OTC approves preliminary tax levy
News | Published on October 1, 2024 at 3:39pm GMT+0000 | Author: Tucker Henderson
0By Tom Hintgen
Otter Tail County Correspondent
On Sept. 24 the five-person Otter Tail County Board of Commissioners approved a preliminary net property tax levy of $53.1 million for 2025. This represents a proposed 3.72 percent net tax levy increase compared to the 2024 net tax levy.
County board members noted that the proposed net tax levy is below the levels of many counties and municipalities in the region. Addressing the county board, prior to approval, was County Auditor-Treasurer Wayne Stein.
The county board will hold a public hearing at 6 p.m. on Tuesday, Dec. 3, 2024, at the Government Services Center in Fergus Falls to receive public comments regarding the 2025 budget and levy. This will be prior to final adoption of the 2025 budget later in December 2024.
The 3.72 percentage, as a comparison between payable years 2024 and 2025, does not reflect the percentage that some individual property owners might experience. That percentage is driven by additional factors.
The Otter Tail County Finance, Property and License Management Team has met to discuss and review in general terms levy and budgetary guidelines, as well as the proposed department budgets and various agency requests.
“As the tax capacity increases through growth in new businesses, new residents and new homes, the share of taxes paid may be smaller, or may not increase as much,” Stein says.
County board members say it is a relief to see minimal impact to the average county taxpayer. That’s because the county has seen growth in the taxable base which has been a goal of the county board.
After the adoption of the proposed net tax levy, the county board has the authority to decrease the proposed net tax levy. However, the board has limited statutory authority to raise the net tax levy increase from the percentage agreed to when the preliminary net tax levy was adopted.
The entire preliminary county budget for 2025 is approximately $145 million.
Stein said that close to 39 percent of the county budget is funded with local property tax dollars. The additional needed funding comes from the state and federal governments.
All five county commissioners, on Sept. 24, praised county departments for adhering to reasonable restraints to work within the parameters of the county budget.
Included in the budget for 2025 are county taxpayer funds for the following:
• Health and wellness (public health, human services, veterans’ services and county extension), economic growth and community (highways, land and resource management, parks and trails and solid waste)
• Safety and justice (emergency management, probation and law enforcement)
• Internal services (administration, human resources, facilities operations, information technology and geographic information systems)