The bad news for property owners in St. Louis County is a probable increase in the county’s tax levy for 2027.
The good news is that the tax hike is much smaller than initially projected by county officials.
Earlier this week, commissioners gave initial approval for a maximum tax levy of $215 million, capping the increase at 6.25%, or $12.67 million.
The levy vote, which came at a committee-of-the-whole meeting in Cedar Valley’s Town Hall, comes in advance of a final vote expected on Sept. 22 at Cook.
And while the county board plans to raise taxes again in 2027, the levy hike is smaller than the 12.4 percent increase approved in 2026, and sizably down from numbers first circulated among commissioners.
“We started off at 19 (percent),” said commissioner Paul McDonald of Ely. “We got it down to 11, and then we had it at nine at a workshop about a month ago. We kept pushing and we got it to this point.”
McDonald said several pressures on the county budget drove the increase.
“There’s salaries, and health insurance has really been a kicker for us,” said McDonald. “And also inflation and some mandates, whether it’s the SNAP Medicaid from the federal level or acts from the state level.”
According to a news release from St. Louis County, some of the levy impact will be offset by a seven percent property tax base growth across the county, which includes a record-setting $337 million in new construction. When the county’s tax base grows, the cost is spread across more property owners, helping limit the individual impact on taxpayers.
McDonald noted that the county has also reduced more than 20 positions, via attrition, and county leaders also made a decision to delay some investments in buildings and equipment in an attempt to reduce operating costs next year.
“None of this is ideal,” said county board chair Mike Jugovich. “But we know our taxpayers need us to cut costs, and so we looked at every line in the budget and made difficult decisions. But even as we were figuring out ways to live within our means, the federal and state governments were shifting new costs to us.”
To limit the levy increase, county leaders made spending cuts to absorb an additional $12.1 million in operational expenses through staff reductions, restructuring, consolidation or reduction of services, and targeted use of fund balance. This was necessary due to increasing expenses, including costs that were shifted to counties to implement federal and state programs.
Commissioners say a top priority remains protecting core services - including plowing and maintaining 3,000 miles of roads, ensuring public safety, and supporting human services - that help individuals and communities to thrive.
The proposed levy reflects investments in public safety, funding seven new positions in the sheriff’s office, including deputies, jail corrections officers and 911 dispatch staff.
McDonald said the sheriff’s office has been historically understaffed and that the hires restore personnel and will cut overtime costs.
Other factors contributing to the levy are investments in staff salaries and rising health insurance costs. The county employs 1,900 people to deliver services to the 200,000 residents living across 7,000 square miles.
Minnesota counties are required by law to set their maximum property tax levy - that portion of the budget collected through property taxes - by the end of September. As the board and staff work to finalize the 2027 budget over the next few months, the levy amount may be reduced, but it cannot increase. Commissioners are expected to vote on the final budget and levy for 2027 on Dec. 15.
