(Spirit Lake)– The city of Spirit Lake has released details of its proposed budget for the upcoming fiscal year.
City officials say the property tax rate will remain the same…at $10.54 per thousand dollars of valuation.
Officials say it reflects a reduction in spending from the previous two years, amounting to 9.1 million dollars…compared with 16 million in the current fiscal year.
The city’s General Fund balances are projected to decline by slightly more than seven thousand dollars due to reduced revenues. Revenue from the state is expected to remain the same or even drop.
City officials say due to valuation changes and debt requirements, property tax revenues will increase by roughly two percent…to 1.9 million, with TIF revenues increasing by five percent, to 2.4 million dollars.
Officials say the budget reflects a hiring freeze, with no added funding for services. No major capital projects were budgeted, and expenditures for vehicles, equipment and so on were severely reduced. No money was budgeted for major street repairs, park improvements and drainage improvements. A small amount was earmarked to sealcoat streets and repair railroad crossings.
No salary increases are planned. Provisions are included for a 15 percent hike in health insurance costs.
The budget does not include funding for a proposed ice hockey arena a lakes area group wants to build.
A public hearing on the proposed budget is set for the council’s next regular meeting March 9th.
