Alexandria proposes 5.77% tax levy increase next year

Just because the levy may increase, it doesn’t mean taxes will go up. In fact, taxes would drop for some property owners.

EP Alexandria City Government 2
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ALEXANDRIA – The Alexandria City Council is proposing to increase its tax levy next year by 5.77%.

That’s 2.13% less than the 7.9% increase the city approved for 2022.

The levy would increase from $7.96 million to $8.42 million.

The council approved the preliminary levy and budget at its Monday night meeting. The council can still adjust the budget or lower the levy before giving final approval but it is not allowed to increase it, according to City Administrator Marty Schultz.

Marty Schultz
Marty Schultz

Just because the levy may increase, it doesn’t mean taxes will go up. In fact, taxes would drop for some property owners.


The city assessor’s office provided some examples:

The city’s portion of property taxes on a home valued at $240,000 would drop about 6%, from $961.21 to $899.01, a difference of $62.20.

This is mainly because of ongoing growth in the city's tax base that has increased 30% since 2019, and 13.1% in the last year alone, according to Schultz. Taxes are being spread across more properties, which keeps the taxes down.

A truth-in-taxation hearing will take place at 7:15 p.m. at the council’s Dec. 12 meeting.

The 2023 preliminary budget was set at $11.34 million – a 9% increase from the 2022 budget of $10.4 million. As in past years, the three biggest budgets are:

  • The police department, which will increase nearly 10%, from $3.54 million to $3.88 million.
  • General government, which will increase nearly 7%, from $2.72 million to $2.91 million.
  • Public works (streets), which will increase 14.2%, from $1.43 million to $1.64 million.

Other 2023 preliminary budget items of $100,000 or more (with this year’s amount in parenthesis) include public works/parks – $822,005 ($760,521), Runestone Community Center – $736,053 ($696,524), fire protection – $469,953 ($453,066), building department – $445,588 ($411,298), airport – $219,850 ($185,200) and engineering – $120,000 ($105,000).
Besides property taxes, the city's other main revenue sources are Local Government Aid — $1.61 million, ALP Utilities — $990,000, RCC ice rental — $473,267, building permits $475,000 and a natural gas franchise fee of $400,000 that the city collects from CenterPoint Energy (5% of its gross revenue).

Schultz provided a breakdown of how $1 in tax dollars is distributed: 65 cents to the general fund, 20 cents to debt retirement, 7 cents to the Alexandria Lake Area Sanitary District, 5 cents for various equipment funds and 2 cents for other expenses.

The council held a public hearing before approving the preliminary levy and budget. One person spoke, Alan Roebke, who was concerned about the city spending $475,000 in legal costs.


Details from Schultz's budget presentation will be available soon on the city's website, .

Al Edenloff is the editor of the twice-weekly Echo Press. He started his journalism career when he was in 10th grade, writing football and basketball stories for the Parkers Prairie Independent.
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