Debt from projects needs to be paid

The Albert Lea City Council is slated to vote Monday on a property tax increase for 2014 to pay for major projects.

The council is considering no increase in the general fund levy and a 6.7 percent increase in the debt-service levy, said City Manager Chad Adams. The debt-service levy represents projects the city has to issue bonds for, including the Broadway reconstruction project, the retrofit of City Hall’s heating and air conditioning and street projects in 2013.

The general fund operating levy would be $4.76 million with no increase, and the debt-service levy would be $1.07 million if the 6.7 percent increase is approved.

The general fund budget being considered for 2014 is $14.43 million, a less than 1 percent increase when compared to 2013.

Whatever is approved would be preliminary. After the Monday meeting, the council will be able to reduce the levy but not increase it by Dec. 9.

Assuming no changes in market values or tax capacity, Adams said a residential home valued at $100,000 would see a city tax increase of $37, while a commercial business valued at $200,000 would see a city tax increase of $159.

He said city officials will get more detailed information from Freeborn County on the city’s tax capacity and tax rates in October, which will be used to produce the truth in taxation statements that are mailed out in November.

The council is considering an Albert Lea Housing and Redevelopment Authority levy of $109,000.