By MaryHelen Swanson

The council of the city of North Branch has been diligently working on the 2005 budget meeting almost weekly for a couple of months.

The picture looks good with more state aid coming in than expected and taxing capacity increasing due to increased growth.

According to staff, it looks very good for taxes to go down on city properties if the individual valuation does not increase.

The budget calls for five new positions, not all being filled at the beginning of the year, so the additional costs would be staggered.

Positions being considered and already included in the budget are a full-time police officer to be hired in July 2005, a full-time engineer, a planning assistant to begin in April and an accounting position.
A fifth position, an additional clerk at the liquor store, would also be a mid-year hire and there would be cost savings at that time in cutting back other part-time work.
The city is planning to transfer $90,000 from the liquor store revenues to the cityís general fund next year ($20,000 will go to the 2004 sidewalk project).

The budget includes a 3 percent increase in wastewater fees that would be effective with the March billing.

There will be no increase in the storm water rates, noted city finance director David Stutelberg.

Sewer and water connection fees will increase by 5 percent in 2005, he added.

The budget includes $150,000 to be set aside in the community center fund and $35,000 in the park fund.

These monies are for future projects that the city hopes to accomplish.

Because the overall levy is looking good, said Stutelberg last week, he suggested that an additional $50,000 be added to the community center fund for next year.

He believes that the additional allocation would still allow for a decrease in taxes.

He said in the future the city is going to want the community center and at some point is going to have to look at doing something about city hall. He also noted that the city could get hit with levy limits again.

Stutelberg said he believed it was a good financial move, based on fiscal analysis and his personal opinion.

Councilwoman Kathy Blomquist disagreed that all $50,000 should go to the community center fund, saying maybe there could be an increase in the park fund allocation.

Stutelberg said it could go in the budget under the community center but it could be reallocated at least in part to another fund such as park up until the final budget adoption at the end of December.

As it is always noted during budget preparation, when the preliminary levy is adopted it cannot be increased.

However, the line items can be changed around and the levy can even be lowered before final adoption.

Blomquist has expressed concern over the anticipated 12 percent budget increase and has said she doesnít think the city needs to spend extra money just because itís there.

Mayor Gloria Karsky has also expressed a desire to reduce the percentage of increase.

Stutelberg has reminded the council of what they are trying to do for the city by setting aside money in funds for future projects. Last yearís budget increase was just under 10 percent. The proposed levy for 2005 is $2,514,854 or 12.27 percent over 2004.

Councilman Rod Lofquist feels there would be cause for concern if the levy increased 12 percent and nothing changed from 2004.

But he said with the additional positions, and setting aside money for future projects, it is acceptable.

Part of me says to provide for the future, said Mayor Karsky two budget meetings ago, but part of me says to keep taxes down.

She said sheíd like feedback from the community if they want the money set aside for parks and a community center.

The preliminary budget will be reviewed and adopted at the Sept. 13 council meeting. It needs to be sent to the county auditor by the 15th.

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