By Tom Stiehm, Austin Mayor

Guest Column

Most people are convinced that the City of Austin’s levy increase is the highest in our area and that it is not fair to our citizens, or at least that the proposed levy is bloated. Nothing could be further from reality. Please let me explain.

For the year 2012, the City will lose approximately $687,000 in LGA (Local Government Aid). We are also losing approximately $613,000 in State Market Value Credit, which has been eliminated for the entire state in fiscal year 2012. The State of Minnesota, in all of the forecasts and calculations, assures all communities will levy back the full amount of the Market Value Credit to its citizens, and it appears most, if not all, have levied the full amount.

Local governments then took their levy figures from last year (2011) and increased them at percentages up to 7 percent. These are the percentage increases I have heard; although, I am sure some may be slightly higher or lower. These communities then report these levy increase figures, but they do not include the Market Value Credit amounts that will be levied back as part of the levy increase.

To further explain — Austin’s levy for 2011 was $4,134,000. The City’s levy for 2012 will be $3,975,000, or a decrease of approximately 3.85 percent. If the City of Austin used the same formula as virtually every other government entity we have contacted (those that will increase up to 7 percent), we would be reporting a levy decrease of 3.85 percent. I have yet to talk to or hear from another city or county in Minnesota whose 2012 levy is below 0 percent. I am not saying there is no community whose 2012 levy will be below Austin’s, but if so, we have not located them.

We in Austin did not want to tell our citizens they would have their taxes reduced by 3.85 percent and then when they opened their tax statements see increases.

The result of the State eliminating the Market Value Credit was that more of the tax burden would be shifted from residential property to businesses and commercial property. This is good news for homeowners and means that no homeowner’s city levy should go as high as 13 percent. There are many variables, and no homeowner can know for sure what his or her taxes will be until he or she receive a tax statement.

People should also remember that property taxes are divided: County 44 percent, City 34 percent, School 21 percent, and Other 1 percent.

You are invited to attend Austin’s Truth In Taxation hearing on Tuesday, Nov. 29 at 6:01 pm in the council chambers of the Austin Municipal Building, 500 4th Avenue NE. This is the public hearing you should attend if you have any questions on the 2012 levy.