Marshall Hallock, Director, Finance Division
The essence of the City of Red Wing's organizational mission is to provide quality services at an affordable price. To achieve this, strong leadership is required to bring the community together, prioritize use of resources and, wherever appropriate, collaborate with outside partners to build and renew the community.
As part of the Truth-in-Taxation process, the City of Red Wing is required to follow certain procedures in the adoption of its levy and operating budget. Based on state statute requirements, cities had to certify preliminary proposed 2010 property tax levies to county auditors by September 15, 2009. The county auditor then prepares property tax notices sent to each property tax owner showing the proposed levies adopted by the different taxing jurisdictions including the City of Red Wing, Goodhue County, Independent School District 256 and others.
The City of Red Wing's proposed levies are based on requirements for general operations and special levies for debt service. The proposed levy establishes the maximum levy for 2010. The final levy that will be approved in December cannot exceed the proposed amount unless there is an approved referendum levy passed, a natural disaster or a tort liability judgment in the interim. Therefore, it is critical that the City Council take into consideration other factors which may impact the ability to adequately finance the 2010 operations. These factors include, but are not limited to, changes in state aids, other state actions, mandates and fluctuations in other major revenue sources.
After county notices are sent, Truth-in-Taxation public hearings are held to offer opportunities for public input regarding the adoption of the final levy and operating budget. After public hearing(s), a final levy and budget will be adopted prior to December 28. The City of Red Wing's Truth-in-Taxation public hearing on the tax levy and budget will be held in the City Council Chambers at City Hall December 7 at 7:00 p.m. At this hearing, the City Council will review the proposed budget and levy and accept public input. Final adoption of the tax levy and budget will occur at the regularly scheduled City Council meeting December 14.
City staff and elected officials have met several times this year to discuss the levy and budget at a number of work sessions beginning in midsummer and will continue to meet through fall.
Three Percent Property Tax Levy Increase Proposed for 2010
What Each City Tax Dollar Supports
The City of Red Wing's proposed property tax levy is $13,039,928 for 2010. This is a proposed increase of $379,804 (3 percent) over 2009. This levy supports all general city operations such as streets, police, parks, fire and more (see pie chart below). The proposed increase would partially offset significant reductions in state-paid local government aids, support important capital improvements and acquisitions, additional public safety personnel, federal and state mandates and continued city services.
The following graphics represent additional information about Red Wing's property tax levies including the proposed 2010 property tax levy. The proposed 2010 property tax levy represents an annualized increase of 2.58 percent since 2002.
How will the proposed tax levy affect homeowners?
Property Taxes Paid in 2009 vs. 2010- No Valuation Change
Property Taxes Paid in 2009 vs. 2010- Average Percent Increase
For residential properties which have no change in valuation, the proposed increase in the local tax levy and rate is estimated to increase by 2.4 to three percent. For example, the property taxes paid to the City of Red Wing on a residential property valued at $100,000 are estimated to increase by $11.52 annually. For a $200,000 residential property, the estimated increase will be $25.22 and for a $300,000 residential property, the increase will be $38.92. The two graphs below represent preliminary information about the proposed City of Red Wing portion of the property taxes paid for residential properties which had no change in valuation and those with a five percent increase in valuation over the prior year.