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Sturgeon Lake city taxes to rise next year

City property taxes for the City of Sturgeon Lake will rise next year as council approved a $242,060 final levy certification at its December 15 regular meeting. The figure is up by about $58,000 from last year and represents a 31 percent increase from 2009. “It’s a difficult time right now,” said Mayor Tom Helfman. “We have to get over the next few years.”

While the general fund portion of the levy went up by a slight $8,000, the general obligation bond doubled to $100,000, to help cover loan payments for the city’s relatively new utilities.

In October of 2009 council took out an additional $670,000 loan through Minnesota Public Facilities Authority to meet the now finished construction costs on the end portion of the sewer system, e.g., the rapid infiltration basins. Costs in labor, materials and engineering fees had increased since construction contracts for the $8 million sewer system were awarded two years ago.

The sanitation system was completed in the spring of this year, and homeowners had until June 15, 2009, to connect. Council mandated that monthly sewer payments of $60 begin the following month in July. Water rates are set at $60 per month, as well.

Last month council certified about 25 delinquent utility accounts to the county auditor for collection on taxes payable in 2010. The outstanding debt owed by residents and businesses on the list totals roughly $81,000. “For some, this is their third year on the list,” said city clerk Elizabeth Cisar at last month’s meeting.

Concerned with the substantial rise in taxes, one resident at this month’s meeting queried council, “Is there anything you can do to cut costs?” He looked at the rising costs in electricity and suggested possibly limiting street light use, especially at low traffic intersections in town. He also suggested that council seek out federal or state grants to help thwart rising city costs.

“Hopefully we won’t keep increasing (the levy),” Helfman said. In looking to the near future he anticipates, “We’ll be in a much better position.”

On a motion from Dale Koslosky and a second from Warren Peters, council approved the city annexation of 83 acres of township land owned by partners and developers Art Underhill, Ron Mlaskoch and Ron Kohner. Council acted in follow-up to the Sturgeon Lake Township granting approval earlier in November.

Council briefly discussed the letter of understanding with the city from the partner group, Sturgeon Lake Pines, LLC, that was presented at last month’s meeting. The group intends to subdivide the parcel into 28 lots, located from Cathedral Pines Drive (north of Denham Crossing Road) along Market Street, and will provide for a new 80-foot wide road easement within the subdivision.

Particulars of the development are expected to be drawn during meetings with the city’s engineer and Sturgeon Lake Pines, LLC. The group is expected to submit a preliminary plan to council for approval at a future meeting.

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