Several council members are at odds over a conservative tax levy, comparable to this year, and spending more to keep up with reported-needed capital improvement projects.

 

Councilmembers Rick Hendrickson and Adam Oliver sparred for almost an hour on various scenarios on which to base the 2015 levy, but they were as philosophically far apart as their seats at the council table.

 

Treasurer Sarah Brunn began the discussions, presenting what she called “a base line” tax levy of 3.48%, allowing the council to keep their city tax rate at 31.9%, which compares very favorably with other cities in the county.

 

A proposed tax levy would rise from this year’s $5,238,736 to $5,420,809, an increase of $182,073.

 

The general fund tax increase would increase by 17.65% to $3,192,597.

 

The community center would increase 13.22% to $494,100.

 

But the debt service levy would drop by $484,536 to $1,293,432, due to the payoff of bonds for the 2009 wastewater treatment plant.

 

A number of new factors, the city’s receipts due to the utilities fund, a 23% hike in employee health insurance due to the Affordable Care Act, and employee pay increases were among factors expected to increase the general fund property tax. Some capital improvement projects are also included in the general fund tax.

 

Council members didn’t voice opposition to the base line tax proposal of Brunns.

 

But where they got stuck were proposed $500,000 capital improvement projects, which if approved would shoot the city’s 2015 tax levy to 13.02%.

 

Mayor Lefty Kleis outfront said he wanted $150,000 trimmed from it, including $75,000 for proposed golf course improvements, a $30,000 membership to the utilities lobbying association, which he says isn’t needed and  employee pay freezes, among other things.

 

“One and a half percent,” Kleis said. That’s where I’d like to end up. Cut our spending.”

 

Hendrickson was of like-mind. “Cut these things,”  he said. “We don’t have to keep spending.”

 

But Oliver, concerned because the city has not kept up with its original plan for capital improvement projects in the recent past, advocated for the full vestiture.

 

The city may be in for some good news if current trends toward increasing property values boost tax capacity and the ability to pay for increases.

 

Councilmembers Lynette Brannan and Tracy Bertram were mum during the deliberations, opting at the end to throw all the cards on the table and start with the 13.02% tax hike proposal.

 

The council needs to certifiy a preliminary levy at its next meeting. At that point, they can only reduce the levy, not increase it.

 

Brunn presented several scenarios for impacts on residential and commercial properties, given a 34.90% tax rate.

 

Homes valued at $150,000 and $250,000 would see little change from their 2014 rates of $557 and $929, respectively.

 

Commercial properties of $1 million and $2 million would likely see small decreases from their 2014 rates of $6,966 and $14,194, respectively.

 

Following the conclusion of the budget workshop, Chairman Oliver opened up yet another workshop on golf course issues.

 

He first issued an apoligy to Course Mgr. Troy Malo for his outburst at their last meeting, then called for public testimony.

 

There was none.

 

“Maybe they’re all talked out,” reasoned Oliver following the final gavel.