After a 15-minutes discussion Monday, the Clearwater City Council approved a 4.14% final tax levy increase for 2019.
But it could have been higher.
The vote came after an earlier vote to increase the levy by 9.0%. But that was before a discussion about the city’s 2019 fee schedule.
When the council discussed amending the fee schedule, two line items of debate were water and sewer fees. The council talked about a slight increase to keep building the funds. Liz Lindrud of AEM Financial said the water fund was in the black, and the sewer fund, which has historically operated at a deficit, was expected to have an $84,000 surplus in 2019.
That $84,000 included a $50,000 disbursement from Local Government Aid (LGA) the council had agreed to use to supplement the fund.
But after further discussion, the council decided to pull that $50,000 from the sewer fund and put it back into general fund revenue where it could be used to pay for signage and lower the levy. In the preliminary levy in September, the council had agreed to budget $36,887 for new city signs.
Originally, the proposed 2019 levy was $1,121,664 - a 9.0% increase from the 2018 levy of $1,029,050. In addition to the signage budget, the council set aside $20,069 for the EDA growth incentive program, about $13,500 for council and mayor training and wage increases, and $13,000 for chip seal and pothole repairs.
The LGA transfer meant the council could lower the levy by $50,000 to $1,071,664 - a 4.14% increase.
Even with the transfer, the council decided not to increase water or sewer rates for 2019. They agreed since the fee schedule could be amended at any time, it would be better to see how the fund does before making any changes.
Street Project
After a brief public hearing the council passed a resolution ordering preparation of plans for the Southeast Area Street & Utility Improvement Project.
The project covers Bittersweet Drive from Walnut Street to Porter Street, Spring Street from the cul-de-sac to Porter Street, Porter Street between Bittersweet Drive to Kothman Circle, Porter Circle from the cul-de-sac to Porter Street and Manor Drive from Porter Street to Co. Rd. 75.
Engineer Joe Pelawa said the plans should be ready to present to the council Jan. 14. If approved they would bid the project, with bid opening set for Feb. 6 and bid awarded Feb. 11.
He said construction would likely not begin until May, although contractors may begin moving in equipment before then.
