Edina City Council Approves 1.15 Percent Tax Levy Increase for 2011

Edina City Council remained steadfast in the face of potential financial concerns Tuesday, Dec. 21, adopting the city's 2011 budget and tax levy as previously proposed—at 1.15 percent above 2010 levels.

The approved tax levy will bring in approximately $293,000 more than in 2010. For the owner of a median priced residence in Edina, that amounts to an $18 increase over last year's taxes. Council members unanimously approved the budget and levy with a 5-0 vote.

Because they initially proposed a 2.3 percent levy increase back in September, the council could have doubled the levy for 2011. It would have meant another $293,000 in the city's general fund, which could have been useful given the fact four city bargaining units—firefighters, public works and park maintenance, police dispatch and animal control—have yet to settle their contracts.

Council's decision to not bump the levy any higher was fascinating considering the events of the past few weeks, which saw an . Those wage increases will cost the city an estimated $273,000 – $100,000 of that retroactively covering 2010. The remaining $170,000 will have to somehow fit into the 2011 budget.

In a closed session prior to the regular meeting, Edina City Manager Scott Neal the council told administration they need to accommodate the costs of the arbitrator's decision within the balance of the 2011 budget.

"They basically said, 'You've got to work it out,'" Neal said. "It won't be easy, but on the other hand for 2011 it's $170,000 out of a $20 million-plus budget. We should be able to do that."

A lone Edina resident sat in the front row through the first half of the meeting, holding a cardboard "FREEZE BUDGET" sign. He did not participate during the meeting's public comment period.

Neal said the police union raises are not the only expense that will eat into the $293,000, as some of those dollars were set to go toward things like the 1 percent cost-of-living adjustment offered to all non-union employees. The council opted to keep those raises in the budget as planned.

The council had considered a zero percent levy increase for 2011 at one point, but Finance Director John Wallin said they decided against it when they realized it would have meant a handful of service reductions.

Those hypothetical cuts could have included one less ice skating rink in the Parks Department, less training and one less ambulance for the Fire Department and potentially laying off employees in the Public Works Department.

"We had a number a possibilities from different departments," he said. "Council never picked which ones they would or would not have done."