PRELIMINARY STAFF PROPOSAL ON THE 2019 TAX LEVY Monday night offered two options, a 6.72% increase over 2018 or a 5% increase. Both are too high, as they always are on the first go-round. Minnetrista has seen growth this past year in new residences and obviously needs to provide city services to those additional residents and will, of course, require a budget increase to do so. But most of the city’s market valuation growth has been from the rise in property values on previously existing properties. Total market valuation growth this past year has been approximately 7.5% (approx. 2.5% from new and 5% from existing properties).
I suggested Monday night that a levy increase of 4.5% should more than adequately provide services for both existing and new residents in Minnetrista (2.5% increase for growth plus 2% inflationary increase). I also identified some items in the proposed budget that need to be evaluated. A tax levy increase does not, necessarily, translate to higher taxes paid if the levy increase stays in line and tracks closely with population growth. Residents are encouraged to attend upcoming public hearings on the 2019 tax levy. Watch for those dates here and on the City of Minnetrista’s website.
Minnetrista Governance Blog 