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Blue Zones, Micro-Enterprise could eat away city general fund reserves

MASON CITY – As the City Council continues to ponder potential major tax revenue losses from a very real possibility of commercial property tax cuts initiated by Governor Branstad, at least two projects this city council launched have a strong chance to eat away at the city’s reserve funds.

According to this week’s city council meeting packet, the Blue Zones innitiatve is “100%” over budget and “no budget was set” for the project.  The city continues to pay wages for employees serving the project as well as costs for supplies and other needs.  For example, in November, the city spent over $1,000 at D&D Sales on office supplies for the Blue Zones program.  No council member has publicly addressed the costs associated with the Blue Zones project, nor asked for firm answers on what the total costs will be.

Additionally, the council will seek to pursue a bicycle and pedestrian master plan that is a requirement for the city to become a certified Blue Zones community.  The cost is projected to be $45,000.  City staff is proposing that this item be paid for through local option sales tax revenues.

Another project this council strongly pursued is Micro-Enterprise, a partnership with NIACC’s Pappajohn Center, to aid small businesses in Mason City.  According to the packet, the program is 19.46% over budget at this time as the city paid “start-up” costs for 3 local businesses.  General fund reserves will be used to pay the costs.  In the check register section of the packet, a payment of $2,602.67 under Micro-Enterprise was made to Oak Leaf Comics.  The city has paid Jumper Fitness $3,450 for sidewalk repairs.  The city also made at least two payments to Roller City for $1,981.53 and $1,752.09.

At a council goal-setting session held last week, council members indicated they are strongly considering creating a list of departments or services that could be cut so that they are ready to deal with the state government’s possible commercial property tax rate cuts.  Those cuts could amount to $200,000 the first year they are in affect, and then $400,000 the second year, up to $1,000,000 or more as the years progress.

Council member Scott Tornquist suggested a list $600,000 deep, which could include Highland Golf Course, Mason City Human Rights, and more.  The council may ask for input on what might be on the list.

Watch council discussion on December 4th of the cost of the Blue Zones initiative:

httpv://youtu.be/_d3yT2NWvr0

 

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