Sauk Rapids Property Taxes 2027: What The New Levy Means For Homeowners

(KNSI) – Sauk Rapids’ city tax rate would drop next year under the first draft of the 2027 budget that staff are bringing to the city council Monday night.

The rate would slide from 44.75% to 44.29%, even though the proposed property tax levy climbs to $7,164,500, an increase of $207,900 or 2.99%. The city can raise the levy and cut the rate at the same time because Sauk Rapids’ tax base grew just over 4% this year.

That does not mean smaller bills for everybody. Most of that growth comes from rising values on homes already on the rolls, and staff estimate the typical homeowner will still pay $10 to $40 more for the year. Only a home whose value stayed flat would see a decrease, and that would run between $5 and $15.

The 2.99% levy increase is a much smaller jump than the last two years. The current levy went up 8.92%, and the one before that 9.19%.

The report from Finance Director Jack Kahlhamer puts the 2027 general fund budget at $10,084,500, an increase of $403,400 or 4.17%. Staff point to two main drivers: general wage and benefit cost increases and rising cybersecurity costs.

The bulk of the levy, $5,688,400, covers general operations. Another $935,000 is earmarked for street reconstruction, $130,000 for the building fund, $125,000 for capital equipment, and $286,100 to pay down the 2022 street improvement bond.

Staff projections show levy increases of 3.85% in 2028 and 5.21% in 2029.

No vote is required Monday. The council is scheduled to adopt the preliminary levy September 28th, and under state law the final levy can be lowered from that figure but not raised. A public hearing on the final 2027 budget and levy is set for December 14th. Enterprise fund budgets and the city’s capital plans come later, and the 2027 EDA budget is also on Monday’s agenda.

The meeting starts at 6:00 p.m. at the Sauk Rapids Government Center, 250 Summit Avenue North.

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