Treasurer Sarah Brunn gave a 2015 budget presentation to members and the audience during Tuesday’s Becker City Council meeting.

 

Brunn talked about the aspects of the budget that is leading up to the proposed levy increase of 13.17%. Brunn said many factors went into trying to balance the budget, including working with the new state minimum wage legislation, Affordable Care Act implementation, capital improvement plan funding and utility aid.

 

Brunn said the overall budget for 2015 is set at approximately $10.5 million. Most of that includes adminstration costs ($1.1 million), streets department ($1.69 million), Parks & Rec/BCC ($1.46 million), public safety ($1.31 million), golf ($1.18 million and enterprise funds ($2.43 million) and debt service at $1.29 million.

 

Brunn mentioned approximately $200,000 in general fund increases due to increases in wages and benefits, health insurance, additional staffing, etc.

 

As far as operations revenue, Brunn said there will be an increase in the property tax levy but there will be a decrease in the debt service levy. Most of the other revenue sources are “fairly flat or with slight increases,” Brunn said.

 

Operations expenditures will show an increase at public works due to some additional  needs equipment and staffing. The park & rec department also has an additional allocation to fund the BAC parking lot as well as some other capital items. Other departments show modest increases with most of the impact being made in the wages and benefits.

 

Brunn said the capital needs for 2015 include street improvements for 2nd Street and surrounding areas, a police squad vehicle, a snow plow truck and a snow pusher, irrigation at the Pleasant Valley park, a computer server, a grass truck for the fire department, a fuel storage system, city hall carpet replacement, compensation study, continued funding for a dumont unit for the BCC and continued funding for the BAC parking lot.

 

As far as domestic water/sewer funds, there is a 5% increase in rates proposed. The water budget revenues are projected at $541,000 with expenditures projected at $645,000 (includes depreciation of $265,000 and transfer of $60,000 of funds for bond payments). Water will see a net income loss of $104,000.

 

For domestic sewer, the revenues projected are at $611,000 with expenditures projected at $955,000 (includes depreciation of $570,000). Domestic sewer will see a net income loss of $344,000.

 

For industrial sewer, the revenues projected are at $1.076 million and expenses projected at $890,000 (including depreciation). The industrial sewer fund is set to show a net income of $185,000.

 

Some capital needs for water and sewer include a portable emergency generator, SCADA upgrading, a cloth filter media, RDP system dust collector and industrial clarifier. Some future needs are a biofilter media, packed tower (EQ tanks), additional clarifier, industrial rotary press, MBBR or oxidation ditches, grit & fine screen in headworks, industrial storage tank (stairs/deck) and industrial oxidation ditch (cleaning and refurbishment).

 

The golf fund budget will institute some rate changes for 2015 including a hike in the Local 9 junior rate and season passes and an increase in the usage of golf cars for 18-holes. The capital needs for Pebble Creek including commencing the bunker project for holes #8 and #9 on the white nine and a capital lease for some new lawn mowers.

 

The 2015 projected revenue for the golf course is $955,000 with expenditures coming in at $1.18 million (including a depreciation of $250,255). That equals to a net income loss of $233,810. However, operations project a net income of $16,445.  A transfer of $75,000 from the general fund is budgeted.

 

Brunn explained tax capacity and how it affects Becker homeowners. She said the tax capacity is calculated by multiplying the property market value by the appropriate class rate percentage. She said for homes with a first value of $500,000 are multiplied by 1% while homes valued over $500,000 would be multiplied by 1.25%.

 

For commercial/industrial, the first $150,00 would be multiplied by 1.5% while buildings valued at $150,000 or more would be multiplied by 2%.

 

After determining the tax capacity, the projected tax rate for Becker  is projected at 34.915% (including EDA). That is a slight decrease compared to last year’s 35.133%.

 

Last year, Sherco and its utility partners paid 75.5% of property taxes where next year (2015) it will go up to 77.5%.

 

The way city tax bills are trending, Brunn projects a slight decrease on property taxes although she says she can’t control the valuations as those are determined by the county.  But, as an example she says a $150,00 residential home could see a $3.26 decrease from 2014 to 2015 while a commercial property in the $1 million range could see a $41.86 decrease.

 

Brunn showed a slide depicting comparisons of tax rates with other cities in the area and noted Becker’s is by far the lowest. East St. Cloud will see an increase from around 45% to 48%. Elk River will see a decrease from around 49% to 47%. Zimmerman will see a decrease from 51% in 2014 to 45% in 2015. Big Lake dips from 51% this year to 48% in 2015. Clear Lake will see a big jump from 84% this year to 94% in 2015 and Princeton will see theirs fall from 79% this year to about 74% next year.