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Winter 2012-13 City Hall - 3800 Laverne Avenue North - Lake Elmo, Minnesota 55042 (651) 747-3900 The City of Lake Elmo has increased its tax levy by $50,000 for FY 2013 – a 2.8% increase. The total levy amount will be $3,163,359. The levy use is broken down into three areas: General fund savings were realized by the re-struc- turing of personnel and no increase in police services provided by the Washington County Sheriff’s Depart- ment. Lake Elmo residents pay one of the lowest per capita rates for policing in the Twin Cities Metro and the lowest tax rate for a full service city in Minnesota. “2012 was a year we focused on staffing efficiencies and better management of our contracted services. By putting people in the right positions and focusing our efforts on priority items, we were able to achieve an operational savings”, said outgoing Mayor Dean John- ston, who ends ten years of service to the City in Janu- ary. 2013 will focus on two major policy issues for Lake Elmo: 1) the construction of a sewer line from I-94 to the Old Village – a mandate from the Metropolitan Council; 2) an improvement in the City’s water system both in hydraulics and water quality as a result of the 3M contamination. “This is a critical year for our community. We have residents in the Old Village area that are desperate for sewer service due to failing systems. Similarly, we have a number of residents affected by groundwater contamination that need a potable water source. Cou- ple these needs with a year-end deadline to receive $2 million in state grants and we have some heavy lifting to do”, said Mayor-elect Mike Pearson. A taxpayer owning a $300,000 home will see a $23 dol- lar increase in their property taxes. The average Lake Elmo home is valued at $344,000. Washington County has announced that they will not be increasing their tax rate in 2013. City Increases Budget by $50,000, Utilities to be the Focus in 2013 In response to a growing concern about high water bills, City staff will recommend two changes to the wa- ter rate schedule in 2013, At a December 11th work- shop, staff proposed a change to the billing cycle that corresponds to the calendar year, and a rate discount for those installing a new lawn to comply with the City Code. In addition, staff will continue to look at ways to provide a rate credit for summer lawn watering that complements the City’s conservation policy. “Our two month rate case analysis revealed that due to the infrastructure we have had to put in to address the 3M groundwater contamination, our rates need to stay the same to cash flow the water fund”, said Adminis- trator Dean Zuleger who completed the rate case with City Finance Director Cathy Bendel. Incoming Mayor Mike Pearson has asked the staff to look into conservation credits that can be applied to water users who use saturation sensors or other con- servation measures to provide some water bill relief and reduce expenses. Heavy lawn watering in the June through August quarter of 2012 caused a 350% increase in chlorine and fluoride costs. City to Make Minor Changes to Water Rates in 2013 City Hall - 3800 Laverne Avenue North - Lake Elmo, Minnesota 55042 (651) 747-3900