Northfield Leaders Work to Reduce Proposed Property Tax Levy Increase

Northfield budgeting personnel will continue seeking ways to reduce the preliminary before the levy is finalized in December.

During Tuesday night’s , City Administrator Tim Madigan and Finance Director Kathleen McBride presented a list of potential budget shifts and cuts intended to reduce a proposed property tax increase.

Adopting one or more of those ideas could cut the levy increase from 6.63 percent—where it stands now—to less than 5 percent, they said.

Councilors—who, at the meeting, received a binder of documents that will be used in their deliberations on the 2012 city budget—said they wanted to reduce the tax levy hike. Any funding cuts, though, must make sense in terms of city policy.

Random reductions would not fly, they said.

“I want to know what drives these choices,” said Councilor Betsey Buckheit. “I want to know if they support what we are doing.”

The council certified the city’s 2012 preliminary tax levy last month that calls for a $457,531 increase in property taxes collected over this year's levels.

Between the time the preliminary levy is set and the final levy is approved Dec. 6, the council can reduce the levy amount, but not raise it.

Madigan and McBride said they looked for ways of reducing the tax levy at the urging of councilors.

Potential money-saving options they outlined include:

• Transferring up to $120,000 of unused construction funds into their respective debt service fund.
• Eliminating park and city facilities levies that earlier were reinstated in the budget, for a total of $80,000.
• Reducing the fire and planning budgets by $40,000. Those savings would be accomplished if a new fire department management position is not created.
• Eliminating a duplicate $105,000 payment to Community Education.
• Reducing the Econcomic Development Authority and Housing and Redevelopment Authority budgets by about 5 percent, for a $23,000 savings.

While councilors seemed receptive to the levy reduction proposals, they said more information was needed from city staff before decisions could be made, particularly when it comes to the suggested parks budget reduction.

Mayor Mary Rossing said questions about the options would be fielded by city department leaders when they face the council in budget discussions during upcoming work sessions.