The December 5 meeting of the Preston City Council began with a Truth in Taxation hearing, during which information about the proposed 2024 budget/levy was presented.
City Administrator Ryan Throckmorton reviewed budget details. Local Government Aid (LGA) in 2024 will be $539,116, or $31,737 more than in 2023. This was the first significant increase in LGA in over a decade. In 2023, the legislature passed an $80 million annual increase to LGA. Twenty years ago, LGA provided 42% of the city’s revenue, which was equal to the city’s levy. In 2024, the city’s levy provides 52% of revenue and LGA provides 23% of revenue. The other 25% of revenue comes from police/fire and other sources. The levy increase would have been about 2.8% higher had the LGA increase not been passed by the legislature.
The average value of a Preston home in 2016 was $160,000. The average value in 2023 was $256,000. There will be a slight increase in the total tax rate for 2024.
No one from the public commented on the presentation. The 2024 budget was approved as presented. The total levy for 2024 will be $1,201,705, or a 5.84% increase over 2023. A resolution was adopted certifying the 2024 levy.
Other Business in Brief
•The EDA reviews the revolving loan interest rate annually. It was recommended to set the rate at eight-tenths of the Prime Rate when closing is set, which will be unchanged from 2023. The revolving loan interest rate was approved as recommended by the EDA.
•An EDA plan was ratified for repayment of a Preston Public Utilities loan for the old Preston Dairy & Farm site. The city assumed that loan in lieu of acquiring the property along Fillmore St. E. The EDA is to pay $10,000 per year starting in 2024 out of its Development Fund. The repayment schedule will be reviewed annually.
•A resolution was adopted authorizing an application for a Flood Damage Reduction Grant Assistance Program to be submitted to the Department of Natural Resources for funding. Development funds could be used to purchase non-buildable property located in the floodway. The grant requires a 50-50 match. If the grant is awarded, EDA funds will be used for the match. The flood zone area being considered lies between Mill St. and the river.
•Throckmorton recom-mended Personnel Policy changes. One change to be addressed before the end of 2023 is language for the new Sick and Safe Time required by Minnesota law, as of January 1, 2024. Other changes include those approved through labor negotiations and language corrections. No action was taken this day.
•The city council meets next on December 18.
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