GRANITE FALLS -- City Council members in Granite Falls are projecting a 4.5 percent increase in the tax levy for fiscal 2006.
The members approved a preliminary budget at their meeting on Tuesday. The new budget would increase the levy by $39,325 to $921,844, as compared to $882,519 for the current fiscal year.
City Manager Bill Lavin reported that increases in costs led to a need to increase the levy for general fund activities. The general fund levy represents $411,244 of the total. The levy for debt service represents the remainder at $510,600.
The budget projects total expenditures of $1,705,323 in 2006, as compared to this year's budget of $1,589,720.
Local government aid for the 2006 budget is pegged at $718,778, or $79,402 more than originally expected. The Legislature approved an increase in local government aid during the special session.
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Lavin reported that local government aid is lower than previous levels, however. He said the city's local government aid payments totaled $822,084 in 2002, and have decreased since.
Council members scheduled Truth in Taxation meetings for Dec. 5 and Dec. 19 on the budget.
In other matters, council members discussed but took no action on a request by Tri-County Cooperative Oil Company to sell its bulk fuel business. The city had previously secured state funding to assist with an approximate $267,000 project to move the bulk fuel depot from a location fronting U.S. Highway 212 on the west end of the city to the city industrial park on the east side.
Council members referred the matter to the Granite Falls Economic Development Agency.
-- Tom Cherveny
