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Hills council proposes 4.9-percent levy increase

By
Mavis Fodness

In a special Sept. 21 meeting, the Hills City Council set the preliminary amount received from local property taxes at 4.9 percent higher than last year’s amount.
In 2022 the city will collect $139,701, up $6,845 from the previous year.
The total 2022 city budget will be $354,141.
The extra levy amount covers the increase in the law enforcement contract with the Rock County Sheriff’s Office. Hills will pay $14,771 more or $39,026 for services in 2022.
Council members discussed the 2022 budget at their Sept. 14 meeting before adopting the preliminary levy percent at the Sept. 21 special meeting.
Each line item in the city’s budget was discussed, including those of city utilities.
They approved increasing water rates $1 per increment plus another $1 for garbage pickup to $19 per month. Sewer rates remain the same.
Council members also plan to replace equipment ($15,000) in the parks department as well as the continued improvement of the city’s infrastructure.
For 2022 Hills will have $68,355 from the federal government’s American Rescue Plan to spend on water and/or sanitary sewer improvements. Cities have until 2024 to spend the ARP funds.
Council members will conduct a Truth-in-Taxation meeting for 6 p.m. Tuesday, Dec. 14, to finalize the 2022 budget and set the final levy amount. Council members can reduce the current preliminary 4.9 percent increase. They cannot increase the percentage.
 
Auditor: ‘Pretty healthy fund balance’
Amy Mollberg, a certified public accountant with Meulebroek, Taubert & Co. in Luverne, recently presented the 2020 City of Hills audit report.
Overall she gave the city an “unqualified clean opinion,” the best rating the city could receive.
Mollberg commended city officials for their healthy general fund balance of 23 months.
“If you got zero more dollars, you could sustain (the same level of businessness) for 23 months without any more revenue,” she said.
“The state recommends five to six months — you guys have a pretty healthy fund balance.”

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