Bayport residents’ property taxes will likely increase slightly in 2020.
The Bayport City Council unanimously approved the preliminary 2020 budget, levy and Capital Improvement Plan at the Sept. 9 council meeting.
The proposed preliminary budget is $3,329,873, a 4.23% or $135,209 increase over the 2019 budget. The proposed budget includes a 3.62% increase in operating costs due to capital outlays and a reflection of staff costs for park maintenance.
The preliminary 2020 total levy was set at $1,392,344, a 5.13% increase over the 2019 levy. As a result of increased revenue and home values, Bayport’s 2020 budget is achievable via a tax rate of 31.6%, a 6.9% decrease over the 2019 tax rate.
The property taxes for the median value home of $230,100 will increase about $25 annually, from $717.10 in 2019 to $742.04 in taxes payable for 2020, according to the budget.
The estimated market value for Bayport’s 2020 tax base increased 12.5%, with $13,915,200 added in new construction value. City Administrator Adam Bell said the city expects fewer new homes in 2020 than in 2019 as the Inspiration neighborhood nears completion.
Bell added the city is shifting salary costs out of Sewer and Water Funds and into the Parks department, which accounts for the largest general fund department increase at $43,906. The city is also expecting a $30,000 increase in State Fire Aid that is offset by increased revenue and therefore, does not impact the 2020 levy, Bell said.
According to the budget, there will be no adjustment to utility rates for 2020. Additionally, the 2020 library levy was kept level with the 2019 levy at $175,000.
The total city debt is set at $1.8 million.
Bell added the 2020 Capital Improvement Plan includes a large infrastructure project with the Minnesota Department of Transportation along the Highway 95 corridor as well as funds for the second phase of Lakeside Park Playground improvements.
The Truth and Taxation hearing will be at 6 p.m. on Monday, Dec. 2 at Bayport City Hall, located at 294 Third St. N. in Bayport.
Under state law, the levy can be lowered but not raised before council passes the final tax levy and budget in December.
Contact Kim Schneider at email@example.com