Northfield City Council Approves 2012 Preliminary Tax Levy Increase of 7.2 Percent

Northfield city councilors on Tuesday approved 6-1 a preliminary tax levy increase of 7.2 percent in 2012, which is $464,909 more than 2011.

The proposed increase, which would raise the city levy to $6,898,909, was the the first step in a three-month process that will determine what property owners pay in taxes next year. The vote means councilors cannot raise the levy any more than a 7.2 percent, though councilors can set the levy at a smaller number.

Councilor Patrick Ganey said he had no issue setting a high preliminary levy increase, but said the dollars spent in a budget have to reflect the priorities of the council. As one big "blob" of money, and with dollars set for specific items, he asked how can they mark money for what they consider priorities, instead of just line items without context.

"I won't be able to vote for a budget in December if I don't have that understanding," he said.

Councilor Suzie Nakasian agreed, who cast the lone dissenting vote, saying she felt she had to "justify" an approval of the preliminary tax levy increase to constituents.

"It's been a Herculean task," said Administrator Tim Madigan about preparations for Tuesday night's meeting and noted that staff began three months earlier than usual on this year's budget. 

Councilor Kris Vohs reiterated that it's a preliminary levy increase and only sets the maximum amount the council can set.

"That's up for us to figure out," he said.

City Finance Director Kathleen McBride agreed with Vohs, saying there will be plenty of time to work on the details and figure how much, if any, financial burder the city's residents can take on.

"It's going to require significant discussions in the future," she said.

The proposed budget for 2012 is $10,096,451, which is $242,678 more than 2011’s budget, a 2.46-percent increase.

The council approved it 4-3, with Councilor Erica Zweifel, Buckheit and Nakasian voting it down.

Zweifel said the council and staff needs to get back to the basics and find essential services.

"I feel like we've moved away from that," she said. ..."Every year we're struggling for this sustainable budget, but maybe it's something that doesn't exist but I believe that it does."

McBride said the city levy increase would pay for overlaying two miles of city streets—19 of the city's 75 miles are in poor condition, according to the city's engineers—as well as to restore parks and facilities funding shifted to help with state aid cuts.

The new funds would also pay for three new employees.

Two of the employees, McBride said, would work part time to help a thin city clerical team. The proposal for another, a leadership position for the , is being developed by Public Safety Director Mark Taylor to help modernize the volunteer department's practices.

The positions would cost the city about $123,000, according to city documents.

Other factors

The preliminary levy increase does not account for this fall's planned overhaul of . McBride said the amount could be levied for 2013.

That $402,000 project was not the only outside factor influencing the city's budget.

Among the biggest affects on coffers will be state legislation eliminating the , a state program that pays a portion of some homeowners' property tax bills.

Because the state has capped the amount cities can levy in the past—levy limits will expire in 2012 until reinstituted—the absence of the credit means that the city loses the ability to levy the amount of money the credit covered. McBride said the effect of the change could be significant.

"Even though you may approve a 5.8 percent increase in the operating levy," she told Patch, "that can become a 9 to 11 percent decline because of the state legislative changes."

Another effect comes from the uncertainty over the future of Local Government Aid in the city's budget, given the state's budget problems and the aim of many Republican legislators to reduce or scrap the program.

Councilors will now refine its levy and budget plans into early winter and approve it in December. For each of the last two years councilors levied about $125,000 more than the year before, or a 2-percent increase, McBridge said.

The council holds a public hearing concerning the 2012 levies and budget at 7 p.m. Dec. 6.

Other levy votes

The council unanimously approved the HRA preliminary levy at $236,234, which is $20,191 or 9.3 percent above this year's levy.

The council approved the EDA preliminary levy with a 5-2 vote at $221,384, which is $27,568 or 11 percent less than 2011. Buckheit and Zweifel voted against the levy.