Albert Lea taxpayers are looking at a slight tax increase in 2018, but rates are expected to be lower than they were a couple of months ago.

The Albert Lea City Council is expected to consider a 1.19 percent increase in the tax levy for road projects, less than the 2 percent preliminary levy increase set in September.

Under the revised increase, homeowners with a property valued at $100,000 would face a $15 tax increase next year.

The city’s proposed 2018 preliminary general fund and debt levy is $6.31 million, a projected increase from $6.23 million in 2017.

The decrease in the expected levy is because the city utilized funds from its approximately $2 million reserve fund and shifted some projects from this year’s budget, so a greater increase in the tax levy was not needed.

“We looked at all of those strategies, and that’s what we ended up doing, is allocating more from our fund to reduce the levy for new taxes,” Adams said. 

Albert Lea Mayor Vern Rasmussen Jr. said he will vote for the final levy amount, stating the lowering of the levy shows the city is operating in a financially-sound fashion.

By following long-range planning, Rasmussen said the city will consistently manage costs and minimize tax increases. 

The city’s proposed 2018 general fund expenditure budget is $15.97 million, an increase of 1.34 percent from the 2017 expenditure budget.

Final water and sewer rates will also be set Monday. Albert Lea taxpayers face a 7-percent increase in their water rate.

The monthly water and sewer utility bill for an average residential home is expected to increase from $54.29 to $55.96 — $1.67. For the entire year, the increase is expected to be about $20, a 3.1 percent jump from last year. The sewer rate is not expected to increase.

The water fund covers the city’s water infrastructure, including maintenance of pipes in streets, as well as water pumps, wells and water towers.

City officials stated the increase is needed in case of emergency and in preparation of the construction of a new water tower to replace the one near City Hall.

City discusses Mayo at study session

Adams said Friday the city discussed the finding of Quorum Health Services that a hospital in Albert Lea can be sustainable.

Adams said the city plans to continue to meet with Mayo officials and possible second providers  as the transition of most inpatient services to Austin unfolds.

He acknowledged the decision of a second provider to locate to the community will be private  but said the city will answer questions prospective second providers have.