Tuesday, September 9, 2003

City Council ready to set preliminary tax levy

By RON LARSEN

Journal Staff Writer

NEW ULM--This is "D"-day for the City Council as it will be declaring its intentions as to the maximum property tax levy required for 2004 .

The council will meet at 4 p.m. to accept the preliminary 2004 budget and set a date of Wednesday, Dec. 3, at 5 p.m. for a public hearing on the budget. A second hearing date of Wednesday, Dec. 10, at 5 p.m. will be set in case it is needed.

The preliminary 2004 city budget of $12,287,848 will be $387,327 less than the 2003 budget, a 3.06 percent decrease.

"The 2004 property tax levy also is down (by 0.52 percent) even though it includes the 60 percent levy-back," City Manager Brian Gramentz explained.

The 2004 total levy amounts to $3,763,598 which is $19,765 less than the $3,783,363 levied in 2003.

The total levy that is subject to state levy limits is $2,064,428, covering the general, park and recreation, capital improvement and library funds. The levy-back comes about through special levies for debt service, PERA Employer Contribution increases and special taxing districts, such as tax increment financing districts.

In addition to the cuts being made in the various city departments, there are suggested cuts in budgeted funds for various commissions and community organizations.

The Concord Singers and the Municipal Band would receive less than requested in 2004. The Concords' request of $7,480 has been cut to $5,000, and the band's request of $18,387 has been cut to $10,000.

Requests by Lind House and Wanda Gag House, respectively, were cut from $10,000 plus free building rental to $4,000 and from $2,000 to $1,000.

"However, that will be what the discussion will be about at this meeting. The council is at liberty to change these cuts," Gramentz said.