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City looks to approve no-change tax levy

Published 7:44am Monday, December 2, 2013 Updated 11:53am Monday, December 2, 2013

A 0 percent tax increase for the 2014 property tax levy is on the table at Monday’s Fergus Falls City Council meeting.

The city council will hold its 2014 budget and tax levy presentation at 6 p.m. Monday in the council chambers at City Hall. There will be an opportunity for public comment on the budget presentation before the council votes to adopt the budget and levy.

The city is looking to keep the property tax levy the same for 2014 as it was in 2013, at $4,702,107. The city tax rate would also drop 2.68 percent from 51.189 percent in 2013 to 49.817 percent in 2014.

With that, some residents and business owners might see a decrease in property taxes from the year before. For example, a resident with a $125,000 home would likely pay $623 in city tax in 2014, down $17 from the $640 paid in 2013. For a $500,000 business, it would result in a savings of $127 from the previous year, paying $4,608 in 2014 versus $4,735 in 2013.

Though the tax levy would remain the same, the overall city budget is set to increase about $3.2 million from $37.8 million in 2013 to $41 million in 2014.

Fergus Falls will receive more Local Government Aid in 2014, $59,125 more, to help out with general city operations. It’s about a 1.7 percent increase after the Legislature approved an $80 million increase in LGA back in May.

The council approved the proposed budget and tax levy for 2014 in September. After the public meeting and vote Monday, the final levy must be certified to Otter Tail County by Dec. 30.

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