City looking to make up gaps in 2004 budget

Published 12:00 am Friday, July 11, 2003

When Albert Lea residents open up their tax bills next spring, they may be in for a slight hike.

The city’s final local government aid cut for 2004 is $1,050,000, a number that was far less than the $2.5 million cut first anticipated. Still, the cut will be looking for ways to make up that money.

One of those possibilities is levying tax money.

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According to City Manager Paul Sparks, the city cut nearly $400,000 out of its budget for this year. They can levy up to 60 percent of the $1,050,000, which would amount to $627,600.

Sparks gave a rough estimate that households could have a 43 percent increase on their taxes. But the city has other options as well, such as instituting utilities for street lights, storm sewers and mosquito spraying to make up for some of the cut.

If the city doesn’t begin utility fees or levy taxes, Sparks said the city may have to consider other possibilities like closing the city arena, the pool or senior center.

If the city were to levy the 60 percent, they have a $66,053 budget shortfall. Sparks said the city would levy up to $106,917 through the Port Authority and use the money raised to pay the city for Port Authority management.

Since the city council is the Port Authority, the council would be using their rights as the Port Authority to levy taxes. But they would then assess a management charge as a city and charge the Port Authority for the amount of levied money.

Councilor George Marin felt that levying taxes, whether through the city’s 60 percent and the Port Authority’s levy ability, would overburden taxpayers. He asked if it were possible to still charge the Port Authority for management, but use the money the Port Authority already has to make up for shortfalls.

The council will discuss the issue over the summer and into the fall, but Sparks said somehow the money needs to be made up.

In other city council news:

-The council will consider adopting the recently passed state law that allows bars to serve liquor until 2 a.m. Each city in the state has the option of accepting the law into their local ordinance.

-A library study that was shelved in May will be revisited by the council Monday. The council voted down a study that would have looked at the feasibility of building a new library on the city-owned open space on Broadway Avenue and Fountain Street by a vote of 4-3. The proposed study will now look at the feasibility for many locations around the city.