Grand Marais’ preliminary tax levy for 2013 has been set, and what it means is that the city can collect 6.3 percent more in local taxes than it did last year.
Council members formally adopted the levy Sept. 12 after discussing it with department heads during two work sessions and prioritizing proposed capital improvement projects. The budget that was unanimously approved sets the levy at $866,552.44, up from this year’s $815,057.51. It also calls for general fund spending of $1,893,496 – up from the current $1,863,218 – and revenue of $616,406.34.
Local governments by law have to set a preliminary levy in September each year. They can then lower the figure for a final levy, but cannot raise it when the final version is ratified at year’s end. Councilors and City Administrator Mike Roth said there are a number of options available for reduction of the levy increase, and it is likely taxpayers will see the figure fall in December.
“There are some choices we have that can get this number down significantly, even to flat, by the end of the year,” said Mayor Larry “Bear” Carlson. “And that’s what we’re going to be working toward.”
Councilor Tim Kennedy also acknowledged the need to further reduce the levy increase. “We know people are struggling in this economy, and we need to do what we can to keep the numbers down. This is our chance to do it.”
In fact, the levy numbers have already been decreased. The original draft considered by council last week showed a proposed levy that represented a 10.6 percent increase. City Administrator Mike Roth explained that the increase for next year was caused partly by a loss of revenue in the form of a lower reimbursement from the county to cover operating losses at the municipal pool ($68,000, down from $70,000), less interest collected by the city, and the need to include $124,288 for EDA bond payments in the business park.
In order to counter that large increase, council adjusted the estimated revenue from the Rec Park upward to $750,000, which lowers the increase to 6.3 percent. Roth said the Rec Park has already generated $685,000 to date this year, which is way above projections, and he believes the year-end total will approach $800,000. Therefore, he said, $750,000 in anticipated 2013 income is still “conservative.”
Roth has also spoken with the Cook County commissioners in the hopes of having some county funds committed for payment of the EDA bonds through an earmark in the EDA’s budget. He said it appears “extremely likely” that the county will be required to pay its share of about $60,000.
If that happens, coupled with increased Rec Park income, then the city’s budget willactuallyseea1percentdecrease, since the entire bond payment has been included in the preliminary budget.
Finally, said Roth, council can choose to slow down or put off some projects, such as a public works facility, liquor store market study, or road repair. “You don’t have to do any of those next year, so we do have options,” Roth said.
Councilors faced a similar challenge a year ago, which they met by reducing the preliminary levy $26,000 for a 1.3 percent decrease over the prior year.
In other business:
Council approved submission of an application on behalf of developer Matt Geretschlaeger to the IRRRB for an infrastructure improvement grant up to $350,000. The city’s role in the process is only to make application for, and accept the money as a pass-through agency, for Geretschlaeger’s zip line project on ski hill land off the Gunflint Trail. Geretschlaeger told council that without the IRRRB funding, his project cannot proceed. The developer must also gain approval from council for a conditional use permit, which has yet to be submitted.
Council directed Roth to meet with Jack Stone of Stone Harbor, management of the East Bay Suites, and City Attorney Chris Hood to work out the details of a possible lease agreement for city property on the east side of the municipal parking lot. Stone appeared before council to seek some sort of arrangement by which he could lease or buy city land south of his building in order to facilitate parking and delivery access. East Bay already has a lease with the city for parking spaces in a part of the lot, but that may have to be changed with the pending sale of the adjacent Beaver House property.
A request was received from Carl and Dianne Smith of Fifth Avenue West to purchase a small parcel (.32 acres) of city-owned land adjacent to their property to use as parking space and a small garden. At the suggestion of the city attorney, a lease or license agreement will be pursued for use of the land.
A list of 12 liquor license renewal applications was approved, for the period Oct. 1, 2012 through Sept. 30, 2013. Due to a change in ownership and state regulations, the purchasers of Chez Jude will have to apply for their own license when the transaction is complete, rather than simply transferring it from the present licensee.
Council approved, on first reading, two applications for annexation: one for a tract of land near the west entrance of town near Grand Marais Inn (site of the original zip line project); the other at the east end of town adjacent to Gopher Cabins.
Councilor Jan Sivertson reported that she had been contacted by a group of citizens interested in repainting the Gunflint Trail welcome signs near the library. After some discussion, it was decided to grant permission on the condition that the group could work out a satisfactory agreement and coordinate with the city’s work crews for use of equipment, details of the work to be done, and tree trimming near the signs.
Leave a Reply