Oakdale approves 6% property tax increase for 2025
The Oakdale City Council unanimously approved a proposed 2025 property tax levy of $19.7 million on Tuesday, representing a 6.11% increase over 2024. The increase will fund four new city positions and various infrastructure improvements while keeping tax growth below the double-digit increases seen in neighboring communities.
The council's voice vote approval of Resolution 2024-71 sets a ceiling for next year's property taxes, meaning the city can only decrease the amount between now and December, not increase it. Finance Director Kyle Costas explained that the $1.1 million increase will support hiring a police sergeant, public works maintenance worker, fire marshal, and finance/HR clerk, along with training, vehicle and equipment funding, and strategic development projects.
For the median residential property in Oakdale, the increase translates to approximately $44 more in annual taxes—a 3.42% jump. Mayor Kevin Zel emphasized that the city worked strategically to keep the increase modest compared to surrounding municipalities. "As some cities around us and around the Metro we're looking at double-digit increases in their tax levy," Zel said, noting that Oakdale's financial planning over recent years helped avoid steeper hikes.
The levy also funds improvements to Willowbrook Commons park and cost-of-living adjustments for city staff. Zel highlighted the city's financial discipline, noting that Oakdale avoids financing equipment purchases and has been decreasing debt service obligations. The council will hold a Truth in Taxation meeting before finalizing the levy, where residents can provide input on the proposed amount.
In other business, the council unanimously approved closing an Economic Development Authority meeting to discuss offers for two pieces of real property. The council also recognized departing Council Member Noah Her, who has served since March 2023. Her announced his resignation due to new opportunities and a cancer diagnosis, while emphasizing the importance of unity and trust in city staff. Mayor Zel proclaimed September 11 as Patriot Day and September 17-23 as Constitution Week in Oakdale.
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Votes (2)
Adoption of Proposed 2025 Property Tax Levy and Establishment of Truth in Taxation Meeting Date
Dissent: None
Moved by Unknown [18:05] · Seconded by Unknown [18:17]
Finance Director Kyle Costas presented the proposed 2025 property tax levy of $19,699,000, representing a 6.11% increase ($1.1 million) over 2024. The increase would result in an approximate $44 (3.42%) increase for the median residential property. The levy supports four new full-time employees (Police Sergeant, Public Works Maintenance Worker, Fire Marshal, Finance/HR Clerk), training, vehicle/equipment prefunding, strategic development, Willowbrook Commons park funding, and COLA adjustments. Mayor Zel highlighted the eight-month budget process and noted that the proposed levy is a ceiling, allowing only decreases, and stressed the council's effort to balance community needs with taxpayer burden, especially compared to higher increases in neighboring cities. He also emphasized financial strategies like not financing equipment and decreasing debt service.
Close Oakdale Economic Development Authority (EDA) Meeting to Discuss Real Property Offers
Dissent: None
Moved by Unknown [31:24] · Seconded by Unknown [31:32]
The Oakdale Economic Development Authority convened separately from the city council. The primary agenda item was to discuss offers and counter offers for the purchase or sale of two specific real properties identified by their PIN IDs. The City Attorney advised moving directly to a motion to close the meeting.
Notable Quotes (3)
assumptions and factors impacting the 2025 Levy and related budget uh include removal one time expenditures and revenues four new regular full-time employees including one licensed Sergeant in the police department uh one maintenance worker in public works one Fire Marshal and one uh ft increase total for finance Clerk and human resource generalist
between now and December we can only go down we can only decrease the tax levy if we need to we can we cannot go above it this is the ceiling this is a step we take every single year
as some cities as a lot of cities around us and around the Metro we're looking at Double Digit increases in their tax levy um we worked very hard to rely on the financial investments and strategy we've laid out for the last few years to avoid that as much as possible
Ordinances & Resolutions (5)
Authorizes the President to designate September 17th through 23rd as Constitution Week.
Resolution adopting the proposed 2025 property tax levy and establishing the date for the Truth in Taxation meeting.
Statute cited for closing the EDA meeting to discuss real property offers.
PIN ID for real property discussed by the EDA.
PIN ID for real property discussed by the EDA.
Source document
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Other Topics from This Document
Constitution Week and Day Proclamation
Recognition and Farewell for Council Member Noah Her
Condemnation of Domestic Violence in the Hmong Community
Community Events and Updates
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