Posted: 9/4/07
City levy for 2008 may be increased by 16 percent
By Charlie Warner
Argus Editor
Caledonia residents are getting off pretty easy when it comes to city taxes. In fact, according to figures provided by city accountant Stephanie Mann, Caledonia has the lowest city levy per capita of any municipality in Houston County. Mann made the report during the August 27 council meeting.
The 2007 levy per capita for Caledonia was $143.91, which was $50 less than Brownsville, which had the second-lowest levy at $195.91. The other five cities in the county and their levies per capita were:
ïSpring Grove- $208.79
ïLa Crescent- $354.73
ïEitzen- $358.65
ïHouston- $382.16
ïHokah- $398.50.
Mann expanded the levy comparison to include various communities in Fillmore and Winona counties similar to Caledoniaís size. Once again, Caledonia came in with the lowest levy per capita.
Non-Houston County cities included in the study and their levies per capita included:
ïSt. Charles - $163.60
ïLewiston- $320.49
ïSpring Valley- $321.59
ïChatfield- $345.80
ïPresston- $346.68
ïHarmony- $373.65
ïLanesboro- $458.20.
"As you can see, Caledoniaís levy is very low compared to other cities in the area," Mann said. "After reviewing our current levy figures, Bob (City Administrator Robert Nelson) and I feel we need to increase the cityís levy by 16 percent." A 16 percent increase was translate into an additional $68,269 in collectible property taxes for the city in 2008.
Nelson explained the city has to set a levy now and after working through the budgetary process, can reduce the amount the city increases the levy for 2008, but it canít be increased.
"Weíre not saying that it has to be 16 percent," Nelson added. "But itís much better to figure a little bit high and then drop it down somewhat, once we have a better idea of the budget for 2008."
"We need to be building up our reserves," Mann told the council. "Even if we go ahead with the 16 percent increase in the levy, we would still have one of the lowest per capita levies in the area," according to Mann.
"How would a 16 percent increase affect a home valued at $100,000?" Councilman Paul Fisch asked. Mann replied she hadnít put those numbers into a formula, but could before the next meeting. Fisch said he felt it would be good to have figures of how the proposed levy increase would have on homes valued at various levels.
The proposed increase would actually be an eight percent increase in the general fund levy and an eight percent increase in the indebtedness levy.
The council unanimously approved a motion to accept the recommendation by Mann for a proposed 16 percent increase in the 2008 city levy.
In other council action
Survey will be done
The council approved a motion to split the cost of having a tract of land located between Main and Grant streets in northeast Caledonia surveyed. A portion of the property is part of the former railroad right of way. There has been some confusion over where the property lines are located.
Dean Foltz asked the city to have the property line issue straightened out. The city received a bid from G-Cubed Engineering of Chatfield of $3,100 to have the work conducted. According to Nelson, he was surprised at the bid, and figured it would be more. Foltz has agreed to pay $1,550 for his share.
CUP approved
A conditional use permit (CUP) requested by Kim Kranz, 619 North Kingston Street was unanimously approved. Kranz plans to establish a business called Beautiful Interiors, and will operate the business from her home.
A public hearing was called to receive any comments on the Kranz proposal. Notices of the public hearing and the Kranz request were sent out to all property owners located within 350 feet of the Kranz property. No one commented on the Kranz proposal, either in writing or at the public hearing.
Kranz explained that she will not have customers coming to her home, but will be conducting business off site.
Eizen canopy approved
A zoning permit application for a 18 by 52-foot canopy to be installed on the south side of the Eitzen State Bank building at 115 North Highway 44/76 was approved. The canopy will cover the ATM machine and also the drive-up window.
Caledonia Argus
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