City of Red Wing

Red Wing's Truth-in-Taxation Meeting on the 2014 Property Tax Levy and Budget

Tuesday, November 26 2013 12:00 AM

The community’s participation and input in the budget and levy process are critical, valued and welcomed. The City Council will hold its annual truth-in-taxation meeting on Monday, December 2 at 7:00 p.m. The meeting will be held in the City Council Chambers in City Hall located at 315 West 4th Street. The purpose of the meeting is to provide the community with information regarding the City of Red Wing’s 2014 property tax levy and budget and take public input. We invite you to attend the meeting and look forward to the community’s participation.

We have all read or heard recent reports regarding concerns about property tax increases across the state and we take this opportunity to provide some thoughts and specifics about Red Wing’s 2014 preliminary and final property tax levy.

As the community puts the final touches on its 2014 budget it is recognized that the task is a little easier because of the actions taken by the Governor and Legislature during the 2013 session. After years of cuts and stagnant funding the Local Government Aid Program was increased by $80 million. However, while we recognize the significant importance of this Program in addressing property tax relief and tax rate inequities across the State, in Red Wing’s case the community will see no ($0) increase in Local Government Aid and it is actually forecasted that the community’s Local Government Aid will decrease in future years. In addition to providing additional funding for Local Government Aid the 2013 legislature also exempted cities from state sales tax saving Red Wing taxpayers and rate payers approximately $224,000 annually. These savings help minimize property tax and utility rate escalation.

Red Wing’s preliminary levy was certified with a 4.2% increase over 2013. As the result of difficult decision making and prioritization the Red Wing City Council reduced the final levy to a 3.00% increase. The increase in the City of Red Wing’s final property tax levy is not primarily the result of new spending. To the contrary, 90% of the total increase results from the loss of state-paid Utility Valuation Transition Aid, 36% results from increased debt service, 24% results from increased capital replacement and the foregoing are offset by reductions to operating expenses. The tables below may assist in understand Red Wing’s unique situation.

2013 Levy

 

$14,150,314

Debt Service Increase

+

155,649

State-Paid Utility Aid Reduction

+

380,951

Increase in General Fund CIP Contribution

+

100,000

All Other

-

212,091

Final 2014 Levy

 

$14,574,823

 

 

 
 

 

 

 

Contribution to Increase

Debt Service

+

36%

State-Paid Utility Aid Reduction

+

90%

Increase in General Fund CIP Contribution

+

24%

All Other

-

50%

 

 

100%

       


If you have any questions or concerns about anything you have read in this article please contact our Finance Director, Marshall Hallock, CPA, or our Council Administrator, Kay Kuhlmann at 651.385.3600.

 

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