by Erin Johnson
Thisweek Newspapers

The City Council at its Sept. 4 meeting approved Eagan's preliminary 2008 budget and property tax levy.

While the final budget and levy won't be adopted until Dec. 18, the council approved a preliminary levy increase of about $1.1 million over last year for a total levy of $24.6 million.

The council also approved a preliminary general fund budget of $26.6 million, which is an increase of 4.9 percent over last year's budget.

The bulk of the general fund budget is allocated toward public safety, with the Police and Fire departments getting $11.9 million. General government makes up $6.2 million of the general fund budget, parks and recreation make up $4.3 million, and public works makes up $3.4 million.

The budget increase is due to several factors, including wage and benefit increases for existing city employees, inflationary increases, and costs to hold the 2008 general election, Director of Administrative Services Gene VanOverbeke said.

The city anticipates a property-tax increase of 3 percent on the average-market-value home in Eagan, which in 2008 will be $281,208.

In 2007, the owner of a $278,920 home, which was the average in Eagan, paid about $709 for the city portion of property taxes. In 2008, the owner of a $281,208 home will likely pay about $730, VanOverbeke said.

While it's a small increase, it is more than the average Eagan homeowner has seen in the past couple of years, during which property taxes have mostly remained flat or even decreased slightly.

The property-tax increase includes more money for major road and infrastructure projects, VanOverbeke said.

"It allocates additional tax money for some transportation needs in the community," he said.

The council set the truth-in-taxation hearing date for Monday, Dec. 3, with a continuation date, if necessary, of Monday, Dec. 10.

The final budget and tax levy are expected to be adopted at the Dec. 18 City Council meeting.

Erin Johnson is at eagan.thisweek@ecm-inc.com.