Goodhue County Board Reviews Budget Adjustments Amid Rising Property Valuations and Tax Shifts

In a recent meeting, the Goodhue County Board of Commissioners delved into the county’s 2025 budget planning, focusing on the Truth and Taxation requirements, property valuation shifts, and the impacts on tax distribution among various property classifications.

02:34The meeting spotlighted the proposed budget of $93 million 616,249, with a levy requirement of $45 million 359,975. This sum represents a 3.49% increase over the previous year’s levy but marks a decrease from the preliminary levy set earlier. Discussions emphasized that the budget’s major allocations include over half towards personnel services, with significant portions also directed towards services, public assistance, and capital expenses. The capital plan detailed $4.6 million in expenditures, largely funded through the levy for maintenance-related activities.

14:05A significant portion of the discussion revolved around property tax capacity trends, showing an increase in residential property tax capacity from 36% in 2016 to nearly 45% in 2025, coinciding with a decrease in utility property valuations. This shift illustrates a growing tax burden on residential taxpayers, with commercial and industrial properties experiencing slight increases. The board noted that the tax rate for 2025 is set to decrease to 40.799726%, a decline attributed to rising property valuations.

17:49One board member raised a question about the percentage of taxes that are state-mandated, reflecting concerns from constituents about the possibility of reducing county expenditures. The feedback suggested a preference for cutting costs, although the board acknowledged that mandated services limit the scope for spending reductions without affecting essential services.

The board also discussed the discretion counties have in providing certain services, such as extension services and veteran services, despite these not being mandated. The importance of maintaining road safety was highlighted, with an ironic note on the mandate to patrol waters rather than roads. Further, the roles of external agencies like the Humane Society and Historical Society were acknowledged as essential to reducing the county’s burden, despite not being mandated.

08:09Another topic was the valuation process and its effect on taxes. The median market value of personal residences is projected to increase from $259,000 in 2024 to $287,000 in 2025, with the market value exclusion also rising due to legislative changes.

23:40A resident, Danny Hy, inquired about the Homestead formula and its recent legislative changes. The board explained that statutory adjustments have expanded benefits, resulting in a one-time increase, shifting some tax burdens from residential properties toward businesses.

The board also explored the comparative tax rates of Goodhue County with state averages, noting variations due to economic conditions in neighboring counties. The influence of utility valuations, particularly those of EXL Energy, on residential taxes was emphasized. A decrease in utility tax demands shifts the burden to residential properties, a recurring issue in tax discussions. Utility companies often challenge their valuations, impacting overall tax distribution among property classes. The board acknowledged the complexities of lobbying between county officials and utility companies, noting the latter’s greater resources for advocacy.

Note: This meeting summary was generated by AI, which can occasionally misspell names, misattribute actions, and state inaccuracies. This summary is intended to be a starting point and you should review the meeting record linked above before acting on anything you read. If we got something wrong, let us know. We’re working every day to improve our process in pursuit of universal local government transparency.

Receive debriefs about local meetings in your inbox weekly:

Trending meetings
across the country: