By Logan Wells, News Director | Logan@kymnradio.net
The final approval of budgets and tax levies for local governments is scheduled for the beginning of December. Starting today, each newscast this week will have a story about the City of Northfield’s tax increase to help explain the issue.
We’re starting this series by talking about the City’s revenue. Property taxes make up a large portion of the budget: $19 million, with most of that going to the General Fund, but also portions going to maintenance funds and the Debt Fund. However, its not the only part of the budget, the city’s overall budget is $53 million.
The main fund we discuss is the General Fund, which covers the city’s operations, including Police, Fire, and the Library, totaling at $20.5 million. Property Taxes cover approximately 60% of the expenses; Local Government Aid from the State and County Aid cover about 24% of the fund; and Charges for Services, Permits, and other small revenues make up the rest of the general fund.
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However, the General Fund and Property Tax Levy is only a small part of the overall budget, which is $53 million in total. City Finance Director Brenda Angelstad noted that the utility funds make a significant portion of the budget and that each fund is paid for via the utility bill:
“So the utility funds, again, are funded from the utility rates and usage, right? So water, and these funds they pay for themselves based on their rates. So there’s no property tax to support them.” – Brenda Angelstad, City of Northfield Finance Director; A Guide to the Northfield City Budget.
Angelstad stated that the funds use rate studies and long-term planning to determine what projects would be needed. The utility rates are then set to cover operations and any project costs. The four utility funds are Water, Stormwater, Wastewater, and Refuse (Trash).
Two other funds that support themselves are the DMV located in City Hall, which the State fully reimburses, and the Liquor Store Fund:
“Then again, as we mentioned, the liquor store and DMV also support themselves. The liquor store, you know, makes a profit annually and transfers some of that profit back to the general fund to help reduce the levy.” – Brenda Angelstad, City of Northfield Finance Director; A Guide to the Northfield City Budget.
The last fund that is often discussed is the NCRC Fund, a city-owned building that uses rent funds to pay for maintenance and does not make a profit from its operations.
Going forward in future newscasts as we discuss the budget, the General Fund and Tax Levy will be the main areas we discuss. Tomorrow we will discuss the historical trends of Northfield’s tax levy.
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