The St. Michael City Council reiterated its commitment to continue to work on moving forward with the potential STMA Ice Arena expansion.
This follows action by the STMA School Board one day prior where the board voted to consider a referendum for a second sheet of ice.
The council also hosted the annual truth-in-taxation hearing.
ARENA
The STMA Ice Arena is jointly owned by St. Michael, Albertville and the school district. The three sides and Youth Hockey have been contemplating the next steps to support a second sheet of ice expansion at the facility that is located in Albertville.
At the city council meeting, administrator Steve Bot provided a history of the project up to this point. He said the city council has generally kept its same position of preferring and supporting a referendum at the school district level.
Bot added that the council also voted 3-2 to support building a second sheet of ice up to $5 million, with the cities and school district levying for its share of the expansion, which he estimated would be $1.33 million each after taking into account a $1 million pledge by youth hockey.
Bot also wished to address some potential tax increase misinformation regarding the project. He clarified that a bond payment of $93,000 per year for 20 years to cover St. Michael’s $1.33 million share would cost an average valued home in St. Michael (valued at $237,000) a total of $15 per year on the city portion of the taxes, should the project move forward.
Bot next noted that, at a recent joint meeting between the cities and school district, the three discussed a potential timeline relative to Youth Hockey receiving a Mighty Ducks grant for the project, and that details are still be ironed out to determine if some of the deadlines related to the grant could be extended. It was noted that staff has been surveying area arenas to determine more accurate costs for a second sheet expansion.
Bot also read an email from STMA Supt. Jim Behle regarding the school board’s position as of its Dec. 7 meeting. He said the board voted to consider a referendum for the second sheet of ice and directed staff to develop a timeline for such a referendum. The district would also look into other facility needs and combine the second sheet of ice with those needs as determined as part of a referendum.
It was noted the school board would consider the referendum option in more detail at its January meeting.
The city council agreed unanimously to appoint Mayor Jerry Zachman to the design committee for a second sheet of ice, with Bot serving as staff representative.
Mayor Zachman and councilors Cody Gulick, Joe Marx, Nadine Schoen and Chris Schumm were also in support of the referendum option being considered by the school board since it would provide the best overall deal to taxpayers, due to equity in funding from the state.
Gulick questioned if the Mighty Ducks grant is tied specifically to a local government completing the project, and it was clarified the grant was awarded to the STMA arena and does not specify any certain group or entity needs to complete the expansion.
Zachman concluded that the council will continue to work on moving forward with the potential arena expansion as discussed.
TAX HEARING
In other news, the council hosted the annual truth-in-taxation hearing and reviewed the process involved in preparing the levy and budget.
Administrator Bot compared the actual tax amounts on average sized property in St. Michael for 2015 and 2016 that shows the city portion actually decreases for 2016, while noting the city has the second lowest tax rate in Wright County.
Bot said the proposed levy increase for 2016 is 2.91 percent, and provided specifics on why the increase is needed. It was pointed out that St. Michael anticipates receiving Local Government Aid next year, but that due to the volatility of this state aid, the council determined to use those funds for capital equipment purchases and not for general fund expenses.
Lastly, Bot noted the 2016 budget is balanced.
After opening the meeting to public comment, resident Layne Roschen commended the city for its transparency and good control on the local level. He asked about anticipated residential and commercial growth in the next few years and the effect that would have on local taxes.
Staff said building permits should increase slightly with more lots available, but that commercial brokers are still cautious of the economy, and that it could be a few more years before commercial development increases. Staff also noted that growth does increase the tax base and could result in decreased taxes if property values remain the same year to year.
Roschen also encouraged staff to report any new unfunded state mandates, and he will continue to work on addressing those with the state legislature.
The council noted the final levy and budget would be approved at the Dec. 22 council meeting.
Contact Aaron Brom at aaron.brom@ecm-inc.com