Taxes are rising, but tempers aren't

Some Anoka County communities will be getting substantially higher property-tax bills in 2008. But as opposed to previous years, there seems to be fewer complaints, officials said.

December 8, 2007 at 7:22AM

Two years ago, when citizens in East Bethel learned that their property taxes might increase significantly, more than 300 people jammed the City Council chambers and another 150 called the city finance director.

But this year, when East Bethel residents learned property taxes would likely rise 13 percent or more, fewer than 10 people called Bob Sundberg, the city's finance director, and only seven protested via e-mail.

"Our residents aren't complaining," Sundberg said this week. "Nobody ever celebrates an increase in property tax, but the people living in East Bethel understand what they're getting for their taxes."

According to figures supplied by counties in the metro area, East Bethel, Ham Lake and Linwood Township citizens are expected to see the largest percentage increases in property taxes in Anoka County next year.

Using figures that were based on proposed maximum levies in September, East Bethel residents in St. Francis School District will pay $242 more in property taxes in 2008 for a home with the median value of $221,000 than they paid in 2007, according to the figures. That's a 13.1 percent increase.

Those East Bethel residents living in Forest Lake School District will pay even more -- $288 more, or an increase of 16.8 percent, according to the figures.

The figures supplied by the counties are the proposed maximum levies for all taxing jurisdictions within each city, but do not take into account the result of levy votes in November or any adjustments that the county, the cities or school districts are making before taking final action on their tax plans this month.

On top of that, the county announced this week that in its 2008 budget, county property taxes on an average-priced $230,000 house will increase 4.2 percent -- an increase of about $2.50 a month.

In parts of some municipalities, city property taxes are decreasing. Fridley residents may live in any of four school districts. Those living in the Anoka-Hennepin School District will see their taxes decrease next year by 10.5 percent. In other words, on a home with the median value of $197,700, Fridley residents in that district will pay $194 less next year in property taxes than they did in 2007.

Even those Fridley residents whose property taxes increase aren't expected to complain too vehemently.

"It's not high, but keep in mind we have a charter amendment which limits us to the previous year's Twin Cities' inflation," said Bill Burns, Fridley's city manager.

"The ultimate tax bill has a lot to do with the shift in value of property," Burns explained. "This year, residential property went up 1 percent. Commercial property taxes went up 12 percent."

Increased services

Ham Lake residents in the Forest Lake School District will be paying an additional 12.6 percent -- or $253 -- next year for property taxes on a median home worth $264,100, according to the figures. But, as is the case in East Bethel, few Ham Lake citizens have reason to complain, said Sharon Kutzke, Ham Lake's finance director.

Ham Lake contracts with the Anoka County Sheriff's Office for police protection. In June, the officers employed in Ham Lake saw their weekly work schedules increase from 32 to 40 hours. A full year of the increased schedule will increase Ham Lake's public safety bills by 13 percent, Kutzke said.

The city also bulked up its road crews by 11 percent, added several miles of streets and will add a public works employee in 2008.

"Improvements cost money," Kutzke said. "But when you figure out tax capacity rates -- adding up the market value of all properties in the city, looking at your levy and then doing a ratio of the two -- our tax capacity rate is the lowest in Anoka County."

East Bethel citizens also are getting what they paid for -- and paying for what they demanded, said Sundberg. The city's police services have doubled, the Fire Department has grown, and cross-country ski and walking trails seem to be sprouting everywhere.

"Trails were on the top of everybody's list," Sundberg said. "We're spending money the way our citizens have told us to spend money.

"There's no quick and easy answer to property taxes," he said. "The revenues we're used to during periods of high growth declined by $200,000 last year. Now we have to get that through taxes."

Paul Levy • 612-673-4419

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Paul Levy, Star Tribune