Some homeowners, however, will see decrease in taxes for 2017

The Albert Lea City Council approved a 1.29 percent tax levy increase Monday night.

The measure passed on a 6-1 vote. Councilors Larry Baker, John Schulte V, Reid Olson, Larry Anderson, Al “Minnow” Brooks and Mayor Vern Rasmussen Jr. voted yes. Third Ward Councilor George Marin voted no.

Property taxes for a $100,000 home that has not changed in value will decline $17, however, because the city’s tax base has grown 3.01 percent in the last year.

Albert Lea City Manager Chad Adams said to see a tax increase, the value on a home would have to increase by more than 2 or 3 percent.

“The growth is outweighing what we are requesting for additional dollars, so dollars will be spread across more growth and more properties,” he said.

The levy was passed at $6.23 million and is a decrease from a 2.6 percent increase discussed in September. The 2016 levy is $6.15 million.

No general fund tax levy increase was implemented for the fifth year in a row. The levy increase stems from debt service mainly for 2016 road reconstruction projects and mill and overlay projects in the community.

Water rates increased 7 percent, and sewer rates increased 1 percent. The measure passed on a 5-2 vote. Councilors Larry Baker, John Schulte V, Reid Olson and Larry Anderson and Mayor Vern Rasmussen voted yes. Councilors Al “Minnow” Brooks and George Marin voted no.

The total increase for an average single-family home will be about $24.

Brooks asked whether it was necessary to have consistent 7 percent water fund increases.

“Is it mandatory or necessary to take that much money out of the water fund to complete these projects, or can we move it down to 6 percent for a few years and still sustain some livelihood in that fund?” he asked.

Adams said the city does not have sufficient money for water infrastructure improvements, adding that slight rate adjustments have already been made.

He said the increases allow the city to maintain its infrastructure without needing to implement large increases to repair damaged infrastructure.

Marin said having no increase in the operating levy does not tell the whole picture.

“It all affects the taxpayers,” he said. “Because we can say that we are having a 0 percent increase in the operating tax levy, that portion of it, but what we give them in the bold print we take away from them in the fine print, because we give them what appears to be a saving on the tax levy, then we are increasing the water and sewer rates.”

Adams said the city has been forthright with its approach to the budget, citing media coverage from last weekend. He thanked the council and city staff for their work in the budget process.

“I think we are being responsible this year, and I also applaud our staff and the council for providing the tools for us to provide some long-term financial projections and manage our budget on an annual basis, which is, I think, somewhat unprecedented that we are not changing our operating tax levy for the fifth year in a row.”

The council passed a $15.76 million 2017 general fund budget, which is a 3.97 percent increase from $15.1 million in 2016.

In a public forum before the vote, Albert Lea resident Gary Hagen said taxes on his house will increase 35 to 40 dollars per month.

“When you add these, even at the lower rates, if you try to hold it down, it still becomes substantial,” he said.

Hagen issued a statement to the council that taxpayers deserve more respect and need to be taken into consideration when spending money.

Albert Lea resident Jim Nelson said taxes are making living in Albert Lea hard.

“It’s getting too expensive to live in Albert Lea,” he said

In other action, the council:

Approved its five-year Capital Improvement Plan, with 2017 submitted projects totaling $12.79 million. The projects include the Albert Lea airport’s arrival and departure building, an east water tower chlorine building, replacing Nystrom Arena air conditioning and dasher board systems, an addition to the city’s public works facility, street overlay and reconstruction projects and utility system improvements and other work.

“One of the best approaches to this decision-making process is to use long-range planning as a means of identifying needs, available resources and the significance of the impact,” Adams said. “The five-year Capital Improvement Plan is a long-range planning tool the city can successfully use in setting priorities for the community’s infrastructure improvement.”

The measure passed on a 6-1 vote. Marin was the dissenting vote.

Approved the Albert Lea Housing and Redevelopment Authority 2017 property tax levy at $109,000.

Approved the 2017 fee schedule. New fees include roofing, siding and window permits. Adjusted fees include airport hangar rents, public skate, annual individual skate passes and a slight increase to mixed solid waste disposal. Fees that were removed were arena stage rental and Rock on Ice.

Approved a joint powers agreement with the state of Minnesota regarding internet crimes against children. The Albert Lea Police Department is a member of the Internet Crimes Against Children task force and supplies local investigators to assist in reported internet crimes against children. Police also receive training through the program.

Accepted bids and warded contracts for 2017 chemical and fuel supplies.

Ordered preparation of feasibility reports on the Plaza Street realignment; Bridge Avenue overlay project; South Broadway mill and overlay; Lake Avenue, College Street and Sunset Street reconstruction projects; and 2017 neighborhood improvement project.

Supported a grant application to Southeast Service Cooperative on behalf of the city’s wellness committee. The application is for $14,500 to help offset the cost of wellness activities in 2018.