Preliminary levy up 7.57%

Brainerd's 2010 preliminary tax levy is an increase over the 2009 tax levy.

The Brainerd City Council on Tuesday approved by a 6-2 vote a preliminary tax levy of 47.355, up from the 2009 tax rate of 44.48 percent. The preliminary tax rate of 47.355 would increase the tax levy from $3,962,619 to $4,262,308, about a 7.57 percent increase.

By law the city needed to set a prelimiinary budget and levy by Sept. 15. Once the preliminary levy is set it can be reduced by not increased. The council intends to hold a series of budget workshops, the next at 6 p.m. on Oct. 13, and will set its final budget and tax levy at 6 p.m. on Dec. 14.

The increase was recommended by City Administrator Dan Vogt and Finance Director Theresa Goble in an effort to reduce deficits in debt service funds on the Beaver Dam, Riverside Drive and Brainerd Oaks projects.

The impact on a home valued at $100,000 would be an annual increase in the city portion of property taxes of $28.68, or $2.41 a month.

"While we realize that this proposal may be difficult to support, we can see no other way to help make up these deficits without making additional cuts to the budget that will undoubtedly have an adverse affect on city services," Vogt and Goble informed the council in a memo.

Voting against the levy were council members Mary Koep and Bob Olson.

Koep said she would prefer a flat tax rate of 44.48 percent, which would still mean an addition $33,500 in taxes because of increased valuation in the city.

"It seems to me foolish not to do that because that money is out there and we're not raising the levy against anyone to do it," Koep said. "However, to increase the actual dollar levy against citizens at this time seems to me to be counterproductive if want to look at whole picture of city."

Olson said he didn't believe increasing the levy $300,000 was necessary as there were more cuts that could be made to the budget to cover the debt service deficits.

"Now is not the time to raise taxes," Olson said.

Anne Nelson Fisher said the $300,000 increase was more than she expected but she supported it because she didn't want to limit budget discussions by setting the tax levy too low.

"There are still four months to talk about where cuts might be made and debates about cuts already proposed," Fisher said.

Council member Bonnie Cumberland said it's been her experience that the council always practiced due diligence in lowering the tax levy.

"When I talk to constituents about taxes, dollar amounts, they always tell me if we need to raise taxes a bit they're not against it, provided we use the dollars appropriately," Cumberland said.

Goedker agreed with Fisher and Cumberland, saying he hopes the council can lower the tax levy by the time of final adoption Dec. 14

Olson also made a motion that the proposed 2010 budget include providing about $23,000 for electrical, water and sewer services for the Brainerd Public Library - items previously proposed to be cut from the budget. His item was tabled until the Oct. 13 workshop.

"That should be part of the larger discussion," Koep said.

Another motion from Olson, to not reduce by $8,000 the Economic Development Authority's tax levy and to continue with the Main Street program, died for lack of a second.

"This is ridiculous," Olson said.

MATT ERICKSON may be reached at matt.erickson@brainerddispatch.com or 855-5857.