Tax and Budget public hearing minutes August 10, 2009

Town of Daniel

TRUTH IN TAXATION

PUBLIC HEARING

And

PUBLIC HEARING BUDGET FY 2009-10

Daniel Town Council Meeting

August 10, 2009

Wasatch County Services building

Room 132

55 South 500 East

Heber City, Utah

5:30 PM

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

Members of the public in attendance: Chip Turner, Sherry Sawdey, Dot Zetko, Jim Seely, Kim Norris, Pam Skinner, Shelly Bunker, Doug Crittenden, Jeff and Jill Webb, Boots Crisler.

  1. PUBLIC HEARING TRUTH IN TAXATION

After opening the meeting at 5:30, Mayor Duggin accepted a motion from Council member Gary Walton to open the Truth in Taxation public hearing.  Council member Blotter seconded the motion, and the Council voted unanimously to open the public hearing.

Ms. Dot Zetko asked a question about who would be paying the proposed water bond, and Mayor Duggin responded that the water bond would be paid by the users of the municipal water system.  Her next question involved the taxes collected by Wasatch County, and Council member Walton suggested that she would need to consult her itemized statement from Wasatch County to find her answer.  She also asked the Council what amount was really needed to balance Daniel Town’s budget.  Mayor Duggin indicated that our legal bills have been our highest expense.

Chip Turner commented that he appreciated how difficult it is for the Council to raise taxes, but he hoped that the Council had a good “educated guess” about Daniel’s financial needs so that the Council would not have to come back every year to raise taxes.  Mayor Duggin responded that our road funds received from the state are not enough to complete the work that we need to do on an ongoing basis.  He noted that we should replace our roads every 50 years and should be saving enough each year so that we do not place that burden on future taxpayers.  He would like to begin to put this money aside.

Council member Blotter indicated that he would like to see a tax rate slightly below the other municipalities in Wasatch County.

Boots Crisler mentioned that we should decide what we need in tax revenue and set the rate and not “mess around with it”.  This was also the feeling of Chip Turner and Ms. Zetko.

Council member Walton commented that he had discovered that Truth in Taxation is complicated.  When a tax shortfall comes to the County, they have the right to raise taxes to get what they need.  Mayor Duggin continued with a comment that if the property valuations go up, then the tax rate must come down unless we hold another public hearing.

Jeff Webb wondered what the proposed $63,000 from property tax revenue would be used for, and Council member Blotter reported that by far our biggest expense has been legal fees.  Mr. Webb asked if the legal fees were for the water company lawsuits, and he was told that the water company has been paying its own legal bills.  The Town’s bills are separate.

Doug Crittenden asked if the Council meeting time could be changed as it was hard for people to arrive by 5:30 PM.  He thought that 6:30 or 7 PM would be a better time.  He also felt that we are hurting some people by raising water bills and taxes in the same year.

Mayor Duggin reminded those present that the Council had held quite a few meetings to discuss and receive public comment about raising  water rates and taxes.  The Town has held the costs as low as possible for as long as possible.

Council member Walton informed the group that the last upgrade of the water system was in 1987 when a new pump station was built.  The tanks are getting old, and we have received a CDBG grant and money from the state to make necessary upgrades to the system.  Council member Blotter echoed Mr. Walton’s comments and added that with a new 800,000 storage tank, well, pump station and new lines, we (Municipal water users) will be paying a comparatively very low rate for water in the future.

Boots Crisler commented that with several wells in Daniel Town having trouble every year, he hoped the new water system could accommodate hooking up people as their wells go dry.  The current pipelines are of varying quality, and some need to be replaced right away.  Mayor Duggin responded that we have a priority list of lines to be replaced, and we’ll be replacing lines as soon as possible.

Mr. Crittenden asked what the Town is doing for snowplow service.  Mayor Duggin answered that the Town contracted with the County for snowplow service last year and will continue to look at this option each year.

There being no further comments, Mayor Duggin received a motion from Council member Blotter to close the Truth in Taxation hearing.  This motion, seconded by Council member Bateman, was passed by a unanimous vote of the Council.  The Mayor closed the Truth in Taxation public hearing.

  1. PUBLIC HEARING BUDGET FY 2009-10

Mayor Duggin opened the public hearing to adopt the budget for Fiscal Year (FY) 2009-10.  Discussion on the Council centered around $5,000 which had been proposed for animal control, and it was decided that this item should be deleted from the budget.  Council member Blotter moved to delete the $5,000 for animal control, and Council member Walton seconded the motion.  The vote was unanimous in favor of removing this $5,000. 

Mrs. Jill Webb asked if adding a Daniel property tax would lower property taxes paid to Wasatch County. The response was that our property tax would be in addition to taxes paid to Wasatch County, and we have no control over the valuations placed on our property by Wasatch County.

There being no further public comment concerning the budget presented for final adoption, Mayor Duggin closed the public hearing.       Council member Blotter moved to approve Daniel Resolution 2009-08-10A establishing the certified tax rate for real property tax in the Town of Daniel for the Tax Year 2009 as .000766.  Council member Walton seconded the motion, and the resolution was adopted by a unanimous vote.

Council member Walton moved to approve Daniel Resolution 2009-08-10B accepting the general operating budget as amended and the water enterprise fund budget for FY 2009-10 as presented.  This motion was seconded by Council member Blotter, and the vote to approve the resolution was unanimous.

  1. DISCUSSION OF AN ORDINANCE REGULATING OPERATION OF THE DANIEL MUNICIPAL WATER COMPANY.

No action was taken on this agenda item as Mr. Bunker was not present.

  1. APPROVAL OF MUNUTES FOR AUGUST 3, 2009 TOWN COUNCIL MEETING AND PUBLIC HEARING FOR BOND ISSUE

Council member Blotter moved to approve the minutes of the August 3, 2009 Town Council meeting and Public Hearing for water revenue bond issue as presented by the Recorder.  Council member Walton seconded the motion.  The minutes were approved by a unanimous vote.

  1. COMMITTEE REPORTS

Recorder’s Office.  Recorder Merry Duggin announced scheduled court hearing dates that the public might be interested in attending concerning litigation against the Town and Daniel Domestic Water.

  1. ADJOURN

As the public’s business was concluded Council member Bateman moved to adjourn.  The motion seconded by Council member Walton was approved by a unanimous vote.  Mayor Duggin adjourned the meeting at 6:50 PM.

Merry Duggin,

Recorder

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