PEQUOT LAKES — After hearing from seven people in person at the Monday, Dec. 5, truth in taxation meeting, reading a couple of written letters and having conversation for more than an hour, the Pequot Lakes City Council approved its final tax levy and budgets for 2023.
The council set the 2023 city levy at $2,241,200, which is a 21.44% increase and $387,475 higher than this year’s levy.
The city’s final levy tax rate is 49.98%.
People spoke against the tax levy increase in light of increased property values that occurred and hard economic times.
An audience member said residents can handle small bites in tax hikes, but not a huge hit.
This is a bad time for a big hike, another said.
The roughly 15 audience members were told Crow Wing County, not cities or other municipalities, set property values. So questions about increased property valuations should be addressed to the county.
The council acknowledged the big tax levy increase and said they understood residents’ concerns. For over an hour, the council, city administrator and audience had a congenial, educational conversation regarding the tax process and the city’s position.
Mayor Tyler Gardner said the biggest problem is the city had minimal tax levy increases in the past dozen years, and substantial cutting last year, including reduced staffing.
Now the city faces needs to repair roads, etc., that requires more tax money.
Council member Dan Ronning said the city kicked the can down the road for a number of years and those items now need to be addressed. Regarding whether they are wants or needs, he said they are needs.
“There are very few wants in this budget,” City Administrator Rich Spiczka agreed, noting there are needs.
Council member Scott Pederson noted high fuel and electricity bills, inflation and health insurance costs.
He said the council met a goal of setting a tax levy that’s 50% of the tax rate, and he further explained that.
“This tax thing, we have worked so hard at it,” he said.
The city doesn’t have to do needed projects, but rather could let the town fall apart, Gardner said, but no one wants that.
The council shared ways the city is saving money, including not hiring a zoning specialist after a retirement and having fewer employees in the public works department.
In the end, conversation was affable and even included laughter, though no one – including the council – was happy with the tax increase.
For Pequot Lakes property owners, the city portion of their taxes includes the following for 2023:
- General revenue tax levy: $2,106,950.
- Tax abatement levy for Pequot Lakes Supervalu: $21,110 ($2,150 increase from this year, or 11.34% higher) This will be the 12th of 13 years for the tax abatement levy. Before the grocery store was built, the city agreed to abate the city’s portion of taxes on the increased value of the development back to the developer from 2012-24.
- General obligation utility revenue and disposal bond 2020A levy: $87,159. This bond was issued to fund the Rasmussen Road and South Washington Avenue project. The general obligation portion of the bond will be paid back with levy funds and the utility revenue and disposal portion of the bond will be paid back with money from the water and sewer funds.
- General obligation equipment certificate series 2022A: $25,981. This bond is for a city snowplow.
- Total levy: $2,241,200 ($387,475 increase from this year, or 21.44% higher).
The council also approved a Housing and Redevelopment Authority special levy of $49,752 ($2,310 increase from last year).
Nancy Vogt, editor, may be reached at 218-855-5877 or
nancy.vogt@pineandlakes.com
. Follow her on Facebook and on Twitter at www.twitter.com/@PEJ_Nancy.
