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Sheldon Council adopts FY 2020-2021 budget after public hearing; council to consider adjustments
Summary
Following public comment expressing concern about levy increases, TIF use and a proposed $7,100 per-employee HSA contribution, Sheldon City Council adopted the FY 2020-2021 budget with an understanding some line items can be reduced before the end of the month.
Sheldon City Council held a public hearing April 15 on the proposed FY 2020-2021 budget, heard extended public comment urging restraint on levy increases and tax increment financing (TIF) practices, then voted to adopt the budget while noting the council may revisit and decrease specific line items before the statutory deadline.
During the hearing a resident who was later thanked by council as 'Marv' criticized use of sales-tax revenues for wages and benefits, questioned TIF practices, and objected to a proposed health savings account (HSA) contribution the commenter said was $7,100 per employee. The commenter estimated the city employs 33 people and said the proposed HSA contribution would approach a quarter-million dollars.
Staff responded that some budget items are commonly adjusted after adoption and reminded the public that the budget and TIF practices have been discussed in workshops; one council member also encouraged residents to participate earlier in the annual budget workshop process.
Councilmember Jeff (mover) made a motion to move the budget forward with the understanding that council would review items raised by the public; the motion was seconded and adopted by roll call. The roll call recorded 'Aye' votes from Ken, Ostrum/Ostra, Wagner and Eggers.
Staff noted the budget resolution documents TIF advances (staff estimated TIF changes involve roughly $2.5 million) and that specific purchases or projects will continue to require council approval where appropriate. Councilmembers said the budget can be decreased but not increased after adoption and reminded the public of future workshops and opportunities to provide input.
The council adopted the FY 2020-2021 budget; staff and council indicated they will consider the public’s items and bring back line-item adjustments if needed before the end-of-month deadline.
