|9/18/2020 10:51:00 AM|
Chisago City Council
ponders 2021 budget at Sept. 8 work session
The Chisago City Council gathered Sept. 8 for a special workshop meeting to consider next year’s General Fund Budget. The proposed 2021 budget totals $2.32 million, up 6.27 percent from this year’s budget of $2.18 million.
According to documents provided by city staff, 77 percent of the budget will be financed by property taxes with the remainder coming from intergovernmental revenues, licenses and fees, interest, and transfers from other funds.
A tax levy of $1.96 million is anticipated to support the General Fund expenditures. Added to this will be levies for tax abatements for Soltice Properties, Precision Woodworks, and Kendall Howard plus the Ojiketa Park operating levy, the Economic Development Administration levy, and levies for outstanding General Obligation bonds for various past city projects. This includes $169,000 for the new fire hall as well as a $425,500 capital equipment levy. These additions bring the anticipated net tax levy in 2021 to $3 million.
By far the largest portion of the city’s General Fund budget (44 percent) goes for public safety expenditures for police, fire, and civil defense. The cost of general government administration amounts to 22 percent of the budget followed by public works (street maintenance and snowplowing) at 17 percent, and the library, parks and recreation at 16 percent.
Proposed increases to the city budget are primarily for the police department and for street work. This includes $89,800 for paved streets and $79,299 for improving unpaved streets, specifically for graveling parts of 240th and the north side of Ivywood. The budget for ice and snow removal also rose18 percent due to the increased cost of road salt.
The Lake Area Police Department 2021 budget will increase 7.8 percent to $851,003 due primarily to a change in the school contract for liaison officers, increases in salary and benefits, and capital equipment costs.
City Administrator John Pechman said the city is waiting for updated Net Tax Capacity numbers from Chisago County in order to calculate the city’s 2021 tax levy.
Next year’s budget will be discussed again at the regular Sept. 22 council meeting.
Article Comment Submission Form