Property values could increase city tax share more than levy

Austin residents may see a slight increase in the city portion of their property taxes, but recent property valuations could mean larger tax increases for residents.

The Austin City Council held its truth in taxation meeting Tuesday to confirm its 2015 tax levy and budget.

Council members set the city’s tax levy to $4.3 million for 2015, which is about 4.98 percent higher than this year’s levy, to add 1.5 jobs, cover increasing costs and maintain services. The council also set the city’s budget at $31.2 million for next year.

City officials are looking to increase the city budget by $205,000 to help pay for a new full-time librarian and to move a part-time building inspector position up to full time.

The 4.98 percent increase may not translate to a large increase in taxes, however. A homeowner whose property is valued at about $100,000 in Austin could see a $10 to $11 increase in its city tax share, or about a 2 percent increase. Likewise, commercial properties valued at about $350,000 could have an $18 increase, or about 0.68 percent rise in city taxes.

Some residents may find their home values increased over the past year, which will mean a large increase in property taxes. One woman who attended the meeting saw her home increase in value by $17,000, which increased her city taxes by 26 percent.

Finance Director Tom Dankert said residents who may have been annexed into Austin recently could see larger increases in their property values for several reasons, including a new connection to the city’s sewer or water lines.

Tax statements coming late

Some residents may not have received their tax statements in time for the city’s truth in taxation meeting, however. Dankert told the council he received information for the city from Mower County staff on Tuesday, though the county is required to send out information by December each year. Dankert said the county contracts the tax statements out to a third party company, so it’s unknown how some residents, including some council members, haven’t received their 2015 proposed tax statements yet.

Mower County Finance Director Donna Welsh said the county verified the number of tax statements with its outsourced company, so it’s unclear why some people haven’t received statements.

The council will allow residents to speak on their tax statements during a Dec. 15 public meeting, where council members are expected to approve the 2015 levy and budget.

Changes in the city

The city of Austin has cut staff from about 180 positions in the 1980s to about 139 positions this year, about two positions annually over the past 25 or so years. Yet recent retirements and other vacancies have forced city staff to look at Austin’s operations.

Librarian Gayle Heimer recently announced her retirement, which goes into effect in April 2015. Austin Public Library Executive Director Ann Hokanson told the council in June that she would have to hire two full-time librarians to replace Heimer, who did multiple jobs for the library.

Other changes to next year’s budget include $1,000 more for the Coalition of Greater Minnesota Cities, a lobbying group that represents outstate cities at the Capitol. The city expects to pay $52,000 next year to the coalition.

The Welcome Center in Austin will receive $7,500 in funding next year, up from $5,000, after Welcome Center Executive Director Jake Vela asked for a grant increase due to a rising need for services in the community. The extra funds will come out of the city’s contingency fund.