Council sets preliminary budget

Albert Lea residents may see a tax increase next year under the preliminary city budget and levy approved Monday night.

The Albert Lea City Council voted unanimously on a 3 percent overall tax levy increase that would be used to cover inflationary personnel costs and bond payments for infrastructure projects completed this year. The projects included street improvements in the north industrial park and the neighborhood improvement project in the 3rd Ward.

City Manager Chad Adams said for a $100,000 home, the change would equate to a $21 increase. These estimations are assuming there are no changes in market value or tax capacity.

The council will vote on the final levy and budget in December. Until then, they may lower the levy but cannot raise it.

Sixth Ward Councilor Al “Minnow” Brooks said though he voted for the preliminary 3 percent levy increase Monday, it does not automatically mean he will approve the final increase in December. He wanted to make sure several key capital improvement projects for his ward were included in the budget.

Third Ward Councilor George Marin called on the public to share their opinions about the budget and levy with the council.

“We really need to hear from you, and especially concerning these capital improvement projects,” Marin said.

The council approved the overall levy at $6 million. Under that, the general fund levy was approved at $4.8 million and the debt service levy at $1.2 million. The increase in the total levy was about $175,000.

Adams said there was little change in general fund operations under the proposed budget for 2015 when compared to 2014. The preliminary budget was approved at $14.67 million.

He said the priorities of the city are infrastructure, increasing tax base, maintaining quality services and having a long-term stable financial management plan.

Local government aid and property taxes make up a majority of the city’s revenue.

The council also approved a preliminary Albert Lea Housing and Redevelopment Authority levy of $109,000 for 2015, which is the same levy the council approved for the HRA in 2014.

The levy makes up for a decrease in federal funding to the organization. Specifically, it covers a housing study, residential property rehabilitation, substandard property demolition, public housing subsidies and administration fees.