By MaryHelen Swanson

A small crowd gathered at NB city hall Monday night for the annual Truth in Taxation hearing.

The presentation was clear and concise on the 2008 budget and levy.

Earlier this year, as the council began budget work their goal was to keep the levy increase to less than 10 percent.

In September, when the preliminary levy was approved, that increase was at 16.5 percent.

But in worksessions since that time, the council has pared the budget and produced a levy increase of 9.77 percent achieving their goal.

The total proposed levy now stands at $3,629,139.

That includes a levy of $2,829,176 for the General Fund, $67,943 for the EDA, $7,500 for park improvements, and the same for the library/community center, plus $25,000 for the bridge project.

The levy also includes $10,000 for the parking lot project, $10,000 for the Equipment revolving fund, $120,000 for the fire hall bond, and $63,400 for the 1998 Public Facilities Revenue bond. There is also $12,000 for the 1998D Improvement Bond, the 1999A Improvement Bond, and equipment certificates for years 2003-2007. The levy includes $4,100 for tax abatements.

As it was noted Monday night, the impact on individual taxpayers varies greatly, depending upon a number of factors including tax classification, the Estimated Market Value on the property, and the state's valuation formula.

As always, a change in the taxable market value, by itself, has the effect of increasing property taxes.

In years when the levy is low, that is often the main reason for a tax increase.

While the exact increase may not be known, the city prepared the impact of the 2008 budget on a $200,000 home in North Branch.

Using a formula thetax increase on that $200,000 home for 2008 will be $29.68 for a total tax of $798.40.

In 2006 the tax on that same $200,000 home was $767.92.

Some factors in the difficult process of budgeting this year include a Local Government Aid (LGA) loss from the state of almost $80,000, and the fact that there has been slowed growth in housing reducing the revenue from permits and fees.

Revenue from the municipal liquor store is being transferred into other funds-$10,000 to the Sidewalk Project, $25,000 to debt payments for Williams Park and $50,000 for parking lot reconstruction.

Noting this prompted one resident to remark during the public comment period that perhaps the city should get involved in more things like the liquor store.

This man also noted that his home value went down but his taxes went up 10 percent. He said his salary didn't go up 10 percent and asked if the city is living within its means.

He based his comments on the preliminary tax statement he received which was prepared using the preliminary levy from last September.

More than one wanted to know why taxes went up when property values have gone down. "It's crazy," said one man.

City finance director Dave Stutelberg explained the seven-year process that the county assessor has undergone to bring taxable market values closer to actual market values as directed by the state.

This can explain a tax increase when the levy is low.

Most in attendance had individual issues, few had questions about city spending.

One resident's concern was with the young people in schools. Are they going to be able to live in NB when they grow up, he asked?

One man wanted to know what incentives the city uses to bring business to town.

Stutelberg listed TIF, Revolving Loan Fund, and JOBZ as some options.

One resident was concerned that NB would fade away as many small towns have done due to lack of businesses.

Mayor Gloria Karsky assured her that NB is not just a one business community and that is good for its future.

Residents with questions on their valuation should watch for the Board of Review date in the spring and attend to talk with the county assessor.

The levy and budget will be approved Dec. 11.

Comment from Terry, 12/6/07

The mayor is right we are not just a one business town we are a three business town! banks, gas stations, and hair salons! (wow $7.00 an hour) the city council must think everyone in this town is stupid. But in the coming years when everyone has moved out or been forclosed on hopefully there will be all new city council members who will think before they spend, spend, spend!!!!

Comment from Jim, 12/14/07

North Branch is a bedroom community, my family has lived here over 100 years and reality is that a majority of the population works out of town. It's not a negative, just a fact of life.