The mystery of the Mower County budget and property taxes will be solved Thursday.

That's when the Mower County Board of Commissioners will hold its annual Truth In Taxation hearing.

The hearing begins at 5 p.m. in the county commissioners' meeting room in the lower level of the government center in downtown Austin.

By legislative mandate, the Truth In Taxation hearing seeks to answer all questions for all taxpayers.

Cities and school districts hold their own hearings first. Townships are exempt from having to hold a hearing. Then, the county holds its hearing.

"I don't think there will be many or any changes to the levy or the budget from what the county commissioners announced in September when they did their proposed levy and budget," said Craig Oscarson, county coordinator.

The following is a breakdown of the hearing.

Who?

The Truth In Taxation hearing brings together the county board members. Also, other elected officials and department heads, agency representatives hoping to receive a slice of the county budget and the taxpayers who will pay for those slices.

What?

The current 2002 budget of $31,857,760 will increase to $34,178,422 in 2003.

That's an increase of $2,320,662.

The county commissioners can leave the proposed levy "as is" or reduce it.

It cannot be raised from the current figures.

The levy -- a proportionate share of the taxes needed by government that different classifications, such as agricultural, commercial/industrial, residential and township residential must pay varies by taxing jurisdiction.

According to the Mower County Chief Deputy Assessor Jerry Becker, the property tax statements show the agricultural land levy is increasing by 50 cents to $1.50 per acre, township residential is up 5 to 10 percent and the city of Austin residential levies remain the same or even dropped a "little bit."

But drawing any generalizations is impossible, because of the many jurisdictions -- school districts and housing and redevelopment authorities.

For instance, a Tax Increment Financing District to help the Wildwood Grove assisted living project situation in the city of LeRoy will see a huge jump in the levy in that eastern Mower County community. It's an anomaly this year. Taxes do go up, but increases between 40 and 95 percent are predicted in the city of LeRoy.

There are some 20,200 taxable properties. That's the number of property tax statements mailed to Mower County residents in November.

According to Jerry Becker, chief deputy county assessor, the total market value of all taxable property in the county is $2,059,1125,400. The market value of property in the city of Austin alone is $794,545,000.

The maximum tax capacity for all property in the county is $19,742,179. In the city of Austin, it's $8.8 million.

The tax capacity is the limit property can be taxed.

When?

After the TNT hearing, the county commissioners will act on the levy and budget at a regular meeting later in December.

No action can be taken at the Truth In Taxation hearing. It is merely to hear the public's input.

When the county board does approve a budget and property tax levy, the actual tax statements are mailed in late-March and payable (first-half) in mid-May 2003.

Incidentally, other taxing jurisdictions, such as municipalities and school districts will hold their own Truth In Taxation hearings when they meeting this week in addition to the county's hearing Thursday afternoon.

Where?

What goes around comes around in May and October, when first- and second-half property taxes are due at the Mower County Treasurer's office.

It's as simple as that: taxes levied have to be paid.

Why?

This much is known about the proposed property tax levy increase facing taxpayers.

The $297,613 increases the levy by 3.8 percent to $8,130,800.

The increase includes a 3 percent increase in library funding and a $4,291,000 increase for new positions.

Taxes pay for the programs and services government provides citizens.

Final thoughts

Len Miller, 4th District county commissioner and chairman of the board, calls the budget process "exciting."

"It's a long process, but a very important one for everyone," Miller said. "For instance, this year, the county will see its HACA aid reduced by $270,000. We will also see about $300,000 in cuts from the Department of Human Services. We will have to adjust to those cuts."

"That's why the county board's strategy to take a long-term approach to spending down the fund balance makes sense," he said.

"The library increase and the new positions are the reason for the small levy increase," he said. "The county is also going to see increases in its health insurance costs, plus other inflationary factors that will create deficit spending."

"We're still in a healthy financial shape -- thanks to the recommendations of our long-range strategic planning initiative -- but we all realize we are going to have to continue to be cautious when it comes to spending the taxpayers' money," he said.

County commissioner Ray Tucker, 2nd District, had this to say about next week's TNT hearing and the county's fiscal health: "The County Board is efficiently working on the surplus. We've got a plan."

Lee Bonorden can be reached at 434-2232 or by e-mail at :mailto:lee.bonorden@austindailyherald.com