St. Peter city, schools and Nicollet County property tax hearings approaching

Dec. 1—ST. PETER — St. Peter residents could see relatively flat property tax bills to the county in 2022, while city and school district rates are still being finalized.

Nicollet County's Board of Commissioners set a public hearing on its proposed property tax levy for 6:30 p.m. Thursday at the Nicollet County Government Center. Commissioner approval could come afterward.

The St. Peter City Council's public hearing and potential approval is on track for Dec. 13, followed by the St. Peter School Board's hearing and decision Dec. 20. City and school officials will finalize tax rates ahead of the meetings.

St. Peter

St. Peter City Council members approved a $3,528,430 preliminary levy in September. It would be a $195,039 increase, or 5.9%, in 2022 compared to this year's levy amount.

The total can't be raised once the preliminary figure is approved, but it can be reduced.

At the same September meeting, the tax rate for residents was set at a flat figure compared to this year. Council documents from Monday's goal session, though, had a lower rate listed based on a reduced levy amount of $3,525,485.

If the lower proposed rate and levy are made final, the result would be lower tax bills for properties with the same year-over-year market values. A 5.9% increase in market values, about how much the city's tax capacity rose, would add about $48 onto property tax bills for a home valued at $150,000 in 2021.

Commercial properties valued at $250,000 in 2021 would draw about an additional $147 on bills if the property's market value rose by 5.9%.

Discussions about the final levy amount and tax rate are ongoing, said Sally Vogel, St. Peter's finance director. Council members discussed the matter Monday and will again during a workshop Dec. 6 before the Dec. 13 meeting.

"We've got our homework to do in the next week," Vogel said.

Nicollet County

Nicollet County commissioners set a $24,257,237 preliminary levy for 2022 in September. It was a 2% increase from this year's amount, or $475,120.

Administrative and criminal justice services were the two biggest revenue funds increasing from 2021 in the preliminary numbers, rising by about 20.1% and 5.5%, respectively. The health and human services fund was set to drop by 13.2%.

One of the notable changes between the 2021 and 2022 levies is this year the county had CARES Act funding to work with, said County Administrator Mandy Landkamer.

If approved Thursday, the final levy as proposed would result in about flat year-over-year property tax bills for properties rising in value by 5%.

"The county was very diligent going through the budget process this year," Landkamer said. "Of course there are concerns about the impact of COVID-19, and that was taken very seriously."

A home valued at $200,000 in 2021 and $210,000 in 2022, for instance, would result in $1 less in property taxes.

A commercial/industrial/rental property valued at $500,000 in 2021, then raised in value by 6% for 2022, would result in about $62 more on the property tax bill.

School district

St. Peter School Board members approved a preliminary levy amount of $6,393,433 in September. Although it was a $404,378, or 5.95% decrease from the previous year, the figures will change due to a referendum approved by voters in November.

The preliminary amount approved in September factored in the expiration of a previous referendum. The new referendum will be added to the preliminary amount ahead of final approval, said Tim Regner, business manager for St. Peter Public Schools.

"It's going to be what was approved in September plus the referendum and we're working through those numbers currently," he said.

It will result in an increased levy, he added, but exactly how much hasn't been finalized yet due to the referendum vote adding a wrinkle to the process.

The Free Press reported after the referendum vote that it would raise taxes by about $60 for a home valued at $150,000 and $100 for a home valued at $250,000. Agricultural land, which makes up a large 29% of Nicollet County according to county documents, isn't taxed — farmer residences are taxed.

The funding will support expanded career and technical education offerings, as well as maintaining programs not fully covered by state and local funding.

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