East Grand Forks officially began its 2018 budget-setting season Tuesday by approving a preliminary levy increase of 10 percent.
The increase would likely mean a rise of about 5 percent for city property tax rates.
The 10 percent increase to the property tax levy will put an additional $452,800 into city coffers in 2018. Last year, the levy increased 19 perecent. A 10 percent increase to the property tax levy would raise a projected $4,980,798.
The preliminary 2018 budget projects $11.125 million in revenue and $11.12 million in expenditures. The City Council voted unanimously to approve the preliminary budget.
Under Minnesota law, cities cannot raise their tax levies above the rate set at the preliminary budget, but can lower the rate.
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There will be a public meeting for residents to comment on the budget on Dec.12 at 6 p.m., and possibly a second meeting on Dec. 19 to set the final budget.
Last week, City Administrator David Murphy told the Herald 2018 should be the last year the city has to raise its levy beyond inflation rates after a few years of belt-tightening.
The state of Minnesota suggests cities keep a 35 percent to 50 percent fund balance, meaning those dollars are unassigned. The city is currently sitting at 44 percent in its fund balance and wants to stay in the 41 to 45 percent range with this budget.
The 2018 budget does not project staff reductions for the city’s 94 employees, but will leave one vacant position in the Parks and Recreation Department unfilled.
Other business
- The council has officially put an ongoing issue to rest with a resident whose yard turned into a collection point for hundreds of bicycles in recent years .
In July, the council gave resident Steve Magenau a month to clear his yard on Fourth Avenue Northeast of the rows of bicycles collected there. City officials found he had sufficiently moved into compliance with city ordinances when they checked up on his property on Aug.1.
Should Magenau keep his property clear through Aug. 1, 2018, his public nuisance charge will be dismissed, according to a finding agreed on by the City Council Tuesday.
- Mayor Steve Gander presented the Senior Center Board with plaque of recognition for its 30th anniversary.
Saturday at 8:30 a.m. the center will hold its annual breakfast at 538 Rhinehart Drive S.E.
