Joe Gaa cautiously optimistic about Aberdeen's $84.7M 2023 budget even with big increase

Elisa Sand, Aberdeen News
·4 min read
Gaa
Gaa

City Manager Joe Gaa is cautiously optimistic about Aberdeen's 2023 budget.

That's what he told members of the city council when he presented an overview of the budget during Monday's meeting at the Municipal Building. It was the first look at next year's overall budget. Gaa noted increased revenues from both sales tax receipts and rising property values, but also jumps in project costs.

More: WEB grant could be part of broader water project that includes Aberdeen, BDM and a $750M price tag

The proposed budget for 2023 is $84.7 million, which is substantially higher than in years past. But, Gaa said, that jump is largely due to the $57 million in improvements planned at the wastewater treatment plant, which are partially covered by a state grant and through a state loan.

Aberdeen's overall budget for this year is $77.9 million.

Gaa said the city's general fund budget for 2023 increased about 5% to $30.56 million from this year's $28.8 million.

"But if you look at what we're seeing economically, that's not overly aggressive," he said.

As of the mid-year 2022 budget evaluation, Gaa said, expenses are right where they should be and revenues are a little ahead of projections.

He said the 2023 budget proposal has four priorities:

  • Maintaining a talented workforce.

  • Strengthening the city's role in economic development.

  • Water and wastewater capacity expansions.

  • Planning for a new public works facility.

More: $32.4 million in bonds approved for improvements to Aberdeen wastewater treatment plant

Gaa spoke briefly about each of the priorities, but included more details in his budget summary provided to the council.

Here are a few take-aways from that summary:

  • The 2023 budget includes raises in salaries for 41 workers at a cost of $123,000. Employees who receive this step adjustment will forego the 2.5% cost-of-living adjustment proposed for city employees.

  • The city has set aside $180,000 for economic development services with the Aberdeen Development Corp. That includes $50,000 to help with local match requirements for a planned innovation and startup center at Northern State University, a partnership between the university and the Aberdeen Development Corp.

  • The remaining $130,000 is for the development and implementation of a new economic development/community development model.

  • Money has been set aside in the 2023 capital projects budget to begin design work for a new public works shop. The city's public works department currently uses several buildings for equipment and material storage that do not meet today's needs. Plans call for construction in 2024-25.

Budget discussion will continue next week with a 5 p.m. work session on Monday.

In other action, the council:

  • Approved the rezoning of 2403 and 2405 Eighth Ave. N.E. with the stipulation that the landowner file an easement with the Brown County Register of Deeds Office preserving and maintaining a 10-foot-wide buffer on the north edge of the property that is no less than 8 feet high. The council tabled the rezoning last week so the request could include maintenance of the existing tree line.

  • Approved the transfer of an on-sale liquor license from Stacy Gossman for Scotty's Tavern and Burgers, 719 N. Main St., to Eagle River LLC at Mulligans Sports Bar & Casino, 715 N. 10th St. Eagle River purchased the Scotty's property and license at 719 N. Main St., according to city documents.

  • Approved the transfer of an on-sale liquor license from Eagle River, Mulligans Sports Bar and Casino, 715 N. 10th St., to 5-Star Management at 719 N. Main St. According to city documents, the transfer request is for the operation of a new business at 719 N. Main St.

  • Approved the appointment of Dewey Tullar to the Aberdeen Parks and Recreation Board through June 30, 2024.

  • Approved the Eighth Avenue Northeast paving project bid of $910,072 for Reede Construction. Public Works Director Robin Bobzien said the bid is above the engineer's estimate of $652,000, and the city's budgeted total of $800,000, but it includes a tight schedule for completion. He said the work, which replaces the paving on Eighth Avenue Northeast between North Dakota Street and North High Street, was originally planned in 2020, but was delayed to adjust for unforeseen COVID-19 pandemic-related expenses. Bobzien said the project will include the addition of dowel bars to keep the street surface from shifting.

This article originally appeared on Aberdeen News: Proposed 2023 budget is $84.7 million with wastewater plant upgrades