HORACE – In the preliminary budget for 2025, Horace city officials plan to collect property taxes at the same level as they will after the 2023 reduction.

Mayor Jeff Trudeau attributes the stability of the property tax rate to the city’s constant attempts to save money and provide tax relief to citizens.

“We are very conservative in our spending,” he said.

In 2023, when Trudeau was a councillor, Horace City Council voted to reduce the number of mills from about 60 to 56. The city has since voted to keep the same number.

The number of mills determines the amount of property tax the city can collect. The more mills a city collects, the more money it makes from taxpayers.

“We have tried to do our part as a tax authority to offset this drastic increase from the county,” he said.

Chris Flynn / The Forum

Cass County assessors determine the value of every property and set the value of every mill for all towns in the county.

Although Horace has kept its property tax rates stable, the value of a mill will increase 18.6% next year, from $34,000 to $41,800, meaning the city will continue to collect higher property taxes. Inflation of these levies has occurred throughout the metropolis, as the value of a mill in West Fargo has increased 6.12%, from $256,026 to $271,696.

Although these taxes increase the property tax, they also increase the value of the house.

According to Paul Fracassi, director of fiscal equalization for Cass County, the value of a typical 1970s home in Horace increased 42% between 2018 and 2023, with most of that increase occurring in 2020 after the city conducted a comprehensive reassessment.

The mass reassessment showed property values ​​soaring and property taxes rising. By equalizing the total number of mills, city staff ensured that property taxes in Horace became more affordable in the face of rising inflation, which encouraged people to stay in or move to the city.

“This is our way of getting people to build in Horace,” Trudeau said.

Trudeau said the steady increase in property values ​​in Horace was a driving factor for council to keep tax rates unchanged after they are reduced in 2023.

Matt Voltz, Horace’s finance director, said the city has been able to reduce and keep fees low because of Horace’s conservative budget.

“We are a lean, efficient machine,” he said.

Voltz said 18 staff members will handle the city’s needs, adding that Horace will have the fastest-growing population in North Dakota between 2023 and 2024 and is expected to reach a population of 6,000 next year.

“All 18 are doing a phenomenal job. They are doing more than is asked of them and exceeding their expectations,” Voltz said.

He said another source that allows Horace to keep property tax rates low is revenue from new construction and interest from various bonds.

In 2023, Horace reported interest income of more than $930,000, compared to the budgeted $45,000. Another source of growth revenue is expected to be $500,000 from all planning and zoning approvals.

These specific revenues are not forecast to be as high in the preliminary budget, but total revenues from 2023 onwards are expected to be similar in 2025.

Trudeau said the city uses its revenue to keep levies low and invest money in the city to get better bond ratings and interest rates. He added that Horace uses the money to organize the city’s finances similarly to larger cities, such as by creating reserves.

The revenue will also cover general fund expenses, which are expected to nearly double between 2022 and 2025.

Voltz said Horace could double the number of its factories to generate more revenue and still comply with the North Dakota Century Code, but city officials made a conscious decision to keep the number the same.

“We want happy residents and we want to attract people to Horace,” he said.

As the city continues to grow, both Voltz and Trudeau hope the city will not have to raise taxes, although Voltz added that nothing is promised.

“This is pretty unique for a growing city,” Voltz said.

Makayla Anderson is an intern at Forum Communications. She was born and raised in Bismarck, ND and lives on a farm 20 miles east of Bismarck. Makayla is currently attending Concordia College studying English Writing with minors in Business and Journalism. She plans to graduate in spring 2025. When she’s not working as a reporter, she enjoys reading, playing basketball, and painting.