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By Dana Kazel, Communications Manager
The St. Louis County Board has given initial approval for its 2027 maximum property tax levy, capping the increase at 6.25%, or $12.67 million, despite even higher operating costs and budget pressures. Levy impacts will be offset by the county's 7% property tax base growth this past year, 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.
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 discussed the $215 million levy during Tuesday's Committee of the Whole meeting, held in Cedar Valley's Town Hall. The final vote on the levy will take place during the County Board meeting on September 22, which will be held at the Cook Community Center.
As part of its cost cutting measures, the county is reassigning or eliminating a total of 31 positions countywide. County leaders also made the decision to delay some investments in buildings and equipment as a means to reduce costs in 2027.
"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."
The Board’s 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. Additionally, new program demands require restructuring positions in Public Health and Human Services to support the Minnesota African American Family Preservation Child Welfare Disproportionality Act, and to comply with federal SNAP eligibility requirements. It also addresses cost shifts associated with the state's Long-Term Services and Supports disability waiver program.
Other factors contributing to the levy are investments in staff salaries and rising health insurance costs. St. Louis County employs 1,900 people to deliver services to the county's 200,000 residents living across 7,000 square miles.
“We are the architects of this County’s future,” said Commissioner Annie Harala, who chairs the Board's Finance and Budget Committee. “We are keeping our financial house in order today so that we don’t have an infrastructure crisis five years from now. We are building a map toward a county where every family has a path to prosper.”
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 December 15.
Citizens also may provide input at any County Board meeting, or by contacting commissioners directly. Contact information can be found at stlouiscountymn.gov/countyboard. To learn more about the proposed levy and the current budget for St. Louis County, visit stlouiscountymn.gov/budget or email budget@stlouiscountymn.gov.
