Preliminary tax increase set at 11.2%

Members of the Waseca City Council held their final budget study session prior to approving a preliminary tax increase of 11.2 percent during their regular meeting September 20, 2022. 

What does this mean for Waseca residents?

It does not mean residents will be paying 11% more: The effective tax rate is 4.49%. 

During a short city council study session prior to the evening’s regular meeting, city manager Lee Mattson described a reduction the new ConAgra building creates in the overall tax burden borne by city residents. “It’s once in a lifetime,” he exclaimed. “At least once in my lifetime. They’re expecting the building to be valued at $20 million.

“It’s a unique situation,” Mattson concluded. 

The decision to approve the preliminary tax levy and general fund budget of $5.7 million dollars did not pass unanimously. Council members John Mansfield and John Clemmons both voted no, stating opposition to an increase as high as 11%. 

Reasons given for the hike included anticipated cost of living and health insurance expenses likely to result from contract negotiations currently underway with city employees. It was stated numerous times that determining a preliminary tax levy is a step required by the state; having named 11% as its maximum possible increase, the city cannot submit an official tax rate that is higher. It can submit one that is lower. 

“The city manager, finance director, and their whole staff are commended for their work on this tax levy and budget,” Waseca Mayor Roy Srp expressed. “There are a lot of headaches and chores involved. This is excellent work. Kudos to the entire staff.” 

Efforts to reduce increases to the city budget, and thus to the tax levy, included combining two full-time city staff positions, the assistant city manager and economic development planner, into one and cutting one worker from the street maintenance department. Also coming off the budget this year were $22,000 in maintenance no longer needed at the city’s water park. 

The final general budget and tax levy will be approved following a public meeting in December.