DEPARTMENT: Budget
FILE TYPE: Regular Action
TITLE
title
Adoption Of 2023 Certified Dakota County Maximum Proposed Property Tax Levy
end
PURPOSE/ACTION REQUESTED
Adopt a maximum proposed 2023 property tax levy of $147,361,306 for Dakota County.
SUMMARY
As part of the 2023 budget process, the County Board is required by State statute to adopt a resolution setting the maximum proposed property tax levy on or before September 30, 2022. The proposed levy is the amount that will be used on all Truth in Taxation (TNT) notices. The 2023 levy to be adopted in December may not exceed the proposed levy amount except in a few narrow instances specified by Minn. Stat. § 275.065.
For taxes payable in 2023, the County tax levy will be spread on local tax capacity, which will be approximately 18.74 percent higher than for taxes payable in 2022. If the tax levy grows at any rate lower than 18.74 percent for 2023, the County tax rate will decrease. The net change in the County portion of the 2023 tax bill for individual properties depends on the combination of the County tax rate and the change in value for a given property.
State requirements for public budget and levy hearings for 2023 are that, in lieu of the formerly mandated TNT hearing, counties are required to hold a meeting at which the budget and levy will be discussed, and the public is allowed to speak. The meeting will be held on November 29, 2022, at 6:00 p.m.
After adoption of the 2023 maximum proposed property tax levy, the budget schedule continues as follows:
November 15 County manager presents the recommended budget
Nov 14, 15 and 17 County Board budget workshops
November 29 Budget/Levy (Truth in Taxation) public hearing
December 13 Adoption of the 2023 budget and property tax levy
On August 23, 2022, staff presented information at a County Board Budget Workshop regarding 2023 budget planning, including expected changes in revenue and expenditures, key assumptions, and preliminary levy planning alternatives. On September 6, 2022, the County Manager summarized the 2023 spending pressures, funding sources, and levy strategies. The County Board provided their feedback which is reflected in the County Manager recommendation.
RECOMMENDATION
recommendation
The County Manager recommends the County Board adopt a maximum proposed 2023 property tax levy of $147,361,306 for Dakota County. Given anticipated inflationary cost pressures, a tax levy in this amount, in combination with continued reallocation of existing financial resources, is estimated to be sufficient to cover cost growth on current service demands and caseload growth, but allows for very limited growth in internal support, and infrastructure and discretionary services.
end
EXPLANATION OF FISCAL/FTE IMPACTS
The recommended 2023 maximum levy of $147,361,306 for Dakota County represents a 1.9 percent increase from the amount levied in 2022. As discussed with the Board on August 23, 2022, the impact of this on a median-value home with a market value of $359,600 within Dakota County (up 17.00% from 2022 tax value of $307,300) in 2023 would be $664.90 (2022 $644.08), an increase of $20.82 (3.23%) from 2022.
☐ None ☐ Current budget ☒ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, the Dakota County Board of Commissioners is required to adopt a maximum proposed property tax levy by September 30, 2022, and to establish the date of a public hearing for input on levy and budget consideration.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby adopts the 2023 maximum proposed property tax levy of $147,361,306 (1.9% increase from 2022), to finance the 2023 County budget; and
BE IT FURTHER RESOLVED, That staff are directed to conduct appropriate calculations and file necessary documentation with the State of Minnesota to certify this action; and
BE IT FURTHER RESOLVED, That a public Budget/Levy (Truth in Taxation) hearing to receive public input on the County’s property tax levy and 2023 budget is hereby scheduled for 6:00 p.m. on November 29, 2022, in the Boardroom, Administration Center, 1590 Highway 55, Hastings, Minnesota or via telephone or other electronic means if necessary due to the ongoing COVID-19 pandemic.
end
PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: None.
BOARD GOALS
☐ A Great Place to Live ☐ A Healthy Environment
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
PUBLIC ENGAGEMENT LEVEL
☐ Inform and Listen ☐ Discuss ☐ Involve ☒ N/A
CONTACT
Department Head: Paul Sikorski
Author: Karen Cater