Moose Lake City Council plus Truth and Taxation Meeting 12/20/23

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This transcript has been formatted with the appropriate speaker names based on the context of the Moose Lake City Council meeting. [0:03] **Mayor Jim Michalski:** Open the meeting. This is a regular meeting Moose Lake City Council for Wednesday, December 20th at 4:00 p.m. and I'd like to start with Pledge of Allegiance please. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands, one nation under God, indivisible, with liberty and— [0:36] **Mayor Jim Michalski:** Like to welcome all our guests here tonight, thanks for coming. The next item is approval of the agenda. I have one change on it and that is under new business M, you can cross that out, that will be at a later council meeting. And also that goes along with it, we were going to have a closed session to discuss that contract, so that'll be taken off also. And I'd like to explain, before we approve it, just explain everyone on number five, the Truth in Taxation public hearing, that'll happen at 6:00 p.m. and that is by state law. So we go through the agenda and at 6:00, if we finish before then, we will go into recess and have the public hearing and come out of it after the public hearing. And at that time we would be approving the budget and all the items that go that have to be done by Motion in the budget. So just for everyone's understanding how that works. Um, ask Kelly, what is your timeline tonight for you because the item we have the city police is near the end of the new business. Are you want to type—I'm sorry, are you talking to me? [2:13] **Sheriff Kelly Lake:** Yeah, no, I am not. Okay, because I can move it. I am fine. [2:20] **Mayor Jim Michalski:** Okay, thank you, appreciate that. So any other changes or additions, corrections to the agenda? There none, do I have a motion to approve the agenda? [2:30] **Council Member Douglas Juntunen:** So moved. [2:32] **Mayor Jim Michalski:** I have a second? [2:33] **Council Member Walter Lower III:** Second. [2:34] **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Opposed? Motion carried. Under the consent agenda 2A, the minutes. Number one, we have the regular city council meeting for November 8th, 2023. Number two, the Planning Commission meeting November 28, 2023. Number three, the special city council meeting for November 29th, 2023. We have any discussion or questions on the minutes? None? A motion? [3:20] **Council Member Kris Huso:** [Motion] [3:21] **Mayor Jim Michalski:** I have a second? [3:23] **Council Member Lou Ohly:** Second. [3:24] **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Opposed? Motion carried. Under 2V Financial reports, we got a city accounts payable for November 2023. Number two, the city financial statements November 2023. Number three, the municipal liquor store profit loss statement for November 2023. Are there any questions or discussion on the financial reports? Hear none, do I have a motion to accept the financial reports? [4:15] **Council Member Douglas Juntunen:** So moved. [4:17] **Council Member Walter Lower III:** Second. [4:18] **Mayor Jim Michalski:** Thank you. All in favor say aye. (Group: Aye). Opposed? Carried. Moving on to number three, this is a public comment time. This time is reserved from comments from the public on matters not listed on the agenda. Please keep comments to three minutes. Anyone present? Hearing none, we'll move on. Departmental reports for 4A, Police Department report for November 2023. [4:45] **Officer (MLPD Representative):** Members of the council, Mayor, Miss Owens. This is the November 2023 Council report. We had 183 calls in November. Three of them were business checks, which is fairly low for business checks—we're definitely going to be working on getting that upped. 39 extra patrols. The business checks and extra patrols kind of either-or, some of the business checks may have turned into extra patrols. 68 traffic stops; there's 114 last month. 10 Community engagements; there was nine last month. Calls to respond: we had six assist to other agencies, same amount from last month. 50 calls for service, 73 last month. I added on a vehicle theft and a vehicle damage being tampered with because we don't get many of those—in fact, we don't get those much at all. We had one of each of those, none reported last month. And five medical calls, only seven last month. Calls for service have gone down; it's getting colder, it's winter time, they tend to go down in the winter. [6:04] **Officer (MLPD Representative):** At the very end of last month, we received a call from the owner of the Mini Storage. His people at the Mini Storage are calling him to tell him that people are breaking into the Mini Storage. I told him to tell them to make sure to call 911. Sadly, people are picking up on the fact that we don't have full night coverage. We had a meeting and we're working on that; we're prioritizing night shifts. We're missing an officer, so we're working on prioritizing that. Picked up another part-timer, State Patrol Officer Hopkins, he started working and he says he's going to be picking up shifts. Questions? [6:55] **Council Member Lou Ohly:** Which storage? [6:57] **Officer (MLPD Representative):** Up by the Catholic Church. Yep, right next to the Catholic Church. They called the owner instead of 911. I told him we need a call so we know what's happening and not finding out third-hand. [7:38] **Council Member Walter Lower III:** I see on here on the report that there's a lot of the locations where the incidents have happened that are missing the street names and stuff like that. [8:00] **Officer (MLPD Representative):** I didn't realize that. That might be some of the new part-timers. They don't use Zerker; a lot of them are State Patrol officers and they don't use the same programs. We have to train them how to use our program, but I will definitely look into that. [8:30] **Council Member Douglas Juntunen:** There was a communication with Laura Setter from the League of Minnesota Cities on the Wellness program. Where are we at? [8:40] **Officer (MLPD Representative):** Right now, Taylor is actually doing a very good job of getting that up and running. I'm looking into finding law enforcement specific psychiatric and therapy types—I believe there's one or two in Duluth. I passed on the email I got from the League of Minnesota Cities to Taylor and she ran with it. Maybe Ellissa, you could give a little update on the meeting we had yesterday on that. [9:24] **City Administrator Ellissa Owens:** Yeah, we do have internal meetings regarding the wellness program. Like stated, Taylor has taken the lead on it. We're looking at the different categories; we're going to focus on a different category element every quarter. We're going to have a calendar that we are able to present to council. We do have a January 1 timeline. We are utilizing our resources whether it be the League of Minnesota Cities, local financial advisors, the county as well. You're going to see it first via email as a council and then for formal approval in January, but we will be able to meet our deadline. [10:42] **Mayor Jim Michalski:** Yeah, it's not only for police, it's for citywide, so it's a comprehensive program. It's moving along, which is good. [11:00] **City Administrator Ellissa Owens:** It is. We do have some of the components in play already, making sure we hit every metric we need to meet as a city and as an employer. [11:15] **Mayor Jim Michalski:** Any other questions Council? Thank you very much, thanks to both the officers for a good job. Moving on to 4B City Superintendent Phil. [11:35] **City Superintendent Phil Entner:** Mr. Mayor, Council, Administrator Owens. With not having any snow, it's been extremely busy. We mow rights-of-way and ditches and everything we had. Starting the water department: distributed 5.7 million gallons drinking water in month of November. I'm currently working on our submittal for our MDH source water protection grant. Moving on the sewer department collection system: we're at 10.3 million gallons of wastewater. We will be having a new Wastewater permit from the MPCA. Sanitary sewer lining project for 2023 is happening today, believe it or not. Engineering group, myself, and Admin are working on finding the 2024 sewer lining project so we can move into that right away next year. [13:01] **City Superintendent Phil Entner:** Treatment facility: we did have a small discharge out there this year. We chose to do one just to make sure we had adequate capacity for whatever flooding or precipitation happens in the spring. Street department obviously is great, no snow and ice. The Campground is completely winterized. The bath house renovation is I'd say about 50% done. Your Public Works crew is going to be doing majority of that work as well, going to save us a bunch of money. Arena is running at full capacity. Recycling shed is completed and we're waiting for one fiber switch for the point of sale system. It's been a busy year. Any questions? [14:38] **Mayor Jim Michalski:** Maybe some news on the Mighty Ducks for the arena? [14:41] **City Superintendent Phil Entner:** Yeah, I was just contacted by the Hockey Association president. It looks like they funded the Mighty Ducks grant again. We are going to work with our city engineers in order to get an application in for the Mighty Ducks grant. [15:05] **City Administrator Ellissa Owens:** That would be for the compressors. The biggest thing funded was for elimination of R22. Once we get the application complete, we'll make sure that Council has visibility. In addition, the bath renovation—we're making sure all of the items are purchased and invoiced out to make sure that we compartmentalize the capital project within 2023. We've officially wrapped up all of our capital projects other than installation. [16:03] **Mayor Jim Michalski:** Municipal Liquor Store Department report, November 2023. [16:10] **Finance Director Ryan McKeon:** Good evening City Council, Mayor, Administrator Owens. Mari is doing a great job. We are continuing to make improvements with our point of sale and efficiencies. We have another meeting set up with Keystroke next Thursday. You did receive an email from Brenda who the MMBA was very nice in sending our way. There's probably way too much to go over in there, but we can go over it at the next liquor board meeting as well. [16:55] **Council Member Walter Lower III:** Just a comment, sounds like there's a lot of information you stated. It seemed like there's $8,000 that was going to be saved already for next year just because of pricing checks and balances? [17:15] **Finance Director Ryan McKeon:** We did cover quite a bit. And on to the next phase, which would be server training for all staff. It's an online training, only $15 per person, and it'll help with our liability insurance. [17:45] **Mayor Jim Michalski:** Quick question, you know when the annual inventory for the unit will be done? [17:50] **Finance Director Ryan McKeon:** It'll still continue on January 1st. [18:00] **Mayor Jim Michalski:** Very good. Any other questions from the Council? Hearing none, thank you Ryan. Technology and Library. [18:15] **Finance Director Ryan McKeon:** Library update: Laura's winter reading program starts this coming week. As far as her local support requirement, she's right in line. IT related: part of the cybersecurity stuff we're doing, there was a test phishing email that went out. If anyone's talking about that, please click on the training and take it. [19:10] **Mayor Jim Michalski:** Under 4E city engineer monthly update for December 7th. [19:15] **City Administrator Ellissa Owens:** Council received the monthly update meeting minutes. I just want to highlight a couple of items. The city is engaging in design for the residential development with our city engineers. We are also engaging with them to maximize the acreage up there, looking at how many housing units can fit in there. We have a wetland delineation process and topography reports. We'll continue to keep Council updated. We do have an ordinance we'll be looking at later on in the meeting. We also have a notice to start negotiating with the Sewer District. I had a meeting with the chair of the Sewer District and I have gotten the green light to engage in a revised contract or SIU agreement. [21:45] **Mayor Jim Michalski:** Maybe just a quick message for on the development we're talking about—it's about 30 acres south of Quick Trip, that the school property or the School District owned that they sold to the city. So hopefully good things, good development, and hopefully start this spring. Chamber of Commerce? [22:25] **City Administrator Ellissa Owens:** None of us could make it to the chamber meeting this month. I know they have their annual meeting coming up in January. [22:55] **Mayor Jim Michalski:** The next item is the Truth and Taxation that will happen at 6:00 p.m. So all of item 5 will happen at that time. We move on to 6, previously discussed business. This is ordinance number 171, an ordinance amending ordinance number 127 establishing use and rate regulations for wastewater treatment facilities. [23:25] **City Administrator Ellissa Owens:** Council, this is the second reading of ordinance 171. It is a modification of a current ordinance that deals with rate regulations. What we're working on is the ability to establish a service charge. That service charge will help keep rate increases lower moving forward or more moderate. [24:15] **Mayor Jim Michalski:** I just want to comment that this isn't something new for just the City of Moose Lake, there's all the surrounding area that already have this. [24:36] **Mayor Jim Michalski:** Moving on to 7, new business. Mark, Sand Lake Resort SEH capacity request discussion. [24:50] **Mark (Sand Lake Resort Owner):** Mayor, City Council, Administrator Owens. Just wanted to give a little update. We have the resort over on Sand Lake. After about a two-and-a-half year tussle with the DNR, I was originally permitted for 49 units; we received permission to proceed with 40. I currently have 25 hookups under the Sewer District, so we are looking for 15 hookups which equates to 5,377 gallons. In order for us to proceed with our development, we need an agreement that we do have the capacity coming at that time. I understand that it is not entirely your purview, but I would ask that if there's an opportunity for a resolution to find those gallons, that would be helpful. [26:56] **Mayor Jim Michalski:** Well, the good news is that they actually just opened the contract and that just happened. [27:00] **Mark (Sand Lake Resort Owner):** Well we're excited. We have a two-story 40-unit resort. It'll probably be something around 10-12 million. We're going to have daily, weekly, monthly rentals. We're adding 40 underground parking spaces. As soon as I can get our permitting resolved with respect to the sewer capacity, we're a green light. [28:35] **City Administrator Ellissa Owens:** Bill can share with Council that we discussed updating our sewer capacity memo. We'll be providing council with an entire update throughout 2023 as soon as those figures are available from the engineers. [29:50] **Mayor Jim Michalski:** Under B, it says Mark Anderson—I should say Mike. Mike Anderson? [29:55] **Mike Anderson:** Good evening Council, Mayor. We own the Art's Cafe building. We were fortunate enough to cross paths with the owner-operators of El Mexico in Sandstone. They've created a destination in town. In front of Art's, we're over 8,000 average cars per day. They've got a lot of interest in bringing their food to the town. People go there for the food, but they want a margarita as an option. Not going to have a bar where people go just to drink—they go across the street to the city bar for that. [31:36] **City Administrator Ellissa Owens:** What we have in place with other establishments around town is we do have the 3.2 licenses. The city technically has two liquor licenses, and there is one available at this time. The Council does have the ability to determine what's covered under that liquor license. [32:30] **Mike Anderson:** The main call would be the margaritas. Mexican style beers, wine. Some people like margaritas, some like whiskey. It would be nice to have all those options. [35:00] **Council Member Douglas Juntunen:** If we gave this one out, what would the situation be for future development if somebody wanted another one? [35:15] **City Administrator Ellissa Owens:** There's a process with the state to acquire more licenses. We could essentially gather additional information and revisit the topic. [35:55] **Mayor Jim Michalski:** I guess I'd like to table it till next month with getting more information and a list of what you would like. A drink menu, whatever that looks like. [36:55] **Mike Anderson:** No problem. It'd be great bringing that to this town, seeing that building being used. [37:55] **Council Member Douglas Juntunen:** I have a question on parking there. I know entrances and exits are on other people's property. [38:05] **Mike Anderson:** The property line is approximately on the north edge of that curb. It's sizable parking, a very large parking area. [38:35] **Mayor Jim Michalski:** Thank you very much, it will be on the agenda. C: Proposal for Audit Services discussion. [39:15] **Finance Director Ryan McKeon:** CLA is no longer able to provide auditing services for the city. This is primarily due to staffing. I have two quotes in the packet. One is from Westberg Eischens and one is from RSM. Westberg Eischens comes in probably half as much as the other quote. The downside would be they need us to file an extension with the state. RSM were the city's auditors 10 years ago. Their quote is much higher. RSM is more accurate just because they're familiar with us. I guess I would need a motion for one of these. [41:35] **Council Member Walter Lower III:** What is the cost for the state auditor? [41:40] **Finance Director Ryan McKeon:** I am not sure what they would charge us. They would be much later in the year. I've reached out to 30 plus companies. 99% of them say they just don't have the staff. [43:45] **City Administrator Ellissa Owens:** Our audit isn't exactly simple. We have the Housing Authority and Water and Light under our city umbrella. Our previous firm said they were essentially going backwards facilitating our audit because of the amount of hours and staff required. [45:30] **Council Member Walter Lower III:** Well we've been talking about money all year long and now we're just like "let's spend $50,000 more because we used them 10 years ago?" I guess I would err on the side of using somebody that's coming in at half the bid for one year. [51:40] **Mayor Jim Michalski:** Finance Director, you would be comfortable with Westberg? [51:45] **Finance Director Ryan McKeon:** I would, yes sir. [52:45] **Council Member Walter Lower III:** I'll make a motion we go with Westberg Eischens for this year for a one-year contract. [52:55] **Council Member Douglas Juntunen:** I'll second that. [53:00] **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Opposed? Motion carried. Next item is D, CD rate discussion. [53:15] **Finance Director Ryan McKeon:** We have CD rates that mature in January. We are at 5.25% for a 6-month CD; they're willing to keep it at that rate. The one-year CD was at 3.10%, we can renew that for a year at 4.75%. [54:15] **Council Member Douglas Juntunen:** I'll make a motion we go with the recommendations of the Finance Director. [54:20] **Council Member Lou Ohly:** I'll second. [54:21] **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Opposed? Motion carried. 7E fraudulent check discussion. [54:30] **Finance Director Ryan McKeon:** We had a fraudulent check go through. The check was supposed to go to Rybak Company for $2,272. At some point from the post office here to their post office, it was intercepted. They printed out on their own check, increased it by $1,000, and cashed it at First National Bank. It's in the hands of the fraud department and law enforcement. [55:50] **Mayor Jim Michalski:** F: Earned Sick and Safe Time (ESST) discussion. [55:55] **Finance Director Ryan McKeon:** This is state mandated. Employers must provide paid leave for sickness or family care. We're going to post this everywhere. We can choose to frontload this or have an accrual rate. For example, Rory—he would be qualified because he works over 80 hours in a year. I'd recommend we frontload it for him. [59:01] **Council Member Douglas Juntunen:** Is this something the employees are putting into as well? [59:15] **Finance Director Ryan McKeon:** This is just our responsibility. If you already have a sick time schedule, it supersedes it. This is for people like Rory who don't build up sick time. [1:00:10] **Mayor Jim Michalski:** Consensus? (Group: Yes). Thank you. G: Supplemental Letter Agreement 73 Phase 2 Trail project. [1:00:20] **City Administrator Ellissa Owens:** This is for the Trunk Highway 73 Trail Phase 2. This formally establishes the project so we can track billing and invoicing. It is fully funded by grants. [1:01:25] **Council Member Douglas Juntunen:** I'll make a motion that we approve and sign the supplemental letter agreement. [1:01:30] **Council Member Lou Ohly:** Second. [1:01:40] **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Opposed? Motion carried. 7H 2023 ELP Grant submission. [1:01:55] **City Administrator Ellissa Owens:** This is for your information. I wanted to provide visibility to our application. We received letters of support from the Schools, the Chamber, Senator Jason Rarick's office, and Davidson Insurance. Now we just wait until spring to see if we've been selected. [1:03:09] **Mayor Jim Michalski:** 7I: Ordinance number 172, flood plane management. [1:03:15] **City Administrator Ellissa Owens:** The city must adopt a conforming ordinance in order to continue to participate in the National Flood Insurance Program. This is the first reading. We must adopt it prior to March 13th. [1:06:05] **Mayor Jim Michalski:** 7J: International Institute Municipal Clerks Regional 6 meeting. [1:06:15] **City Administrator Ellissa Owens:** Administration would like to attend a regional meeting in Iowa. We have not engaged in training over the past couple years and have new staff. [1:07:35] **Council Member Lou Ohly:** I'll make a motion that Admin people go to the mid-year meeting in Iowa. [1:07:45] **Council Member Douglas Juntunen:** I'll second. [1:07:50] **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Opposed? Motion carried. 7K: Lois's resignation. [1:08:45] **Council Member Kris Huso:** [Motion to accept] [1:08:50] **Council Member Walter Lower III:** Second. [1:09:15] **Mayor Jim Michalski:** Motion carried. Thank you, Lois, for years of service. 7L: Moose Lake Police Department discussion. Kelly? [1:10:08] **Sheriff Kelly Lake:** Thank you Mayor and Councilors. I was not asked to present anything formal, but I heard this was an agenda item. I wanted to make sure I was available because I was asked to provide a proposal for what contracting services might look like. I've been hearing there's some misinformation going around. [1:11:40] **Council Member Lou Ohly:** From what I've been gathering, people like the idea that there's an officer around pretty much 24 hours a day. When I was here as a kid, we had a constable. But the City of Moose Lake has a major problem in the financial end. [1:14:35] **Sheriff Kelly Lake:** I have been with the Sheriff's Office for over 33 years. The type of crimes we respond to—violent crimes, drug issues—those weren't there in the volumes we're seeing now. After the last meeting, I thought there was going to be a public hearing in January. It's my understanding that right now, the city is not in a financial place to be able to provide 24/7 coverage. [1:16:20] **Council Member Walter Lower III:** My main concern is the financing part. We have so many claims of PTSD that we almost have a whole other Police Department that no longer works for us that we pay the healthcare insurance on. For the 5 years that I've been here, our Police Department budget has been more than we take in in total property taxes. To me, that is just a huge red flag. [1:20:45] **Council Member Walter Lower III:** We asked for a proposal for three officers from Carlton County and we got a proposal for four. We haven't got those figures for three yet. I find the budget situation extremely concerning for the future of Moose Lake. [1:22:33] **Sheriff Kelly Lake:** I provided four deputies because I don't know that I am in a position to provide three. I think that sets the county up with having to supplement the budget for Moose Lake. You have 183 calls in one month—Cromwell or Wright probably don't have 183 calls in a year. The deputies would be in the city of Moose Lake so much that it would be pulling them away from other areas of the county. [1:29:20] **Council Member Douglas Juntunen:** I have a question on the base salary. Does that include overtime? [1:29:55] **Sheriff Kelly Lake:** Overtime was removed from the second proposal because the council decided there would not be dedicated 24/7 coverage. [1:32:15] **Council Member Walter Lower III:** What would it look like visually? Some people fear the county would leave the area as soon as possible. [1:33:00] **Sheriff Kelly Lake:** It would still be a county squad, but we would put "Serving the City of Moose Lake" on it. Those four deputies would be dedicated to the city. If there's a physical domestic with a gun right outside the city, they might respond for Mutual Aid, just like your current officers do. [1:36:55] **Council Member Douglas Juntunen:** Would they report to the state or you? [1:37:05] **Sheriff Kelly Lake:** They would be under my direction and control. They would be assigned here as their full-time station; they would get to know the community members. [1:42:45] **Officer (MLPD Representative):** How long do you think it would be before you could get four people down here? My biggest worry is I don't want to see the city have months of nothing. [1:43:40] **Sheriff Kelly Lake:** Our last two hires were lateral transfers. If we hire someone with experience, it's less than two months. If it's someone brand new out of school, it could take three to four months to fully train. [1:45:00] **Council Member Lou Ohly:** Is there going to be any type of opportunity for our current officers to apply? [1:45:15] **Sheriff Kelly Lake:** I cannot guarantee a position, but I can guarantee an interview for them and encourage them to apply. [1:49:50] **Mayor Jim Michalski:** We're getting close to the public hearing at 6:00. I think we should take a recess. I know there's going to be more discussion during the budget proposal. Any other questions? [1:51:30] **Council Member Walter Lower III:** I'm a little confused because we agreed 10 days ago that we were going to have a public hearing about the police department in January. [1:52:15] **Mayor Jim Michalski:** Anyone can make a motion tonight, it doesn't preclude that. Do I have a motion to go into recess? [1:55:00] **Council Member Douglas Juntunen:** So moved. [1:55:10] **Council Member Lou Ohly:** Second. [1:55:15] **Mayor Jim Michalski:** Motion carried, we're in recess. [1:55:40] **Mayor Jim Michalski:** [Returning from recess] Do I have a motion to go back into session? (Group: Yes). Next motion is to go into the Truth and Taxation public hearing. Ellissa, please proceed with the presentation. [1:56:15] **City Administrator Ellissa Owens:** I will present the 2024 final budget. Notable items: Election budget added; operating transfer to Motor Vehicle increased to $50,000; 3% wage increase for non-contract employees; health insurance increased 9%. We have $180,000 earmarked for potential development. Local Government Aid (LGA) increased to $1,120,380. Campground revenue budget increased to $180,000. General fund budget summary: Revenue $2,862,557; Total Expenditures $2,776,250. [2:03:00] **City Administrator Ellissa Owens:** Debt service: $105,000 of general property tax is obligated for the 2014A bond. Special assessments are recorded so we levy for less. Water fund: 14% rate increase established, which covers the Debt Service obligation of $241,000 in 5 years. Sewer fund: 11% rate increase. Sewer Debt Service in 2024 is $383,000. Liquor fund: Budgeted for a net income of $144,101. Motor Vehicle fund: Operating at a budgeted loss of $2,745. [2:16:00] **City Administrator Ellissa Owens:** Levy figures: The initial levy passed at 3%. For 5 years, the city has maintained the same tax rate. [2:19:15] **Mayor Jim Michalski:** I myself want to make a comment on the Police Department. I came to the conclusion that I would like to go with our own department with three officers. That's my personal decision. With that, do we have a motion to open the public hearing? [2:20:45] **Council Member Douglas Juntunen:** So moved. [2:20:55] **Council Member Lou Ohly:** Second. [2:21:05] **Mayor Jim Michalski:** Motion carried. We are now in public hearing. [2:21:18] **Cody Gilbert (Guest):** In the last two years, I've seen a 30% increase on taxes. When is it going to end? My grandparents had to pick pine cones to pay their property taxes. Where is the balance? It seems like you just go to the bottomless pocketbook of taxes. [2:23:20] **City Administrator Ellissa Owens:** It's not the rate at the municipal level that's changed in the past 5 years, it's the valuation of the property done at the county level. Only 30% of the land in Moose Lake is taxable. That's why we have the liquor store and the campground—those monies go back into the general fund to reduce the need for tax increases. [2:31:40] **Council Member Walter Lower III:** We've used money to earmark infrastructure for a new housing development by Quick Trip. If we hit 60 new homes, we're going to change that dynamic so there is less of a burden on existing taxpayers. [2:33:29] **Leroy McKeon (Guest):** I've lived in small towns most of my life. 90% of people fighting taxes just don't want to pay more, but you have to keep up with expenditures. Not increasing taxes for 5 years sounds good, but it isn't helping anything. [2:37:35] **Mayor Jim Michalski:** I'll ask for a motion to close the public hearing. [2:37:45] **Council Member Douglas Juntunen:** So moved. [2:37:48] **Council Member Lou Ohly:** Second. [2:37:50] **Mayor Jim Michalski:** Motion carried. We are back in regular session. [2:38:15] **Council Member Douglas Juntunen:** I make a motion that we set the tax levy at $1,030,600. [2:40:40] **Council Member Walter Lower III:** I'll second that. [2:40:45] **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Opposed? (Council Member Juntunen: Nay). We have a tie—I will pass my vote in favor. Passed. [2:40:52] **Mayor Jim Michalski:** Motion for general fund revenue and expenses as presented. [2:41:35] **Council Member Walter Lower III:** I'll make that motion. [2:41:45] **Council Member Lou Ohly:** Second. [2:42:00] **Mayor Jim Michalski:** Motion carried. [Proceeds through motions for Debt Service, Water Fund, Sewer Fund, Motor Vehicle, and Liquor Store budget approvals]. [2:46:55] **Officer (MLPD Representative):** I just want to say, I'm in support of Moose Lake Police Department 100%. We could make it work with three. We prioritize nights and leave day shifts open for part-timers. [2:48:40] **Council Member Lou Ohly:** I'm not quite ready to see the whole county take over at the moment. [2:49:50] **Mayor Jim Michalski:** I won't make a motion tonight, I just wanted everyone to know where I stand. [2:52:15] **Mayor Jim Michalski:** [Reads Reports and Correspondence A-G and Announcements]. This is Paul's last night with us. Appreciate all you've done all these many years. Motion to adjourn? [2:55:50] **Council Member Douglas Juntunen:** So moved. [2:55:55] **Council Member Walter Lower III:** Second. [2:56:00] **Mayor Jim Michalski:** Motion carried. Adjourned.