Property taxes in the city of Forest Lake would go up by an estimated 9.9 percent in 2008 under a preliminary tax and budget plan approved by the city council on Monday night. The council voted 4-1 with Mayor Stev Stegner objecting to set the proposed levy. The action is required by Sept. 15. The proposed levy can be decreased at a later date but can not be increased.

The proposed property tax levy would generate $6,874,393 to support the general fund next year. Stegner said he could not support the proposal. "I feel that the budget right now is too high," he said. "The city has increased its spending 40 percent since 2004 and it makes no sense to increase our budget by 9.9 percent."

While the council voted 4-1 to set the proposed levy and budget, there was consensus that efforts would be made to reduce the city's spending and lower the proposed tax levy. The final decision on the new tax levy will come in December following the required Truth in Taxation public hearing that gives the public an opportunity to comment on the city's taxing and spending plan for the year ahead.

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