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| FL city tax levy to increase 4.1% |
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| Wednesday, 17 December 2008 | |
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Jennifer Larson Staff Writer The financial needs for the city of Forest Lake will be greater in 2009. Not only will property owners be burdened by a 4.1 percent tax levy increase over 2008, but also with two new fees under charges for services. During its regular meeting Monday, Dec. 8, the Forest Lake City Council adopted the operating budget for the fiscal year beginning Jan. 1, 2009. Councilman Greg Ochs was absent from the meeting. A week earlier, residents attended the city’s Truth-In-Taxation hearing to learn where their tax money is being spent. The total levy is $7,114,054 – up $281,319 from $6,832,735 for payable 2008. “I think we have been very conservative,” said Councilwoman Judy Bull. City Administrator Chip Robinson said the increase in 2009 over the prior year is to accommodate losses in revenue and additional expenditures. Due to an expanding tax base in the city, he noted the local tax rate will increase only 2 percent compared to 2008. Robinson noted the local tax rate may have gone up but most people will see a reduction of about 1 percent in taxes paid for 2009. He explained that Washington County estimates a 2.6 percent decrease in market value for residential homesteads in Forest Lake. Based on that estimate, a $250,000 home would be paying around $7 less a year. “We’re actually seeing a reduction in market values,” said Robinson. Despite that, he said some people will see an increase in taxes if the county calculated an increase in the property’s market value. Tax payers can estimate their own costs by looking at their Proposed Pay 2009 Property Tax Impact Worksheet that many received in the mail. Robinson explained that the city’s share of property taxes is roughly 34 percent. To see an overall decrease in market value, he said residents need to request a reduction at or before the Washington County Board of Equalization held at city hall every spring. They can also contact the county assessor’s office for information on values. New fees The city revenues include $6.8 million in property taxes, $1.28 million in intergovernmental revenues, $535,150 for licenses and permits as well as $1.2 million in charges for services, among other items. Charges for services is the third largest source of revenue for the city, Robinson said. For the first time, the city will impose fees for storm water management and street lights. Mayor Stev Stegner was the lone dissenting vote against adopting the ordinances. “(The utility fees) are a separate charge outside the general fund,” Robinson said. He noted the revenues needed to fund both utilities will be set by the council every year. The storm water management fee is expected to generate an additional $65,000 in revenue, which is the amount necessary to fund the program. This fee is to fund costs associated with managing storm water runoff in accordance with new federal and state regulations, he said. Most commonly, cities draw from the general fund to finance municipal storm water improvement projects. He said Forest Lake’s ability to fund infrastructure expenditures has been curtailed by the Legislature’s levy limits, which is why the fees are included in the budget under charges for services. The amount assessed to each parcel within the city is based on its land use designation, which there are 14. Approximately 4,700 single-family residential dwellings are assigned 1 “Residential Equivalent Factor” – the fee structure’s basic unit. Next year’s figure is based on 10,000 REF’s. In 2009, the fee is $6.50 per REF per year. That also equates to 55-cents per REF per month. The street lighting fee, which is expected to generate $90,000 in new revenue, will offset expenditures for electricity charges and maintenance for the growing number of city street lights. According to City Engineer Phil Gravel, the annual electric bills for Forest Lake was close to $85,000 in 2007. Robinson said about 75 percent of the parcels in the city will be included in the street light benefitted area boundary, which will be revised periodically as new development occurs or as poles are installed. Townhome, condominium and other medium density property is assigned 1 REF per dwelling unit, which equates to approximately $18 per REF per year or $1.50 per REF per month. The figure for 2009 is based on 5000 REF’s. A commercial, industrial, institutional, church or other non-residential property with a structure on it is assumed to have the same street light benefit as a typical residential property. Parcels with minor structures such as garages, sheds, etc. are exempt as determined by the city administrator. Expenditures Robinson said that with population and crime statistics increasing over the past several years, it is necessary to plan for additional law enforcement personnel. Two new police officers have been figured in 2009 at a cost of $157,000; one of the positions was eliminated from the 2008 budget but reinstated this year. He noted that this will bring the staffing level up to 26 sworn officers, or 1.48 officers per 1000 in population. The FBI Crime Report recommends 1.7 officers per 1000 in population. A contract for maintenance of the growing number of emergency sirens and towers is included in next year’s budget, accounting for the 18.9 percent increase from $9700 in 2008 to $11,540 in 2009. Robinson noted that a reduction in consulting fees was reflected in the Economic Development budget for 2009, due to the completion of the city’s comprehensive plan this year. Forest Lake updated its overall “Comp Plan” and revised the subdivision and zoning ordinances over a three-year period. The $200,000 expenditure was spread over 2007 and 2008, therefore next year’s budget is significantly lower than in prior years. After being discontinued in 2008, the weed harvester program was partially reinstated for the upcoming fiscal year. The council earmarked $27,000 in the 2009 budget. The local Lake Association is reviewing a proposal to lease the weed harvester from the city and continue the program on a mostly private basis. Under the agreement, Robinson said the city would most likely be responsible for some supplies, chemicals, maintenance and miscellaneous costs. Recently, the council agreed to provide $5000 to maintain the recreational value of Clear Lake as explosive growth of invasive weeds are presenting significant interference with its use. The funds requested by the Clear Lake Association for its invasive plant control program come from the weed harvester budget. Robinson noted that operating costs are not expected to change significantly in the water and sewer fund in 2009 compared to this year. However, he said non-operating revenues, including connection and area charges, are expected to continue to decline throughout the upcoming fiscal year. The city adjusted water and sewer rates effective Jan. 1, 2009. This was necessary as heavy losses in water operations were being subsidized by significant gains in sewer operations. The proposal reflects a 30 percent increase in water rates and a $15 decrease (15 percent for commercial) in sewer rates, Robinson said. He said the net effect of these changes would result in virtually no increase in the total utility bill for most users and a slight decrease for some. Residential customers who only purchase sewer service such as those in the former township, Robinson said they will realize a $15 per quarter decrease in their sewer bill currently at $90. Based on the proposal, the average residence using less than 22,000 gallons in the spring/summer quarter would see an increase from $146.44 to $147.97. That equates to an increase of $1.53 per quarter or $6.12 annually. The base residence using less than 5,000 gallons in the spring/summer quarter would see a decrease from $65.34 to $61.99 – a savings of $3.35 per quarter or $13.40 annually. Rates for commercial using less than 1.428 million gallons in the spring/summer quarter would see a decrease from $9,317.89 to $9,296.43 – a savings of $21.46 per quarter or $85.84 annually. Other points City resident Richard McNamara said the staff did a nice job on the budget but feels it is too high. He asked the council to not approve the budget and consider removing the fees for storm water management and street lighting. An attendee at the city’s tax hearing on Dec. 1 stated the council and staff have done a thoughtful job and tried to work within the means of the community. She said that although the proposed levy didn’t go up significantly over the prior year, “It still an increase to people who are hurting.” Robinson said staff continues to monitor potential state budget decisions in the wake of a $5.2 billion budget deficit over the next two years. He said the city is projected to receive $295,000 in market value homestead credit aid in 2009 and is starting to make preliminary plans for any reduction or total elimination of the revenue. The city is receiving $82,000 in market value homestead credit aid this year and is unsure if some or all of that aid could be cut this year. Social Bookmarking ...       |
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