City budget numbers 'as is'. 8-31-19

  The Big Lake City Council is expected to give another review and adoption of a preliminary budget and tax levy at their Sept. 1 regular meeting.

   They will continue to work on the levy, leading to a public hearing Nov. 25 and final adoption in December.

   That action occurred at the end of a special workshop Tuesday, during which Finance Director Deb Wegeleben and council members looked more thoroughly into the numbers. There were no great disagreements, though an additional payroll for expansion of the park director’s position from half to full time caught some eyes.

“The consensus is that we’re good? And a resolution for the preliminary budget and levy at our Sept. 11 meeting?” asked Mayor Mike Wallen.

   The council was in agreement.

   Biggest ticket in the 2020 budget will be an increase of $424,567 to $5,281,655 in the general fund.

   The additional monies, Wegeleben stated, will be for additional salaries, increased health and benefits to existing staff. Included in that is the parks and recreation manager’s salary.

   The council continues to save for a “rainy day” with its general fund, with an unassigned fund balance in 2020 of 57.75% of the proposed budget.

   The 2020 expenditures are proposed as follows: 

   Public Safety, the fire and police departments, will receive $2.6 million, or 50% of the general fund;

   Public Works, streets and utilities, will receive $693,000, or 13% of the budget;

   General Government will receive $858,000, or 16% of the budget;

   Culture, the library and parks and recreation, will receive $771,000 or 15% of the budget; 

   The EDA (economic development) will receive $127.000, or two percent of the budget.

   Taxes and special assessments will amount to 50% of the revenue for the city - or $3,090,000;

   Licenses and permits will provide $538,050, or 10%;

   Charges for services will provide $267,854, or eight percent of the budget;

Transfers in from the Lake Liquor fund, $450,000, or eight percent.

The city expects to receive $916,000 in 2020 from the State of Minnesota under local government aid.

   But that is only spent if the money gets to the city, and it would be spent on infrastructure and one-time costs, not dependent on the general fund.

The Tax Levy

   The council is expecting to pass a resolution calling for a tax levy in the amount of $4,565,953, an increase of $236,543 over the current year.

The general fund levy would be $3,221,819, an increase of $343,373 over 2019;

The debt levy of $1,214,134 would be a decrease of $106,830 from the current year;

And the EDA levy of $130,000 would be the same as this year.

The Property Owner

   The proposed levy would have the following effects on a home valued at $216,000 - total monthly cost $83.98.

   Public Safety would cost $35.11; City Debt, $16.46; Culture and Recreation, $13.13; General Gov. $11.77; and Streets and Engineering, $7.51.

   The owner of the home valued at $216,000 would see an increase of $5.57 more per month in city taxes. This is mostly due to an increase in the valuation of their property (eight percent upward average).

   The owner of a commercial property valued at $1 million would see a decrease of $2.27 in city taxes.

   Providing for the additional spending has been the continuing construction (and valuation produced) over the past several years.

   That provoked a final comment from Councilman Paul Knier.

   “My biggest concern voiced by residents is that city government spending money because it’s there,” he said.