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Council approves payment plan and budget amendment to cover unbudgeted property taxes
Summary
After reviewing tax bills received after a rushed budget process, the council approved a resolution authorizing staff to pay outstanding property taxes and assessments on city-owned properties and to use reserves or unspent budget funds to cover a shortfall of approximately $38,435.40.
The Crookston City Council on May 5 approved a resolution authorizing payment of property taxes and assessments on city-owned properties to Polk County and a budget adjustment to cover amounts that were not included in the previous year's rushed budget.
City staff said last year’s budget process had been hurried and, when tax bills arrived, they identified tax amounts that had not been budgeted for the current year. Staff reported that the budgeted amount for property tax payments was $462,000. The first installment due May 15 totals $49,005.71; the October 15 installment is $41,274.11. Staff said the remaining unallocated balance was $38,435.40 and anticipated covering that balance from reserves or unspent budgeted funds.
Council members asked how such overspending was handled historically; staff said accounts that are overspent automatically draw from the city’s reserves through internal fund transfers. The council approved the resolution on a roll-call vote.
Staff said the amended packet provided to council earlier that day contained detailed dollar amounts and that payment scheduling will proceed so the city meets Polk County deadlines.
