St. Cloud Sets Preliminary 2024 Tax Levy

(KNSI) — St. Cloud set its 2024 preliminary budget and tax levy on Monday night.

Spending in 2024 will go up to nearly $87.8 million, a 6.77% increase compared to 2023. The property tax levy will cover $39.4 million, an increase of about $4.3 million from 2023. The funds will mainly go toward staff raises following a recent compensation study. St. Cloud is also hiring another community service officer and deputy fire chief.

Mayor Dave Kleis told KNSI News after the meeting this year’s budget was one of the hardest he has had to do in his 18 years as mayor. “The most difficult issue is when you’re looking at the inflation we had, and then you’re looking at a worker shortage on top of that, and you’re looking at all the things that make it difficult to hire folks in public safety.”

Public safety is 51% of the budget, according to Kleis. “That is one thing we will never compromise on. Public safety is the top responsibility we have. We’re not going to compromise on that. And we’re going to make sure we have the men and women that we need to have and the resources that they need.”

The preliminary budget also includes a 30% park and recreation budget increase. The money comes from last year’s voter-approved referendum to invest $20 million into neighborhood parks and trails over the next three years. Officials estimate the tax will cost an average homeowner $58 yearly in property taxes over the next 20 years.

The budget equates to $426 in spending per resident. That’s lower than the state average of $547.

City officials say the tax rate will remain unchanged despite increasing spending next year. Kleis explains St. Cloud is capturing the growth in the tax base, meaning property taxes should only increase if property valuations increase. Officials estimate the tax base will grow by about 10% next year.

The package passed 5-1, with councilmember George Hontos the lone no vote because he wanted to see spending reduced by at least $800,000, which is the amount being taken from reserves. No residents spoke during the public hearing portion of the meeting. The passage means the levy can’t be raised but could still be lowered.

According to a recent citywide survey, the three main concerns of residents are road conditions, public safety and traffic, which is what the budget covers. The mayor will review the entire survey at the next city council meeting.

Property tax statements will be mailed out in November. The final budget will be approved on December 4th.

Check out the budget for yourself by clicking here.

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