ORR – Inflation costs and lost revenue are largely to blame for the city’s upcoming five-percent levy increase, which will impact property taxes payable in 2020.
The council voted unanimously to approve the increase, as well as the final budget for fiscal year 2020, at a meeting here on Monday, Dec 9. Some of the lost revenue is due to the loss of taxes from Wally’s Auto, which was destroyed by a fire back in late September. The city will also be losing revenue from the St. Louis County Assessor’s office when it moves from its current offices in the old Orr City Hall building to its new building in Cook.
Along with the levy increase comes an increase in property taxes. Depending on the market value of a property, an individual’s taxes could increase by as little as $4.59 or as much as $33.39. This is not the first time the city has increased the levy by five percent. In fact, the increase comes on the heels of a similar increase in 2018, which affected taxes payable in 2019. The council approved a three-percent increase in 2017.
The council held its Truth-in-Taxation public hearing prior to the regular meeting on Monday evening for citizens who wished to express their opinions regarding the 2020 budget and the potential levy increase, but no residents opted to attend.
In order to balance the 2019 budget, the council had to approve a fund transfer of $4,000 from the liquor store to the community center. The council also agreed to forgive a $60,000 loan from the Sewer Fund to the Airport Fund, as the airport is not in a position to pay back the loan at this time. The Sewer Fund has loaned money to the airport in the past to prevent it from operating in the red. The 2020 budget also saw a handful of transfers, largely to or from the General Fund, though a total of $31,100 will be transferred from the liquor store to a number of other departments.
The council also discussed what to do regarding maturing CDs it holds with North Star Credit Union (NSCU). Over a period of nine months, the water and wastewater CDs earned $3,087.60 in interest, while the ambulance CD earned $5,037.73. The council voted unanimously to deposit the money from the water and wastewater CDs in equal amounts to the water and sewer checking accounts to help cover costs during 2020. NSCU told the city they are currently offering a nine-month CD at 2.25% with no cap on the amount that may be deposited.
The council will meet next on Monday, Jan. 13 at 5 p.m.
In other business, the council:
Approved the purchase of a used tender truck for the Fire Department.
Introduced new city attorney Kelly Klun, who will be handling all civil matters for the city. Klun will be working on updating the city’s blight ordinances per the council’s request.
Introduced new city attorney Amber Peterson, who will be handling all criminal matters for the city.
Approved a 2020 renewal of Oveson’s Pelican Lake Resort & Inn’s liquor, wine, club, or 3.2% license.
Approved cigarette and 3.2% licenses for 2020 for Norman’s One Stop and Pelican Bay Foods.
Approved city expenditures in the amount of $97,857.31.
Approved a three-month extension of the St. Louis County Assessor’s Office lease at old City Hall. The extension will allow the county to remain in their offices within the building until March 31.
Accepted the option from the League of Minnesota Cities to not waive monetary limits on tort liability claims per Minn. statute 466.04. Waiving these limits would allow an individual to recover up to $2,000,000 on a single tort liability claim. Setting statutory tort limits prevents this and sets the highest amount a claimant can recover per claim at $500,000.

Approved the renewal of Blue Cross Blue Shield health insurance for full-time city employees. Monthly premiums are predicted to increase by just under $150 dollars.
Approved a request to move forward with a grant application through MnDOT-Aeronautics to replace the beacon at the Orr Regional Airport. The city would cover twenty percent of the cost for the new beacon, which would cost between $10,000 and $11,000.
Gave an update on how things are going for Neighborhood Crime Watch. The signs have arrived and will be installed as soon as possible. Community leaders were set to meet on Tuesday, Dec. 10 to further discuss the initiative.