Alice Pickering
Wyoming Area Reporter

Wyoming City Council last week approved the 2006 preliminary tax levy in the amount of $2,202,521.86.

The proposed levy, minus anticipated non-levy receipts of $463,418.19, would mean a total net levy (what the city would need to raise in taxes) of $1,739,103.67.

If certified as presented later this fall, this would represent an increase in the net levy of about 22 percent from 2005. The vote was 5-0 at the Sept. 6 meeting.

CM Ted Phillips summarized the preliminary draft of the budget and levy for 2006 and briefly discussed the change in the tax capacity of the city. Discussion focused on rough percentages.

Because the overall tax capacity of the city has increased about 8 percent, using the same tax rate as 2005 of 41.26, would result in 8 percent more in taxes collected without changing the rate.

He explained that to meet the proposed preliminary budget would require an additional 15 percent.

The tax rate to meet the 2006 budget was not provided. Examples prepared by city staff showed the impact on a home with taxable value at $254,700 in 2005, the same rate in 2006, and taxes based on the preliminary 2006 budget.

The increase at the same tax rate would be $72, or $6 a month. To meet the preliminary budget as presented would result in an increase of $221, or $18.50 a month.

Two business examples were presented. Impact on the first valued at $202,900, under the same circumstances at the house example, would result in an increase of $99 a year, and $302 based on the proposed 2006 budget.

For a business valued at $480,800, 2006 taxes at the 2005 rate would increase taxes about $265.

The tax increase would be $810 more than 2005 based on the proposed budget.

Budget details

There are parts of the city budget that are fixed because the city has to make payments over several years.

Since these payments are promised, the city must collect money to pay these bills.

In 2006 these are payments for the roads and bridges bonds ($210,783.40), fire hall addition payment ($44,325.75) and tax abatement ($8200)

The total of all these is just under $263,310 down $4800 from the 2005 (total of $268,102). The city must levy this amount to meet long-term financial commitments.

The EDA levy of $35,346 would be added.

The estimate of non-levy revenue for 2006 is $463,418.19, up from the 2005 estimate of $343,603. Non-levy revenue is usually good-faith estimate and can vary.

The increase of nearly $120,000 comes from Fairview ($20,000), general property taxes ($11,406), licenses and permits ($5000), building permits ($20,000), local government aid ($22,512), other licenses/permits ($1500), fire state aid (a new item) ($35,000), special fire protection ($12,000), and fines ($2000).

There are projected decreases in non-levy; these other fees (-$9000), township softball portion (-$400).

The fixed portions of the 2006 levy are for road & bridge ($210,783.40), fire hall ($44,325.75) and tax abatement ($8200).

The 2004 operating budget was $1,017,905, for 2005 is $1,299,962, and the one proposed for 2006 about $1,590,675, with capital programs adding $356,739.

The general operating fund and the capital improvement program make up the rest of the preliminary levy. In 2005 these totaled $1,425,501; the same funds in the 2006 preliminary budget total $1,934,420, about a 26 percent increase.

These funds are the places adjustments can be made in the preliminary budget and, as a result, adjustments in the levy.

General Fund

The increases in the general fund are in general government, up from $267,025 to $340,923, which includes a new line item of $7000 for an independent wage study, and an increase of $73,800 to $146,700 for salaries (101 percent increase) for three office staff and an administrator.

Professional services, examples are legal and engineering services, show increases of about $9000.

Social services contract line item of $4000 was added back to the budget.

Police spending

The largest increase proposed is in the police department.

In 2005 this portion of the budget is 32 percent of the general fund at $421,109.

A nearly 25 percent increase of almost $138,800 to $559,878 is proposed for 2006, which would make the police department a little more than 35 percent of the general fund in 2006.

Most of this is for salaries, an increase of $77,781, a vehicle payment increase of about $6300, full-time employeesí overtime of $15,500, part-time employees, $8160, adding back the DARE program, $1000, but removing $,000 for the bike patrol.

There are other smaller increases in some of the line items.

Fire spending

The largest fire department line item increase is an increase of $35,000 to $42,000 for fire pension contributions, an increase of $18,420 for salaries to $109,600.

The proposed fire department increase is from $151,709 to $210,000, an increase of about $59,300.

The fire department is 11.6 percent of the 2005 general fund.

Proposed increases would bring this to about 13.2 percent of the general fund in 2006.

Street department spending dropped from $155,127 in 2005 to a proposed $148,187 in 2006. This is five-percent decrease of about $6950.

There is a proposed increase of $3400 for salaries.

Decreases in the street department are in employer paid insurance ($9970), PERA ($310), and FICA ($430) contributions. In 2005 the street department was 11.9 percent of the general fund.

In the proposed budget for 2006, the street department is 9.3 percent of the general fund.

Parks budget in 2005 is $91,471, or seven percent of the general fund.

Increases of $18,113 to $109,584 would reduce this percentage to about 6.8 percent of the general fund. The increase proposed is about 16 percent over 2005.

The largest increases are $9150 for part-time summer employee and FICA, $3768 for a part-time rink attendant and FICA, and $4000 professional services for community programs, an item cut the past two years.

Capital programs

Capital improvement program increases proposed are $50,000 for streets, from $72,540 to $122,540.

This would increase the street replacement line item from $10,000 to $20,000, and add two $20,000 items for an addition to the maintenance shop and plow truck replacement fund. This is a 59-percent increase.

Two capital improvement items are proposed for the police department at $48,000. One proposed item is $35,000 for a squad car.

The other is $13,000 for improvements in department equipment.

Park capital improvement proposals amount to $48,200, an increase of about $4700. Goodview Park line item decreased $13,500, but there are additions of $10,000 for a skateboard facility, and $9200 for various other items.

These include improvements to the Swenson parking lot, trees for parks, tennis court repair, computer and a trailer.

Other needs

The general capital improvement budget presented went from $2000 in 2005 to $70,000. Networking municipal computers would cost $25,000 and replacing the air-conditioner is assigned $10,000.

A new furnace for the municipal building is $30,000 and $5000 for refurbishing the old police department space.

Fire department capital items increase from a total of $45,000 to $68,000

This includes $46,000 for the ladder truck and an additional $22,000 for Engine 1.

Next steps

Council members have to look at the budget and levy at the same time.

If the levy looks like it will be too large, adjustments may be made in the budget, paring items in the form of reductions in one or more areas: staff, services, maintenance or capital purchases.

In doing this council tries to strike a balance between city needs, including what residents request, and what it costs to provide them.

This is an exercise in setting priorities, identifying which infrastructures and services are most important and/or which ones citizens are requesting.

If the priority is primarily keeping the levy low, services are curtailed and maintenance is postponed.

Before the Truth in Taxation hearing Dec. 6, residents may ask questions.

For example, ìFor what services am I willing to pay? Is it worth it to me to pay for good streets? How much am I willing to pay for police protection? How much of each do I need? Am I willing to trade one for the other or can there be a compromise? î

Phillips acknowledged that reductions in the preliminary budget probably must be made so that the tax levy becomes more reasonable.

The Sept. 6 meeting was the first time any of this information has been presented.

There were no suggestions made then about where reductions might be made.

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