Saint Mary's council approves series of resolutions on tax collection, housing amendments and grant applications

The City of Saint Mary's council voted to approve a series of resolutions Tuesday that formalize a private firm as the collector of local service taxes, attach collection fees to delinquent accounts, amend two HOME-program contracts to improve rental feasibility, and authorize multiple grant applications including a 2025 CDBG filing.

Council approved Resolution 25-12 appointing Bergheimer as the collector of the local service tax and then adopted Resolution 25-13 naming the same firm as the tax hearing officer for disputes related to those taxes. Counsel told the council the company asked for a formal resolution to document an existing working arrangement. Council member Shane moved both measures; they passed by voice vote.

Council then approved Resolution 25-14 to allow cost-of-collection fees on delinquent local service-tax accounts so collection costs would be charged to delinquent taxpayers rather than the municipality. Members discussed the fee level during debate, describing it in the meeting as "2% of what they collect" to cover notices and collection work.

On housing, the council approved Resolution 25-15 to amend two HOME-program contracts (projects 202515 and 202516) with Whitetail Real Estate Development. Staff said the amendments relax overly restrictive tenant-income and rent terms to widen the pool of qualified applicants while keeping each project eligible for HOME funding. A staff member reported the maximum rent allowed under HUD rules for these units is "$1,224," and told council that under prior underwriting the minimum rent needed for feasibility was approximately $978; councilors pressed staff on the municipal financial risk if units remain unleased. Staff responded that if units are not leased by the federal deadline there could be an enforcement process that might require returning funds, and that the city could be responsible for some portion of repayments depending on federal action.

The council approved a short reallocation of contract funds (Resolution 25-16) and voted to submit a local-share-account grant application for the Bavarian Hills Municipal Golf Authority (Resolution 25-17). Members reviewed an updated construction estimate for a heated ramp and repairs; staff said they received one construction estimate and expected to gather additional quotes when the project is executed.

Council also authorized submission of a local-share grant application for Saint Mary's Ambulance Service (Resolution 25-18) to update project costs for flooring and security equipment, clarifying that approval allows the city to file the grant application but does not commit municipal funds. The council approved Resolution 25-19 to file the 2025 Community Development Block Grant (CDBG) application by its Oct. 31 deadline and approved a 2023 CDBG modification to address new code issues on the downtown Sillman building; staff said the funding allocation for that year's CDBG award will not change but the scope of the original work would be reduced to address code problems.

Finally, council approved a tentative collective-bargaining agreement with the Saint Mary's Police Benevolent Association covering 2026–2028; staff described the agreement as a negotiated, tentative agreement submitted for council approval.

Councilors made these approvals by voice votes; most items passed with routine motions and no recorded roll-call tallies in the transcript. Several councilors asked staff for follow-up details on financial exposure and contractor estimates, and staff indicated further documentation would be provided as projects move forward.

The council closed routine business with date and schedule reminders for budget workshops and local events.