By Trey Mewes and Jason Schoonover

As 2014 nears, local government officials are ready to meet with residents about taxes.

Annual Truth in Taxation meetings will take place across Mower County over the next few weeks as city councils, school boards and the Mower County Board of Commissioners break down property taxes and budget information for local residents. Commissioners will hold their Truth in Taxation meeting at 6 p.m. Tuesday, Dec. 3, inside the board conference room at the Mower County Government Center. The Austin City Council will also hold its Truth in Taxation meeting at 6 p.m., inside City Council Chambers.

City taxes decreasing

Austin’s city property taxes will decrease by 1 percent next year.

The city of Austin’s tax levy is set at about $4,120,000, up about $12,000 from what the council first proposed so the city could hire another police officer in January 2014, instead of in March. That’s still $40,000 less than this year’s levy, set at $4,160,000.

That means less than a few dollars in potential savings for the average taxpayer, according to city officials.

While the city is set to receive an extra $700,000 from Local Government Aid next year, that will likely be tied up in employee wage increases, a new police radio tower, capital projects and non-state funded street projects, according to Finance Director Tom Dankert.

Austin Mayor Tom Stiehm credits the city’s fiscal planning for the slight tax decrease next year, as Austin among the minority of cities to lower taxes in 2014.

Preliminary data shows the likelihood of more tax levy increases than cuts despite the state providing tens of millions of dollars in aid to local governments under the guise it would hold down taxes. While still subject to change, 93 cities are on course to lower property taxes, 223 are holding steady and 537 are planning increases. Out of 87 counties, only seven planned reductions, 13 planned no change and 67 were looking at increases.

To Stiehm, increased taxes in other cities shows there are plenty of areas in Minnesota are “catching up” on services and projects.

“What the cities have done is they’ve put stuff off year after year,” Stiehm said. “There’s not levy limits anymore, at this point what they’re doing is catching up on their projects. Fortunately, we stayed up on our projects.”

The Austin City Council drew criticism for raising property taxes by about 13 percent in 2012, due to the loss of the state’s Homestead Market Value Tax Credit. Overall, residential taxpayers saw lower tax bills this year thanks to increasing agricultural and commercial land values, which subsequently raised the tax rate for those properties while decreasing residential tax values. Stiehm said the council’s decisions have placed the city in a good place to continue decreasing taxes.

County eyes 2.2 percent tax increase

The county’s 2014 tax increase will be noticeably smaller than last year.

In September, the county board unanimously voted to set its maximum tax increase for next year at 2.2 percent, compared to a maximum 11.5 percent levy increase the board set around this time last year.

Last year, the finance committee and board spent several months looking for ways to hone in the max 11.5 percent increase. Eventually, the board whittled the increase down to 9.11 percent and used $500,000 in reserves to drop it to about 6 percent.

The 2.2 percent increase would bring the levy to $17,603,221.The board will again look to tighten this year’s levy.

The most expensive factor driving the 2.2 percent levy increase is 14 new position requests — including nine in Health and Human Services.

As planned last year, the county will use $400,000 of reserves for property tax relief. In total, the county will spend $1,380,000 in reserves in 2014 — including $450,000 to replace the Oakland Avenue Bridge at the East Side Lake dam. About $128,000 will be paid back into reserves, largely through conceal and carry permits and E-911 dollars — both reserve funds that are restricted. The county is expected to get an additional $300,000 from the wheelage tax.

In the future, the board may discuss other revenue options, including an aggregate tax on gravel and a local option sales tax that can be used to fund specific highway projects.

Like last year, it looks like agriculture property will bear the brunt of the increase.

—The Associated Press contributed to this report.