Toward the end of one its longer meetings of the year on Monday, the Albert Lea City Council put its finishing touches on the 2009 budget and property tax levy, getting them ready to go for the first of the year.

For residents within the city limits, this means a slight increase in property taxes will be coming in 2009.

The increase — which many cities in Minnesota are seeing next year thanks to budget problems within the state and other economic woes — is below the state mandated levy limit of 3 percent.

The resolution, passed by the council on a 6-1 vote, establishes the general fund tax levy for Albert Lea at $4.52 million, which is a $278,850 increase from 2008.

Specifically, this equals an increase of about $9 in city taxes for the owners of a home costing $100,000. Owners of a home costing $100,000 saw an increase of $19 in 2008.

Councilor Al Brooks was the sole vote in opposition of the levy increase. He said he would have preferred not to see the tax levy go up.

In 2009, for a city resident, 27 percent of a homeowner’s tax dollars will go toward city services; 36 percent will go to the county; 36 percent will go to the Albert Lea School District, and 1 percent will go to the Shell Rock River Watershed District.

Albert Lea City Manager Victoria Simonsen said Albert Lea’s tax capacity has increased by about $500,000 for 2009. The tax rate is 44.034 percent up from 43.221 percent in 2008 and 41.088 percent in 2007.

In a 6-1 vote as well, the council accepted the general budget at $14,750,100. This is a 2.8 percent increase in the budget from 2008, most of which is coming from a 2 percent wage increase, state mandated PERA increases, increased cost for fuel and utilities, as well as the city’s share of the airport runway expansion costs, Simonsen said.

Thirty-seven percent of the budget is funded by local government aid, and 31 percent is funded through local property tax, she said. The remainder of the revenue is collected through licenses and permits, changes for services and other income.

Albert Lea Mayor Randy Erdman noted that having a budget that is made up of 37 percent local government aid is much better than having a budget that is made up of 62 percent local government aid like five years ago. It shows the community is less dependent on it.

As part of the total budget, the water fund is budgeted about $1.74 million and the sewage disposal fund is allocated about $4.09 million. Soild waste management, the parking fund, PIR Bond Debt Service and Capital Improvement Debt Service total about $454,000.

In other action, the City Council:

– Voted on several other budgetary items.

These include the approval of a 2 percent cost of living adjustment for the city’s non-union employees. The adjustment does not include the council members themselves. The last time the council had a raise was in 2002.

The council also approved an agreement for 2009 salaries for employees with the International Association of Firefighters union, representing Albert Lea’s firefighters.

The one-year agreement includes a 2 percent cost of living adjustment with some changes to health care.

Likewise, council members approved an agreement for 2009 salaries for employees with the AFSCME Local 1018 union, which represents public works, parks and recreation, custodians and community service officers of the city.

The one-year agreement includes a 2 percent cost of living adjustment.

– Set the gross tax receipts tax for 2009 at 4.5 percent. This is the same rate as 2008.

It applies to taxes paid on natural gas sales, electricity sales and cable franchise services.

– Authorized an amendment to the professional services agreement with Mead & Hunt for the work to be performed for the airport runway expansion project.

– Authorized the transfer of funds from the city’s general fund and the unreserved fund balance of the general fund to the capital projects fund for the airport runway expansion, the Sunset Street expansion and other public safety related community projects.

– Voted to move forward with a formal feasibility study and to pursue annexation of 25 residents along 770th Avenue.

Fifteen of the 25 residents, which are between the MnDot maintenance shop and Interstate 90, petitioned the city to consider extending sewer and water to the area and to annex the properties.

– Watched as Albert Lea Police Chief Dwaine Winkels presented an award the police department won from the International Association of Chiefs of Police for local community policing efforts.

More than 100 nominations from the United States and even other countries were received for the awards.

Lt. Jeff Strom and officer Jason Taylor recently went to San Diego to receive the award.

– Voted 4-3 to give Action Auto owner Scott Knutson until Aug. 1, 2009, to fill in his upper lot and put down gravel to coincide with the city code.

In January, the city notified Knutson that his property was in violation of part of the city code regarding the sale and storage of automobiles in an unpaved area.

On Feb. 11, the council made an exception for Action Auto to park on their upper lot if Knutson agreed to put down a gravel lot and have a defined parking area after the winter thaw. On Nov. 20, a building inspector notified Knutson that he had still not met the requirements of the city code nor the council’s time frame.

– Authorized an agreement with the Union Pacific Railroad to upgrade the signals and to install crossbars at the railroad crossing at Newton Avenue just north of Front Street.

The project would be part of the State Transportation Improvement Program and would cost about $361,000, 10 percent of which the city is required to pay.

– Approved the 2009 contract for the Big Island Rendezvous & Festival Inc. on Sept. 21 through Oct. 9, 2009.

– Called a public hearing for the 2009 water and sewer rates on Dec. 22.