The original item was published from December 6, 2022 9:26 AM to December 6, 2022 11:09 AM
The proposed 2023 budget and property tax levy will be presented at a public hearing on December 12, 2022. It will begin with a short presentation followed by an opportunity for residents and property owners to comment and ask questions about the 2023 tax levy and budget. The public hearing is part of the regular City Council meeting at 6:30 p.m. in the Mississippi Room at the Monticello Community Center.
The proposed city levy of $12,050,000 represents a 6.1% increase (or $697,000) over the 2022 city levy. The HRA levy for 2023 is proposed at $402,000, or $14,000 (3.6%) more than 2022. The total combined levy amount is $12,452,000 or a 6.1% increase.
The impact of the proposed levy on individual properties was listed in the Truth-in-Taxation (TNT) notices sent by Wright County in November. Your notice shows changes to the levies, your property value, homestead exclusion, and any other changes to the tax base. New for the 2023 taxes payable year, local governments are required to report summary budget information with the TNT notices. Wright County compiled information from the County, City, and School District to include in a one-page insert. There’s a lot of information in a limited space, so property owners are encouraged to reach out to the appropriate jurisdiction with any questions on the summary information. Please note, the 2023 proposed budget information will not be final because we continue to refine it until the final budget is approved on December 12, 2022.
This year residential market values increased by an average of 20% over the prior year. As a result, residential taxpayers should expect to see an increase in their city property taxes that exceeds the percentage increase in the levy. City Council held several budget workshops over the summer of 2022 to discuss the city’s projected costs in light of the current economic environment and weighed budgetary needs with the associated tax burden on property owners in the community.
What are my Property Taxes used for?
The property tax levy is used in four ways. About 1/3 of the funds are used to make the City’s debt payments, fund capital projects, and support the Monticello Community Center. The remainder of the levy is put into the General Fund.
The General Fund pays for city services like public safety, including the Fire Department and contract with Wright County Sheriff’s Office; snow and ice removal; and funding city departments like finance, planning and zoning, parks and recreation, and parts of public works. Overall, the tax levy helps us fund larger projects over time as well as complete our day-to-day operations on behalf of the public.