Edina Tax Payers To See The Lowest Increase In Property Taxes In A Decade

In today's economy any money savings is good news, and Edina residents will soon have reason to celebrate. Tax payers in Edina will more than likely see a tax break on their city tax bill. At the
November 1st City Council work session city leaders proposed an updated budget for the 2011 fiscal year.  The new budget included the lowest property tax increase the city has seen in the last decade.

The preliminary 2011 tax levy and budget that was proposed in early September was set at $26.1 million, which was 2.3 percent higher than the current year. Not only was it 2.3 percent higher it was the maximum allowed under the state imposed levy limit. Now the city leaders have reduced the proposed levy to $25.8 million, which is only a 1.1 percent increase from 2010. John Wallin, Finance Director, attributed the change to a recent refinancing of the debt that was acquired to build Edina City Hall, which lowered the budget by $300,000. The Edina City Hall opended in 2004 and was financed at $9.3 million and with the new refinancing of the loan the city will save slightly more than $100,000 each year over the next 10 years.

The 1.1 percent increase of property taxes will mean an $18 increase in city property taxes for an assumed home value of $410,800, with the assumption that the home lost 4.9 percent of its value from 2010.  The good news is if the preliminary levy would have been put into place these same homeowners would have seen a $31 increase in their property taxes. The City Council at this time is also considering assigning some staff members to propose a budget that would result in a zero percent levy increase over 2010.  In order for a zero percent levy increase from 2010 the city would have to cut another $300,000 from its general fund.

If you are looking to buy or sell a home  in a community that is fiscally responsible contact me, Kim Melin, today for help in finding your dream home.

Check out my website for help in buying a home in the Minneapolis area.