The Rugby Development Authority approved a preliminary budget Monday to supplement the year end balances and estimated sales tax income of a four-mill property levy in the city boundaries.
In the special meeting, the board members examined financial statements comparing budgets with actual revenues and expenditure since 2016.
A preliminary budget 2020 reflected the projected sales tax revenues which would reflect the contribution of Rugby Mayor Sue Steinke known as "conservative estimate."
"Very conservative," said Steinke. "I am hopeful that it will be much better than that. Indeed, at the next financial meeting I recommend that we change that."
The board also discussed costs for maintaining property and special property tax agreements on JDA land.
Board member Terry Hoffert asked Executive Director Liz Heisey if mill levies were in use in previous budgets.
Heisey said, "They stopped in 92 'when they had the sales tax, and then (former Director of JDA) JT (Pelt) when he was a director, asked They're 2 mill the student loan payments cover, but then a lot of feedback refused and he didn't ask a question again. "
"There were some people who thought it was going to Chalmers addition, and they were higher than (the rest)," Heisey said.
Board members acknowledged that a 2013 decision created the purchase of Chalmers Plug some challenges in relation to funding JDA services such as student loan assistance, recruitment assistance for the Heart of America Medical Center and engagement with the Small Business Development Center.
"And back in 13, Steinke noticed" They did (JDA Board 2013 and Rugby City Council) gripped more than they could hide. There are nearly four million dollars there. we are here today, and Chalmers is the only way out. And it is now an emerging project, with some very good things happening in Rugby city. keep growing. "
Board members also discussed a loan payment last year on the Johnson Heart Clinic building of America, which treated a balance ending 2019, but would "save the JDA over a period of $ 26,400," according to Steinke.
The board recommended some of the funds collected by nominating a potential mill levy to employ an office assistant, possibly coordinating with student participation programs at High Rugby or other hiring programs. Allocate the $ 5,000 budget on the job.
Board member Jodi Schaan stated that current balancing trends would not support new office payments or JDA services without levy.
"Now we dropped nearly $ 100,000 from 19 'to 20, and these four mills would help make the difference," Schaan said. "What will we do next year to achieve balance in the fund? It's falling very quickly."
Heisey emphasized the funds raised through the use of mill levies in accordance with the North Dakota Code, which restricts the levies for employment development purposes.
Each mill levied is $ 4.50 on a property worth $ 100,000, according to calculations by the Rugby City Auditor's office. A four-mill levy would be $ 18.00 on an annual tax bill of such property.
President JDA Blair Brattvet summarized the board's decision: "Based on our sales tax we are seeking a mill levy to maintain our current programs and provide an assistant to our director."
"I will offer to increase the youth / office participation assistant to $ 12,000, and a four-mill levy will have been put on the budget," Schaan said.
Board member Susan Selensky offered the loan offer.
"The first thing I do is not to refuse any feathers, but if we have good things, and we can protect it and people can see what is going on, we can also," said Selensky, explaining her decision.
The board ran a preliminary budget 2020 with the four mill levy with a margin of 4 to 1, and Hoffert cast the “no” vote.
"I'm not against an assistant," said Hoffert, "but my thinking (the mill levy and the auxiliary job) together, if we get more sales dollars than we would (the assistant). and considered they will, we should get more sales dollars anyway. "
A preliminary budget 2020 will be sent to Rugby City Council for a hearing, which will be held by Jennifer Stewart, City Auditor, in September.
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