Albertville To See Increased Taxes and Levy for 2013
The termination of city administrator Larry Kruse will make it impossible for Albertville to hold the line on its portion of the annual tax bill.
As the city of Albertville begins examining its budget for 2013 an increased budget and general levy is inevitable.
When City Administrator Larry Kruse was terminated in April, unbudgeted dollars were spent from the general fund to cover not only his severance package, but also the legal fees incurred by the city.
Albertville also is currently spending unbudgeted dollars on interim city administrator Bob Thistle's compensation, as well as search firm fees.
"We're using $100,000 as a placeholder," Thistle said earlier this week.
Because the money has been spent from the general fund, the money will need to be replenished in order for the city to maintain their high quality credit rating.
The $100,000 estimate does not include the possible unemployment compensation that will be due to Kruse if he has not started a position by the end of October.
"Because we don't know if Kruse will receive unemployment yet this is not part of the budget," Thistle said.
Kruse was a finalist for the Spring Lake Park city administrator job, but lost out to Hanover's city administrator, who has moved on. It's not known if Kruse, who lives in the area, will take aim at Hanover's opening.
"I have had many people ask me how much the termination will cost taxpayers, and I guess we can now say it will be at least $100,000," city council member Larry Sorenson said.
This $100,000 would come from an increased levy of 3.3 percent, making up half of the levy increase the city council is currently discussing. The preliminary levy increase amount is a 6.4 percent or $202,353.
The estimated impact per household is being calculated by city finance director Tina Lannes and will be discussed at an Aug. 20 budget workshop.
Also included in the levy increase is a proposed cost of living increase for city employees. If approved, this impacts the levy by $7,100.
Last year, after weeks of discussion, the Albertville council did approved a 2.4 percent cost of living increase for employees. The total levy increase was 1.5 percent for 2012.