City Tax Update

The new levy numbers came in from the county. The City's tax base has increased by $300,000. This means that the prelim budget of an increase of 3.3% will be at the very least a 7.81% property tax decrease. This is great news for Isanti Ctiy property tax payers. Isanti's total budget will still increase by 28%. This is an incredible high number. If we can reduce remove the $54,000 for the Admin Asst we will still have a 25% increase in the total budget.

I am however still strongly against adding an admin assistant at $54,000. This is a position that is not needed. Just because we have the money does not mean we need to spend it. This is the tax payers money not City Hall. If this further reduction is made we could have a 9% property tax decrease. This gives the City a great cushion in the event that sewer and water fees do not cover the almost $5,000,000 bonding issue for the east 65 road and utility construction. The construction cost for the new City Hall also continue to rise. The tax rate information is great but we need to understand there are looming cost on the horizon.

The next looming cost is the water and sewer rates. These will have to be increased due to the previous council's reduction last year. This was a case of poor financial planning. These rates were reduced to help one business owner. The business owner was not helped and the cities sewer and water funds lost over $60,000 and counting.

The City of Isanti needs to create 3 and 5 year budget outlines with service levels. This gives us a clear idea of what will be needed at each stage of our growth. Without this type of short and long term planning the City will continue to bob back and forth with no clear direction.

I am very excited that in my first year on the Council I am able to help reduce property taxes. We need to continue to keep city government as lean as possible.