Council to meet early for budgeting

The Milaca City Council will meet a week earlier than usual on Thursday, Sept. 13, at 6:30 p.m. in City Hall.

The reason for meeting a week early is to meet a deadline to submit the proposed 2013 budget to the state by Sept. 15.

In an Aug. 31 memo to council members, City Manager Greg Lerud noted that even though Local Government Aid (LGA) for 2013 from the state is supposed to go up from $562,714 to $602,609, the proposed budget will not reflect that amount.

“We propose to budget $582,500,” Lerud wrote. “By doing that the city will be in a better position to make budget adjustments should LGA be less than the certified amount.”

If the city gets the amount certified by the state, the city would be in a position to add the purchase of a new squad car, an item that was removed from the proposed budget, Leerud said.

He said it’s likely the city will continue to be conservative in its estimates of LGA.

The proposed budget the council will act on at the meting increased the levy 4.95 percent, or $42,650.

Lerud doesn’t know how the city’s levy will impact individual properties, noting that significant changes by the state in 2011 increased 2012 taxes to commercial and industrial properties.

He wrote to council members that  he thought the city had done a good job of controlling the levy, while still providing needed services.

The proposed budget forecasts a three-percent increase in sales for the city’s liquor operation and a percentage point increase in gross profit. A transfer is made each year from the liquor fund to the general fund.

Thee totals to be levied for 2013, under the proposed budget, are: $494,477 for the general fund; $40,000 for capital equipment; and $370,500 for debt service.

That figures to a total proposed levy of $904,977.