By MaryHelen Swanson

At the city council meeting this week to adopt the 2007 budget and levy, over a half million dollars had been cut from the North Branch preliminary levy - and that's good for the citizens.

That means instead of a 32 percent increase, as proposed in September, the city council and city staff had worked hard to reduce the levy increase to 13.55 percent.

And that will mean the tax statements that appear in January will look significantly different than the proposed tax statements received this fall.

The biggest difference came with the removal of the $659,000 line item for the ESSBY project. Since the rezoning was approved, the council is moving ahead with great anticipation that housing development in the ESSBY area will take care of the bond costs due in three years.

With ESSBY out of the way, staff returned to the drawing board and was able to increase the General Fund by $125,00, and the equipment certificate line item by $18,050, although the latter still is reduced significantly from what was originally planned.

Then, by removing $40,000 from the Park Improvement Fund, the total in changes for the 2007 levy came to $555,693.

That's where the 13 percent increase comes in.

And that's what made finance director David Stutelberg say he was "proud and pleased" and "very optimistic about 2007."

In spite of budget reductions, the 2007 budget allows for two new positions: an EDA director and another police officer.

Stutelberg had on hand a comparison of area city tax rates showing that, on a $150,000 home, with North Branch's tax capacity rate at 37.290 percent the home's city tax would be $582.45.

That same home in Cambridge, where the tax capacity rate is 64.157 percent, would have a city tax of $962.

Likewise a $180,00 home in Isanti, where the tax capacity rate is 64.633 percent, has a tax of $1,163.94. That same home in North Branch, with the city's 37.290 percent tax capacity rate, would have a tax of $698.94.

In summary, the North Branch 2007 budget is $17,772.013.

The levy is $3,306,104.

The city council unanimously approved the final budget and levy Monday night.

The unanimous vote, although used several times Monday, was not what a request by Dalmark Development received.

Dalmark, which platted Wildridge Place with 58 townhome lots, was asking for a chance to replat and create fewer lots for development because market conditions are poor.

By doing this, they could put off paying the sewer trunk fees until a later date.

The council, did in fact, agree to this, on a 3-2 vote.

The new plat included 20 lots.

But Councilor Amy Oehlers was not pleased in making this exception for a developer.

The developer has paid one of four payments (trunk fees on the original plat broken down into four annual installments), of nearly $25,000, a second payment was due last September. Councilor Theresa Furman remind her peers that that payment was not made.

But Stutelberg said it was coming. And Councilor Kathy Blomquist noted that the developer had done some road work, put in a raw water line, and paid park fees on that plat.

So, as the council was discussing whether they were setting precedent with this exception, Blomquist moved to approve the request for the reasons she mentioned.

In addition, the developer will be required to present a new final plat by the end of four years.

Stutelberg also noted that trunk fees would be going up by 20 percent next year and 10 percent each year after.

In other business, the council:

ï Accepted the site plan of O'Reilly's Auto Parts, by 4-1. The store will be built east of the new commercial building where Lampert's used to be. Councilor Oehlers asked if they were aware of the Downtown Revitalization efforts. She opposed the approval.

ï Adopted an amendment to the city's burning ordinance, outlining "nuisances." It addresses recreation fires.

ï Adopted a policy prepared by acting police chief Steve Forner regarding public access to city automated external defibrillators (AED). It deals with maintenance of the equipment.

ï Hired Beutow and Associates at a cost up to $10,000 to study options for city hall renovations. Furman suggested selling the old library building and using the money to add on to the new fire hall for the police station which would leave the basement of the current city hall open for more office space.

ï Appointed John Philipsen and Doylene Voligny to the planning commission (for another three years) and Linda Prince and Don White to the park commission for three year terms.

ï Set 6 p.m., Jan. 22 as the date for a report from the Downtown Revitalization task force.

ï Approved a memorandum of understanding with the Law Enforcement Labor Services group.

ï Reviewed a building activity report that showed through the end of the 3rd quarter this year there had been 25 new housing starts.

ï Decided that at the Jan. 8 council meeting there will be a discussion on blinds for the library windows.