RANIER — The Ranier City Council Monday set its preliminary 2013 tax levy at $150,000 — about a 7 percent increase from what was collected from property owners this year. 

The preliminary levy must be set in September and finalized in December. The levy can be reduced before December, but may not be increased.

Ranier Mayor Ed Oerichbauer said even though the council set the levy for $10,000 more than was collected in 2012, he expected when the levy is finalized in December that taxes will not increase.

Oerichbauer said the increased levy should not cause a rise in property taxes in 2013 because the levy will be spread out over more properties as a result of annexation, which brought into the city limits additional residences.

In other business Monday, the council agreed to decrease the city’s annual liquor license fee from $2,800 to $1,500 for the city. 

Oerichbauer said the city’s new license amount closer matches the fees of Koochiching County and the city of International Falls, both of which have annual fees of $1,200.

The council also agreed to charge a $200 annual fee instead of a $500 fee for Sunday liquor sales. 

The council also amended the city’s cigarette ordinance to increase the fee for cigarette sales from $12 to $38 annually. 

The council agreed to hire Nick Sears to serve as the maintenance employee for the city. Former maintenance employee, Teddy Pearson, resigned in August, but agreed to work part-time to train Sears.

In other action, the council agreed to have Oerichbauer and Kim Nuthak, city clerk, sign a resolution that would allow North Koochiching Area Sanitary District engineers to establish an easement for an existing lift station located at the intersection of Spruce Street and East Avenue in Ranier. 

Improvements within the lift station are being paid for by the district as a whole, of which Ranier is a member. 

The council also agreed to renew a joint powers agreement with Koochiching County to Jan. 1, 2014. The two-year agreement will end Nov. 22, and the county board already agreed to extend the agreement.

The council is extending the agreement which was established in 2010 during the annexation process because the city is still working on its zoning ordinances and is establishing a transportation plan. 

No money is exchanged between the two government bodies as part of the agreement.