2022 property tax levy amounts set by Crookston School Board, City Council
Crookston School Board and Crookston City Council set their property tax levies for taxes payable in 2022 after their Truth in Taxation hearings this week. The school district set theirs at 4.3% with an under levy of $100,000 from their preliminary maximum amount and the city set theirs at 8% with one council member voting against the proposed percentage.
CROOKSTON SCHOOL BOARD
The Crookston School Board opted to under-levy by $100,000 at 4.3% from the maximum allowed for 2022 following their Truth in Taxation hearing where they considered three tax options for next year. Board member Mike Theis said his motion to under-levy was encouraged by the school district’s “extremely responsible” financial status and he hoped to pass down savings to taxpayers.
The $100,000 the district reduced from the maximum 7.4% preliminary tax levy to get to the final 4.3% will come from their long-term maintenance facility fund. That fund currently has a balance of around $1 million, Business Manager Laura Lyczewski said during the hearing.
A few examples of estimated changes for residential homesteads, commercial/industrial and agricultural homesteads and non-homesteads include:
• Residential Homestead valued at $150,000 - At 4.3%, the estimated annual school district property taxes payable in 2022 would be $528 or an estimated change in annual taxes of $8 (increase) over actual taxes payable in 2021.
• Commercial/Industrial valued at $500,000 - At 4.3%, the estimated annual school district property taxes payable in 2022 would be $2,589 or an estimated change in annual taxes of -$44 (decrease) compared to actual taxes payable in 2021.
• Agricultural Homestead (dollars per acre) valued at $6,000 - At 4.3%, the estimated annual school district property taxes payable in 2022 would be $3.25 or an estimated change in annual taxes of -$0.44 (decrease) compared to actual taxes payable in 2021.
• Agricultural Non-Homestead (dollars per acre) valued at $8,000 - At 4.3%, the estimated annual school district property taxes payable in 2022 would be $8.66 or an estimated change in annual taxes of -$1.18 (decrease) compared to actual taxes payable in 2021.
CITY OF CROOKSTON
The Crookston City Council passed a resolution this week adopting an 8% property tax levy for taxes payable in 2022 following their Truth in Taxation hearing at City Hall. At-Large City Council member Tom Vedbraaten voted against the 8% stating earlier in the evening that he believed even one percent lower at 7% would “help every home owner and every business in town.”
The total city levy for 2022 is $2,523,384 with 60% going to parks and recreation, 28% to the general fund, 11% to the library and 1% to the airport.
The Council also adopted the 2022 budget which has a revenue breakdown of 41% coming from non-tax receipts (approx. $5.6 million), 29% from local government aid (approx. $3.9 million), 18% from city tax levy (approx. $2.5 million) and 12% reserves (approx. $1.5 million.)
During a slide presentation by City Administrator Amy Finch, the breakdown of what $1 of city taxes pays for helped to provide a better explanation to the public showing $0.60 of each dollar going to parks and recreation, $0.28 to the general fund, $0.11 to the library and $0.01 to the airport. In a comparison of city levy and aid from 2018 to the proposed numbers for 2022, the slide showed the general levy, special levy, total levy, levy increase, LGA (certified amount) and LGA increase for each year and also displayed that 2022’s levy increase at 8% was the highest it’s been in the last five years though At-Large Wayne Melbye pointed out that the average of those five years is 5%.
When asked by Ward 6 Council Member Dylane Klatt what the average 2022 city property tax levy around the country was, Finch said the League of Minnesota Cities sent out information and there was a preliminary average of about 6.8% in the state but not all cities had their levies finalized and changes could be made.
With the 2022 8% city levy increase, estimates show a residential homestead valued at $150,000 would have an annual tax impact of $776.65 (or $64.72 monthly) and a commercial business valued at $200,000 would have an annual tax impact of $1,999.14 (or $166.59 monthly.)