ELY – City Council members Tuesday night unanimously adopted a proposed tax levy for 2018 that looks for a two-percent increase over 2017 for city property owners.

The resolution proposes to collect $1,698,679 in 2018, an increase of $33,300 from $1,665,300 collected in 2017.

While two percent doesn’t sound like much, the council has prided itself on establishing a zero increase in the levy for the last two years.

Jerome Debeltz, who made the motion to adopt the proposed levy, reminded council members that the final levy does not get set until the end of the year.

“The levy can’t go higher, but it can go lower,” said Mayor Chuck Novak. “We intend to get to a zero increase.”

Council member Paul Kess added, “Budget discussions will continue this fall, and there is every possibility that we can reduce that levy.”

The 2018 Property Tax Summary shows a 8.79-percent decrease in the general fund, from $446,900 to $407,600. The library fund will decrease by 3-percent, $281,700 to $273,100. City debt service wil decrease slightly from $231,600 to $228,400.

The capital projects fund will top $600,000, a 15.59-percent increase, from $521,000 to $602,200. The equipment replacement fund line item is projected to increase from $237,600 to $289,000.

Council members approved a recommendation from the Projects Committee change to the Fire Department equipment schedule to take advantage of the availability of a surplus chassis that could be used for a water pumper/tender for the department.

Fire Chief Tom Erchull said the surplus chassis is available now for $7,000. The department would have the truck built in 2020 for a cost of $200,000, ultimately saving the city tens of thousands of dollars.

“The reason I opposed this in budget (committee) and continue to do so is that this change in setting priorities and timelines to buy a chassis requires that the city make progress on converting or upgrading that,” said Kess. “I’m not convinced that we need it.”

Council member Al Forsman said the city could potentially save about $73,000 in the long run if the chassis is picked up now and the truck is built in a couple of years. The equipment replacement schedule calls for the water equipment purchase to be made in 2023.

Erchull said the current water tender is operational. “The tank on the unit is a 1960s converted milk tank,” he said. “It was a 1992 chassis that works very well, and if it can be replaced, would be utilized by the public works department.” He noted that the pump on the current water tender can not be ISO certified to qualify for lower insurance rate consideration.

“This is a pretty big acceleration of a planned expense,” Novak said. “Our capital fund was pretty well depleted last year, and I would like to see those reserves built back up.”

Erchull added that the fire engine purchase last year was for the replacement of a 1979 model. “Replacements for the Fire Department has kind of fallen quite far behind in the past,” he said. “I appreciate what the city did last year to acquire the engine early, at a great savings.”

Council member Heidi Omerza said she was hesitant to move forward with an early capital purchase because of her fear of a smaller Local Government Aid payment from the state.

The chassis equipment purchase was approved on a 4-3 vote. Novak, Kess and Omerza voted no.

Other business

In other business, the council:

•Accepted the 2016 audit from Walker, Giroux & Hahne accounting firm.

•Approved the hiring of Mark Walker for the Equipment Operator II position.

•Agreed with the recommendation of the Parks and Recreation Board to complete a grading plan for Semer’s Park and the Wheel Park’.

•OK’d the $3,697 payment of 2017-2018 membership dues to the League of Minnesota Cities.

•OK’d the $30 payment of the 2017-2018 membership dues to the Minnesota Mayors Association.

•OK’d the $6,103 payment of 2018 membership dues to the Coalition of Greater Minnesota Cities.

•Approved the appointment of Alan White to the Planning and Zoning Committee.

•OK’d a request from the Dorothy Molter Museum for a one-day temporary consumption permit for Sept. 28.

•Approved the 2018 Snowmobile Maintenance Grant Application for Ely Lakes to Vermilion Lake Snowmobile Trail for $20,987.

•Approved a request for $5,000 to Ely Community Resource to add an additional staff member.