DATE: December 12, 2024
For Immediate Release
CONTACT: Stephanie Trottier
(763) 271-3202 | Stephanie.Trottier@ci.monticello.mn.us
Monticello, MN – On Monday, December 9, the City Council approved the 2025 property tax levy and budget during its regular meeting. The meeting included a public hearing to allow stakeholder feedback before the mayor and council members voted on the items.
The final city tax levy is $14,117,000 and the final Housing & Redevelopment Authority (HRA) levy is $499,000. This brings the total combined levy amount to $14,616,000 – an overall increase of 8.1% compared to 2024.
This approval follows a series of workshops held in the latter half of the year to find an appropriate balance between Council priorities, operational costs, and impacts on local taxpayers. The budget discussions took into account a variety of factors, including shifts in taxable market values, inflation, and costs of future projects.
The increase in the levy may not reflect the overall property tax changes for individual properties when compared to last year due to market value fluctuations. The average residential property experienced a slight market value decrease of 1.8%, while apartment properties saw an average market value increase of 9.0%. Commercial and industrial properties saw an average increase of 11.5%. In addition, a 7% decline in the market value of Xcel’s Monticello Nuclear Generating Plant will shift a greater part of the levy onto other taxpayers.
Property taxes are the primary funding source for cities in Minnesota. In Monticello most of the tax levy goes into the City’s General Fund to support many of the basic functions of local government, including public safety, snow and ice removal, and planning and zoning. A separate, smaller Housing & Redevelopment Authority (HRA) levy is used to fund the activities of the Economic Development Authority (EDA), primarily housing and redevelopment projects within Monticello. The City also secured grant funding for a number of projects but grant funds typically do not cover the entire cost of a project and require matching funds.
To support 2025 operations, the General Fund levy increased by 4.0%. This will support the addition of a new administrative position, an Emerald Ash Borer (EAB) response plan for trees, software needs, and consistent service levels. To manage rising operational costs at the Monticello Community Center, the Council allocated a $100,000 transfer from the DMV’s net profits to support ongoing initiatives, rather than relying on the levy to provide additional funding.
The City has spent the last few years defining and communicating its top priorities through Council workshops and public engagement. Monticello is a growing community with a need to both maintain existing assets and plan for sustainable future expansion. The City remains committed to pursuing alternative funding sources, including state and federal grants, to limit the impact on local taxpayers.