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Tax rate left out of budget talks BRAINERD CITY COUNCIL Staff Writer Unlike in years past, Thursday's 2009 budget discussion by the Brainerd City Council featured little talk about what the city's tax rate will be.
That was by design, City Administrator Dan Vogt said, because Crow Wing County, not the city, sets the city's tax rate and any numbers the city would have to work with are preliminary.
"Our levy, that dollar amount is real," Vogt said. "The tax rate is, who knows? We're thinking it will stay about flat, but that's an estimate, purely an estimate."
In 2008, the city's tax rate was 44.64 percent. In 2009, Vogt said a preliminary rate could be about 45 percent, based on early projections.
The number that Vogt said counted, the tax levy, was proposed by city staffers Thursday to be $4,103,041, an increase of about $286,000 over 2008. That amount includes a state-mandated tax levy limit of $2,891,041, a debt service levy of $1,150,000 and retirement rate increases of $62,000. Debt service and retirement rates fall outside the imposed levy limit.
Council member Mark O'Day suggested decreasing the levy by $120,000 in order to reduce the taxes, especially in light of a $225,000 increase the city received from the state in local government aid.
"We should be able to give residents a little bit of that, if nothing else to at least maintain where they're at," with the tax rate, O'Day said.
Council member Anne Nelson Fisher said though there's a desire to lower the tax rate, the city's debt service will only continue to grow if it's not paid.
"I guess I would rather not lower it that much," Fisher said.
Council member Kevin Goedker said it would be better to lower the levy now to give taxpayers a break.
As far as the proposed 2009 budget, City Finance Director Theresa Goble said it would be "status quo" with the 2008 budget. The proposed budget included replacement vehicles for the police department, improvements to the Parks Department building in Lum Park, fireworks for the Fourth of July celebration, $4,000 for the Initiative Foundation, a beautification fund and a new civil defense siren in Buffalo Hills. No new employees have been requested for 2009.
About 22 percent of the city's total revenue come from the levy. Total city revenues for 2009 are projected to be $12,786,133 and total expenses are projected to be $12,397,940.
The council took no action Thursday and will need to set its preliminary levy at Monday's regular council meeting. Once set, the preliminary levy can be reduced but not increased. The tax rate will be set at the city's Truth in Taxation hearing in December.
MATT ERICKSON may be reached at matt.erickson@brainerddispatch.com or 855-5857.
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