Sauk Rapids Proposes 2.99% Levy Increase for 2027, Smallest in Three Years

(KNSI) – Sauk Rapids residents will have a chance to weigh in on the proposed 2027 budget just before it becomes official.

At Monday’s city council meeting, Finance Director Jack Kahlhamer put the 2027 general fund budget at $10,084,500, an increase of $403,400, or 4.17%. The biggest drivers are higher wages and benefits, along with rising cybersecurity costs.

The proposed property tax levy would climb to $7,164,500, an increase of $207,900, or 2.99%. Even so, the property tax rate would dip from 44.75% to 44.29%. 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.

The lower rate won’t mean a smaller bill for most homeowners. Most of the tax base growth comes from rising values on existing homes, and the city estimates the typical homeowner will still pay $10 to $40 more for the year. Only homeowners whose property value stayed flat would see a decrease, of $5 to $15.

The 2.99% levy increase is much smaller than the last two years. The 2026 levy went up 8.92%, and the 2025 levy rose 9.19%.

The council is scheduled to adopt the preliminary levy September 28th. Under state law, the final levy can come in lower than that figure, but not higher. A public hearing and adoption of the final 2027 budget and levy are set for December 14th.

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