By Logan Wells, News Director | Logan@kymnradio.net
This week, to help you understand the tax and valuation notices you received in the mail, we will be reviewing the tax rates set by local governments in December of 2024, reviewing a different government entity each day. You can see the previous parts of this series on our website in todays news.
Stories in the Series
- Listen To More: Rice County Tax Assessor Joshua Schoen
- Monday: How Your Property Taxes Are Calculated
- Tuesday: City of Northfield’s Tax Increase Summary
- Wednesday: Northfield Public Schools Tax Increase Summary
- Thursday: City of Dundas’s Tax Levy Summary
- Friday: Rice County Tax Increase Summary
Today we are reviewing the City of Northfield’s tax levy, which they set in December. The total levy increase is 15.8%. Most of Northfield’s tax base is residential, and the average home in Northfield is valued at $350,000, which would increase the city portion of property taxes by about $164 a year. However, home values change yearly, which can also fuel a larger increase in one’s taxes. In the Rice County portion of Northfield, the average home value went up 3.8%, and in the Dakota County portion of Northfield, the average home value went up 5.0%.
The city’s budget is $17.7 million in total, split across four funds. The general fund saw one of the largest increases, primarily driven by labor costs, including wage increases and the addition of two new positions, a budget analyst and a lead mechanic. Previously, both positions were outsourced.
Of the 15% increase, 5% of the rise is the city’s debt fund covering road construction projects. Inflation and COVID-19 have severely impacted road construction costs, which have nearly doubled in recent years, with the average mile of road repairs costing almost $2 million. In 2024, road construction in Northfield cost $8 million. A new fire truck, police command vehicle, and dump truck also led to the increase in the debt fund.
The city’s maintenance fund increased by 2.3%, with inflation cited as the main reason.
Northfield resident utility bills also increased by 28%, in part to cover the costs of the Water Treatment plant and other smaller construction projects for the Drinking Water system.
Will have all this information listed on our website in today’s news. As a reminder, this budget and tax levy was adopted by the previous Mayor and City Council; since then, the city has elected a new Mayor and two new City Council members. Additionally, the City is separate from the Northfield Public Schools.
View the full PowerPoint of the budget here and the recording of the City Council’s discussion.
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