Mayor's Blog October 16, 2020- Budget
At the September 8th City Council meeting, the preliminary budget and levy were passed unanimously by the Council. Although the levy is increasing by 3.07%, it will actually mean a slight decrease to the average homeowner in Minnetrista. Why? Minnetrista saw a 3.5% increase in new home market value last year. So, if we capture that growth and add 3.5% to the levy, it essentially equates to no increase for the average home owner.
I was recently asked: “What is the difference between the budget and the levy”? The budget consists of all the city’s expenditures; everything we will be spending money on next year. The levy is always less than the budget because our revenues come from a multiple sources.
Our property taxes make up the largest portion of the City’s revenue, however building permit fees, money from the County, fiscal disparities, license fees, interest on our fund balances, recycling fees, and other sources are all part of the City’s revenues. It should also be pointed out that this is the preliminary levy. The city must certify a preliminary levy to the County by the end of September each year. The City Council must adopt a final levy by December 15th. The final levy can be reduced, but it cannot be increased from the preliminary levy amount.