Residents may see 2016 tax increase

Published 9:00 am Sunday, September 13, 2015

Albert Lea residents are facing a 3.3 percent tax increase in 2016 to help pay for infrastructure improvements, according to preliminary budget discussions.

A resolution adopting the 2016 preliminary budget and property tax levy is scheduled for Monday night’s Albert Lea City Council meeting. A public forum will be held during the meeting.

The tax levy could be decreased before December when the final budget is set. The city can’t raise the tax levy before then, per state law. The city is working on what the tax rate will be and what it’s impact will be on taxpayers and citizens.

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“In terms of what we are getting back in value from the increase, it’s a good thing,” Albert Lea city manager Chad Adams said of the possible levy increase. “We heard from the citizen survey we needed to improve the infrastructure. This will help us do that.”

Adams said the infrastructure repairs are necessary to keep the infrastructure from falling into a constant state of disrepair.

Adams said there will be no increase in the general fund levy for the fourth year in a row. The general fund levy covers the police, fire, streets, parks, library and engineering administration departments.

Adams said the city will have estimated figures on how much the tax increase will affect homeowners at Monday night’s Albert Lea City Council meeting.

He said the increase is typical, and for the last several years, tax levy increases have ranged from 0 to 3 percent. Most of the increases have been for street infrastructure improvements.

“We’ve been trying to keep those numbers down with the economic downturn,” Adams said.

Adams said the city is looking at adding a job in the Public Works department that would assist the street department. He said the city is also looking at hiring a full-time police officer in either early or mid 2016. He said a half-time position will also be added back to the Public Works department to help in the office.

A lot of construction is slated for 2016, as well as in the years following, he said last month. Major capital projects included in the 2016 preliminary budget include Park Avenue reconstruction. Reconstruction will include the water, sewer mains and the road itself. Road reconstruction is planned for Lake Chapeau Drive. Lakeview Boulevard construction is planned from Hatch Bridge to Martin Road. Construction is also planned on Edgewater Drive and the airport at the arrival and departure building. The city will be getting grant funding on the airport project from the state and federal aviation and transportation authorities, Adams said.

Adams expects less of a travel impact from construction in 2016.

Residents who will live in that area will be directly impacted, but not the general public, Adams said.

The city is seeing some new tax-base growth for 2016, but not equivalent to the expected tax levy increase.

The city is trying to balance fiscal responsibility and improving the infrastructure to the best of the city’s ability, said Larry Anderson, Albert Lea Fifth Ward City councilor.

“No one wants to see their taxes raised but you don’t want to see your infrastructure crumble either,” Anderson said.  “Visitors notice the work we have done to our infrastructure and have complimented us for our detail to our infrastructure improvements.”

The schedule for the budget includes:

October-November: Presentations and work sessions in relation with the budget

December: Final levy and budget adoption.

About Sam Wilmes

Sam Wilmes covers crime, courts and government for the Albert Lea Tribune.

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