Grand Marais taxpayers will see a 3 percent levy increase next year unless city council makes further cuts to its proposed 2010 budget before the end of the year.
Councilors approved a preliminary maximum levy total of $802,657, including a general revenue levy of $601,802 at their Sept. 9 meeting. Thelevy — which amounts to about a $24,000 increase — may be decreased, but not increased, before approval of the final budget in December.
City Administrator Mike Roth recommended the 3 percent increase. He said a 3 or 4 percent levy increase is normal, and in keeping with the city’s recent budget trends. He told council that the small increase “doesn’t get you very far for projects,” but there are reserves adequate for use in an emergency. There are no major capital improvement projects scheduled for next year.
Mayor Sue Hakes asked about the $100,000 the city loaned to the Cook County – Grand Marais Economic Development Authority earlier this year, and was told that it may not be paid back by October, as was promised. Hakes said that “was an issue,” but councilor and former EDA board member Tim Kennedy said he believes the city is in better shape than it historically has been.
The 2010 preliminary budget calls for total expenditures of $2,670,639, revenues amounting to $1,783,079 and use of $84,902 from the fund balance.
In other business, council approved a $15,000 Storefront Loan requested by Rob Svadlenka of Subway for both interior and exterior improvements to his restaurant. Svadlenka said the total cost of the improvements will be about $38,000, but under the terms of the Storefront Loan program, $15,000 is the maximum loan.
The program was created by the city and is administered by the Chamber of Commerce. City council makes the decisions on the loans and writes the checks; the loans are offered at a 3 percent interest rate and must be paid back within 76 months.
Chamber of Commerce Director Bev Wolke encouraged other business owners who may be thinking about sprucing up their buildings to consider applying for a loan through the Chamber. She also suggested that council consider raising the maximum, which has been set at $15,000 for many years. “It would be nice to have it a little higher,” she said.
Council also approved an increase of $1,324.69 in the city’s contribution to the library rain garden project. Tristan Beaster of the Cook County Soil & Water Conservation District asked for the increase because the original cost estimate of $7,859 went up after the bids were opened. Total cost of the approximately 700-squarefoot project now stands at $13,159.
Leave a Reply