Each year the city develops a budget for the following year. The process starts along about June and continues through the summer. The budget process involves a look at current finances, service levels and needs of the city. There is also consideration given to the revenue side of things. We all have to work within our means.
The council has concerns with the level of taxation as the city has experienced a reduction in the overall market value of the city. Property values have sided lower with changes in the market. Tax appeals have occurred reducing values and some property formally part of the city is no longer within the city. The State of Minnesota has also changed tax policy in reducing overall values. There have been lots of factors that come into play in reducing overall values of property.
Keeping this in mind the council had established goals for the 2013 budget and levy. They wanted to maintain or possibly reduce the overall levy. They also wanted to maintain current service levels and have departments live with the current expenditure limits that exist for 2012. With that in mind each department looked at priorities for spending, working their budgets to meet these needs.
A balanced draft budget was accomplished working around the same levy request as that for the 2012 budget year. The preliminary levy saw increases in the debt service levy with some reductions in the general fund levy. In the end, the preliminary levy certified for 2013 is the same levy as that requested for 2012. We continue to work on the budget and hope to find additional economies to further reduce the final levy. The final levy will be accomplished at the December meeting with an overview to our budget.
