Growing city, county and school district budgets -- combined with escalating home values -- will add up to rising property tax bills for owners of houses and, to a lesser extent, apartment buildings. Valuation increases, while they happened citywide, varied by neighborhood based on sales prices of comparable homes in different sectors of the city.
"Some of them were as low as 1%," said
Those larger valuation bumps occurred in the new subdivisions on
A home with a current taxable value of
Apartment buildings are also increasing in assessed value, but on a smaller scale, and will see their city tax bills edge up by about 1.5% and their county bill grow roughly 2.5%.
Commercial/industrial properties, with their stable valuations, will be writing out slightly smaller checks for property taxes next year -- down 1.7 to 1.9% for city taxes and down less than 1% for county taxes.
The shift in the tax burden toward homeowners would be more pronounced if
The remaining 40% of new tax collections by the city, county and school district will be coughed up the owners of homes and apartments via their rising market valuations.
The city of
The actual taxes paid by Mankatoans next year will be a hair lower than those listed above and those stated on Truth in Taxation notifications sent to property owners in recent days.
That's because city leaders have decided to trim
That slight reduction will ensure that the city's tax rate will hold at the level it's been at for the past nine years, said City Manager
In other words,
"I don't know if there's any city in the state of
For 2020, the city will collect just under
Most of that revenue, combined with a slight increase in state aid, will go toward cost-of-living adjustments and increased medical benefit costs for employees.
"It's an increase in (cost of) supplies and an increase in personnel costs," he said, noting that police, fire protection, snow plowing, park operations, street repairs and other core municipal services rely on staffing. "Typically, 60% of your cost is personnel."
The council expressed concerns this year about the rising costs of health insurance for city staff. Hentges said it will be a long-term goal to bring down that cost curve through negotiations with the various labor unions representing the bulk of city employees.
The county plans to have a
Much of the levy will be absorbed by taxable market value growth, which increased in
Agricultural land, which has decreased in value in recent years, is expected to increase by 6.9% on average while residential property will increase by an estimated 5.9% on average. Even apartments, a fast-growing housing segment in
That means a homeowner with a
A farmer with property estimated at
Commercial property is expected to decrease by 1.4% in average value according to Stalberger, the county's property and environmental resources director. That could mean a savings of about
County officials say the increased levy will go toward increased staffing costs, future construction projects and equipment needs, and increasing demands on county departments.
"They're all feeling that volume that comes with additional population," County Administrator
Included in the budget are five new staff members, such as an IT security position and a part-time community health educator.
Tax collections by
Combined with state aid, the district's primary revenue source, the property tax revenue will bring the total general fund budget to
"We're looking at about a 4% increase in revenue from last year," Sager said.
About a quarter of that increase reflects achievement integration aid the state is providing to districts with a particularly diverse student population. The rest of the increase stems from a growing number of students attending local public schools.
"That is a key driver in any increase in school district levies," he said.
Both the state aid and the local levy are decided largely based on a formula set by the
"With more students, you might need more teachers. With more students you might need more transportation. With more students, you might need more supplies," Sager said. "The state formula acknowledges that and allows the levy to increase."
Most of the additional revenue is targeted at personnel costs -- cost-of-living increases, new hires to handle enrollment growth, higher costs for medical insurance and other benefits, he said. About 82% of the district's budget is consumed by personnel costs.
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