Grand Marais city residents will see an increase of not more than 3 percent in next year’s property tax bills.
City council passed a resolution Sept. 8 setting the maximum 2011 tax levy increase at 3 percent. By law, council has to set the property tax limit by mid-September. The final levy must be decided by the end of the year; the figure may be decreased, but may not exceed, the approved preliminary tax levy.
The unanimous vote to approve the tentative budget was made after months of meetings with city department heads and councilors’ work sessions. City Administrator Mike Roth, who led the discussion, said the 2011 budget was a particularly tricky one to put together, due mainly to the uncertainty of state aid the city will receive next year. In presenting council’s options for the 2011 budget, Roth said that “not a lot has changed” since council last reviewed the numbers at its previous meeting.
Notably, the state has notified the city that $155,000 in Local Government Aid has been certified for next year, and the city is set to receive $49,000 in Market Value Homestead Credit. However, cautioned Roth, “That’s about $200,000 of our budget that’s up in the air and at the mercy of the state situation. Our first clue will be after the election…and we won’t know the disposition of that $200,000 until next year — maybe not until the end
of next year.”
Roth said there are no limits on how high council could have set the levy increase, and under the worst-case scenario— assuming no state aid—the city would have needed a 13 percent levy increase to balance its books.
The option recommended by Roth and approved by councilors calls for a preliminary property tax levy of $825,997 and General Fund spending of $1,829,497 (a 3.26 percent increase over the current year). It is based on estimated state aid levels and includes a $22,650 cushion for adjustments, and leaves $35,000 for council priorities in the Capital Projects column. What all that means, said Roth, is that the city should be able to absorb the loss of about $60,000 without having to cut services. “I think we can handle that without doing anything drastic,” he said.
The proposed 3 percent increase is in keeping with recent city budget trends. Council was able to keep that number so low next year due largely to a $25,000 reduction in debt services payments, specifically the 2008 General Obligation Bond payment, which will drop from $52,749 to $26,118.
In other business:
. Councilor and Planning Commission Chairman Tim Kennedy reported that a recent request by Stanley Poole and Nadine Maki to rezone a number of lots on Seventh Avenue West is still under consideration. The request asks that the properties be changed from Commercial Industrial to Commercial/Residential Mixed Use. Kennedy said the change would allow Poole and others to construct or upgrade garages, sheds and other structures on their property without first obtaining a variance or conditional use permit.
Kennedy said there were many questions among the public and commissioners at the meeting, and as a result of the discussion the planning commission has expanded the request to include properties on Eighth Avenue (below First Street) and along the highway. The issue will be discussed again at the commission’s Oct. 6 meeting. . Council reviewed some information prepared by the city staff pertaining to the possible closure of the burn pile. The public is encouraged to attend council’s Sept. 29 meeting, when a presentation and public input will be taken at 5 p.m. regarding the burn pile’s future. The matter has come before council on numerous occasions during the past year due to complaints about the smoke and haze created when the brush pile is burned. . Council approved a list of 11 liquor license renewals for the coming year. The list is slightly smaller than the current year, said Roth, as it does not include the Wild Onion and Harbor Light. Current licenses expire Sept. 30. . Councilor and Library Board member Kay Costello reported that the board has reviewed eight proposals for the building expansion project and hopes to choose an architect by October. There is some frustration out there, she said, because the project is going so slowly; people would like to see something happening, Costello said. . Councilor and Park Board member Bill Lenz reported that income at the Rec Park campground is up $22,000 over last year, but the pool and marina are each about $1,300 behind last year’s figures. The marina numbers should come into line by the end of the month, when slip holders are required to pay their fees. . Roth reported that painting of the new crosswalk on the highway near North House Folk School has been completed, and more pedestrian crossing signs are being considered at other locations. . Roth said he has sent a letter to the Department of Natural Resources asking about the rules and regulations, if any, regarding installation of a memorial flagpole at Harbor Park and is awaiting their response. Mayor Sue Hakes said she met with community members who are making the request, and they said Compass Park would probably be a suitable alternative site. “But it’s still their second choice,” said Hakes. . Hakes said she received a letter from the Two Harbors mayor and planning commission seeking support in amending off-premise highway sign regulations. Apparently, she said, a number of advertising signs along the Highway 61 corridor in Two Harbors—some of which have been in place for years—must be either removed or relocated from the state’s right of way. The mayor said she didn’t think it was Grand Marais’ business and council agreed. No action was taken.
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