Shoppers in Litchfield will begin paying a slightly higher tax on some purchases by July of next years.
That’s the end result of voters’ approval during the Nov. 8 election of a local option half-percent sales tax. Proceeds of the sales tax will help fund construction of the city wellness and recreation center.
While there are still many questions to be answered in regard to the Litchfield Area Recreation Center, passage of the Nov. 8 referendum question regarding the sales tax will allow the city to begin collecting the tax on July 1, 2023. Prior to collection beginning, however, Litchfield City Council must adopt a sales tax ordinance, which could take a couple of months, according to City Administrator Dave Cziok, who discussed the tax during the council’s Nov. 21 meeting.
The new tax will fund much of the city’s portion of the proposed recreation center project, including a four-station field house, along with an elevated walking track and public dressing rooms and parking.
Voters approved the city sales tax referendum 1,431 to 1,139 on Nov. 8.
However, the other piece of the recreation center puzzle — primarily a swimming pool — was left in limbo when Litchfield School District voters rejected the $13.5 million bond proposed by the district in the same election.
Under plans created by a joint city-school committee, the LARC would be a cooperative project with two separate funding sources. The city would fund its portion of the project with the local sales tax and with a $5 million state grant previously approved by the Legislature. Meanwhile, the school district would fund a an aquatic center, along with some shared administrative and public locker room space, through the bond.
The school district, which includes several townships and municipalities surrounding the city of Litchfield, saw its referendum go down on a 2,578 to 2,404 vote on Nov. 8, with 10 of 15 precincts in the district rejecting the proposal.
School officials have vowed to continue work on the proposal, including the promise of a future referendum effort.
City employees to receive bonuses
The City Council also agreed to use a small portion of its remaining American Rescue Plan funds to give full-time city employees a $500 bonus and a 25-cent per hour wage increase.
This increase would be in addition to a previously discussed 25-cent an hour increase, which is a line item in the city’s proposed 2023 budget. The bonuses would be paid next month, while the wage adjustments are anticipated to begin, or at least be retroactive to, Jan. 1, 2023.
Council members discussed how this influx of cash could help bring city wages closer to the average salaries paid by Minnesota cities of similar size.
Part-time employees should also benefit from the ARP funds, city officials indicated, but since their wages are annually adjusted in March, the exact amount has not yet been determined.
The council also discussed plans for using the rest of its ARP funds. Employee incentives would total less than $50,000 of the balance, which stands at more than $700,000 now that the council has agreed to accept and submit plans for the last half of the allocation. The council hopes to use a portion of it to replace approximately 160 trees in parks, at the golf course, and on boulevards in the north half of the city during 2023. Security upgrades and housing grants or projects would probably take the largest allocations of the funds. Several other uses are also being discussed.
Maintenance positions filled
The city utilities department is short two maintenance positions and expects its mechanic to retire within a few months. There were three applicants who city officials would like to hire to fill the vacancies, even though there are currently only two positions officially open. After discussion, the council decided to hire all three at a starting wage of $24.70 and later transfer the one who performs at the top level to the mechanic’s position, after the current mechanic retires. Mayor Keith Johnson noted that this would create an opportunity for the new employees to be mentored by the seasoned mechanic prior to his retirement.
City sells property
Following a public hearing, during which two neighboring property owners expressed drainage concerns about city property on Nelson Street East, the council decided to sell two of three city-owned lots to Gregg Schilling, who plans to build five single-level units on the land. Cziok explained that the third lot would be retained and possibly used to accommodate drainage concerns. It appears that fill will be brought in to complete the project, and that a drainage plan will be required, but a developer’s agreement with Schilling’s construction company is still pending.
Among other business
- The council approved setback variances for Cheryl and Lyle Wendorff at 908 Sibley Ave. N. and for commercial property on West Depot Street. The commercial property variance including a lot line change; Councilor Sara Miller abstained from voting on this application.
- The council agreed to vacate an unneeded alley easement between two commercial properties on North Sibley Avenue and split the land between the adjacent property owners.
