Council meeting minutes May 4, 2009

Town of Daniel

Town Council Meeting

May 4, 2009

Wasatch County Services building

Room 132

55 South 500 East

Heber City, Utah

5:30 PM

The regularly scheduled meeting was called to order by Mayor Michael Duggin at 5:30 PM

Quorum present: Mayor Mike Duggin, Council members Heather Bateman, Eric Bunker, Jon Blotter and Gary Walton.  Recorder Merry Duggin was present to record the minutes.

Members of the public signing as being in attendance:  Lambert Deegan, Darwin McGuire, Stan Walton, Kim Norris, Keith Bates, S. Taylor, Chris Anderson, Joyce Anderson.  The Recorder noted others present who did not sign in.

  1. l) BUSINESS LICENSE APPLICANTS

Troy Jolley representing Jolley Electric and Jennifer Jolley of Jolley Kids applied for a renewal/transfer of their business licenses from Wasatch County to Daniel Town. Council member Blotter moved to approve the license for Jolley Kids, and Council member Bateman seconded the motion.  The motion was approved by a unanimous vote.  Council member Walton moved to approve the license request for Jolley Electric.  The motion was seconded by Council member Blotter, and the vote to approve was unanimous.

2) TENTATIVE BUDGET FY 2009-2010 PRESENTED BY DANIEL TOWN TREASURER DAN HARVATH

Mr. Harvath explained that state statute require that each May the Mayor with the support of the Treasurer must present a tentative balanced budget for the next fiscal year (in this case July 1, 2009-June 30, 2010) to the Town Council.  (Tentative budget attached to these minutes.)    Municipalities are not allowed to completely spend all their revenues and must hold some percentage of their budget in reserve at all times in case of emergency.   Mr. Harvath pointed out that we do have some current liabilities on our balance sheet, and Mayor Duggin noted the $42,585 in private donations the Town received mostly as a result of the fundraiser of August 2008 which has allowed the Town to pay their bills this fiscal year.  The largest expense in the 2008-09 budget has been legal fees ($80,261), and it is difficult to predict what that expense will be in 2009-10 with the current litigation by West Daniels Land Association v. Town of Daniel still pending.

Lambert Deegan noted that there was no budget for the water company, and Mr. Harvath explained that the water company will be an enterprise fund which will be separate from the general operations fund. Fiscal year 2009-10 will be the first year for the Town to be responsible for this water company accounting.

Council members asked questions about certain line items.  Mr. Blotter asked about the payroll and office figures.  Mr. Harvath explained that the “office and other’ line item includes items such as association fees and office supplies. Mr. Blotter complimented the Mayor and Recorder in keeping the expenses so low.  He then stated that the Town Council had hoped that the engineering expenses would be balanced by the permit fees collected.  It was explained that the $40,000 in engineering expenses in the proposed budget represented the amount that the Town has obligated for the water company improvement project.  Mr. Harvath commented on the Financial services expense noting that for the first time since incorporation, Daniel’s budget will require an outside audit at the end of this fiscal year 2009-09.

Mr. Walton wondered why the insurance fee was such an increase, and it was explained that we do not yet know what the added liability of assuming the water company will be.

Mr. Bunker questioned the small amount in the Planning line item, but he was relieved to hear that the $1,000 amount was for training of the Planning Commission.

Mr. Harvath went on to explain that the largest problem is finding a source for the revenue that will be needed in the coming year.  He recommended that a property tax is the only viable source for revenue at this time.  Before such a tax can be initiated, State Statutes require a truth in taxation public hearing in which the people can be informed about the tax and make public comment.  Even after this public hearing, the Town Council is not required to approve a property tax.

Council member Bunker asked those present if anyone could think of any other way to raise the revenues the Town needs to continue to function.  No one could offer an alternative except sales tax, but it was noted that we do not have a sales tax base at this time.

Council member Walton moved to accept the General Operations Tentative Budget as presented and to set a tentative date for a truth in taxation hearing.  Council member Bunker seconded the motion.  The motion passed by the following vote: Mayor Duggin, aye; Bateman, aye; Blotter, aye; Bunker, aye; Walton, aye.  The Council tentatively set the date of the public hearing to be held at the August 3, 2009 regularly scheduled meeting.

3) DISCUSSION OF PROPERTY TAX MECHANICS

Mayor Duggin asked the Recorder Merry Duggin to provide some information about the mechanics of the property tax, and she briefly explained the process.  Daniel Town currently does not levy a property tax.  The tax rate is usually determined by the elected officials who impose the tax who set the rate to raise a desired amount of tax revenue.  Once we know the tax base of Daniel (which will be provided by the County auditor’s office) we can determine our certified tax rate.  Initiating a property tax will require a truth in taxation hearing.   Daniel Town property tax would be imposed on top of taxes already paid to Wasatch County, but Daniel would receive every cent of the municipal property tax.  Commercial properties would pay tax on 100% of their assessed value while primary residences are taxed on only 55% of assessed value.  Many of our residents are also receiving the greenbelt exemption on their agricultural land.  She noted that Daniel Town had been able to operate for almost 4 years before having to impose this tax.

4) RESOLUTION NAMING THE PROJECT MANAGER FOR THE CDBG PROJECT

Recorder Merry Duggin reminded the Council members that at the April 6 meeting, the Council had approved a committee of 4 members to oversee the CDBG project.  But since that date the CDBG administrators had requested that only one manager be named. Council member Blotter moved to name Mayor Michael Duggin as the project manager, and the motion was seconded by Council member Bateman.  There was no discussion, and the Council voted to approve Daniel Resolution 2009 05-04A naming Mayor Duggin as project manager by the following vote:  Council members Bunker, Bateman, Walton, and Blotter voted aye.  Mayor Duggin voted nay.

A second resolution was presented to the Council naming Mayor Duggin as the Environmental Certifying Officer for HUD (Housing and Urban Development).   Council member Walton moved to approve Daniel Resolution 2009-05-04B to name Mayor Duggin as the Environmental Certifying Officer for the water company project, and after the second was made by Council member Bateman, the Council voted unanimously to approve the resolution.

5) APPROVAL OF MINUTES APRIL 6 AND APRIL 13, 2009 MEETINGS

Council member Blotter moved to approve the minutes of April 13, 2009 (Closed Session) with amendments.  Council member Bateman seconded the motion, and the minutes were approved by a unanimous vote. 

Council member Walton moved to approve the minutes of April 13, 2009 as amended by Mr. Bunker.  Council member Blotter seconded the motion and the vote was unanimous to approve.

Council member Bunker moved to approve the minutes of the regularly scheduled meeting of April 6, 2009 as presented, and the motion was seconded by Ms. Bateman.  The Council voted unanimously to approve the minutes.

6) COMMITTEE REPORTS

Water Company—Mr. Lynn Crisler reported that the water company had sent out water service shut off letters approved by the Town Council at the April 13, 2009 meeting, and he had been contacted by several water customers.  It was agreed that the Recorder would record the terms of the agreements made with the customers, but the minutes would not reflect the names of those customers in order to preserve their privacy.  The water company would sign contracts with the individuals who agreed to contracted terms.  After some discussion the Council agreed that the water company will not charge late fees unless payments are missed and there is a break in the contract:

1) Customer A can’t pay his bill in full at once, but he agreed to pay an additional $30 per month for a total of $50 per month to bring his account current.

2) Customer B has agreed to pay $200 per month plus his normal payment for a total of $220 per month until his bill is paid in full.

3) Customer C has paid $200 and now owes only $11.

The Town Council voted to accept all these contracted conditions.

4) Customer D was present early in the meeting, but he left without explanation before he could address the Council.  Mr. Crisler recommended that the water company should terminate this customer’s service until he has made an agreement with the Town Council.  Council member Bunker so moved.  The motion was seconded by Council member Blotter, and the Council voted to approve the motion to terminate service until the customer agreed to a contracted payment.  Council member Walton voted “nay” on this motion and requested that the record reflect his objection with the motion as made.  He felt that any agreements should be between the water customer before the Town Council and not between the customer and another individual.  Mr. Crisler then asked the Town Council what terms would be acceptable for Customer D, and the Council agreed that double payment ($40 per month) would be acceptable.

RECORDER’S OFFICE—Recorder Merry Duggin reminded those present of the deadline date of May 20 for return of comments for the US Dept of the Interior and Central Utah Water Project concerning the waste water plant (JSSD).

She also brought to the attention of the Council that many issues now face the Town and wondered if the Council would approve a work meeting if necessary.  The Council agreed that a work meeting could be scheduled, but no date was set at this time.

7) ADJOURN

Council member Bateman moved to adjourn.  Council member Blotter made the second, and the vote to adjourn was unanimous.  Mayor Duggin adjourned the meeting at 7:30 PM.

Merry Duggin,

Recorder

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