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Serving Northern St. Louis County, Minnesota

Board to seek $150,000 levy

Jodi Summit
Posted 2/22/17

GREENWOOD TWP- In recent years, the local tax levy in Greenwood Township has ranged from a high of $496,422 in 2012, to a low of $1 in 2017. With the realities of the $1 levy coming into effect this …

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Board to seek $150,000 levy

Posted

GREENWOOD TWP- In recent years, the local tax levy in Greenwood Township has ranged from a high of $496,422 in 2012, to a low of $1 in 2017. With the realities of the $1 levy coming into effect this year, which means the township will receive no property tax apportionment from the state, the township is preparing to ask residents to approve a $150,000 tax levy to help fund a proposed $340,122 budget for 2018.

The township’s current general fund balance is about $980,000, though roughly $100,000 of that is in dedicated funds that cannot be used for general fund spending.

“We should have a balance of around $660,000 at the end of 2017,” Bassing said.

Treasurer Delores Clark noted the township will receive some other state tax funding, but the amounts cannot be predicted.

Levies the past three years have been lowered in response to a significant surplus in the township’s general fund. The township levied $477,689 in 2014, $150,000 in 2015, $100,000 in 2016, and then just $1 for 2017.

The 2017 township budget projected spending of $361,384, will reduce the township’s surplus to a more realistic level, according to town board members.

The town board reviewed their 2018 budget at the Feb. 14 meeting. Chairman John Bassing reviewed the budget noting there was a two-percent wage increase for supervisors and the chair, and that the fire department wages were by contract (which calls for a one-percent increase per year). A big question is the cost for the maintenance supervisor position. Pat Trancheff who has been in that position has been out on sick leave. The township has hired some contractors to fulfill some of the maintenance duties, and has recruited volunteer help for others. Bassing said they are keeping a full-time salary in the budget, but said that would only apply if the employee came back to work full time. The township only paid $25,865 in maintenance wages in 2016 (for January through June), and has budgeted $44,586 for 2017. Trancheff has been on workmen’s compensation since the time he was unable to work, and the township is unsure when or if he will be returning. The 2018 budget has $46,053 for this full-time position, which was set per contract.

The budget also reflects a reduction in salary for the fire department administrative assistant from a budgeted amount of $9,384 in 2017 to $2,610 for 2018, since the 911-coordinator portion of that job is now being done on a volunteer basis. The township also no longer has salary costs for a planning director, which had been at $22,220.

Most other line items in the township budget are remaining fairly stable. The township spent $19,172 on legal services in 2016, and budgeted $5,000 in 2017. The line item for 2018 is set at $10,000. Insurance costs are budgeted to remain fairly close to actual spending in 2016, at $25,000, with health insurance costs at $15,000 (the township pays for a family policy for the full-time maintenance position). The 2018 budget year will have statewide elections, so election costs will be upped from $3,000 in 2017 to $7,000.

Costs for planning and zoning are being eliminated. In 2016 the township spent $8,750 on wages for meetings and $4,414 on expenses. On the other hand, in 2016, the township received approximately $13,000 in fees for planning and zoning. It was noted the township will no longer have any legal costs associated with planning and zoning.

Supervisor Jeff Maus noted that the fire department’s pension plan was adequately funded, and would not require additional township contributions at this time. The township also contributes to a retirement fund for EMS members.

The 2018 budget shows a decrease in fire department spending from $54,000 in 2017 to $30,000. The township’s actual spending on the fire department in 2016 was $34,440.

The 2018 budget is showing an increase for repair/maintenance, to cover the costs of painting and new siding for the town hall building.

While the town board approves the township budget, township residents do have control over the township levy, which will be set at the annual meeting on March 14.

The vote to approve the township budget for 2018 was 4-1, with Maus voting against.