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Life Editor

Spring Lake Park City Council approved the 2010 budget and tax levy Monday night. The city will levy to recapture deep cuts in two types of state aid.

City leaders voted 4-1 to use a special levy of $137,961 to restore Market Value Homestead Credit (MVCH) and Local Government Aid (LGA) reductions.

The general fund portion of the levy will include $57,877 in December 2008 MVCH, all of the city’s 2009 MVCH ($17,533) and half of 2009’s LGA ($45,000).

Mayor Bob Nelson voted against the 2010 levy resolution after he and City Administrator Barbara Nelson completed a brief budget presentation Monday.

“Overall, this budget is pretty good,” Mayor Nelson said.

While he gave to credit city departments for working hard during the budgeting process, Mayor Nelson said he would not support a special levy to recapture the city’s lost MVHC and LGA.

“It’s been a bad year,” Mayor Nelson said, prior to voting against the levy resolution approved Monday night. “There’s more unallotments coming. Most of my issue comes is with the state.”

Mayor Nelson was referring to the possibility Gov. Tim Pawlenty would make additional aid cuts this month to deal with a $1.2 billion budget shortfall.

However, Minnesota Department of Revenue Commissioner Ward Einess was scheduled late Tuesday afternoon to send a letter to the League of Minnesota Cities announcing Pawlenty would not use his unallotment to further reduce the December payments.

The council approved a levy increase of 3.69 percent ($3.41 million for fiscal year 2010).

The levy resolution passed by the council includes $2.59 million in general fund revenues (taxes) levied against city properties.

Using the city’s data, a Spring Lake Park property owner could pay as much as $1,128 in 2010 estimated taxes on a median home valued at $200,000.

That compares with $916 in 2009, a potential yearly dollar increase of $211.

However, during a Nov. 24 budget workshop, City Accountant Peggy Anderson told the council that actual property taxes paid by residents would likely be lower than those used in the median valuation example.

Overall, property taxes collected by Spring Lake Park will increase from $2.60 million in 2009 to $2.73 million in 2010.

At 67 percent, that figure represents the city’s primary source of budget revenue.

Bonds (17 percent), interfund transfers (6 percent), state aid (down 1 percent), permits, licenses and fees (2 percent), court fines (2 percent) and recreation charges (1 percent) were listed as other 2009 revenue sources.

Four of the city’s five intergovernmental funds - Liquor ($150,000), Municipal State Aid ($30,000), Tax Increment Financing ($6,000) and Recycling ($2,500) remained unchanged in terms of revenue collected when compared with last year’s budget.

Spring Lake Park’s Public Utilities Fund increased from $39,564 in 2009 to $40,947 in the 2010 approved budget.

Court fines received from Anoka County increased slightly, from $92,000 in 2009 to $100,000 in 2010.

Permits, licenses and other collected fees decrease from $168,365 in 2009 to an estimated $157,570 next year.

The city was expected to collect $104,480 in other revenue from interest earned, a reimbursement from District 16 for a police liaison officer and other fines collected.

Total 2009 revenues were projected at $4.02 million, a decrease when compared with $4.03 million in 2008.

Key city expenditures in 2010 will include police and fire safety (40 percent); bond issues (17 percent); administration (10 percent); recreation, park and streets (7 percent, 6 percent and 5 percent, respectively); professional services (5 percent); code enforcement and government buildings (3 percent each).

Police services were the city’s largest departmental expense, increasing slightly to $1.43 million in 2010 from $1.42 million last year, city officials reported.

Administration ($420,573), streets ($207,713), recreation ($266,554), parks ($231,935) and code enforcement ($118,560) rounded out top departments expenditures.

The city will pay an estimated $183,140 to the Spring Lake Park-Blaine-Mounds View (SBM) Fire Department for contracted services next year.

That total represents a decrease of about $10,000 when compared with last year, City Administrator Barbara Nelson said.

The city saved money because of a services formula change and SBM reducing its budget by 3 percent, according to City Administrator Nelson.

Spring Lake Park’s animal control budget remains at $1,000 for 2010. Assessing expenses decreased from $36,000 last year to $35,500 next year.

Professional services (auditing, engineering, information technology and legal) decreased from $196,774 in 2009 to $185,858 in 2010.


Tim Hennagir is at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it