HOWARD LAKE, MN Howard Lake City Council approved its 2016 final levy during its Tuesday, Dec. 1 meeting.
The certified levy of $771,511 represents an increase of 2.99 percent.
However, the city’s tax rate has decreased, so the levy could increase 3 percent and city taxes could still go down, according to City Administrator Nick Haggenmiller.
This is based on an assumption of an overall property valuation increase of 3.8 percent.
The city’s tax rate was 77.1 percent in 2014. It dropped to 72.1 percent in 2015, and will drop to 70.5 percent for 2016.
A city’s tax rate is determined by dividing the total tax revenue needed by the total tax capacity.
Howard Lake’s levy increased by 0.9 percent in 2014, and by 4.6 percent in 2015.
The local levy amount is determined by subtracting all non-property tax revenue (state aid, fees, etc.) from the total proposed local budget.