Lonsdale approves preliminary budget, tax levy

For the second year in a row Lonsdale’s city tax rate is staying the same.

At the Lonsdale City Council meeting held on September 29, the council approved a resolution setting the 2019 preliminary city budget and property tax levy.

“We’re pretty much at the same levy as we were in 2017,” said Lonsdale City Administrator Joel Erickson.

Despite the property tax rate, which is set at 17.64 percent, the same as in 2018, this does not mean residents will not see a change in their city portion of their tax rate.

Erickson explained that this is the result the Market Value Homestead Exclusion and this is creating a greater range in payable taxes by home owners.

The impact will most greatly be seen for the lower valued homes in comparison to those valued at the top.

“These property values are increasing in value at a much higher rate than more expensive valued homes,” he said in an earlier budget meeting. “In addition to increased value, the lesser valued homes will see their Market Value Homestead Exclusion reduced at a larger percentage than more expensive homes that already receive less MVHE.”

In 2019 a home valued under $200,000 could see a tax increase of roughly $158 compared to a home valued over $300,000 which will see a tax increase of roughly $30.

“There’s a wide range of tax impact,” Erickson said.

In total, the city’s preliminary tax levy is set at $2,073,000. This includes allocation of $1,745,700 to the city’s general fund and $327,300 to the debt service fund, which covers the business park and four reconstruction projects already in progress.

Mayor Tim Rud said that a major focal point when creating the 2019 budget was to keep the tax rate the same.

“It was a goal of ours,” said Rud. “I think we accomplished that.”

The City Budget

The city’s 2019 preliminary budget was approved and set at....

To see more on this story pick up the October 4, 2018 print editions.