Milaca increases levy 4.95 percent

property-taxThe Milaca City Council approved a 4.95 percent increase in the 2013 tax levy at its Dec. 20 meeting.

The increase amounts to $42,650 and of that amount, $31,400 is for debt service and $11,250 for the general fund.

In addition, the city plans to use approximately $12,000 of the general fund’s undesignated fund to help with the 2013 budget.

Of the $904,977 raised by the levy in 2013, $534,477 will go to the general fund, $370,500 to debt service.

The increase in next year’s levy comes on the heels of an increase of only .023 percent in 2012 and 1.3 percent in 2011.

Back in August, in a memo from City Manager Greg Lerud to council members, Lerud noted that  budget assumptions for 2013 will not include the amount of LGA (local government aid) certified by the state, given a past history of LGA being reduced  by the state after it has been certified.

The certified LGA for 2013 is $602,629, up from $562,714 in 2012.

“We are electing not to budget to the certified amount Lerud wrote. “Rather, we propose to budget to $582,500.

“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 receives the certified amount, Lerud said, the city will be in position to add the purchase of a new squad car.

“By being prepared on the front end for the reduction, we should avoid significant mid-year budget reductions,” he wrote. “We will continue to be conservative in our estimates of LGA.”

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