The Breezy Point City Council approved a 2010 preliminary tax levy of $1,836,378 at its meeting Tuesday, Sept. 8.
Three different levy options were presented to the council. Two options kept the 2009 tax rate of 32.968 percent. Option C, which the council approved on a 3-2 vote, raised that tax rate to 34.763 percent.
The preliminary tax levy has three parts:
1. The proposed general fund levy of $1,600,000.
2. A special levy for the full amount of $36,608, which the council approved.
Because of Gov. Tim Pawlenty's unallotments to cities to balance the state budget earlier this summer, Breezy Point won't receive $36,608 in Market Value Homestead Credit funds.
Interim City Administrator Coralee Fox said the state is allowing cities to recoup these lost funds through a special levy.
3. The debt service portion, which includes all of the city's general obligation bonds. Those bonds add up to $199,770.
The total of all three parts is the total proposed levy of $1,836,378.
Cities are required to submit a preliminary tax levy to Crow Wing County by Sept. 15. Cities can reduce, but not raise, the preliminary levy before adopting a final levy and budget in December.
Council member Erik Lee and Mayor JoAnn Weaver opposed the proposed preliminary tax levy and the increase in the tax rate.
"In this economy, I can't justify going out into the public and telling them that we are raising taxes," Weaver said.
Lee said he believed the city needed to try to live within its means.
Council members Otto Schmid, Diane Williams and Tom Nelson all voted to approve the preliminary tax levy.
Williams maintained she would like see some money go back into the city's reserves. Schmid said it was important to make sure the city could cover its costs.
"Maybe we might be cutting back once we fine-tune the budget. We just need to make sure that we are meeting all of the obligations of the city. We want to maintain the services that we offer now, and I'm not willing to go on record certifying something less," Schmid said.
The Breezy Point City Council will look more closely at the budget and will adopt a final tax levy in December after a public truth in taxation hearing.
