Montgomery County’s total net assessed value has increased once again, much of that growth attributed to the Stribling/Empire Trucks dealership currently in operation at the Interstate 55/Highway 82 interchange in Winona. The dealership officially opened in the spring of 2020.
According to Tony Green, director of finance/governmental specialist with North Central Planning and Development District, Montgomery County’s total net assessed value is now $62,956.964, up $1,875,420 over last year. He presented the numbers to the Montgomery County Board of Supervisors recently, as preliminary talks for the fiscal year 2022 county budget begin.
Green said although the increase in net assessed value will mean a $1,875 increase in a county-wide mill in fiscal year 2022, the majority of this increase will be used to fund TIF bonds to assist in the development of the $8 million Stribling/Empire Trucks project.
“The majority of the increase comes from the [Stribling]/Empire Truck project, which will be used to fund the TIF Bonds; and therefore, not being able to utilize this portion of the increase for county-wide operations,” Green said. “Only $386,556 can be used as actual increase for the county, which means a small increase in value of $386 per mill, increasing the value of a county-wide mill to $61,468, as compared to current value of $61,082.”
Tax increment financing allows cities and counties to issue bonds to assist developers in paying for infrastructure improvements needed for construction of a project. The bonds are paid for by future sales and ad valorem tax revenue generated by the new development above what is generated prior to the development.
With the Stribling/Empire Trucks project, the City of Winona agreed to allocate 75 percent of future ad valorem taxes and sales tax for the next 10 years to assist the project, and Montgomery County agreed to 75 percent of ad valorem growth for the next 10 years.
“TIF is a creative way to finance a project of that nature,” Green said.
Monday, the board of supervisors will be delving into budget requests from every county department. Green explained that if the county intends to keep the millage rate the same as last year, $48,000 will need to be cut from additional funds requested by county departments.
Currently, Montgomery County’s millage rate is 79.88, not including the school district levy of 49.39.
For fiscal year 2022, the board of trustees for the Winona-Montgomery Consolidated School District did not ask for an increase in ad valorem taxes, therefore, keeping the school district levy the same as last year.
In addition, Green said a three mill note carried by residents in the former Winona Separate School District will see a .03 decrease in that levy.
