The Forest Lake City Council voted 3-2 at its Dec. 15 meeting to remove just under $550,000 from its preliminary 2015 budget, bringing it in line with the similar cut from its preliminary levy made last week.
The biggest single source of the cuts comes from utilizing an expected surplus of $230,000 in 2014 to fund some one-time budget purchases in 2015, but the reductions also included one layoff: city fire inspector and daytime firefighter Bruce Wightman. Park and Recreation Coordinator Nicole Schossow, whose job was also up for a potential cut to half-time in previous budget discussions, will be kept on at full time for the first half of the year, after which her position may be kept on if she has been determined to provide sufficient value to the city via grant writing and other duties.
Mayor Chris Johnson and Councilwoman Susan Young made multiple motions to add or reallocate funding to provide for the funding of Wightman’s and Schossow’s positions, but they were voted down.
In addition to the surplus and staff positions affected by the budget, the decision also delayed or modified purchases and usages of city vehicles and reduced line items in various departments across the city. The decision also adjusted some line items down based on historical trends; for example, the budget for paying on-call part-time firefighters was reduced because of lower calls for service in recent years. If costs are as expected throughout 2015, the city will also supplement the budget with about $43,000 from its reserves of $5.1 million.
The reductions from the preliminary budget come one week after the new City Council majority voted to approve a preliminary levy of $8.35 million, about $590,000 lower than the preliminary levy. The new levy reflected roughly what the levy would have looked like had the city not approved in October the giving city funds to bring a YMCA to town.
Under the current levy, the tax rate is a decrease from 2014, meaning that if a property owner’s property stays at the same value in 2015, his or her city taxes should decrease. However, good market values mean that most properties will increase in value, which means that the expected median value home in 2015 of slightly more than $200,000 will likely see an increase of about $21.50 in city property taxes.
Though the overall property tax levy will increase by about $310,000 over 2014, the levy not associated with debt service decreased by slightly less than $300,000.
More information will be posted as it becomes available.