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HomeMy WebLinkAbout2016 09-21 Maplewood sets preliminary levy at 5 percent MAPELWOOD REVIEW Maplewood sets preliminary levy at 5 percent Submitted by admin on Wed, 09/21/2016 - 12:00am At the Sept. 12 Maplewood City Council meeting, council members approved the city’s preliminary 2017 budget and property-tax levy. Council members voted unanimously for setting the preliminary city levy at a 5 percent increase over last year, which would mean a $28 tax increase from the average Maplewood homeowner with a property valued at $200,900. “\[The preliminary levy\] is the highest point we can levy. We can go down from that but we can’t go up. Once we set it tonight, it can’t go above what we set tonight,” city manager Melinda Coleman told the council. The preliminary budgets and tax levy need to be certified to Ramsey County before the end of September. The council was originally presented a preliminary levy with only a 3.62 percent increase, but as a Coleman explained during the meeting, there are several city needs that would not be met by the smaller budget. For example, there was no room in that budget for paying down debts such as the ambulance fund deficit, paying to continue the prosecution services for the Ramsey County Joint Domestic Abuse Prosecution Enhancement Project, or setting aside the usual $50,000 for building maintenance, upkeep and repairs. “One of the things that I have suggested to the council for consideration would be to increase the levy from the 3.6 to 5 percent, with the understanding that with direction from you, we will try to get that back down,” Coleman said. The 5 percent increase would have a 3.2 percent tax impact and support about $970,000 of new spending compared to last year. Coleman explained at the meeting that there were several aspects of the city budget that are still yet to be determined, though most of them will be pinned down by the end of October allowing the city plenty of time to fine tune the levy before the truth-in-taxation public hearing Dec. 12 when the council will vote on the final property-tax levy amount for 2017. Mayor Nora Slawik said she did not like how the meeting started off with 3.6 percent and went to 5 percent because that is a big jump, and she added that she is more comfortable with a 3.5 or 4 percent increase. “I’m going to support a 5 percent, but I want us to really look at why it goes to a 5 percent,” Slawik said. “For our seniors and those on fixed incomes, we have to keep in mind that taxes are tough.” “At the end of the day ... we are talking about $28 a year and that’s about a cup of coffee a month,” said council member Bryan Smith. “I feel like this city provides very good value when you look at the services that we provide.” “I think the original budget that we were presented was really well put together, but I certainly understand this additional needs list very, very much,” said council member Kathleen Juenemann. She added that it was wise to not put off repairs because the city pays more for them in the end when equipment isn’t properly maintained. “We can’t just go on being surprised when a pool filter blows out or we need something for one of our buildings. We have to have some money that we have set aside and plan for that,” said council member Marylee Abrams. She added that she sees the need to reduce city debt and to fund the domestic abuse prosecution project. “One of the things that I think is really hard for our citizens to understand is when they get their property tax statement they make the assumption that it all has to do with the city, and I think a really important point is that that only 28 percent... of their taxes comes to the city,” Abrams said. Finance director Ellen Paulseth explained that one of the largest levies on a homeowner’s tax statement will be Ramsey County, but other components of property taxes are controlled by the Metropolitan Council, the Metropolitan Mosquito Control District, the watershed districts and the school districts, among others. Council members were in agreement that the 5 percent increase was the right choice for the preliminary levy, but several council members also voiced a desire to have the levy amount lowered for the truth-in- taxation hearings. Juenemann said that it is difficult to raise property taxes because the council members pay them too, but she said she also doesn’t want to see the services and amenities that the city offers dwindle.