The following was released by the city of Minnetonka:
The city is proposing a 1.5 percent increase in the property tax levy, which will lower city property taxes next year for median valued homes in Minnetonka (taxable market value of around $277,200 in 2012).
The county estimates that over 65 percent of Minnetonka single family homes will see a decrease in their total property taxes. While this may seem logically backwards, the reasons for the decline are as complex as the state property tax system. Nevertheless, the decrease is due in large part to the shifting of the city property tax burden away from residential properties to commercial properties due to the state’s formula and relative market value changes between these two primary real estate sectors.
The city’s responsible, long-term focused, budget management continues to consistently pay off for our taxpayers and is why the levy increase is held low despite some other declining revenue resources and financial pressures such as rising energy costs. A 1.5 percent increase is lower than the current rate of inflation and lower than the increase proposed in most of our comparable cities in the metro.
In addition, prudent actions such refinancing city debt where appropriate in this low interest rate environment allows for the proposed 1.5 percent increase to be less than the 2.1 percent increase the city expected for 2013 at this time last year.
Three quarters of every city property tax dollar directly supports public safety protection and streets. Most of the remainder (eighteen cents) directly supports parks, trails and related services, which the annual community survey shows Minnetonka residents highly value.
User fees, instead of property taxes, support many of the city’s services including permitting activities, the city’s water and sewer enterprise, and recreation services and facilities. The operations of city enterprises are self-supporting. Facilities such as the Williston Fitness Center and the Ice Arena pay their own way. In fact, nearly three-fourths of all recreational services costs are financed by charging those who participate.
An explanation of your tax bill
City property taxes will decrease by $8 (almost one percent) on the median valued, $277,200 home in Minnetonka. Like school districts, a portion of your city property tax bill is voter approved. Due to the city’s sensible refinancing, less than $40 of next year’s total city taxes on the average bill will pay the debt service for the park renewal and opens space referendum bonds, approved by voters in 2001.
Proposed 2013 Property Taxes
(average $277,200 Minnetonka home)
Public budget hearing is Dec. 3
Minnetonka residents and property owners are invited to participate in the city’s annual budget hearing, set for Monday, Dec. 3, at 6:30 p.m. in the city council chambers at City Hall. For more information about the proposed 2013 budget, view the city's Budget page.
Visit the Ideas on the Budget page to provide feedback on the cit’s budget. All comments will be shared with the council as the budget options are considered prior to the adoption of the final 2012 budget in late December.