Detroit Lakes to set 2024 maximum property tax levy at 11.22%

Detroit Lakes, Minn. (KDLM) – Detroit Lakes city staff will be proposing a maximum 11.22% property tax levy increase for 2024 following their last budget work session on Thursday morning.

The maximum levy proposal will be made at next week’s Detroit Lakes city council meeting on Sept. 12.

If the maximum levy is adopted, the city will raise more than $8 million for city operations and its various funds, which is $800,000 more than last year.

Members of the budget team added an additional $200,000 in future street rehabilitation costs to the levy on Thursday morning after realizing, if they didn’t, they would have to start next year’s levy discussions at a floor of 5%.

During the session, Jon Pratt, city engineer for Detroit Lakes, told Councilmember Matt Boeke he believes the maintenance regiment currently being implemented on city streets now is starting to see some benefits, but that some of the streets in Detroit Lakes are not living up to their expected lifespan, which has created a backlog of roadwork.

For a Detroit Lakes resident with a $300,000 home, the city portion of their property taxes will increase between $29 to $285 for 2024 based on the increased value of their property compared to last year.

Following the meeting, Heidi Tumberg, finance officer for Detroit Lakes, said she loves working with numbers and showing councilmembers the financial options of their decisions helps them make better decisions.

“This is what I live for, I’m a nerd,” said Tumberg. “This is my gig. Budget and audit are kind of my two big games of the year. It’s kind of my world series of my job. It’s exciting to see things come together and people come to a consensus on what they want to do, and to be able to facilitate that process is kind of exciting.”

She also thanked members of the council and Detroit Lakes City Administrator Kelcey Klemm for their assistance through the budget process.

“Shoutout to the (Detroit Lakes) city council and everybody who showed up and were engaged in the process,” she said. “And, Kelcey (Klemm) for helping me through it. He’s definitely a huge help for me through this process. And it’s been a good one. I think we’ve had a lot of really good conversations and I think we’re going to get a lot done for the city.”

The maximum preliminary tax levy must be passed by the city council by Sept. 30. They will be allowed to lower the levy amount through December, but the levy amount cannot increase per state statute.