St. Cloud Property Owners Face Another Levy Increase In 2027

(KNSI) – Mayor Jake Anderson says property owners should plan on a levy increase in the 2027 budget, but not one on the scale of the hike the city council approved last December.

Anderson spoke with KNSI News Wednesday evening as the city works through its budget meetings, a process he estimated is about two-thirds complete. He said his approach this cycle was shaped by the 4.49% increase adopted for 2026, which landed alongside the voter-approved fire referendum. “Now that’s not to say we’re going to not see a tax increase in 2027. We are. But it’ll be a much more modest increase from what it is.”

During the public work session, city staff discussed a preliminary 3.75% levy increase, though that number is not final. Officials are waiting for more revenue data and the outcome of another budget work session coming up on Monday, August 10th. That could bring the figure down before the council sees it again during its August 17th meeting. Anderson said that presentation will detail what each department requested and what was trimmed before the numbers reach the council.

He said the pressure comes from two directions. Personnel accounts for 83% of the property tax budget, and cost-of-living adjustments raise that share every year. At the same time, the city is carrying a long backlog of equipment that needs replacing. Anderson said he also weighs those costs against a local poverty rate he put at 18%. “How do you ensure that the revenues are providing the services that you need to provide and aligning with what people need to expect while still being affordable for the folks that live here? And that’s a real challenge because everyone’s financial situation is different.”

Anderson said 53% of the city’s fleet is now past its 20-year life cycle, down from the upper 50s a year ago. The goal for the 2027 budget is 49%.

One of those replacements answers a concern raised during last year’s budget debate. The city has taken delivery of a 2025 snowblower to replace a 1988 machine. He estimated that the new equipment cut the time and cost of loading snow into a dump truck by 30% to 70%, depending on conditions, freeing crews to move to other areas faster and reducing overtime. Anderson said newer plows also bring better fuel efficiency and less downtime while mechanics hunt parts for aging vehicles. St. Cloud is down to one spare snowplow, and adding a second spare is a target for next year.

The mayor said the aim is to find savings without deferring costs that come back larger later, and he acknowledged the backlog will outlast his term, estimating the full catch-up could take 10 to 15 years.

His long-term answer is to grow the tax base by adding more commercial, industrial and residential property, which would spread the cost across more payers rather than raising the rate on those already here.

Residents who want to follow the process have several dates ahead. A formal budget presentation goes before the City Council Monday, August 17th, followed by a public hearing August 31st. The council must certify a preliminary maximum levy by September 30th. The truth in taxation hearing and final levy vote are set for early December. Because the preliminary maximum levy functions as a ceiling, the final number certified in December can come in lower than what the council approves in September, but not higher.

The council approved a $100.8 million budget for 2026 last December, along with a $67.5 million enterprise funds budget covering water, sewer, parking and garbage collection.

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