Sauk Rapids Residents Face Higher Utility Bills in 2027 Budget

(KNSI) – Sauk Rapids residents could see their utility bills go up more next year than their city property taxes.

The city council will give staff direction on 2027 utility rates and an updated budget at 6:00 on Monday night, according to the meeting agenda.

Sauk Rapids estimates the average household will pay $40 to $50 more for utilities next year, or 5% to 6% more on each bill.

The biggest piece is the storm water fee, which would rise from $14 to $18.50 every two months, or $27 a year. Finance Director Jack Kahlhamer wrote in a memo to the council that storm water costs have climbed over the last decade. The county also added its own storm water fee a couple of years ago, and the city now has to clean up ponds that haven’t been maintained in decades.

Water and sewer rates would each go up 3.5%. The city still has about $6 million in work left to remove PFAS, the so-called “forever chemicals” found in two city wells. Sauk Rapids has up to $3 million in grant money for the project, but it has to match it dollar for dollar. State reviews have pushed the project to 2027. Sewer costs are rising because Sauk Rapids helps pay for upgrades to St. Cloud’s wastewater treatment plant.

The street light fee would drop slightly, from $9.50 to $9 every two months.

The city’s general fund budget, which covers day-to-day operations, is $10,098,500 for 2027. That’s an increase of $417,400, or 4.31%, over this year, and about $14,000 more than the September proposal. Higher wages, benefits and cybersecurity costs are the main reasons for the increase.

The property tax levy hasn’t changed since the council set it in September. The city plans to collect $7,164,500, an increase of $207,900, or 2.99%. The levy went up 8.92% this year and 9.19% in 2025.

The city estimates the typical homeowner will pay $10 to $40 more in city property taxes for the year. The tax rate is going down slightly, from 44.75% to 44.29%, but rising home values mean most people will still pay a little more.

A public hearing on the final budget and tax levy is set for December 14th at 6:00 p.m. The final levy can come in lower than the September figure, but not higher.

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