Baxter sets 2022 preliminary tax levy at 6.9% increase

“I doubt anyone is happy with our current situation,” Mayor Darrel Olson said in the Sept. 21 city council budget session.

Board member Zach Tabatt said he wanted forward-looking projections as much as possible, with ways to strategize and do financial planning going forward to anticipate the annual budget process.

Olson agreed.

Olson said they have had meaningful budget conversations with many items and issues that have also arisen and while the levy is always higher than they would like, the discussions have been fruitful.

RELATED: Baxter City Council Tries To Balance The Budget

“It’s safe to say that none of us like how many we are at, but let’s keep our hats off and hope we can reduce it,” said Board member Connie Lyscio.

Once the final levy has been adopted, it can be reduced but not increased.

After the working session, the council met in regular session and voted unanimously in favor of the budget items on the approval schedule without comment.

Council member John Ward was absent for health reasons.

Next steps include a briefing scheduled for 6 p.m. on December 6 to review the 2022 budget and property tax levy and hear from the public with council expected to adopt the final 2022 budget, levy and plan. capital improvement at the December 7 meeting.

2021 direct debit u0009

  • $ 7,256,500 in debit,

  • $ 12,785,914 in taxable fiscal capacity,

  • 56.755% rate of fiscal capacity.

2022 pre-withdrawal

  • withdrawal of $ 7,755,100,

  • $ 13,354,735 taxable fiscal capacity,

  • 58.070% fiscal capacity rate,

  • 6.9% increase or $ 498,600 more than the 2021 levy.

Discounts

After city council ordered the city’s budget to be cut further, thereby reducing the required levy, staff made another reduction of $ 222,000.

These cuts included:

  • $ 60,000 in reduction of street overlays,

  • $ 50,000 by removing subtitled audiovisual equipment for town hall,

  • $ 75,000 cut from Oscar Kristofferson Park playground equipment,

  • $ 37,000 in cuts yet to be determined.

Estimation of the impact of the property tax

The municipal portion of property taxes was based on the average change in assessment of 3.75% for residential and 2.82% for commercial / industrial.

With this formula, a house valued at $ 76,000 in 2021 would have an estimated value of $ 78,850 for 2022. This house would have paid $ 259 in municipal taxes in 2021 and would pay $ 283 in 2022 for a $ 24 increase or change. 9.3%.

A $ 175,000 home in 2021 is expected to have an estimated value of $ 181,563 in 2022 and pay an additional $ 62 in taxes, from $ 871 to $ 933 for a 7.1% increase.

A $ 250,000 home in 2021 would see an estimated increase in value in 2022 to $ 259,375 and pay the city $ 90 more in taxes, from $ 1,335 to $ 1,425, an increase of 6.8% .

A commercial / industrial property of $ 500,000 in 2021 is expected to increase in value to $ 514,100 in 2022 and pay $ 285 more in taxes, from $ 5,250 in 2021 to $ 5,535 in 2022, an increase of 5, 4%.

Renee Richardson, editor, can be reached at 218-855-5852 or [email protected] Follow on Twitter at www.twitter.com/DispatchBizBuzz.

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