Minnetrista’s city council passed the final 2020 tax levy Monday night, increasing the levy 5.66% from the previous year, on a 4-1 vote. At our work session prior to the meeting I asked the council to consider using the unanticipated higher revenue from the city’s building permits to off-set the levy increase but the answer was a unanimous no. Despite a 43% general fund reserve (healthy by any standard) the council chose to apply the savings to the general fund reserve increasing it to 47%. I was the dissenting vote on the motion to pass the levy increase.
There are other reasons I dissented. Minnetrista has a backwards budgeting process where staff essentially submits a budget to the council and the council usually approves it without much modification. Generally we are given two or three budget options with varying increases (I’ve never seen an option without an increase that is far above our growth rate even considering inflation) and the council chooses one of the options as the preliminary tax levy in September and then adopts the final levy in December, which may vary slightly when year end projections are more certain.
In the private sector, as in many cities throughout the country, the budgeting process is different and begins with submitting the prior year’s budget and then justifying the increases, line by line, before adoption. That has not been the process in Minnetrista and there has been considerable resistance to the idea that it should be. How else can the council responsibly vote to support a tax levy if it doesn’t know what the justifications are behind all the increases? I’d like to see a budget committee comprised of two council members established to do this.
The budgeting process in Minnetrista needs to start out assuming every line-item increase, which isn’t just inflationary, needs justification. Until that happens I will be voting no, as I have in the past, on the city’s tax levy.
One thought on “5.66% Increase in Minnetrista’s final tax levy for 2020”