Small turnout at public tax hearing

Published 6:37 am Wednesday, December 2, 2009

What started as a routine and mandatory public tax hearing — with only two local reporters in attendance — became a bit of a shouting match between a citizen and a councilmember.

Mike Schuster, who lives in the former Lansing Township area north of Todd Park that was recently annexed into the city, showed up a bit late for Tuesday evening’s truth-in-taxation hearing, which is required of cities by the state.

He was concerned with his 2010 tax statement, which showed a big increase on the horizon, as well as what he perceived as a poor public response by city leaders to tornado damage in Austin’s newest area. It was that point that set John Martin off.

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Martin, the Third Ward councilmember, said he took offense to Schuster’s claims.

“It sounds like you’re asking for a baby-sitter,” Martin said.

Schuster said he wasn’t looking for a baby-sitter, just a representative or two to show an interest in his area of town.

“If I was in your position,” he said to Martin, “you’re damn right I’d go out and pound on the door. If you feel you’re baby-sitting, maybe you’re in the wrong position.”

The situation was calmed down some by Mayor Tom Stiehm, who told Schuster that the city worked hard to keep tax increases low.

In fact, the jump on Schuster’s statement may just be due to a problem crunching together city and county tax numbers.

Administrative services director Tom Dankert said Lansing residents paying city taxes for the first time were expected to be billed roughly the same amount as they were before — and an amount comparable to any other Austin taxpayer.

However, there may have been some discrepancy between what Mower County told the city these residents paid last year and what their statements said they paid.

Dankert said he will talk with county officials Wednesday about the issue.

Beyond that, the meeting was a straightforward discussion of Austin’s 2010 proposed tax levy and budget.

The city is proposing an overall levy of $3.9 million, which is an increase of 5.26 percent from last year. However, 1.42 percent of that increase is being covered by the new Lansing taxpayers.

If the levy is approved, which would happen during city council’s next meeting Dec. 7, it will be the seventh straight year the city’s levy has increased.

However, Dankert said this doesn’t necessarily mean a resident’s overall taxes will go up, because the figure doesn’t account for other taxes, such as those from the schools or the county. In fact, Dankert said he’s seen a number of tax statements that show decreases for what a citizen will pay in total taxes.

On the budgetary side of things, the city has proposed a $27 million operating budget, $14 million of which goes to the city’s general fund.

However, a wrench could be thrown in if the state decides to cut Local Government Aid again, as Gov. Tim Pawlenty did when he exercised his power of unallotment in June.

LGA makes up roughly half of the city’s general fund year-to-year, and changes in state funding will directly affect how Austin does business in 2010, Dankert has said.