Alice Pickering
Wyoming Area Reporter

If the Wyoming City Council accepts the proposed 2006 budget of $2,516,721.17, it will be a 17 percent increase over the 2005 budget of $1,962,333.62 and result in a 5.5 percent increase to the cityís tax rate.

According to city staff, the remaining amount of the budget can be met from the anticipated 11.5 percent increase in the cityís tax base and the increase in property valuation.

The 2005 tax rate was 40.999. According to staff, if the budget is accepted as reviewed during the truth-in-taxation hearing Dec. 6, the tax rate for 2006 will be 49.225. The difference of 8.226 is a 20 percent increase over the 2005 tax rate.

The budget was first presented Sept. 2. Cuts of about $213,700 were made before the revised budget was presented.

Assuming the budget is approved, this would mean a net levy of $1,543,630 in 2006, up about $230,500 (17.7 percent) over the 2005, net levy.

Annual tax impact on homes only as a result of the tax rate increase was provided for homes with different taxable value. With taxable value of $138,800, city property tax increases about $27 a year. For homes of $229,300, $254,700, and $355,800, the annual increases in city taxes are estimated to be $49, $55, and $55, respectively.

The two business examples given show an annual increase of $75 for a business valued at $202,900. For a home valued at $480,800 the tax increase is estimated to be $200.

CM Ted Phillips summarized the budget. Council, staff and supervisors explained individual line items, fielded questions from residents for almost 90 minutes, but eventually the meeting was continued until Dec.13.

Budget specifics

Capital programs were reduced heavily in making these cuts. Plow truck replacement and truck replacement were cut $20,000 and $4500, respectively. Police capital was reduced $39,000 for equipment and improvements. Skateboard Park and Goodview Park improvements were cut $10,000 and $5000, respectively. A new air conditioner ($10,000) and furnace replacement ($30,000) for city offices were postponed.

Also reduced were municipal office staff wages, FICA, PERA for a total of about $44,000. Library operating supplies were cut $20,000. Other smaller cuts were made in general government to bring the total to $213,700.

This includes the general operating fund ($1,530,500.17), combined with the capital programs ($213,239), and the enterprise funds ($772,982).

The city has some obligations each year for which it must levy. These are fixed payments and loans: bridge and roads ($210,783.40), fire hall payment ($44,325.75), and tax Abatement ($8,200). The total in 2006 for these items is $263,310, less than 2005 because tax abatements dropped from $34,000 to $8200.

The parts of the city budget that are adjustable are the general operating fund and capital programs.

Capital programs are funds put aside for equipment purchases. In 2006 the capital expenses are $213,239. In 2005 the budget was $125,529.

Council proposes a general operating fund increase from $1,299,962 to $1,530,500 in 2006.

Together, these two funds would increase from $1,425,501 in 2005 to $1,743,739 in 2006.

In the general government budget, Nextel service increased from $6,000 to $7,700 a year. Acting Administrator Sandy Berry explained that this line item was budgeted very low in 2005 and actual costs were about $13,500 for 2005. The charges in 2006 will be $500 a month lower. A professional services item of $2000 was added.

Other items in the general government budget include $7000 for an independent wage study and $25,000 for the executive search for a new city administrator, an increase of slightly more than $35,000 for municipal office staff to bring that figure to just over $108,000. Berry said the line item included salary for an administrator and two office staff. Office staff currently consists of Berry and Robb Linwood.

Legal service remains the same at $40,000 for 2006. So far in 2005, legal costs to the city have been about $58,000, according to Phillips. Auditing service shows an increase of $2000.

City engineer line item was increased by $5000 to $25,000 to bring it closer to actual costs. Phillips said so far the city has spent $34,000 this year for engineering consultation.

Mayor Sheldon Anderson acknowledged there have been extra consultations with legal council in the absence of a city administrator, so there has probably not been a savings to the city by not having an administrator.

Police & Fire

Within the police department, there is a proposed increase of nearly $125,600 in the budget, to almost $543,700 in 2006. This 30 percent increase includes an additional $5000 to professional services, smaller increases for fuel and training, $1,500 each, and about $2300 vehicle payment.

Sgt Scott Dexter said most of the increase comes in the line items of salaries ($77,781), overtime ($15,500), PERA ($2826), FICA ($3222), and workersí comp ($3400). There were small uniform allowance increases.

There are six police officers; the city is paying for seven, with a portion of the payment from the COPS grant. A portion of the salary line item increases reflect an arbitratorís decision mandating reinstatement of officer Jackie Karels in the police department.

Dexter explained the department is trying to create an eligibility list for possible openings in the department, anticipating merger and the necessity to hire an additional two officers.

Fire Chief Dennis Berry explained that the fire pensions contribution ($35,000) is now reported in the departmental budget, but is also non-levy revenue ($35,000) in the form of state aid. There is an increase in wages for firefighters to $18 an hour. This resulted in a budget increase of $18,420. There is a new item under inspections $4000.

The proposed street budget has decreased from $155,125 to $148,185. Plans are to go ahead with the purchase of a new dump truck.

Maintenance Supervisor Bill Eisenmenger estimated that with the sale of irrigators and the old truck about $52,000 can be applied to the purchase of a new dump truck for the city at an estimated cost of $66,000.

Non-levy revenue is income to the city which comes from fees, fines, licenses, permits, various forms of state aid, payments in lieu of taxes, and interest. It helps pay the bills, but residents and businesses are not taxed to raise it.

The city anticipates an increase of nearly $120,000 in non-levy revenue in 2006. This is estimated to be about $463,418. One part of this is local government aid anticipated to be $22,500, gas tax revenue to cities which anticipates the city-township consolidation.

The city must levy $263,309 to cover obligations to bridges and roads, fire hall payment, and tax abatement.

The enterprise funds are funded by user fees and in the 2006 budget, only the operating fund is budgeted. The cityís sewer treatment plant is being phased out as the city connects to the Chisago Joint Sewer System.

Cost of the sewer and water operating fund is a large increase, up from $536,840 to $772,982. Although the city is phasing out its sewer-water treatment plant, the shift is for the city to pay its share of the cost of operating the joint wastewater

The city council anticipates hiring a new administrator by February or March 2006 and that is why the budget includes a full salary. In answer to a question about where money for the executive search would come from, Berry said there is room in the general budget.

There were several questions about the amount of the city reserves. The advice from auditors is the city should have about 50 percent of the city budget as a reserve to provide cash flow for making payments until the city gets its first draw from the county on July 1.

City staff met with the auditor before the continuation of public hearing on Dec. 13. The cityís reserve balance should be known then. Final figures for 2005 will not be available until sometime after the beginning of the New Year.

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Forest Lake Times
P.O. Box 218
880 SW 15 St.
Forest Lake, MN 55025
651-464-4601
Fax 651-464-4605