BAXTER - A proposed tax levy of an estimated $5.6 million for 2015, representing an increase of $94,000 or 1.7 percent compared to 2014, was approved for Baxter residents.
The Baxter City Council approved the preliminary tax levy Tuesday during its regular meeting.
Baxter residents have not seen a huge increase on their property taxes for several years. There was no tax hike in the levy in 2011-12 and only slight increases in 2013-14. The $5,601,900 proposed levy - with an estimated $1.13 million in debt service levy - is a slight increase from 2014. The council did not make any changes to its budget and levy since they discussed it in August.
The city will host a public information meeting to review the 2015 budget and levy at 6 p.m. Nov. 25. The council will approve the final levy and budget on Dec. 2. Once it is finalized, the levy cannot be increased per state law.
This year, "new construction" took a substantial uptick, adding about $9.1 million for taxes payable in 2015, which generated about $116,409 in tax capacity. Compare that to taxes payable in 2014, where new construction was $1.1 million creating $11,000 of tax capacity.
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Baxter Finance Director Jeremy Vacinek said Crow Wing County's property value assessments increased by 1 percent reversing a six-year trend of decreasing market value. The county's estimated market value dropped by 20 percent from 2008 to 2013.
Vacinek said the Consumer Price Index is currently at 1.99 percent from July of 2013 to July of 2014. He said the less than inflationary increase is due to modest increase in proposed spending for the 2015 budget. The general fund expenditures and transfers are proposed to increase 1.39 percent from 2014 to 2015.
The proposed budget represents $1.2 million for debt service, $4.4 million for operations, $3.9 million for general fund operations and $507,500 for other funds.
Spending included $15,000 for The Center, $5,000 to the Initiative Foundation, $8,000 to Fourth of July fireworks and $5,000 for public transit Dial-A-Ride.
In general fund expenditures, costs include $1.6 million for police personnel, supplies and services with $45,000 for fuel, $20,000 for animal control and $63,500 for future squad car replacement costs.
For fire protection, Baxter expects to pay $297,700 in 2015, an increase of 6.35 percent from 2014's $279,900.
JENNIFER STOCKINGER may be reached at jennifer.stockinger@brainerddispatch.com or 855-5851. Follow on Twitter at www.twitter.com/jennewsgirl .
