The Shell Rock River Watershed District has approved a new levy to generate revenue for its $1.9 million bond repayment.

The levy will raise about $161,000, which is down from the $166,000 proposed in a preliminary hearing.

Watershed District administrator Brett Behnke estimated that for the owner of a $100,000 home, the levy would cost $8 to $10 in tax for the year.

The levy passed with a vote of 3 to 2 at Tuesday’s meeting.

Board manager Joe Pacovsky recommended the board defer the debt service levy and support the district’s bond repayment with sales tax revenue, calling the levy “overkill.”

“Like any government, you have a balance between income and expenses,” Pacovsky said.

Behnke said collecting money from the bond now will help the Watershed District manage its future finances. He said when a person looked at the budget, it would not appear to need the influx. However, he cited the eventual dredge bids and future bond payment as reasons to implement the bond.

“I think when we project the budget and look out years ahead, we’re going to see a cash flow problem, and we’re preparing for that,” he said.

Behnke said he was disappointed there was not more support for the levy within the board.

“This is an essential levy,” Behnke said.

The Shell Rock River Watershed District also approved maintaining the $250,000 administrative levy, which board treasurer Alan Bakken said has stayed the same since 2003.

“We’re holding the line on the administrative levy,” Bakken said.

For the owner of a $100,000 home, this levy generates approximately $16 in tax.

Director of Field Operations Andy Henschel said the updated dredging permit through the Minnesota Department of Natural Resources intended to be presented at Tuesday’s meeting was not yet complete. The Watershed District will hold a special meeting Dec. 21 to discuss and approve the dredge permit, Henschel said.

The Watershed District also:

• Approved the $500,000 cost share and incentive program for 2018, which provides funding for people who create rain gardens and rock inlets and who purchase and use rain barrels. It also includes incentivization for organizations who help the city meet state-mandated stormwater treatment requirements.

• Recommended and approved salary increases for Shell Rock River Watershed District Staff, which will take effect Jan. 1. The director of field operations, the financial clerk and the conservation technician will receive a 2.5 percent salary increase. Additionally, the resource technician’s salary will be set at $25 an hour, while the administrative assistant’s salary will be $17.50 an hour. The salary for the administrator’s position will stay the same.