×
×
homepage logo

Crowd attends BE taxation hearing

Council answers questions about levy increase; 2024 budget

By Chuck Hunt - Editor | Dec 10, 2023

Over a dozen Blue Earth citizens gathered at City Hall on Monday evening, Dec. 4, to attend the City Council’s Truth in Taxation Hearing. Many of them voiced concerns about the proposed increase in their property taxes and the taxable market value of their properties.

More than a dozen Blue Earth citizens showed up at the Blue Earth City Council’s Truth in Taxation Hearing on Monday night, Dec. 4.

Many of them spoke about their concerns with a high increase in their property taxes, as well as concern about the sometimes dramatic increase in the taxable market value of their property.

Mayor Rick Scholtes explained that this Truth in Taxation Hearing was to hear about the budget, the increase in the tax levy, and not the increase in property valuations.

“The first thing we want to point out is that the increase in city property tax on your statement was a proposed increase of 20 percent on the tax levy,” Scholtes said. “But I want everyone to know that we have already lowered that number down to a 5.2 percent increase over last year.”

Council members questioned whether the budget could be cut some more, and get it down to a 3.5 percent increase.

Doing that, the council was told, would involve going into the city’s reserves.

“I am not comfortable pulling any out of reserves,” Scholtes said. “If we start doing that, then our reserves will go away eventually.”

Other council members agreed with that statement.

City administrator Mary Kennedy said there are no frivolous items in any of the budgets of the city departments.

Kennedy gave an update on the current budget, which showed a general/operating levy of $976,000 and a debt levy of $1,000,000 for a total levy amount of $1,976,000.

That is a 5.4 percent increase over last year.

“Our debt number is a high number, but look at what we have done with all the streets in town,” the mayor said. “Some big projects recently have pushed that number, but we are trying to get a lot done, and have more to do.”

Several residents still brought up the property valuations. One pointed out his valuation on his home went from $33,700 this year to $81,000 next year.

Mayor Scholtes repeated that there is a meeting on April 22, 2024, at 3 p.m., where residents can question their property valuation.

County Assessor Gertrude Paschke was at the Blue Earth Truth in Taxation Hearing on Monday, which is quite unusual.

“I am here because I thought there might be some questions about the increase in property valuations,” Paschke said.

She explained that homes are valued at what similar homes have been selling at, and that number is on a five year upward trend.

“Plus, the state has mandated that we increase the value of homes by another 7.5 percent and the land they are on at another 7.5 percent. So yes, some homes have seen a dramatic rise in valuation.”

She suggested that homeowners can contact her office after they receive their actual tax statements in February, or at the April meeting as well.

At the end of the discussion at the Truth in Taxation Meeting, the council did not take any action on the budget or the increase in the property tax levy.

They plan to approve the budget and levy at their next regular meeting, on Monday, Dec. 18.