|
City council proposes to raise 2010 tax levy by 20.71 percent
|
|
|
By Charlie Warner
Argus News Editor
By a unanimous vote, the Caledonia City Council approved a motion to increase the 2010 levy by 20.71 percent. The majority of the levy increase would be to recoup the $101,364 the city lost during the past 10 months in local government aid (LGA) unallotments.
The state has allowed cities a one-time levy to make up for lost LGA during the past year. The 20.71 percent increase would bring an additional $107,648 into the city coffers, which would be $6,284 more than what the city lost in LGA cuts.
The city council looked at various levy increase scenarios during the Aug. 24 meeting. City Administrator Bob Nelson and City Accountant Stephanie Mann presented the council with five different options ranging from an 8.04 percent increase up to the 20.71 percent increase.
The city can only increase the general fund levy by 3.9 percent. The state imposed that levy limit last year. However, the state has allowed cities that saw their LGA cut last December and again this year, to levy up to 100 percent of the amount of the cuts.
After reviewing the various options, the council agreed that it would be prudent to recoup 100 percent of the LGA cuts.
“This will probably be a one-time deal,” Mayor Bob Burns warned. “This was money we thought was coming our way, and we originally budgeted for it. I think was need to go for it, as long as the state is allowing it.”
Mann provided documentation which indicates that Caledonia has the lowest per capita levy of any city in not only the county, but also in the three-county area.
According to the figures, Caledonia’s 2009 per capita levy was $117.80. Other per capita levies in Houston County included:
Brownsville $221.55
Spring Grove $354.49
La Crescent $372.21
Eitzen $403.45
Houston $423.12
Hokah $524.47
Nelson noted that motion to increase the city’s 2010 levy by 20.71 percent is just a proposal.
“You can always reduce it, but you can not increase it once it is turned over to the county auditor on Sept. 15.”
You can contact Charlie Warner at
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
|
