Pine City Sets Levy, 6.52% Increase
Pine City is in a position shared by many cities across the state of Minnesota, increase taxes to make up for cuts to Local Government Aid. The city council approved the 2010 property tax levy at Wednesday’s truth-in-taxation hearing. The levy increases 6.52-percent.
City administrator Don Howard says the cuts made at the state level left the city with few options.
The final levy is $1,086,972 which is an increase of $66,564. The local tax rate changes from 36.21-percent in 2009 to 38.91-percent in 2010. This means a roughly $27 increase for a $100,000 home, or $2.25 more per month.
When Pine City set the preliminary levy in September the increase was 11.89-percent. City council member Brian Scholin said the city worked hard to scale down the impact on tax payers.
Earlier this week, Governor Tim Pawlenty said it may be necessary to unallot a portion of December 2009 local government aid. The state’s budget forecast projected a $1.2 billion deficit.
Howard told the council Pine City is supposed to receive $250,000 in local government aid, but says the city should not expect the money.