Cottage Grove EDA adopts $137,500 HRA levy, splitting existing $275,000 levy

The Cottage Grove Economic Development Authority adopted a final Housing and Redevelopment Authority (HRA) levy of $137,500 for fiscal year 2025 on Dec. 3, splitting the city’s existing $275,000 Economic Development Authority (EDA) levy into two separate lines on the property tax bill. The motion passed 4–1 after a public hearing at which no members of the public spoke.

Brenda Melanowski, Cottage Grove finance director, told the board the split is intended to make levy uses more transparent and to move a portion of staff salaries and roughly $25,000 for professional services into a newly created HRA fund. “What we are recommending is that we take the $275,000 that we are levying in 2024 and that we create two separate levies… the second portion of $137,500 will be utilized for the HRA levy,” Melanowski said.

Melanowski said the city’s current EDA levy of $275,000 is well below the state-derived capacity for EDA activities; she added that the state limit for HRA levies is roughly $1.78 million for 2025, making the proposed $137,500 HRA levy well under statutory caps. She also said specific staff salary allocations between the EDA and the HRA have not been finalized but that staff time related to an affordable housing study scheduled for early 2025 would likely be charged to the HRA fund.

Board member Cheetah objected to the structure and warned of future increases, saying, “I’m sure I’ll be the only one who votes no on this but I’ll state my concerns publicly. I’m concerned that we’re going to come back next year and we’re going to double this $137 and we’re going to pass it right now because it’s not an increase but next year it’ll be twice what it is … and it’s going to snowball, snowball, and snowball.” He cast the lone no vote on the resolution.

Melanowski and other board members said the intent is not to levy to the maximum in the foreseeable future and emphasized transparency — the HRA line will appear separately on Washington County property tax statements as “Cottage Grove HRA,” allowing taxpayers to see HRA-specific charges.

Board member Scott moved to approve the resolution setting a special-benefit HRA levy not to exceed $137,500; Board member Jean Baptist seconded. After discussion the board adopted the resolution 4–1. The public hearing was opened and closed with no public testimony.

Following the vote, the board adjourned. The resolution sets the HRA levy amount for the city’s fiscal 2025 levy; the resolution number and any administrative follow-up were included in the meeting packet but are not specified in the transcript.