Detroit Lakes approves 11.22% maximum preliminary tax levy for 2024; public hearing Dec. 12

Detroit Lakes, Minn. (KDLM) – The Detroit Lakes city council approved an 11.22% maximum property tax levy increase for 2024 on Tuesday evening.

The preliminary levy passed by the council may be decreased by the end of the year, but it cannot get any larger.

If no changes are made, the city’s budget for 2024 will be $25.9 million separated into different funds and the property tax levy will raise $8.1 million in revenue.

Heidi Tumberg, finance officer for Detroit Lakes, told councilmembers what the additional levy dollars would be bringing to the city.

“We added some additional funding for street maintenance, for some street rehabilitation projects that we have planned over the next couple of years,” said Tumberg. “There is one new police officer that is planned in this budget. We have included some additional funding for some park equipment … and there are a few different things that are funded in here. With the DLCCC, with their request, we are funding the replacement of their roof through some capital contributions through a loan forgiveness with the public utilities commission and some additional funding from the liquor fund.”

The 2024 budget will also create a new economic development director position for the city, who will be charged with implementing a business retention and expansion program as well as serve as a liaison to the city’s development authority.

She also told councilmembers she is forecasting the city’s tax rate will decrease next year because home values, on average, have increased more than the proposed levy increase.

“If our levy increase is 11.22%, and our property value increase is more than that, our tax rate ends up coming down,” she said. “In 2023, our tax rate is 40.324% and I’m projecting next year with this preliminary budget and levy, that would come down to 39.149%.”

Detroit Lakes residents will have the opportunity to voice their tax levy concerns to the city council during a public hearing on Dec. 12 at 6:00 p.m. with the council expected to take action on the final property tax levy following the hearing.