Columbia Heights plans for EDA levy increase as part of 2025 budget

Columbia Heights plans for EDA levy increase as part of 2025 budget

The City of Columbia Heights is considering an increase to its Economic Development Authority (EDA) property tax levy as part of the 2025 budget process. City officials say the additional funds would help strengthen economic development activities and support future redevelopment projects.

Proposed Levy Increase

At its Sept. 23, 2024 meeting, the Columbia Heights City Council approved Resolution No. 2024-63, which authorizes the EDA’s request to raise its portion of the city levy by $65,000, from $310,000 to $375,000 for taxes payable in 2025. The increase is designed to “better serve the Authority’s economic development activities within the City,” according to the resolution.

This proposal is part of the city’s broader preliminary 2025 budget, which includes an overall 8.4% increase in the gross property tax levy. For a homeowner with a median-valued home in Columbia Heights, the total city levy increase is estimated at about $96 annually, or roughly $8 per month. The actual impact on individual properties will vary depending on their value relative to others in the city.

Under Minnesota law, a city’s EDA levy cannot exceed 0.01813% of its taxable market value. Columbia Heights’ proposed increase remains within that statutory cap.

Purpose of the Increase

The Columbia Heights EDA’s mission is to foster the city’s economic health and welfare by providing financial and technical assistance for residential, commercial, and industrial projects. Additional funding from the levy would expand the authority’s ability to support development and redevelopment initiatives across the community.

Public Hearing and Next Steps

State statute requires cities to hold a public hearing before adopting an EDA levy increase. Columbia Heights has published its notice of hearing, with the meeting expected to take place between Oct. 18 and Nov. 1, 2024. Residents will have the opportunity to voice their opinions on the proposal before the council finalizes the 2025 budget and tax levy later this year.

If approved, the increased levy would take effect with property taxes payable in 2025.

MinneapoliMedia