Goodhue County presents proposed 2025 budget; median homeowner faces about $58 increase

Goodhue County staff presented their proposed 2025 budget and levy at a Truth-in-Taxation hearing, describing a proposed budget of about $93.6 million and a proposed levy near $45.3 million and saying the county tax rate would decline from 42.022% to 40.792%.

County presenters said just over half of the proposed $93.6 million budget would pay personnel services, with small shares for supplies and capital. The presentation showed 53% of levy dollars would fund the general fund, 20% health and human services, 14% public works, 8% capital, 4% debt and 1% waste management.

"When we're paying our 2025 taxes, it's really based off of a value that was established two years prior," said an unidentified county presenter, explaining that valuation work recorded in 2022–2023 sets 2025 assessments and that the county's board of appeal on June 18 was the last formal chance to challenge values for these taxes.

Using the county's median residential market values, presenters illustrated the homeowner impact: the median market value rose from $259,000 (pay 2024) to $287,000 (pay 2025), and presenters said the median homeowner would see roughly a $58 annual increase (about 5.6%). The presenter attributed that narrower tax increase to the board proposing a levy rise that is smaller than recent valuation growth.

Presenters also noted a change to the market value exclusion resulting from recent state legislation: "this is a one-time increase in the benefit" that expanded exclusion caps for pay 2025, the presenter said. The presentation read caps being increased (residential cap cited rising from about $413,800 to $517,200 and ag-land caps rising from roughly $1.8 million to about $3.2 million).

Board members asked how much of county spending is mandated by state or federal law. "Almost everything that we do is mandated," one presenter said, listing sheriff services, roads and bridges, health and human services and surveyor duties as largely prescribed by higher authority, and noting counties retain some discretion over service level and how they fund outside agencies.

A public commenter, Danny Hovde, asked directly, "What drives the homestead number?" A county presenter replied, "It's a formula that's in statute," and that the state set the homestead exclusion and expanded the benefit for pay 2025.

Board members raised the effect of utility valuations on property-tax distribution. The presenter confirmed that when a large utility's tax demand falls — for example, because the utility appeals its valuation — the tax burden shifts to other taxpayers: "Whenever Xcel Energy's property tax bill goes down, everybody else in the county's tax bills absolutely goes up," the presenter said.

The presentation included a five-year levy-history comparison and an inflation comparison; presenters characterized the county's year-over-year levy increase as under 3.5% and said that the five-year compound annual growth rate of the levy is about 4.21%, roughly in line with regional CPI calculations.

County staff provided contact information for questions and guidance on property tax refunds. The board was reminded it will be asked to approve the final 2025 budget at its December meeting.

The hearing concluded after public comment and board discussion; no formal motion or vote on the budget was recorded during this session.