Karen Newman

Clay County Administrator Stephen Larson conducted Clay County’s annual Truth in Taxation meeting following the adjournment of the Clay County Commission on December 8.  Established by the Minnesota legislature in 1988, the purpose of the meeting is to provide the public an opportunity to participate in the property tax system. 

The proposed 2021 Clay County tax levy of $37, 210,718 was adopted as Resolution 2020-28 by the Clay County Commission on September 22.  This action meets the state requirement for local government to formally adopt a proposed levy for the upcoming year.  Reporting for County Auditor/Treasurer Lori Johnson, Larson indicated that her office generated parcel-specific notices of proposed taxes for all county properties based on the proposed levy.

The use of levied funds is categorized:

· General Fund-59.85%

· Social Services-28.56%

· Roads and Bridges-10.11%

· Debt Retirement-1.33%

· Building Fund-.13%

Referring to the significant difference between the levy amount and expenses which were listed as $109,383,977, Larson explained, “I think it is important for all citizens to understand that the county acts as a pass-through for state and federal funds through different state and federal mandates.  Really, we function as an arm of the state. So, we receive dollars through these government agencies to make up the difference between revenue and expenditures.”  He added that projected county revenue for 2021 is $92,753,375 which includes levy dollars, county operation/usage fees and state and federal funds. Larson emphasized that the remaining gap between revenues and expenses doesn’t mean the county is deficit-spending. The gap represents internal services funds which departments save from year to year until they have accumulated enough money to fund big projects. These funds will make up the difference between revenue and expenditures.

Regarding real estate projections, Larson said, “Historically Truth in Taxation has looked at a $150,000 home.  We have a culmination of all of our taxes: county, school district, city or township, the EDA and watershed taxes.” He added that the county’s share of taxes would result in an increase of $22.10 for 2021 on a market-value $150,000 Moorhead home.  All the taxes added together represent an annual increase in 2021 (if real estate values remain flat) of $64.41 or $5.37/month.  

 Larson finished his report to the public and the county commissioners by highlighting a summary of estimated values:

· Total estimated Clay County market value: $7,059,543,900

· Estimated market value tillable land: $1,812,863,900 (25.7%)

· Estimated market value residential land and buildings: $3,738,225,800 (53%)

· Estimated market value commercial property: 1,508,454,200 (21.3%)

A forty-year Moorhead resident spoke during the citizen-input portion of the meeting.  She reminded the commissioners to seriously consider the negative impact presented by a monthly increase of $5.37 in taxes to senior citizens living on Social Security.

The board will make a final decision on the county property taxes at their December 22 meeting.