Mendota Council Approves Levy Increase for 2011

Mendota residents' city property taxes will increase in 2011, due in part to an anticipated loss of state revenue and a transition in police protection payments.

The city council approved the 2011 budget and levy at their meeting Dec. 14, resolving an anticipated total loss of local government aid from the state while at the same time facing increased payments for police protection from Mendota Heights Police Department.

The city was scheduled to receive $25,000 of local government aid in 2010, but received $13,095. Mayor Steve Golias said the state auditor's office told the city not to expect any LGA payments this year.

Expenditures for the city are budgeted to be $187,323.33. Total revenue including license fees, fines, gambling revenue and investments total $166,581. The city will gather $151,860 in property tax levy payments for 2011, an increase of $17,301, or 12.86 percent.

City reserves will make up the difference between expenditures and revenue.

Instead of increasing property taxes the full amount needed to cover expenses and make up the lost state aid revenue, the council decided to pass on half of the increase to tax payers, and supplement the other half with money from the city's savings said Mayor Steve Golias. "We're just trying to reduce the hit to the people."

The city council no longer receives a stipend for their service in an effort to cut costs. City Attorney Tom Lehmann decreased his annual salary of $30,000 to $24,000, and the city clerk now performs payroll services instead of contracting that job out.  

Mendota's police service is provided by the Mendota Heights Police Department. With a recent transition in Mendota Heights' administration, the billing for the year has transitioned from a year-end payment for the previous year's service to a monthly payment for the completed month. That has added an additional three years of annual $22,357.33 catch-up payments negotiated between the two cities.

Overall, the Mendota Heights Police Department has reduced their costs by $50,000 according to a report by Police Chief Mike Aschenbrener given in September.