The City of Crookston Truth in Taxation meeting was held on Monday night before a sparse crowd that contained a single resident not employed by the city or local media. The Crookston City Council then approved the 2020 budget, five-year capital improvement plan, and set the 2020 tax levy at three percent unanimously with a 5-0 vote during their meeting.
The three percent levy averages out to $688.47 for each of the 3,243 households in Crookston, but each property’s taxes are based on the tax valuation system explained City of Crookston Finance Director Angel Weasner. “There is a levy increase of three percent over the rate from last year, so we have an increase of $65,028,” said Weasner. “That increase will be applied to each household based on value. If we didn’t have the property tax value system, every household of the 3,243 households in the town would be charged $688.47 for the year or $57.37 per month (average property tax). But we have a property tax based on your tax marketable value so it’s variating depending upon the value of your home.”
The total levy will generate more than $2.2 million for the City of Crookston said Weasner. “The levy for 2020 will be $2,232,692 that will be obtained through property taxes for all residents of the City of Crookston including commercial and industrial properties,” said Weasner. “The budget itself was in excess of $5.7 million dollars. There is LGA (Local Government Aid) included in there. The amount the general fund will receive from property taxes is $454,000. That is the amount applied to the general fund. The remainder of the levy amount will go to the library, Park and Rec, the airport, and street improvements.”
The levy increase was offset by an increase in LGA from the Minnesota State Legislature last spring according to Weasner. “There was an LGA increase of $149,000 up against what we had last year,” said Weasner. “So, we have a total of $3,853,158 that will be LGA funding. The majority of LGA is for public safety, so it is applied toward the budgets for the Police Department, and the Fire & Emergency Management budget. Then some administrator and the street improvement fund to alleviate some of the taxes assessed on projects that need to be done when the roads are repaired.”
Weasner said the budget also projects the City of Crookston to use more than $200,000 from its reserves during 2020. “We have budgeted using a projected $235,000 in reserves,” said Weasner. “However, that may not come to fruition depending on how everything comes into play throughout the year. We may find some items we don’t have to purchase, or we may find some alternatives and not have to spend as much.”
The Council also passed resolutions adopting the ordinances for franchise fee agreements with Otter Tail Power Company and Red Lake Electric Cooperative. The amendment adds language capping the fee for residential properties at the same amount it does commercial and industrial properties. That amount is five percent of the gross revenues or $2,500 per month, whichever is less.
The consent agenda passed unanimously. Included on the consent agenda was approving the November 25 meeting minutes, approving bills and disbursements totaling $387,723.37, approving the purchase of a truck for Parks and Recreation, and approving the 2020 Regular Council Meeting Calendar. 2020 Liquor Licenses were also included for Irishman’s Shanty, M.P.T Enterprises, Captain Crooks, Drafts Sports Bar and Grill, Minakwa Golf Course, the VFW, Crookston Eagles, Wal-Mart, Happy Joe’s, Cobblestone Hotel & Suites, and the Golden Link Senior Center. The final item on the consent agenda was an amended severance contract with City Administrator Shannon Stassen. Stassen’s last day of employment is Tuesday, December 10.
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