Getting your Trinity Audio player ready...

The Albert Lea City Council on Monday voted 6-1 to approve an overall 6.5% preliminary tax levy increase for 2023.

The increase totals about $451,000, which includes an increase in the general fund levy of about $505,000 — or 9.97% — and a decrease in the debt levy by about $53,900 — or 2.87%.

Albert Lea City Finance Director Kristi Brutlag said how the change would impact taxpayers is dependent on the values of properties and whether those values increased or decreased.

A $100,000 home that stayed the same in value from 2022 to 2023 would see a decrease of about $79 in the city portion of taxes a year, while a $100,000 home that increased in value by 22.38%, the percent by which the tax capacity changed, would see an almost $40 increase.

Tax values are set by the Freeborn County Assessor’s Office for tax purposes.

Brutlag said the preliminary budget is $18.08 million, an increase of about $873,000 — or 4.83% — from 2022.

Increases in expenditures included about $640,000 in personnel costs, including a 7.5% increase in health insurance and a 2.75% wage adjustment. No new positions are in the budget.

Other expenses included a $33,517 increase in police administration, which is mostly due to a $26,000 increase in the city’s Law Enforcement Center payment; an about $15,500 increase in fire administration, for utilities, dues and subscriptions; and an increase in about $128,000 in the forestry budget for removal of trees affected by the emerald ash borer, some of which will be offset by grants.

About 43% of the city’s budget is spent on public safety, 21% on culture and recreation and 13% on public works.

With revenues, the tax levy makes up about 31% of the budget, while local government makes up 32%, and franchise fees make up 10%. The city is projected to receive $5.794 million in LGA in 2023, up from $5.715 million in 2022.

Sixth Ward Councilor Al “Minnow” Brooks said though he recognizes all of the hard work done by staff to work on the tax levy, he could not support the proposed increase, saying people are “getting taxed crazy.”

State law requires councils pass the preliminary levy by the end of September. The final levy cannot be increased from the preliminary levy when the council votes in December but can only be decreased.

Third Ward Councilor Jason Howland said he also hoped to bring the levy down further.

The council also approved a preliminary levy of $245,000 for the Albert Lea Housing and Redevelopment Authority, up from $109,000 from the last several years.

Brutlag said with new leadership over the organization, they are asking for the maximum amount preliminarily as they continue to review the budget and prepare the final levy proposal.

There is also a large brick stabilization project that needs to be completed at Shady Oaks apartments that may need additional money.

The council and staff will continue to review budgets in detail over the next few months and finalize the budget and capital improvement plan for the next five years.

The final tax levy and budget, fee schedule and capital improvement plan is expected to be voted on Dec. 12.