Inver Grove Heights approves final 2017 budget numbers


The chart shows the breakdown of the 2017 general fund. The biggest expenditure is public safety.

These tables show the impact of the 2017 levy on a mean and median value home.

At the second to last meeting of the year, the Inver Grove Heights City Council approved the final 2017 budgets and levies. Kristi Smith, finance director, said the proposed preliminary levies and budgets were approved at the Sept. 26 meeting. 

Final budgets and levies must be certified to Dakota County by Dec. 28.

The preliminary general fund budget at the Sept. 26 council meeting was for roughly $20,755,500. The proposed final general fund budget was for $20,605,900. This decreased $149,600.

“So that’s good news for our residents,” Smith said. 

Public safety takes up 49 percent of the general fund expenditures. The 2017 general fund revenues is $20,668,900, with 82 percent of this coming from property taxes. 

The operating fund levy is $16,973,400. This is a decrease from the preliminary figure of $17,123,000. The final levy is an increase of 6.77 percent from the 2016 property-tax levy. 

Smith said the mean 2017 residential homestead value is $248,915.

“This translates into a taxable market value of $231,845,” Smith said. 

For the city portion of the taxes, residents with a mean value home would see an increase of roughly $74 from their 2016 taxes. This puts taxes on a mean value home at $1,183.

Smith said the median 2017 residential homestead value is $214,000 with a taxable market rate of $195,584. A resident with a median valued home will pay $998.34 in city taxes. This is an increase of $78 from 2016.

Resident Bill Klein asked what portion of the budget is state “fiscal disparity” funding. Smith said the fiscal disparity contribution value is about $4 million coming out of the tax capacity. The impact on the levy is a spread of about $2.2 million.

Klein asked if this is money the city is receiving regularly from the state. Smith said the city received about $1.7 million in fiscal disparities in 2015.

“We’re estimating about the same in 2016 and 2017,” Smith said. 

Klein said there was a time in history when fiscal disparities were drastically cut, and he worries that these funds could be slashed again, “especially in light of two entities: the state House and the state Senate now controlled by the Republicans who tend to be a little more conservative in awarding monies that are basically city funds that could be taken at any time.” He added that he hates to see the city depending on this state funding. 

Mayor George Tourville said the city took an official position in terms of the disparities formula, which is being studied by the Association of Metropolitan Municpalities. He added that it wouldn’t be used any individual city programs but may be looked at for regional projects. 

All three resolutions pertaining to the final 2017 budgets and levies passed unanimously.

 

Hannah Burlingame can be reached at 651-748-7824 or hburlingame@lillienews.com.

 

 

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