Farmington City Council adopts preliminary levy

Posted under Farmington,News on Thursday 9 September 2010 at 2:35 pm

by Kara Hildreth

Thisweek Newspapers

The Farmington City Council approved a preliminary 2011 levy on Tuesday, Sept. 7.

Now the city council is charged with finding $400,000 to $500,000 in reductions from the 2011 city budget. Those budget reductions may mean at least one city job will be eliminated.

The 2011 tax levy is $9.195 million. This includes $6.3 million levied for the general fund and $2.8 million assigned to the debt service fund that makes payments on the city’s outstanding bonds.

The proposed preliminary levy is an increase of 3.73 percent, said city finance director Teresa Walters.

The city needed to approve a preliminary levy by Sept. 15 for submission to Dakota County. Once the levy is set, it cannot be increased, but can be decreased, Walter said.

A follow-up budget workshop is set for 7 p.m. Monday, Sept. 13, at city hall. Further budget workshops are planned for October and November. The council is set to adopt the final levy on Dec. 6 after there is a public hearing.

The 2011 proposed general fund expenditures (without transfers) are $8,884,855. This is a 2. 6 percent decrease from the 2010 expenditures, Walters said.

A proposed city budget summary calls for:

* $254,052 (or 4.46%) decrease in the general fund levy

* $562,072 or (27.52%) increase in the debt service levies

* $65,051 increase in the market value homestead credit levy

* $64,409 decrease in the fire relief levy

* 3 percent increase in police salaries

* $32,271 decrease in investment income

* $115,000 increase in building permit revenue

* $233,973 increase in fiscal disparity revenue

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