Correction: In a Tuesday article, “Property tax goes up by 2.15 percent,” the Northern Star said City Council decided on a 2.15 percent property tax increase. The motion for the increase failed in a 4-4 tie. The motion for no increase was passed with a 5-3 vote.

After much deliberation and two rejected motions, City Council decided to increase homeowners’ property tax by 2.15 percent at Monday’s meeting.

City Council and the Finance Advisory Committee met Nov. 13 to discuss an increase in the tax levy to help the city gain revenue. The meeting resulted in the proposal of a 4.32 percent increase in property tax.

Finance Director Cathy Haley said one option City Council had to choose from was to increase the levy by 3.33 percent, which would result in a 4.32 percent increase in residential property tax. Money received from property tax will go toward city employees’ retirement benefits, like social security obligations.

Two other options were to levy an amount from the current levy of $6,569,364 to under $6,787,829 or to levy an amount that did not exceed the ceiling of $7,064,544.

Many of the alderman expressed concern for increasing property tax. Fifth ward Alderman Ron Naylor and 6th ward Alderman Dave Baker brought up a proposal in an effort to keep the tax from rising.

“I would like to see the levy be held to a similar amount that was levied this past year,” Naylor said. “The reason being, basically is that in our budget, we had budgeted that dollar amount $4,270,000.”

Naylor and Baker’s proposal and the original 3.33 percent increase were denied by a deadlock vote.

City Manager Anne Marie Gaura said there were no other options left.

First ward Alderman David Jacobson said City Council members need to step up their work in serving the residents and figuring out a proper budget. He said in the past years there have been raises and positions made that earned “six-digit salaries,” and he said those expenditures contributed to the loss of revenue the city was facing.

Jacobson said the city needs to cut back on spending, and the actions the city is taking in terms of expenditure are not sustainable.

Following deliberation, 2nd ward Alderman Bill Finucane made a motion that City Council increase property tax by 2.15 percent instead of 4.32 percent.

Haley said that with the 2.15 percent increase on property tax, the city would see a $109,000 increase in city revenue.