MARSHALL - Less than one percent. That's the increase in the city of Marshall's tax levy for 2009.
The Marshall City Council Monday night approved a .88 percent increase in the 2008 tax levy payable in 2009.
That's a reduction from the roughly 3.5 percent increase or 2.3 percent city share of the tax levy increase shared at the Dec. 3 Truth in Taxation meeting.
"I would anticipate a number of residential property owners will see a reduction in city taxes, at least for 2009," city administrator Ben Martig said.
The new figure is supported by a wage freeze for city employees.
While the council approved a wage freeze for 2009, it may not hold as some of the city employee unions must negotiate new contracts for next year.
Martig and city mayor Ben Martig said the council wanted to cut the budget more after the Truth in Taxation hearing, the state of the economy and the possibility of cuts in the state local government aid.
Martig said the city cut capital expenses including one police squad car, a pickup truck, a tandem axle truck and others. Items retained in the budget include at least $10,000 for improvements to the elevator at city hall and an ambulance garage.
"If we don't do $10,000 in improvements to the elevator it will be shut down...," Martig said. The state has indicated some improvements are needed in order for the city to continue to use the elevator, Martig said.
The ambulance garage project will be an expense but the city will lease the garage to North Ambulance and that will help to pay the debt, Martig said.
While the council passed a wage freeze, Martig said the 2009 budget does include a 1.5 percent wage increase, "depending on what happens in the future."
Martig said he held a meeting Monday to tell them about the proposed wage increase.
In other business:
The council agreed to an offer from Robert and Phyllis Carr to sell about 12 acres of land south of Minnesota Highway 23 near new residential development for park land. "This is extremely reasonable...," councilman Charlie Sanow said. City engineer Glenn Olson said, "our intent is to do improvements over the next two, three, four years," Olson said.
The council agreed to lend Southwest Aviation or Midwest Aviation, the fixed base operator at the municipal airport about $470,000 to buy two rebuilt airplane engines that are in foreclosure. The engines will be up for bids Wednesday, city officials said. Midwest Aviation had been sold to a division of Petters, the company owned by Tom Petters and now involved in allegations of financial misconduct. Johnson was able to buy back Midwest Aviation. City officials said the purchase of two rebuilt engines is one needed piece to restore Midwest. "We're glad to have you back Pete," councilman Dan Ritter said.