Becker City Council Approves Annexation Ordinance and Preliminary Tax Levies Amid Financial Discussions
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Meeting Type:
City Council
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Meeting Date:
09/03/2024
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Recording Published:
09/03/2024
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Duration:
45 Minutes
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State:
Minnesota
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County:
Sherburne County
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Towns:
Becker
- Meeting Overview:
The Becker City Council meeting focused on the approval of an annexation ordinance, the discussion and adoption of the 2025 preliminary tax levies, and the review of a financial audit for the Becker Police Department. Among other agenda items were updates on city projects, financial strategies, and the retirement of the Police Chief.
A major highlight of the meeting was the unanimous approval of an annexation by ordinance. The council previously waived the 90-day objection period, and the Clear Lake Town Board did the same. This ordinance involves a cash payment of $702.98, covering two and a half years of taxes based on current assessments for the property being annexed. The council was asked to approve the ordinance and its summary for publication. With no opposition, the measure passed without contention.
Another topic was the adoption of the 2025 preliminary tax levies. Staff detailed that all jurisdictions with tax authority must certify proposed levies by September 30th. The overall levy is set to rise slightly from $10,148,866 in 2024 to $10,247,399 in 2025. Notably, the general fund levy is projected to decrease by 1.3% due to a legislative change related to transition aid, and the Economic Development Authority (EDA) levy is set to decrease by 5.71%, based on total estimated market values. The council adopted a resolution for these preliminary levies, a key step in the budget process for the upcoming fiscal year.
The discussion extended to projected levies and tax rates for the upcoming fiscal year, with a conservative estimate for additional debt service around $1.5 million, including projections for the 2024a issuance. The capital levy is proposed to decrease dramatically by 99.38%, down to $2.731 million. Operating levies include assumptions such as a 3.5% general wage increase and an 8% hike in healthcare benefits. Long-range financial strategies were emphasized to manage city facilities, streets, and other projects.
Significant changes in the local tax rate were noted, calculated at approximately 48.969634, down from 1.152. This adjustment is partly due to Northern States Power (NSP) appealing their valuations, with an 11.8% decrease attributed to the decommissioning of one of its units. This led to a revised estimate of overall tax capacity decreasing by 5% to approximately $20,415,000, with final numbers expected in December after county assessments.
The council also reviewed the Homestead market value exclusion, which had not been adjusted for several years despite rising housing prices. New legislation increased the maximum exclusion for 2025 to $38,000, starting at 40% of a $95,000 valuation, expected to provide relief to residential homeowners. Examples were given to illustrate the impact on tax capacity and overall tax changes.
In other matters, the council received the results of the Minnesota POST Board audit for the Becker Police Department, which occurs every three to five years. The audit, conducted on August 13th, confirmed that all licensed peace officers received the required training. Though the state mandates 48 credit hours every three years, the department typically exceeds this with around 125 hours of training annually. The audit identified three areas for improvement, which the department will address to ensure continued compliance with state regulations.
The council also addressed the dissolution of the Sherburn County Municipal Recycling Board, established in 1999 among Becker, Big Lake, Elk River, and Zimmerman for yard waste recycling. A resolution was presented for the dissolution of the joint powers agreement, including determining the fate of a skid steer purchased through this agreement, currently residing with the City of Zimmerman.
Additionally, the council reviewed a change order related to the archery range project, proposing the addition of fascia to the structures at a cost of $8,100 to improve aesthetics and protect the buildings’ integrity. This expenditure would exhaust CARES funding allocated for various projects, totaling $541,000. The council approved the change order without further discussion.
The meeting also covered the resignation of Police Chief Brent Baluun, who served for 18 years. His resignation letter expressed gratitude for the support received during his tenure. The council discussed initiating the recruitment process for a new police chief and unanimously approved the motion to accept his resignation and begin advertising for the position.
Other items in the consent agenda included the approval of a revised hiring report, appointment of a new member to the Economic Development Authority Board, and acceptance of quotes for technology improvements. The council moved to accept the consent agenda without any disputes or comments.
Tracy Bertram
City Council Officials:
Rick Hendrickson, Robin Dingmann, Mike Doering, Rebecca Stanfield-Olmscheid
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Meeting Type:
City Council
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Committee:
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Meeting Date:
09/03/2024
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Recording Published:
09/03/2024
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Duration:
45 Minutes
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Notability Score:
Routine
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State:
Minnesota
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County:
Sherburne County
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Towns:
Becker
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