Property Taxes
I will be voting on my first city budget in a few months. I want to explain why I am advocating for a 3 percent increase in the 2026 budget.
This is your city. Your input is needed.
Peter Dahlen
First, I am not starving government. In the last 4 years, the city has increased property taxes on the homeowners and business of Northfield by a total of 60 percent. The city will continue to get that money every year going forward. How many have received an increase in their wages by that much?
I want to hear from you. To start the discussion, here is one outline:
1. Property Taxes Collected. Taxpayers gave the city: $13.4 Million (2023), $14.6M (2024) and 16.9M Million (2025). There is nothing we can do about the past (except a painful rollback), but we can face the future. First, the Ice Arena is expensive. Northfield taxpayers have to pay for 80 percent of the facility, even more if you count the school tax. We have to borrow this money in the bond market (at 4+ percent). Our bond payments will be essentially 1.5 million a year for 20 years. This represents 8 percent of our annual budget. Instead of putting this on the back of taxpayers, we need to find the savings in the budget. The city also accepts donations which is how the old ice arena was funded. Second, we should freeze hiring and pause spending on new projects.
2. Staff costs have gone up 6 percent (wages) in the next budget; therefore voters must pay it. The 6 percent is accurate, but the second statement does not follow. Our population has increased 5 percent in 10 years. When costs go up for a household, but revenue is the same, you cut costs. Governments do the same; they re-organize, re-prioritize, re-deliver.
3. Voters can afford to pay more. This may be true for some, but it is unrealistic for many. We live in a high-tax city in a high-tax state. Rice County is the third most expensive region to live in outside the metro and Rochester areas. 35 percent of the residents in Northfield use the food shelf. Tariffs are expected to increase the annual cost of living for the average American household into the thousands.
4. The city cannot operate without an increase way above 3 percent. If you hear this argument, ask for specifics. The police have asked for new training funds (I support), Nfld Area Fire Services wants a new fire truck (I support), street repairs in the pipeline (a given) and smaller programs (housing, for sure) are needed. For the rest, it is our city staff’s job to find the savings in the budget and weigh the cuts.