Osseo proposes balanced budget

The Osseo City Council approved and adopted its 2013 preliminary budget and tax levy.

The council also considered a purchase agreement for the property at 521 Central Ave.

Here are some of the meeting’s highlights.

2013 PRELIMINARY BUDGET

City Administrator Douglas Reeder once again presented the council with the proposed 2013 budget and tax levy.

“The budget is proposed to be balanced [in 2013],” Reeder said.

In 2012, there was an even budget, with $1,963,200 in revenues and $1,963,200 in expenditures. The projected 2012 revenues were $1,880,076 and projected expenditures were $1,914,783.

The proposed 2013 revenues are $1,880,076 and proposed expenditures are $1,934,983. The 2013 budget includes a $50,000 contingency fund, which is $25,000 higher than 2012.

The city’s costs have increased, but most of the department’s have budget’s have gone down slightly except for the Police, Legal and Planning Departments. The Police Department is up by .05 percent and the legal costs are up by 3.8 percent due to increasing costs of prosecution. The Planning Department is having a change with personnel — the Planning Intern position will become the City Planner position — causing a $36,084 increase in salary costs.

There was a change in the budget since the Aug. 27 meeting. There was $6,000 added to allow the new equipment be added to the new squad cars. Crown Victoria’s, the car the Police Department has been using, are no longer being made.

Councilor Rick Weber said, “The Crown Vics we’ve been using for seven years, the same equipment [has] been in them because they would be able to take it out and put it in. And that’s what will happen with these new vehicles, they will be able to take out equipment and it put in as they rotate cars each year.”

Councilor Duane Poppe asked if the city’s insurance rates will go up due to situations with the Fire Department or was that not the case? Administrator Reeder said there was no evidence that the fire rates would go up.

Reeder said the council needed to be aware that the 2013 debt levies for the three bonding issues supported by the general taxes would go up by $45,364. The preliminary tax levy for 2013 is projected to be $115,694 more, from $1,261,215 in 2012 to the estimated $1,376,909 in 2013.

The council is not able to increase the budget before its final adoption in December. The budget can be reduced by the council during this time.

First the council approved the 2013 proposed property tax levy and the preliminary general fund budget.

The council also approved a truth in taxation hearing for Monday, Dec. 3, at 7 p.m.

 

PURCHASING 521

CENTRAL AVENUE

Also during the meeting, the council considered a purchase agreement for the property at 521 Central Avenue for the sum of $200,000.

The Economic Development Authority would purchase the property for $200,000, with the owner waiving relocation benefits and paying the installments of special assessments that are certified for payment in 2012.

“The purchase agreement has been accepted by the owner,” City Administrator Douglas Reeder said.

The closing of the purchase property is scheduled for Friday, Sept. 14.

The council approved authorizing the execution and delivery of purchase agreement and closing documents regarding 521 Central Avenue.

 

OTHER

In other action, the council:

APPROVED the second reading and adoption of the ordinance amendment for administrative penalty provisions and compliance checks.

APPROVED the second reading and adoption of the ordinance amendment for pawnshops and secondhand goods dealers hours of operation.

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