By Sarah Light staff writer

In one of its shorter meetings of the year, the Albert Lea City Council put its finishing touches Monday on the 2007 budget and property tax levy, getting them ready to go for the first of the year.

And for residents within the city limits, this means a slight decrease in property taxes for 2007.

The 2007 property tax resolution established the tax levy for the city of Albert Lea at 3.9 million for 2007, which is a $345,000 increase from 2006.

But because the city&8217;s overall capacity increased by $1 million in 2006, the city was actually able to raise the levy while still keeping city taxes slightly below last year&8217;s rates.

The difference equals a savings of about $7 in city taxes for the owners of a home costing $100,000.

In 2007, 29 percent of a homeowner&8217;s tax dollars will go toward city services; 40 percent will go to the county; 29 percent will go to the school district and 1 percent will go to the Watershed District.

The council passed the property tax resolution 7-0.

The council also passed the budget resolution 7-0, which accepted the annual budget at $20,174,667. This includes a 7.9 percent increase in the general fund budget from 2006, putting that fund at $14,373,023 for 2007.

As part of the total budget, $1.6 million was also allotted to the water fund and, about $3.9 million was allotted to the sewage disposal fund. Solid waste management, parking district, Armory debt service and capital improvement debt service will total about $340,000 in expenditures.

In other news, the City Council:

Authorized the appropriation of funds as outlined in the resolution for the 2007 fiscal year. This was necessary for the budget to be effective Jan. 1, 2007.

Voted 6-1 to increase the discretionary funds to $52,500 instead of $50,000 and to authorize the distribution of these funds to local organizations that met the public purpose doctrine according to Minnesota statute.

Councilman Vern Rasmussen disagreed with raising the funds by $2,500 because the organization that would receive the added money turned in its paperwork past the deadline.

City Manager Victoria Simonsen said she will now have to trim that extra money off the general budget.

The city received 15 grant applications, which totaled about $99,000 in requests.

Approved a 2 percent increase in non-union salaries in 2007.

Authorized the city manager and mayor to enter into an amended agreement with the Department of Natural Resources for the flood hazard mitigation grant involving the East Main Street flood mitigation project.

This would bring in an additional $150,000 for the project.

Authorized the city manager and mayor to enter into a development agreement with Tom Wobbrock of Muskie Development/Midwest LLC for the completion of the Parkview Hills subdivision.

Approved a request from the Twin Valley Council of Cub Scouts to use Edgewater Park on June 21 through 23 for day camp activities.