St. Michael Holds Steady on General Levy in 2012

St. Michael residents will again be spared any tax hikes on the property tax rolls by their local government, as the city council approved a preliminary levy 2012 that actually sees the city collect less in local revenue.

With the Market Value Homestead Credit gone, the city could afford to budget about $45,000 less in property tax receipts for the 2012 budget, meaning local taxes should remain flat.

It should be noted that homeowners may see a hike in their tax bill next year in two other places–taxes would rise slightly if voters approved a proposed hike in the school district’s operating levy, and the loss of Market Value Homestead Credit might force the county to raise property tax rates.

The average home value in St. Michael now is about $197,000. Under the 2011 budget, that homeowner will pay $636 in taxes to the city. That's down, a few dollars, from 2010. The 2012 rate would be on that line, or a bit less for some properties.

The 2 percent increase in spending is caused by two bonded projects. The city will pay $450,000 in 2012 (its largest payment to date) for the Highway 241/downtown revitalization project, and another $171,000 to the new senior center/library/city hall.

The city will increase its payment to the Economic Development Authority $25,000, to $90,000 in 2012. Other budget line items are two abatements–for J&B Meats and U.S. Water–totaling about $34,000.

“The community’s position has been to hold the line on spending, and we’ve done that,” said Bob Derus, city administrator, who will see just half of this budget. Derus is set to retire in July 2012.

It’s not known if the city will fill the open administrative spot, but it can be assumed it will. Steve Bot, assistant city administrator, should be tapped to take over for Derus, leaving an opening in the city planner/engineer position.

“I think the people will be happy with this,” said Mayor Jerry Zachman.

The city will find out. Residents can approach the council in regards to the proposed levy at any open meeting from now through Dec. 13.

The city council will hold a Truth in Taxation hearing before approving the budget at that 7 p.m. that night.