Caledonia Argus

City sets levy, budget for 2003

Posted: 12/17/02

by Jane Palen
Managing editor

The Caledonia City Council adopted a levy and budget for 2003 that is less than what was originally proposed.

At a special meeting December 10, the council adopted a total property tax levy of $313,665, which includes a general fund levy of $180,223, and an indebtedness levy of $133,442, a four percent increase over last yearís levy. Originally, the council had proposed a levy of $361,921.

The council also held the line on the city budget, coming up with $1,717,085 for the general fund for 2003. That compares to a budget of $1,722,840 for the current year. However, according to City Clerk Administrator Robert Nelson, the city will charge off $62,520 in wages to the electrical department, bringing the budget down to $1,660,320. Nelson noted that the city is one of only 40 or 50 in the entire state that has its own electrical department, which contributes to the financial health of the city.

The council held two special meetings in conjunction with Truth in Taxation hearings and trimmed $20,850 from its original budget. Among the items trimmed were $700 from miscellaneous council expenses; the mayorís travel budget of $115; $24,000 for a new 4-wheel drive police vehicle for 2003, leaving enough in the budget for one new vehicle; $2,500 in engineering fees; $2,300 in legal fees, and $1,500 for furniture and equipment for the auditorium. The council also trimmed $1,500 from its tourism budget.

The city did add some items to its budget as well, including $10,000 for what is listed as improvements to the athletic field. The council hopes to use that money to develop some sort of youth project within the city. Among the options discussed were a skateboard park and youth center.

Street lighting improvements added $5,000 to the cityís budget. The improvements include upgrading the street lights along Warrior Avenue near the new school.

State deficit could prove costly

With the state predicting a budget deficit that could rise to $4.5 billion in the biennium, local government units are concerned about a loss in state aid. In fact, said Nelson, Govenor Ventura could withhold the second half the cityís 2002 aid, or delay the paying of it. No one is sure what steps the state might take to address the deficit, said Nelson. He noted that the state now sets limits on what the city can levy, and a loss of aid with those limits in place would be detrimental to the city.

Top of Page