by Mari Radtke
The public hearing about the tax levy was an item on Paullina City Council’s special session agenda on Monday April 1.
Glenda Heithus took full advantage of the purpose and opportunity of the public hearing. She initially commented that she received a notice about the city’s taxes. She expressed her view that the city is going to tax citizens out of Paullina. She noted that many of the residents are senior citizens and living on a limited income. She chastised past spending decisions and demanded that the council concentrate its spending on the city’s biggest needs, identifying those as streets, water system and fire department. She also adamantly stated that council needs to stop accepting buildings with no use only to cost money.
She went on to remind council that the city has lost 2 businesses this year. After clarifying what businesses have left she also commented that council has done nothing to bring any business into Paullina.
Mayor Marlin Sjaarda explained that the state is limiting the amount that can be assessed on any individual property. He noted that the levy would go down on most property but the city has no control over assessments. When a property assessment rises, the tax burden may increase also.
Dennis Werkmeister remarked that the state’s program imposed a maximum levy and that will be the levy for next year but the effects are unkown. He used that situation to share his thinking that a County should be looking out for its cities, but they aren’t. He went on to talk about citizens are the last line against state government. His belief is that they, the council members need to uphold their oaths to uphold the constitution. Werkmeister shared his frustration about some of the projected effects of the new law by limiting its assessment growth, defined the legislation as “government overreach” and encouraged involvement to change the legislation going forward. With that he suggested that council attend the county levy hearing. “Bottom line, we gotta do what we gotta do to protect our citizens,” he said.
Carol Honkomp referenced hope that citizens signed up for a tax abatement available to senior citizens.
The public hearing was closed and adjourned.

After a state mandated break between the levy public hearing and any other public hearing council opened its regular meeting. After fixing some agenda items it was approved.
Approval of claims brought some questions from Honkomp about the DGR Engineering bill. She was asking about the timeframe this bill covers and the work. She remembers seeing payment to them before and wants clarification about this bill. City Clerk Michelle Wilson offered to pull the invoice. Mayor Sjaarda asked about holding payment until it’s clarified, but Honkomp doesn’t want to cause a problem with DGR. Council suspects that it is from the switchgear project. Wilson read the invoice saying, “professional services through February 29, 2024. Construction phase.”
The lump sum was for $17,000. Wilson reported that the total fee is known to be $174,000. Werkmeister wanted to pay the bill and have them itemize in the future. Council approved paying all bills.
Following paying all the claims, Sjaarda opened the public hearing to approve the 15 KV switchgear project. He explained that the previous council had set a public hearing on the project for April 19, 2023. He went on to specify that the switchgear project was an agenda item, not as a public hearing. It was discussed and approved without a public hearing so this hearing was set to clear that neglect and go forward doing things right.
Werkmeister asked Superintendent Kelly Top to explain Switchgear #1 project. Top started with this project begins with manufacturing the switchgear. The switchgear works on a large scale like a circuit breaker. Components also allows staff to control power transmission. A metal clad building will be built and the new switchgear will go into that just outside the fence (at the light plant). The project is not expected to take up a big footprint.
Public questions asked if the project needed to go to bid if so, did it and when. Wilson reported that it had in fact, gone to bid (without the requisite public hearing) and was awarded on April 11, 2023 to Harold K. Schultz. Sjaarda gave a detailed explanation of the project not having a public hearing – that it was set but never held. He reiterated that that is why they are having the public hearing in April 2024. In response to a question, the part of the project already underway was the bid and the ordering of the switchgear. Payment to the engineer was not mentioned.
To date, an inspection in 2022 precipitated this project. The anticipated timeline discussed is delivery on July 1, 2024 for the switchgear #1. Top reported that the manufacture of the switchgear is reported to him to be on track.
Council was asked about the financing of the project. One million dollars ($1,000,000) is budgeted in the current budget for this project, according to Wilson. She explained she also has $600,000 budgeted into the next fiscal year budget. (The public hearing for that is set for April 22). The city is working with DA Davidson on a bond.
Sjaarda recapped MRES’ recommendation in 2022 that the city issue a $1,000,000 in bonds in 2024 for additional electric related projects. The public hearing for Switchgear #1 was closed.
A resolution to accept the recommended bid by DGR Engineering, which had already been approved, but without the required public hearing.
The public hearing for plans, specifications, proposed form of contract and estimate of cost for substation improvements known as Switchgear #2. Top reported that there was no bid on this project. The engineer recommends the project be broken into parts trying to “get some bites.” the public hearing closed.
A resolution to hold a public hearing on May 6 for Switchgear #2 to be broken into smaller pieces passed. For the bid above, Top explained that some substation contractors reached out to underground contractors but there were no takers. The leading thinking seemed to be that the underground work in Paullina is too big for a single contractor. Holding the public hearing on May 6 would require bids to be submitted for discussion and selection. The resolution to set the public hearing passed.
A public hearing for the proposed budget 2024-25 fiscal year was set as a special meeting to be held April 22.
Another public hearing for a current budget amendment was set also for April 22. They are being called budget revisions.
Council approved several staffing and payroll changes. Reports were given and the meeting adjourned.