We’ve all recently had the opportunity to partake in our local property tax hearing lately, whether we live in a city, a township, the county or school district. Having covered a few for work or watched a few of them via the wonder of video posted on a website, the refrain is usually the same.
People want to pay less in taxes. Of course we do.
But here’s the rub. Locally, taxes equal services generally speaking. So, when you say taxes are too high, you’re effectively saying the level of services we receive is too high. Did people show up demanding the city reduce the level of services it offers? Nope. As has been previously stated, taxes are a combination of the value of property and the funding to pay for the increasing cost of services.
The New Prague School District is up front stating 83% of what it spends is for staff. That makes sense because educating children is a people-driven business, from teachers teaching to custodians keeping buildings clean and usable or food service staff preparing breakfast and lunches for one and all.
The percentage of the budget cities use is probably lower than 83% since the equipment used to provide services is included in the cost of providing the service, be it a patrol officer on the street or a plow driver relocating snow off the street so people can, we hope, drive where they need to be. For the city’s general fund, labor makes up about 66% of the city's overall budget. If you incorporate all spending (all departments and obligations), labor drops to about 33% of the overall budget.
A person might counter the level of services is where it ought to be but the cost of providing it is too high, meaning people working for the local unit of government make too much money. They ha-rumpf at the wage increases the department’s employees receive. With inflation running at 2.7% to 3% during 2025, in New Prague, the last negotiated contract calls for its police officers to receive a 2.8% cost-of-living adjustment plus step increase for length of service and the accompanying experience we all hope leads to better service.
Is it reasonable to assume those same people would want a larger wage increase for themselves for the year to come?
It’s a reasonable bet the New Prague community (approximate pop. 8,200) would not call for a reduction in the department’s staff from the 14 FTEs (full-time equivalent positions). By comparison, in Belle Plaine (pop. 7,400- plus), their police department has 12 FTEs patrol officers, including the police chief who splits time as police chief and state representative.
In New Prague, the city has finally decided to move forward with the long-overdue construction of ample quarters for its police department. Yes, the debt service will have an impact on city property taxes. Waiting, delaying because of the cost, has no doubt increased the impact.
A gentleman in Belle Plaine argued the cost of water and sewer in town is much higher than it was when he lived in a neighboring township. Even with the cost of upkeep to his private well and septic system, the higher in-town costs reflect the cost of staff and chemicals to treat water. Before moving to the same township, we knew our property taxes, a fraction of what they were when we lived in Shakopee, meant the gravel roads would be plowed less frequently and maintained to a reduced standard.
Taxes equal services. You can save money with fewer patrol officers on the street. You can save money with longer grass in the parks or garbage cans emptied less frequently. The city could save money waiting until more snow falls to plow its streets. The majority of residents think otherwise, preferring a higher standard of service.
It’s been stated previously. New Prague needs to grow. This city needs a bigger pie to share the property tax impact and, eventually, hopefully attract more commercial development. When land adjacent to the city becomes available, we hope a willing seller will be amenable to annexation. Back in the 1990s, an official from Home Depot was asked about the timing of the orange home improvement store opening a location in Shakopee. He said the number of rooftops matter. While New Prague shouldn’t seek for the kind of growth the county seat city endured through the 1990s and early-2000s, there are advantages to offset the challenges of growth.
Yes, New Prague you are well.