,000 RESIDENCE WOULD INCREASE FROM $264.88 TO $273.50, WHICH IS $8.62 PER YEAR. THE RICHMOND CITY TAX ON A $448,000 BUSINESS WOULD INCREASE FROM $481.60 TO $497.28, WHICH IS $15.68 PER YEAR. IF APPROVED THE CITY WOULD INCREASE ITS PROPERTY TAX REVENUE BY 3.35% ABOVE LAST YEAR’S PROPERTY TAX BUDGETED REVENUE EXCLUDING ELIGIBLE NEW GROWTH.

Mayor Erickson introduced the discussion on the property tax increase request, asking Justin to provide background information. Justin explained that in 2018, the city raised its property tax rate for the first time since 1978, implementing a large increase of $77.23 per year. Since then, the council has opted for smaller, incremental increases to avoid larger jumps. Last year, the increase was 3.35%, which amounted to $9.07 per average household, and this year, the proposal is for the same 3.35% increase, translating to $8.62 annually, or $0.72 per month. By maintaining the same tax rate, the city is projected to receive $349,256 in revenue—an $11,013 increase over the previous year.

Justin mentioned that this small annual increase helps the city avoid more substantial hikes. He also highlighted that Richmond's proposed property tax increase was the lowest in Cache Valley at $8.62, with Clarkston being the highest at $121.98. The decision was made to hold a public hearing on the proposed increase.

Following a motion by Lyle and seconded by Bryce Wood, the council voted unanimously to open the public hearing at 6:37 P.M.

During the hearing, Terrie Wierenga, a local resident on a fixed income, raised concerns about the justification for the increase. She questioned the city's plans for the additional revenue and the cost of advertising. She suggested that the city consider holding the rate every other year if advertising expenses consume a significant portion of the additional $11,000. Terrie also inquired about the city's plans to replace a full-time employee who had recently left.

After Terrie’s comments, a motion to close the public hearing and reopen the regular city council meeting was made by Bryce Wood, seconded by Lyle, and passed unanimously. The public hearing ended at 6:39 P.M.

DISCUSSION AND POSSIBLE VOTE ON RESOLUTION 2024-07, A RESOLUTION SETTING THE REAL AND PERSONAL PROPERTY TAX RATE.

During the council meeting, Justin clarified that the cost of advertising for the property tax increase would likely be under $1,000, closer to $500, due to collaboration with other entities in the valley and the county, which includes the information on property tax notices. 

The mayor explained that inflation is around the same rate as the proposed increase, 3.35%. He also mentioned that Rob Bair, a longtime employee of the city, would be retiring after approximately 34 years of service, and that finding a qualified replacement would cost around $25.00 per hour. The city has seen its payroll increase significantly over the years, from around $350,000 annually a few years ago to approximately $750,000 today, with most revenue coming from sales tax. The mayor highlighted that of the seven cents collected in sales tax, the city only receives 1/7 or 14.29%. The mayor also mentioned that Black & White Days is becoming more costly each year.

Holly added that the costs of benefits, fertilizer, and park maintenance are rising and that the city had hired additional staff, including a temporary summer employee for the parks. The mayor further explained the rising costs of operating city infrastructure, including the sewer plant, which costs about $100,000 per month to run, and mentioned efforts to improve and expand the sewer system, possibly selling excess capacity to Lewiston City.

Terrie Wierenga expressed concerns about the volatility of sales tax revenue and emphasized the need for a contingency plan in case of a significant drop in income. The mayor assured her that the city has a contingency plan in place for such situations. Joel expressed support for small increases, recalling the significant financial impact of the 2018 increase. Amber acknowledged the concerns of residents but emphasized the importance of maintaining essential services. Bryce Wood shared an anecdote about Wellsville’s contentious meeting on a similar issue and expressed relief that Richmond’s meeting was proceeding smoothly.

The mayor stressed the importance of being responsible and prepared to adjust city spending if revenues decrease, mentioning that projects such as new sidewalks would be put on hold, and park maintenance would be reduced if necessary. 

The council unanimously passed Resolution 2024-07, setting the real and personal property tax rate. 

STAFF REPORTS AND MONTHLY FINANCIAL REVIEW.

Weston gave an update on the master plan and focused on the sewer treatment plan, which is examining ways to optimize the system and delay a costly expansion of around $25,000,000. The city is exploring the current footprint of the sewer plant, the potential use of sewer ponds, and land application to extend the life of the system. Weston also mentioned ongoing work on the water master plan and sewer collection plan, noting that fire hydrants were tested as part of the water plan calibration and that sewer plan modeling has been completed. Additionally, he shared that the Transportation Master Plan will begin at the end of the month. He further detailed the 400 West Road project, explaining that the water and sewer lines have been installed and the storm drain system should be completed by next week. However, due to unforeseen groundwater issues, the project encountered about $100,000 in extra costs, of which the city is responsible for 8%.

Holly provided updates on various city projects and staff changes. Josie DeMann was hired part-time for the front desk. The Park Bench had a medical emergency, and quick action by Karyn and the local EMTs helped address the situation. The community building’s rot and mold issues were resolved, and the wall will be painted over the winter. The Nature Park cleanup is complete, and residents will be encouraged to visit through the next newsletter. Road and sidewalk projects are moving forward, including crosswalk painting, pothole repairs, and the completion of sidewalk work in Hill Haven. Additionally, the community building, rented by Bear River Head Start, has seen a decrease in enrollment, which could lead to closure next year if numbers don’t increase.

Holly also reported on the progress of ongoing infrastructure and development projects:

• The Park Bench parking lot will be striped and sealed.
• The cement apron around the new restroom facility will be poured soon, allowing it to open.
• Several water meters were installed, and zoning clearances were issued for homes.
• The MBR Plant, which can handle 2,400 plates with room for 1,600 more, is undergoing regular maintenance.

Justin provided updates on several city events and technology improvements. The City Party is scheduled for Friday, September 6th, featuring free rides, dinner, and surprises involving the council and mayor. The new mass communication software, CivicReady, will be launched soon to send messages via email, text, and voicemail. The new agenda management system, CivicClerk, should be live by September or October, allowing residents to access council packet items, voting records, and more.

Justin also outlined recent city expenditures:

• The city paid $5,212 for dog catcher services and $31,462 for police protection (July to December).
• A new mini excavator was purchased for $12,850.
• Land purchases on 500 North from the Hill and Buttars families were finalized for $18,782.
• A new bathroom was installed at the park for $90,418, funded by RAPZ tax revenue.
• Water and Sewer Impact Fee collections for July were $139,464 and $103,376, respectively.
• New garbage cans were purchased for $9,946 to accommodate new homes and replace old ones.

COUNCIL MEMBER AND MAYOR REPORTS

Daryl didn't have any updates to report but confirmed that the irrigation board successfully fixed the leak at 300 East Main.

Bryce Wood shared that the youth council is doing well and recognized Kassy Greer’s great work as an adult leader. They are planning a trip to Lagoon for Frightmares in September.

Joel and Amber updated the council on the planning commission meeting, which involved discussions about multi-family zoning, including density, building height, and parking requirements. A draft proposal is expected to be ready for city council review in October.

The council discussed creating an event coordinator position for Black & White Days. Erin Munson was proposed for the role, having experience from Idaho Days in Franklin. The council is still deliberating on the exact responsibilities and compensation, potentially between $3,000 to $5,000 depending on her role.

Amber highlighted the Park Bench’s activities, with over 100 meals served and 1,100 food pantry items distributed. She also mentioned upcoming events such as the senior spelling bee, art show, Halloween carnival, and more. The DUP is hosting a raffle to raise funds for a new roof on the Relief Society Building.

The mayor discussed upcoming events like the Cache Valley Century bike race and the possibility of working with Lewiston City to help with their sewer system challenges. However, the council emphasized that any collaboration would require careful planning and negotiation, especially due to the limited capacity of Richmond's MBR Plant.

Finally, the council discussed ongoing concerns with speeding in the new 45 mph zone south of town and acknowledged the potential noise concerns from the early morning bike racehorn. The meeting concluded with a unanimous vote to adjourn.