Metro counties hold line on property tax levies

Metro-area counties, fearing ballooning property taxes next year from a new state tax shift and cuts in state aid, drew a mostly firm line Tuesday against levy increases in 2012.

Of seven metro counties setting ceilings on next year's levies -- an amount that can only be lowered -- only Hennepin, Ramsey and Scott opted for hikes. The Ramsey County Board approved a maximum levy increase of 1.7 percent, while Hennepin commissioners passed a maximum increase of 1 percent. Scott commissioners approved an increase of just under 1 percent.

Anoka County commissioners, looking to minimize the nearly $6.9 million hit to homeowners from the state's repeal of the market value homestead credit, lowered the 2012 levy by an eye-popping 7.4 percent. The drop of at least $8.1 million marks the county's first levy reduction in at least 30 years.

"Our residents don't deserve to be taxed any more, and, frankly, they can't take it," Board Chairwoman Rhonda Sivarajah said.

The Legislature this spring replaced the homestead credit with a homestead market value exclusion. The change will help homeowners with lower-valued homes but force owners of higher-valued homes and commercial properties to pay more. Officials expect it will lead to higher taxes even in counties that plan spending cuts.

County commissioners, after getting recommended 2012 budgets this month from their administrators, will work on those proposals for several weeks before approving budgets and levies by mid-December.

Anoka: 7.4 percent lower

The county is saving money through employee severance programs, better use of technology and the corner-cutting design-build process in road construction. However, officials warned that higher-valued properties still may see a hike in their taxes.

Carver: 2.2 percent lower

The board approved a preliminary levy on Sept. 6 that is $1 million less than this year's. The recommended levy, at $45 million, followed a directive from the board to reduce property taxes, County Administrator David Hemze said.

Officials said the result should be a decrease in the county portion of property taxes for average-valued homes, which decreased from $277,200 in 2011 to $267,800 in 2012. However, Commissioner Tom Workman, the only vote against the package, said some homeowners could still see increased property taxes.

Dakota: 0 percent

Despite a tax rate that's the state's lowest this year and a 10 percent budget cut in the last two years, board members fretted how to explain the tax formula change to residents. They directed staff to send an informational insert to residents with their tax bills to note the state budget connection.

Hennepin: 1 percent higher

The County Board agreed on an increase of no more than 1 percent in next year's tax levy, stressing that the final levy likely will be less than that.

After the board received the recommendation from County Administrator Richard Johnson, Commissioner Jeff Johnson proposed a 0 percent increase. Other board members rejected the idea, saying that the county needed some flexibility, given the uncertain nature of state finances. A 1 percent increase represents a $6.7 million increase over last year's tax levy, for a total proposed levy of $676 million.

Ramsey: 1.7 percent higher

The board saved a bit from the initial proposal of $274 million. "This is not the best economy. There's a lot of people not working," Commissioner Tony Bennett said.

Board Chairwoman Victoria Reinhardt said the budget includes about two dozen staff reductions, mostly through attrition and possibly layoffs.

Scott: 1 percent higher

After one of the sharper exchanges between commissioners in recent years, the board approved a levy increase of a shade under 1 percent -- about $70 per household on average. About $10 of that stems from county spending decisions, officials said. The rest stems from other factors, mainly the end of the market value credit.

"We tend to blame the state for everything, but we have to look in the mirror, too," newly elected Commissioner Dave Menden said at the end of an abnormally long meeting.

Washington: 0 percent

Commissioners voted for a property tax levy change that won't exceed 0 percent and could fall lower. At issue is whether the county will assess Lake Elmo residents for participating in the county library system or whether the city sticks with its decision to start its own library. Unless the city reverses itself, the county's portion of the property tax bill could decrease by 0.3 percent and possibly lower next year.

The proposed $86.5 million levy reflects commissioner concerns that property owners are paying for an increasingly larger share of services.