Budget, Taxation & Special Assessments
Understanding the City Budget and Your Taxes
Managing a city is much like managing a household or a business—it requires careful planning, a clear schedule, and a transparent way to pay the bills. Here is how the City of Roseau builds its budget and how that affects you.
The Budget Timeline: From June to January
The City doesn't decide on a budget overnight. It is a six-month process designed to give residents plenty of time to see the numbers and provide feedback.
June – August: City staff begin drafting the budget for the following year.
September: The City Council sets a "Preliminary" Budget and Tax Levy. This is a "ceiling" or a maximum amount.
October: The City Council meets with City Committees and Department Heads to review and refine budget requests
November: You receive a preliminary tax bill in the mail showing what your taxes might look like.
December: After public hearings and final tweaks, the City Council adopts the Final Budget.
Important Note: The final tax amount can be lower than the September estimate, but it cannot be higher.
January 1: The new budget goes into effect.
Where Does the Money Come From?
The City of Roseau operates on a budget of approximately $10-12 million. While many people think property taxes pay for everything, they actually only make up about 8% to 10% of the City’s total revenue. The rest comes from state aid, fees for services, and "enterprise funds."
The 8 Areas of the City Budget
The budget is divided into eight specific "funds" to ensure money is tracked correctly. You can think of these as separate bank accounts for different city needs:
General Fund: For day-to-day services like police, fire, and parks.
Special Revenue Funds: Money set aside for specific projects or programs.
Debt Service Fund: Used to pay back city loans and bonds.
Electric Fund: Revenue and costs for city electricity.
Water Fund: Revenue and costs for clean water services.
Sewer Fund: Revenue and costs for the sanitary sewer system.
Garbage Fund: Fees and costs for trash collection.
Municipal Liquor Store: Revenue from the city-owned liquor store, which often helps fund other city projects.
Why This Matters to You
By the time you get your preliminary tax notice in November, the City has already done months of work. However, because the final levy can be lowered in December, your attendance at budget hearings is the best way to have your voice heard before the final numbers are locked in.
Understanding Your Property Taxes: How It Works
Have you ever wondered exactly how your property tax bill is calculated and where that money goes? While the formulas can seem complicated, the process boils down to a few key factors.
What Do Your Taxes Pay For?
Property taxes are the primary way our city funds the services we use every day. When you pay your taxes, you are directly supporting:
Public Safety: Police and fire protection.
Infrastructure: Fixing streets, maintaining pipes, and plowing snow.
Quality of Life: Upkeep of local parks and recreation areas.
City Business: General administration and paying off city debts.
The "Pie" Analogy
The easiest way to understand property taxes is to think of a pie.
The Total Pie (The Levy): Every year, the City Council determines the total amount of money needed to run the city. This total amount is called the tax levy.
Your Slice (Your Tax Bill): Your specific tax bill is your "slice" of that pie. The size of your slice is determined by how much your property is worth compared to everyone else’s, and by rules set by the State of Minnesota.
If the City Council increases the levy, the entire pie gets bigger. If your property value increases more than your neighbors', your individual slice might get bigger.
How is My Property Value Decided?
The City of Roseau works with the County Assessor to find the fair market value of your property. By law, an assessor must physically inspect your property at least once every four years. They look at the features of your home and compare them to what similar homes in the area have recently sold for. This ensures that everyone pays a fair share based on what their property is actually worth.
Why Does My Bill Change Every Year?
Even if the City Council doesn't ask for more money, your bill might still change. This happens because of several moving parts:
State Law: The Minnesota Legislature decides how different types of property (like apartments, businesses, or homes) are taxed. If the state changes these rules, the tax burden might shift from one group to another.
Market Trends: If home values in your neighborhood go up or down, your share of the pie changes.
New Construction: As new buildings are added to the city, the "tax base" grows, which can spread the cost of the pie across more people.
The Bottom Line
While the City Council decides the total amount of tax collected to operate the city (the levy), your individual bill is a mix of city decisions, your property’s value, and state regulations.
Property Assessment For Tax Purposes
The function of the City Assessor is to accurately and equitably value and classify all real estate in the City so that the tax base can be determined. All assessors must be licensed and certified by the Minnesota State Board of Assessors. The City of Roseau contracts with the Roseau County Assessor for all assessing services.
State Law Requires That:
- The values are placed at 100% of the market value as determined by annual State Department of Revenue sale surveys
- Each Property in the City must be reviewed and reappraised at least every four years.
- The property must be properly classified: homestead, non-homestead, taxable, exempt, apartment, industrial, etc.
Understanding Your Property Assessment and Special Charges
When it comes to your property, it can be confusing to keep track of who is visiting your home, why your value changed, or what those extra charges on your bill mean. Here is a simple guide to how the process works in Roseau.
The Property Review: Why is an Assessor at my door?
By Minnesota law, an assessor must review every property at least once every four years. However, they might visit more often if:
You have a new building permit or ongoing construction.
you have filed an appeal to challenge your tax amount.
You personally requested a review.
The assessor needs to correct an error in their records.
What to expect:
A typical visit takes about 10 minutes. The assessor won't give you a new value on the spot; they spend the year collecting data and calculate all values in January. You will receive your official value notice in February or March of the following year.
Have Questions? Who to Call
Depending on your concern, there are different people you should contact:
| If you have a question about... | Who to contact: |
| The Amount of Taxes (The cost of services) | Contact your City Council, School Board, or County Commissioner. You can also attend public budget hearings in November and December. |
| Your Market Value (The worth of your home) | Contact the Roseau County Assessor (218-463-1861). Most issues can be solved over the phone, but you can also formally appeal to the Board of Review or Tax Court. |
Property Taxes vs. Special Assessments
You might see "Special Assessments" on your tax statement, but these are not the same as property taxes.
Property Taxes: Paid by everyone to cover general city costs like police, parks, and snow removal. These are based on your property's value.
Special Assessments: These are charges for a specific improvement directly benefiting your property, such as new water mains, sewers, or sidewalks. These are based on the actual cost of the work.
How Special Assessments work:
Because infrastructure improvement projects are expensive, the city allows you to pay them off over a long period (usually 10 to 30 years). Before any project like this begins, the City must notify you and hold a public hearing so you can learn about the costs before they are incurred.
ANNUAL CITY BUDGETS AND AUDITED FINANCIAL STATEMENTS