Posted on December 14, 2023 at 1:44 PM by Haley Foster
DATE: December 14, 2023
For Immediate Release
CONTACT: Haley Foster
(763) 271-3202 | Haley.Foster@ci.monticello.mn.us
City Council Approves 2024 Budget and Property Tax Levy
Monticello, MN – On Monday, December 11, City Council approved the 2024 budget and property tax levy at a public hearing. The total combined levy amount is $13,525,000 or an 8.6% increase. This includes the City of Monticello tax levy and the Housing and Redevelopment Authority (HRA) levy.
The adopted city levy is $13,034,000, an increase of $1,024,000 over the 2023 city levy. The HRA levy for 2024 will be $451,000, or $49,000 more than 2023. The HRA Levy is used to fund the activities of the Economic Development Authority (EDA), primarily housing and redevelopment projects within Monticello.
“Staff originally recommended an 8% increase for the levy. It was decided to bring forward 9% by council to put some more money into the Capital and General Funds,” noted Mayor Lloyd Hilgart.
After lengthy discussion, Council decided to remove some funding to the Capital Fund, dropping the City’s portion of the levy from 9 to 8.5%.
“In 2022 we did 2.7% levy increase, surrounding communities were doing a lot more than we were. Even the 6.1% in 2023 was pretty low considering inflation,” said Mayor Hilgart.
Councilmember Sam Murdoff agreed with Mayor Hilgart, adding that the previous year’s lower increases are also impacting this year’s levy amount.
“I understand the desire to have those lower numbers, but it’s not something that can always be done… Two years we only upped it 2.7% and now we’re paying for it. We did 6.1% when inflation has been going at 10% the last two years, and we were severely behind, and now we have to catch up,” added Councilmember Murdoff.
The levy was influenced by a variety of factors. This year, the city’s largest property taxpayer, Xcel Energy decreased in value shifting a greater part of the levy onto other taxpayers. Therefore, residential, commercial & industrial, and apartment properties will see a greater increase in property taxes regardless of the levy amount approved.
“We as a community, we have to figure out how we can continue to thrive and grow, sustain our current level, and succeed without the contributions from Xcel. Unfortunately, I don’t know that there’s a way to do that without adjusting our taxes that we as citizens pay,” said Councilmember Tracy Hinz.
City Council held several budget workshops from July through September of 2023 to weigh budgetary needs with the associated tax burden on property owners in the community. Their goal was to ensure consistent levels of services and programs the community has enjoyed in the past, while addressing the following increased or new costs:
- Increases in the cost of local law enforcement
- 3 elections in 2024: Presidential Primary, Primary, and General
- Inflation and rising operational costs
- Response to the spread of Emerald Ash Borer (EAB) in Monticello
- Maintenance needs for assets like local pathways, which were cut from previous years’ budgets
What are Property Taxes used for?
About 1/3 of the funds are used to make the City’s debt payments, fund capital projects, and support the Monticello Community Center. The remainder of the levy is put into the General Fund.
The General Fund pays for city services like public safety, including the contract with Wright County Sheriff’s Office; snow and ice removal; and funding city departments. The tax levy funds larger projects over time as well as complete our day-to-day operations on behalf of the public. It’s divided as follows:
- 30% of the general fund goes to public safety
- This includes building inspections, the fire department, and law enforcement
- 24% goes to public works
- Public Works covers things like snow and ice removal, street maintenance, and the water department
- 21% funds general government
- For example, planning and zoning, finance, and administration
- 17.9% goes to recreation and culture
- This includes park maintenance, and the City’s contribution to the senior center and MontiArts
- 7% for sanitation
“The hard part is, we have increased costs. Every year our costs go up just the same as everybody else’s. Unfortunately, we have to accommodate that, otherwise the only alternative is to start cutting services to the community. But if we do that, we’ll have people coming in here saying ‘hey we didn’t like that our street didn’t get plowed for two days or I got stuck trying to get out of my driveway because the street wasn’t plowed,’” said Councilmember Murdoff.
Councilmember Charlotte Gabler agreed, pointing out that each member of the City Council lives in the City of Monticello and is directly affected by these increases.
“I don’t like 9% just as much as someone doesn’t like the 10% or the 2% - but we have to do something in order to maintain what you call home every day: the City of Monticello,” she added.