Abby Nadeau
Staff Writer

Roughly 30 Forest Lake residents attended the cityís Truth and Taxation hearing on Monday evening to learn where their tax money is being spent.

The 2007 budget sets the cityís expenses at $8.4 million, $878,060 more than 2006, which equals to a 11.5 percent increase.

However, most of what the city is spending is made up in its revenues. The city is estimating it will receive $8.3 million in revenues, roughly $1.2 million more than 2006.

The cityís revenues include $6.2 in property taxes, $732,289 in intergovernmental revenues, $555,810 in charges for service and $560,500 for licenses and permits, among other items.

Property Taxes

City Administrator Chip Robinson stated that the city is proposing a $6.5 million tax levy for 2007, which is a 20.9 percent increase from 2006.

Robinson stated that Washington County assumes a 10 percent increase in market value for residential homesteads.

Based on that 10 percent estimate, a $250,000 home would be paying an extra $70 a year, or $6 a month for the cityís share of the proposed 2007 property tax bill.

He added that some homes went up 28 percent and some went up only 2 percent, but the county estimates the average at 10 percent.

Tax payers can estimate their own costs by looking at their ìProposed Pay 2007 Property Tax Impact Worksheetî that many received in the mail.

Protection

The Forest Lake police department budget will increase 15.2 percent from $2.4 million in 2006 to $2.8 million in 2007. The increase is the result of the hiring of two new officers, overtime pay and an increase in fuel costs.

Fire Protection will increase $65,062 from 2006. In 2007 the department will see $583,450 in their budget. A new fire inspector was also hired, which increased the 2007 budget from $63,937 in 2006 to $91,430 in 2007, a 43 percent increase.

The majority of the cityís expenditures are due to the increase in public safety. An estimated $4 million will be spent in public safety, $444,591 more than in 2006. In the capital outlay fund, the police department is expected to receive a new radio system in the amount of $150,000.

The police are requiring the system to be compatible with the county. Hennepin and Washington Counties are sharing a grant to receive the radios, but the $150,000 must be incurred by the city as a part of the partnership.

Robinson stated that within the next year the Federal Communications Commission will have new channels for both police and fire. The fire department already received its funds for the radios from grants.

CIP

Many of the ìneedsî the city has, are derived from the city Capital Improvement Plan. The plan lists every departments ìwish listî and numbers them with their priority of need.

Robinson stated that the CIP is a ìfluent documentî where everything is always changing. Once the 2006 items are taken care of, the city will start planning for 2011.

The city documents included a ìProjects by Yearî sheet that included all the project the city is looking at for the next five years.

In 2007 the city has allocated $2.8 million for the ìAirport Improvement Project,î $1 million for ìPriority street Reconstruction Project,î $1 million for ìWest Broadway Improvementsî and $750,000 for a ìStreet Lighting Improvement Project.î In 2008 the city is budgeting for a $3.5 million ìCity Hall Remodel,î and $4 million for an ìOutdoor Sports Complex.î

The city has already started planning for 2011 where they plan to spend $1 million on ìPriority Street Reconstruction Projects.î

Again, the CIP is a document that is subject to change due to a number of factors like the economy, the availability of space, and priority.

Other

The 2007 budget also includes an additional 1.5 full time employee. The city hired one new account clerk in 2006 and a .5, or part-time employee, is being budgeted for 2007.

The part-time employee would be a communications specialist for the city service.

Roughly $284,000 has been budgeted to cover debt. The debt payment allocated for 2007 is from the new fire truck the city purchased in 2006.

The Truth and Taxation Hearing is a state mandate for cities to explain where their taxpayers money is going.

The city council will take a vote at the next council meeting whether to accept the budget or not.

The next council meeting is scheduled for Monday, Dec. 11 at 7 p.m. at City Hall.

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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