PAGE: LOCAL NEWS
Tax hike trimmed to 6 percent
By Byron Kroeger (December 10, 2009)
An unofficial 6 percent tax levy increase would largely plug the $504,377 budget deficit facing the city of Lakefield, though the city council held off on approving the levy figure until its Dec. 21 meeting.
The council viewed the latest version of the 2010 budget and tax levy during its meeting Monday evening. The proposed budget predicts $823,175 in city revenues next year with total 2010 expenses forecast to be $1,327,552.
In addition to a property tax levy of $452,335, a $14,432 transfer from Capital Improvement Program interest and a Colonial Manor asset transfer of $37,610 to the CIP would also help fill the gap.
Overall, the levy increase would amount to $25,604, or 6 percent. The primary cuts would be to the CIP, down 23.93 percent; the Economic Development Authority, down 40 percent, and the Lakefield Fire Department equipment funding, down 50 percent.
The council’s original 2010 levy proposal called for a 9 percent increase.
Within the budget, the amount of the city’s 2010 Local Government Aid payment remains a complete unknown.
Not knowing exactly how much next year’s LGA payments will amount to leaves the council at the mercy of the state and governor because the city must estimate its revenues, which are highly reliant on the state aid. Should another cut in LGA funding be made, the council will be forced to implement additional budget cuts even though a levy would already have been approved and submitted to the state.
Information provided during the meeting showed a serious downward trend in revenues, which are highly reliant on state funding. In 2007, total actual city revenues amounted to $2,165,070, compared to the predicted $823,175 for 2010. Expenses, on the other hand, have risen from $1,191,628 in 2007 to the $1,327,552 budgeted for next year, and that is after the council has proposed cutting these expenses by $105,762, or 7.38 percent.
FIBER GRANT PASSES FIRST ROUND
City Superintendent Jim Koep informed the council that the proposed fiber-to-the-home project, of which Lakefield is a part, has passed the first step in receiving federal economic stimulus funding. He said it was hoped that submission requirements for the next phase would be made within the next two weeks.
RAILE RESIGNS FROM BOARDS
Duke Raile resigned from the Police Advisory and EDA boards, effective immediately. It was noted that a city ordinance prohibits a person from serving on any other board if that person is a member of the Police Advisory Board, so Raile elected to resign from both of the boards on which he was serving. The council approved Mary Prestin to replace Raile on the police board but, on Mayor Darrell Nissen’s recommendation, decided to hold off on choosing an EDA replacement until early 2010.
TRAIL PROCESS UNDER WAY
The start of a process to build a trail network in Lakefield — a resolution of agreement to maintain facilities — was unanimously approved by the council. Koep presented a preliminary plan that could eventually encircle a large portion of the city but stressed that the plan was far from becoming a reality at this time.
POLICE CALLS DOWN SLIGHTLY
The Lakefield Police Department report for November was made available at the meeting. It showed that 85 calls were answered last month, bringing the total for the first 11 months of 2009 to 1,106. Burn permits, ambulance assist, public assist and animal complaint (dog or cat) led the list for the year.
CITY LICENSES APPROVED
The following city licenses for 2010 were approved: Bowler’s Inn, 3.2 on sale beer ($50 total); Hage Oil Co., 3.2 off sale beer and cigarette ($40); Mitch’s Corner, cigarette ($15); Hanson Ward VFW Post, liquor, Sunday liquor and cigarette ($615); Maynard’s of Lakefield, cigarette ($15); Lakefield Municipal Liquor Store, cigarette (no charge); Staples Oil Co./Expressway, 3.2 off sale beer and cigarette ($40); and Emerald Valley Golf Club, LLC, liquor and Sunday liquor ($600).
The council viewed the latest version of the 2010 budget and tax levy during its meeting Monday evening. The proposed budget predicts $823,175 in city revenues next year with total 2010 expenses forecast to be $1,327,552.
In addition to a property tax levy of $452,335, a $14,432 transfer from Capital Improvement Program interest and a Colonial Manor asset transfer of $37,610 to the CIP would also help fill the gap.
Overall, the levy increase would amount to $25,604, or 6 percent. The primary cuts would be to the CIP, down 23.93 percent; the Economic Development Authority, down 40 percent, and the Lakefield Fire Department equipment funding, down 50 percent.
The council’s original 2010 levy proposal called for a 9 percent increase.
Within the budget, the amount of the city’s 2010 Local Government Aid payment remains a complete unknown.
Not knowing exactly how much next year’s LGA payments will amount to leaves the council at the mercy of the state and governor because the city must estimate its revenues, which are highly reliant on the state aid. Should another cut in LGA funding be made, the council will be forced to implement additional budget cuts even though a levy would already have been approved and submitted to the state.
Information provided during the meeting showed a serious downward trend in revenues, which are highly reliant on state funding. In 2007, total actual city revenues amounted to $2,165,070, compared to the predicted $823,175 for 2010. Expenses, on the other hand, have risen from $1,191,628 in 2007 to the $1,327,552 budgeted for next year, and that is after the council has proposed cutting these expenses by $105,762, or 7.38 percent.
FIBER GRANT PASSES FIRST ROUND
City Superintendent Jim Koep informed the council that the proposed fiber-to-the-home project, of which Lakefield is a part, has passed the first step in receiving federal economic stimulus funding. He said it was hoped that submission requirements for the next phase would be made within the next two weeks.
RAILE RESIGNS FROM BOARDS
Duke Raile resigned from the Police Advisory and EDA boards, effective immediately. It was noted that a city ordinance prohibits a person from serving on any other board if that person is a member of the Police Advisory Board, so Raile elected to resign from both of the boards on which he was serving. The council approved Mary Prestin to replace Raile on the police board but, on Mayor Darrell Nissen’s recommendation, decided to hold off on choosing an EDA replacement until early 2010.
TRAIL PROCESS UNDER WAY
The start of a process to build a trail network in Lakefield — a resolution of agreement to maintain facilities — was unanimously approved by the council. Koep presented a preliminary plan that could eventually encircle a large portion of the city but stressed that the plan was far from becoming a reality at this time.
POLICE CALLS DOWN SLIGHTLY
The Lakefield Police Department report for November was made available at the meeting. It showed that 85 calls were answered last month, bringing the total for the first 11 months of 2009 to 1,106. Burn permits, ambulance assist, public assist and animal complaint (dog or cat) led the list for the year.
CITY LICENSES APPROVED
The following city licenses for 2010 were approved: Bowler’s Inn, 3.2 on sale beer ($50 total); Hage Oil Co., 3.2 off sale beer and cigarette ($40); Mitch’s Corner, cigarette ($15); Hanson Ward VFW Post, liquor, Sunday liquor and cigarette ($615); Maynard’s of Lakefield, cigarette ($15); Lakefield Municipal Liquor Store, cigarette (no charge); Staples Oil Co./Expressway, 3.2 off sale beer and cigarette ($40); and Emerald Valley Golf Club, LLC, liquor and Sunday liquor ($600).